1. 11.1 Developing Strategic Plans INTERNATIONAL MARKETING

2. Types of Strategic Planning  Strategic Planning: Process of determining how to move to a desired future state.  Used by businesses to ensure all parts of the organization are heading in same direction  Evaluates the environment, identifies long term objectives, & develops the plans to reach those objectives.  Take a wide view of business  Tactical Planning: More narrowly focused  Takes a short-term view  The Difference Between Strategic & Tactical Planning:  https://www.youtube.com/watch?v=TCei7oChf9I https://www.youtube.com/watch?v=TCei7oChf9I

3. Approaches to Planning  International marketers will either take a proactive or reactive strategic approach  Proactive: Recognize your product potential & pursue it before being forced  Reactive: Implement a change based on the environment  What is a proactive approach to getting into your dream college?  What is a reactive approach to not getting into your dream college?

4. Strategic Planning Process  Strategic Planning helps lower risks.  Look at what you can do well & minimizes things from happening that could prevent you from doing well.  Strategic Planning Follows a Six Step Process: 1. Develop a mission statement 2. Conduct a situational analysis or SWOT 3. Develop alternative goals & strategies 4. Develop the strategic plan 5. Specify action plans 6. Evaluate & Control the plans

5. Mission Statements  A mission statement accomplishes the following:  Defines a market oriented purpose of an organization  Provides direction  Commits resources  Inspires individuals  Establishes a focus for activities

6. Step #2: Conduct a SWOT Analysis  A SWOT Analysis is an environmental assessment of the strengths, weaknesses, opportunities, & threats that a business faces.  Provides the information necessary for developing global strategic plans.  Strengths and weaknesses have a internal focus on factors a business can control.  Opportunities and threats evaluate external factors that the environment brings.  Strengths and opportunities are the positives  Weaknesses and threats are negative

7. Step #3: Develop Alternative Goals & Strategies After developing a mission statement and conducting a SWOT analysis, a business must develop a set of alternative goals and strategies. Evaluate advantages and disadvantages Focusing on just one alternative can increase risks Alternatives may involve: Pursuing a variety of products Evaluating alternative markets Possible abandonment of certain markets or products

8. Step #4: Develop a Strategic Plan Step #5: Specify Action Plans Step #6: Evaluate & Control  #4 & #5: The business must set specific action plans  Assign responsibilities  Establish measurable goals  Establish deadlines and due dates  This helps insure the plan is actionable and will be followed  Step #6: Evaluate & Control  The plan needs on-going evaluation to monitor its progress.

9. Strategic Business Units (SBU’s)  SBUs(Strategic business unit) are established by parent companies to implement strategic plans.  SBU: The smallest unit around which a business develops a strategy  Example Phillips has an European division, North American division and an Asian division.  Each of these are examples of SBUs and Phillips will develop country specific strategies for each of these SBUs.  SBUs do the tactical planning but are ultimately controlled and strategically planned by their parent units.

10. Ticket Out the Door Individually, write 2 to 3 facts/ characteristics on each of the following: strategic planning tactical planning strategic business unit mission statement SWOT analysis