Situation analysis & goal setting

What is a business mission?

Why the organisation exists, its purpose

What is business vision?

The future the organisation wants to create

Business values?

The principles and beliefs that guide an organisation

What makes good business aspirations?

Long-lasting, motivating, strategic, shared, coherent, intrinsic and not tied to specific products or actions

Why is situation analysis conducted before setting goals?

To understand the current market, identify opportunities and barriers to growth, and set appropriate goals

What are porters five forces?

Competitive rivalry

Threat of new entrants

Threat of substitutes

Supplier power

Buyer/customer power

What increases competitive rivalry?

Many competitors, similar products or strategies, slow market growth and high exit barriers

What reduces the threat of new entrants?

High start-up costs, economies of scale, customer loyalty, difficult distribution access and high switching costs

What increases supplier power?

Few concentrated suppliers, few substitutes, low switching costs and ability to enter the market themselves

What increases buyer/customer power?

Concentrated customers, low switching costs, undifferentiated products and the ability to produce the product themselves

What is the threat of substitutes?

The risk that customers switch to alternative products that satisfy the same need.

What does PESTEL analyse?

Political- taxes, stability & trade barriers

Economic- inflation, exchange rates and purchasing power

Social- demographics, culture and lifestyles

Technological- technology trends and IT

Environment- sustainability and recycling

Legal- laws and regulations

The 6Cs of situation analysis?

Consumer- needs and behaviour

Category- market trends and growth

Customer/channel- retailers and distribution

Competition- competitors and their strategies

Company- internal capabilities

Climate- external PESTEL factors

How is situation analysis synthesised?

What? Key business findings

So what? Implications, growth drivers and barriers

Now what? Objectives, goals and strategies

The OGSM framework?

Objectives, Goals, Stategies and Metrics- a framework for planning and measuring marketing performance

What is an objective in OGSM?

A broad, long term statement of what the business wants to achieve.

Usually expresssed in words

What is a goal in OGSM?

A specific, quantitative target showing progress towards an objective, e.g. increasing sales by 30%

What are strategies and initiatives in OGSM?

The approaches and actions used to achieve objectives and goals, including how resources are allocated

What are metrics in OGSM?

Numerical measures and milestones used to assess performance and whether strategies are working

What makes a good marketing strategy, and how should it link to goals?

It should guide choices, priorities, resource allocation and initiatives overtime. It must address the growth drivers and barriers identified in the situation analysis. It’s not simply a numerical goal, tactic or vague statement