Importance Of Strategy Formulation Of Strategy Marketing Essay

The organization does have a diversified range of sports products. However, the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market share erodes.

The retail sector is very price sensitive. Nike does have its own retailer in Nike Town. However, most of its income is derived from selling into retailers. Retailers tend to offer a very similar experience to the consumer. So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto Nike.

As a chairperson I will take following strategies to solve that problems and making company profitable.

Pursue a diversification strategy: by introducing many new products to its range. Start to develop products such as sunglasses, Trousers and jewellery. Such high value items do tend to have associated with them makes high profits.

Change in Leadership for new product: new thoughts and a change in management thinking could lead the company into a new, even more profitable period.

Youth in Target: Keeping youth in mind new product should be developed, worldwide marketing of high quality footwear, apparel, equipment, and accessory productsbecause most of the sportsperson might be in the age of 20-40.

The business could also be developed internationally, building upon its strong global brand recognition. There are many markets that have the disposable income to spend on high value sports goods. For example, emerging markets such as China and India have a new richer generation of consumers. There are also global marketing events that can be utilised to support the brand such as the World Cup (soccer) and The Olympics.

We can use different communication channels to talk with company stakeholders at any time for effective decision making. Even effective advertising and promotions can be done during international games like Olympics to make the product and brand more recognized.

Reinforce the importance of stakeholder engagement: it helps to 

(a) identify all the sustainability issues and responsibilities of the organization (b) systematically analyse the organization’s impact upon stakeholders, and (c) determine the organization’s key risk areas.

Focus on more efficient management of its portfolio of brands — Cole Haan dress shoes, Converse retro-style sneakers, Hurley International skateboard gear, and Bauer in-line and hockey skates.

Answer 2

Strategy is about:

* Where is the business trying to get to in the long-term (direction)

* Which markets should a business compete in and what kind of activities is involved in such markets? (markets; scope)

* How can the business perform better than the competition in those markets? (Advantage)?

* What resources (skills, assets, finance, relationships, technical competence, and facilities) are required in order to be able to compete? (Resources)?

* What external, environmental factors affect the businesses’ ability to compete? (Environment)?

* What are the values and expectations of those who have power in and around the business? (stakeholders)

Importance of Strategy

Strategic planning in business is important from the perspective of the long term health of your enterprise. Figuring out where your business is going is fundamental to strategic planning and to your overall success, and taking the time out to pinpoint strategic objectives is a worthwhile practice for all small business owners. With time, there’s no reason you can’t be aiming to grow and increase your turnover. After all, all businesses were small once, and the opportunity to growth into a giant in your industry might be the goal arising from a strategic planning session. If that’s the case, business strategy and strategic planning are essential to achieving your goal, and no business can possibly head forward over the long term without some form of strategic planning and decision making.

The formulation of a sound strategy facilitates a number of actions and desired results that would be difficult otherwise. A strategic plan, when communicated to all members of an organization, provides employees with a clear vision of what the purposes and objectives of the firm are. The formulation of strategy forces organizations to examine the prospect of change in the foreseeable future and to prepare for change rather than to wait passively until market forces compel it. Strategic formulation allows the firm to plan its capital budgeting. Companies have limited funds to invest and must allocate capital funds where they will be most effective and derive the highest returns on their investments.

A Vision Statement could be summed up as being where the company is headed. It is usually brief and simple. It should inspire and excite. It captures the dream of those who behind the company – usually the founders. It could be how the business will look like in three to five years.

A Mission statement tells the fundamental purpose of the organization. It defines the customer and the critical processes. It informs you of the desired level of performance.

Example Of Vision Statement: “To organize the world’s information and make it universally accessible and useful.” -Google

With a sound strategy and clear Vision or Mission Statement, business organisation will reach to the goals that’s they have defined in a Mission Statement. So for making company to grow and diversify there should be Effective strategy with a Mission statement.

The formulation of sound strategy may be seen as having six important steps:

The company or organization must first choose the business or businesses in which it wishes to engage-in other words, the corporate strategy.

The company should then articulate a “mission statement” consistent with its business definition.

The company must develop strategic objectives or goals and set performance objectives (e.g., at least 15 per cent sales growth each year).

Based on its overall objectives and an analysis of both internal and external factors, the company must create a specific business or competitive strategy that will fulfil its corporate goals (e.g., pursuing a market niche strategy, being a low-cost, high-volume producer).

The company then implements the business strategy by taking specific steps (e.g., lowering prices, forging partnerships, entering new distribution channels).

Finally, the company needs to review its strategy’s effectiveness, measure its own performance, and possibly change its strategy by repeating some or all of the above steps.

Strategic Objectives, Mission, Goals and Targets

Strategic Objectives outline the position in the marketplace that the firm seeks. Some strategic objectives relate to the positioning of goods and services in the competitive marketplace while others concern the structure of the company itself and how it plans to produce goods or manage its operations. Typical strategic objectives involve profitability, market share, return on investment, technological achievement, customer service level, revenue size, and diversification.

One of the core goals when drafting a strategic plan is to develop it in a way that is easily translatable into action plans. Most strategic plans address high level initiatives and over-arching goals, but don’t get articulated (translated) into day-to-day projects and tasks that will be required to achieve the plan. Goals should be designed and worded as much as possible to be specific, measurable, acceptable to those working to achieve the goals, realistic, timely, extending the capabilities of those working to achieve the goals, and rewarding to them, as well. (An acronym for these criteria is “SMARTER”.)

Strategic objectives and performance Targets should penetrate every corner of the organizational chart. There should be a hierarchy of strategic formulation starting with the highest levels of the firm, from which it is consistently translated from level to level so that each department knows what its contribution to the overall mission of the firm is to be. This process should end with each individual in the firm having strategic objectives and performance targets tailored to their specific role in the firm.

At last, all strategic planning objectives, goals, mission, performance targets etc. are interrelated with each other to perform strategic planning process successfully.

Conclusion:

Based on its overall objectives and an analysis of both internal and external factors, the company must create a specific business or competitive strategy that will fulfil its corporate goals A strategic plan, when communicated to all members of an organization, provides employees with a clear vision of what the purposes and objectives of the firm are. The formulation of strategy forces organizations to examine the prospect of change in the foreseeable future and to prepare for change rather than to wait passively until market forces compel it.