Question

1-How does strategic planning differ from an annual planning?

2-What do we mean by ‘defining or redefining the business from marketing point of view?’ Give examples and explain it.

3-What are the perquisites for planning? Explain and give examples.

4-Explain the Product/Market expansion grid and it its purposes. Give examples for each case.

Answer 1

Answer 1. STRATEGIC PLANNING DEFINITION: A strategy is a comprehensive plan to achieve the organizational goal . It is generally formulated by top level of autorities so that correct decision can be taken to use resources in the best possible manner and efficiently so that less wastage of resources can happen.

ANNUAL PLANNING DEFINITION: They are also called Action or work pplanning. Annual planning refers to an organization's financial planning for the whole year . They are basicallly future planning  which a company does in startingof the year.

DIFFERENCE BETWEEN STRATEGIC PLANNING AND ANNUAL PLANNING IS AS FOLLOWS.

STRATEGIC PLAN :

1. It is usually for 3-5 yeras. As goals will take multiple years to achieve.

2.The strategic plan is shaped by top level autorities or ultimate owners of the company. The strategic planning helps to shape the annual plan

3. Information is gathered by external members and other constituents.

ANNUAL PLAN:

1.Based on the organzation's fiscal year as goals will ne acquired in one year.

2.The annual plan informs about budget , which is drafted by finance department and approved by top level authorites.

3.In this inputs comes from internal staff and committee those who will implement the work of the organization inthe upcoming year.

So, these are the basic difference between strategic and annual planning.

Answer 2. : DEFINING AND REDEFINING OF BUSINESS FROM MARKET POINT OF VIEW : Business is something which need to get updated time to time because without using new techiques and stratregy it is impossible to exist in market for so long . So, for staying in market various techiques should be redefined or upgraded by the organziation and new thoughts and strategy should be introduced to stay in marketplace for long. For example time to time offers should be provided and new products with new features should be introduced so that people won't eliminate business from maketplace.

Answer3. PERQUITIES FOR PLANNING : Yields the expected targets timely with the corrective measures taken to avoid any deviation in the process of planning. It also consider the future forecast the action plan and simantenously the corrective measured to achieve the maximum productivity and efficiency and flawless results can be derived.

Answer4. PRODUCT/ MARKET EXPANSION GRID : Created by the father of Stategic management. It is also called Ansoff Matrix, it is basically a tool used to develop business stateries by evaluating or examining the relationship between new and existing products or market , and the risk associated with each possible relationship. The matrix aids growth plans through the introduction of existing or new products,in existing or new market.

PURPOSE OF PRODUCT EXPANSION GRID: It is a strategic planning tool which provide a framework to help top level, executives and marketers devise strategies for future growth.

FOUR MAIN STRATEGIES :

1. MARKET PENETRATION STRATEGY:( Existing products+Existing markets = Low risk ) in this case , customers may be aware of product but some reason are not buying it. And this strategy is used to secure dominance of growth markets by identifying which markets offer the best prospects for existing market.

2. MARKET DEVELOPMENT STRATEGY: ( Existing products+ New Markets= Some risk) this statergy is used when a company wants to expand its market reach and its focus can be turned to new geographical area.

3.PRODUCT DEVELOPMENT STRATEGY:( New products+ Existing market= Some risk) Adding new features to existing products to improve products .

4. DIVERSIFICATION STRATEGY:(New products+ New markets= High risk) it is used when new products are introduced to new market. 3 diverisification strategies that an organisation can consider: Concentric , Horizontal and Conglomerate.