Market Planning: Corporate

The corporate plan will define objectives for the entire business and should co-ordinate the
various functional strategies (marketing,operations, human resource management, finance,
etc.) to deliver the overall corporate objectives. It is important that functional strategies are
interrelated (see Figure). For example, if the marketing strategy focused on developing high
levels of customer service in order to retain key customer groups, both the operations and
human resource management functions would have role to play in delivering this.

Corporate strategy can be summarized as being:

 Integrative :The process co-ordinates functional activity towards a common goal and takes a
‘whole organization’ view of the corporation. By defining corporate targets, normally in
financial terms, collective targets are set for the functional groups.
 Providing focus : Strategy defines the scope of the business – the general nature of activities
and markets served. This strategic direction allows functional areas to develop appropriate
strategies and tactics.
 Important : By its very nature, corporate strategy is the process of making major business
decisions. It defines business direction over the long term and is critical in setting the overall
resource profile available to the organization.
 Matching : There is a need to match the organization’s activities and resource base to the
current and future business environment.
 The strategic process
A useful summation of corporate strategy management is provided in this above Figure . This model
takes a top-down view of the overall strategy process. It identifies the five components vital in
achieving corporate success:
1. Vision :Senior management and other stakeholders must establish an overall vision of what
the corporation should be. This defines the basic need they fulfil and establishes the generic
direction of the business.
2. Corporate objectives and strategy Collective : goals and strategy define the ‘benchmarks’
for success, and ways of achieving success. This level co-ordinates corporate activity and
initiates activities to achieve desired results.
3. SBU/functional objectives and strategy Corporate : strategy translates into objectives and
plans for individual elements of the business.This may take the form of SBUs (Strategic
Business Units –divisions within a company) or functional activities. For example, a hotel
chain could divide its business into three SBUs – accommodation, food and beverage,and
conferences and leisure.
4. Resources : For a given strategy, the need exists to match resources to strategic intent. This
process normally involves annual budgeting.
5. Structure : Management must develop the appropriate organizational and staffing structures
to facilitate success.