Meaning Of Corporate Appraisal

Broadly, corporate appraisal refers to an examination of the entire organization from different angles. It is a measurement of the readiness of the internal culture of the corporation to interact with the external environment. Marketing strategists are concerned with those aspects of the corporation that have a direct bearing on corporate-wide strategy because that must be referred in defining the business unit mission, the level at which marketing strategy is formulated. As shown in Exhibit...

Defining Market Boundaries

The crux of any strategy formulation effort is market definition The problem of identifying competitive product-market boundaries pervades all levels of marketing decisions. Such strategic issues as the basic definition of a business, the assessment of opportunities presented by gaps in the market, the reaction to threats posed by competitive actions, and the decisions on major resource allocations are strongly influenced by the breadth or narrowness of the definition of competitive boundaries....

Strategic Business Units Sbus

Frequent reference has been made in this chapter to the business unit, a unit comprising one or more products having a common market base whose manager has complete responsibility for integrating all functions into a strategy against an identifiable competitor. Usually referred to as a strategic business unit SBU , business units have also been called strategy centers, strategic planning units, or independent business units. The philosophy behind the SBU concept has been described this way The...

Marketdilution Strategy

In many situations, a company may find reducing a part of its business strategically more useful than expanding it. The market-dilution strategy works out well when the overall benefit that a company derives from a market, either currently or potentially, is less than it could achieve elsewhere. Unsatisfactory profit performance, desire for concentration in fewer markets, lack of top management knowledge of the market, negative synergy vis- -vis other markets that the company serves, and lack...

Productscope Strategy

The product-scope strategy deals with the perspective of the product mix of a company i.e., the number of product lines and items in each line that the company may offer . The product-scope strategy is determined by making reference to the business unit mission. Presumably, the mission defines what sort of business it is going to be, which helps in selecting the products and services that are to become a part of the product mix. The product-scope strategy must be finalized after a careful...

Intuitive Reasoning In Environmental Scanning

Traditionally, environmental scanning has been implemented mainly with the use of conventional methods, including marketing research, economic indicators, demand forecasting, and industry studies. But the use of such conventional techniques for environmental scanning is not without pitfalls. These techniques have failed to provide reliable insights into the future. Discussed below are a variety of new techniques that have been adapted for use in environmental scanning. These procedures require...