Question

Briefly describe the (corporate) strategic planning process. How does logistics fit into the corporate planning effort?

What are some of the factors that management must consider in selecting an international distribution strategy?

Answer 1

Answer-

Corporate or strategic planning is mainly on managing the resources, risks and return in organization, competitive opportunities. This is done by formulating, implementing and evaluating organizational goals. The corporate strategy is done by top management by making strategy and then implementing it through a process.This process is done only when the whole analysis is done. The strategic planning process involves five steps-

1. Goal setting- This shows the vision of the organization which is a long term goal. The vision should be clear and specific.
2. Data analysis- Analysis is done to collect all possible information and relevant data to achieve goal. The main objective of gathering information is to prepare SWOT analysis( strength, weakness, opportunity and threats).
3. Formulation of a strategy- First we have to review the collected data from the analysis. To find out the resources, the business requires to achieve goal. This is done for internal and external resources. Every issues or problems should be prioritized accordingly. Here alternative is also made.
4. Implementation- A successful implementation is the key of any planning. The execution stage is the action stage. In this stage, every staff member follows their responsibilities and duties to work for the ultimate goal. In addition to these resources or funding for the company is reserved at this point. As all this is done employees start executing.
5. Evaluation and controlling- This stage says the evaluation of strategies by monitoring internal external issues. The evaluation can easily be done by setting the parameters which have to be evaluated. Comparison is done between actual result versus the planned. If planning is not up to the mark then strategic planning process is repeated.

Logistics helps in corporate planning to achieve competitive benefits by the raised value and customer service, that can result in satisfaction of the customers by fulfilling upcoming demands for logistics and maintaining the resources for the whole supply chain. Logistics can easily make its own strategy through the corporate strategy. Logistic planning is interrelated to marketing, accounting and manufacturing all these functional areas. Logistics gives data and analysis concerning to it, detail about current storage, distribution facilities, equipment and capabilities, transportation and the cost of all these functions. This is how logistics help in corporate planning too.

There are many factors for international distribution strategy. The cost, competition and feedback are the criteria for management which affects there whole international distribution strategies. The important factors to follow international distribution are-

1. Resources- The company should have enough resources which are finance, time that can be directly affected by the international marketing.
2. Size of the market- If market size is larger, management can choose shorter channel according to the potential size of the market.
3. Environmental characteristics- The environmental conditions of a country should also be considered.
4. Buyers- This is choice of a management to choose shorter channel as it can be decided "whom to sell". Whether to the government departments, distributors, whole sellers, retail stores or industrial buyers. Management should categorize according to the product-

• Unit value- Lower the value, larger will be the channel.
• Durability- More durable product, long channel of distribution.
• Weight- Bulky item is to sold directly to the manufacturer.
• Technical nature- Product should be sold to the manufacturer or by the specialized one.