Market Oriented Mission Statement

791 Words4 Pages
Every company should find its own plan for long-term life and growth in the rapidly changing business environment. The main focus of strategic planning is to find a fit between the goals, capabilities and the changing marketing opportunities of a given company. At corporate level the strategic planning consists of: Defining the company’s mission, Setting company objectives and goals, Designing the business portfolio and Planning marketing and other functional strategies.
Some companies have a product-oriented definition which directly represent what they serve as products but the mission statement has to be market-oriented. The market-oriented mission statement is a statement that shows the purpose of an organization and what it wants to accomplish
…show more content…
Next each company has to turn its mission into detailed objectives for every level of the company. It has to develop marketing strategies and programs in order to be able to support marketing objectives.
The business portfolio of a company consists of all the businesses and products that make up the company. And the business portfolio planning consists of two steps:
• Analysing the current business portfolio and decide which businesses should receive more investments which should receive less investments and which are not really profitable and should not receive any further investments.
• The second step is to design the future portfolio of the company by developing plans and strategies for growth or downsizing depending on the current situation given in the
…show more content…
The next step is to assess the attractiveness of each of the SBUs and make a decision on how much support each of them deserves.
According to the Boston Consulting Group each company should divide it’s SBUs using the growth-share matrix. It defines four main types of SBUs:
• Stars are business or products with high growth and also a high share from the market. The businesses or products which are defined as stars need heavy investments in order to keep their high share in the market.
• Cash cows are businesses which are stable and have low growth but have a high share of their market. Because they are established in the market and have already earned a reputation they need less investments in order to keep their market share. Cash cows are really important for the company because they bring big part of the money to the company which they use for researches for new products, pay the bills or other essential expenses for the company. For example, the classic Coca-Cola drink is the main cash cow of Coca-Cola Company as it is a very popular product with really big share of the market. It allows the company to invest in other new products and brands in order to keep the grow of the

More about Market Oriented Mission Statement

Open Document