Pertemuan Ketiga
Corporate Strategy Decisions and
Marketing Implications
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Corporate Strategy
Components
• Scope, mission and intent:
– What business should the firm be in?
– What customer needs, market segments, and
technologies should be focused on?
– What is the firms’ enduring strategic purpose ?
• Objectives:
– What performance dimensions should the firm’s
business units focus on?
– What is the target level of performance to be
achieved?
– What is the time frame in which each target should be
attained?
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Corporate strategy
components
• Development strategy:
– How can the firm achieve a desired level of growth over time?
– Can the desired growth be attained by expanding the firm’s
current business?
• Resource allocation:
– How should the firm allocate its financial resource?
– Which strategies should the firm follow?
• Sources of strategy:
– What competencies and knowledge should be developed?
– What operational resources, facilities should the firm share?
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Criteria for Defining Corporate
Mission
• Physical terms in products or services or
technology.
• Customers’ needs
• Functions to fulfill customer’s needs
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Corporate Objectives
• Four components within each objective:
– A performance dimension or attribute sought
– A measure or index for evaluating progress
– A target to be achieved
– A time frame within which the target is to be
achieved
• “For one who has no objective, nothing is
relevant”.
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Performance Criteria
• Growth:
– Sales
– Unit sales
– Percent change in sales
• Competitive strength:
– Market share
• Innovativeness:
– Sales from new products
– Percentage of sales from product market entries
introduced within past five years
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Performance Criteria
• Profitability:
– Profits
– Profits as percentage of sales
– Contribution margin
• Utilization of resources:
– Percent capacity utilization
– Fixed assest as percentage of sales
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Conclusion
• Unethical behavior by a firm’s employees
can damage the trust between a firm and
its suppliers.
• In the long term, the value a firm
generates for its shareholders and the
value it delivers to its customers converge.
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