CORPORATE AND DIVISION STRATEGIC PLANNING Defining the corporate mission Establishing SBUs Assigning resources to SBU Assessing Growth Opportunity

CORPORATE MISSION What do we do? For whom? What are the benefit?

Example: Centers for Disease Control Mission To promote health and quality of life by preventing and controlling disease, injury, and disability

vision statement describes a picture of the "preferred future."

A mission statement explains what the organization does, for whom and the benefit. A vision statement, on the other hand, describes how the future will look if the organization achieves its mission.

Examples: Healthy People in a Healthy World

ESTABLISHING SBUS SBU is understood as a business unit

within the overall corporate identity which is distinguishable from other business because it serves a defined external market where management can conduct strategic planning in relation to products and markets. When companies become really large, they are best thought of as being composed of a number of businesses (or SBUs).

It is a single business , or a collection of

related businesses that can be planned separately from the rest of the business.

It has its own set of competitors

AMUL - BUSINESS MODEL

RAW MILK

DriedSkimmed Milk

Powder

Packaged Milk

Ice creamBeverages

Condensed

GheeButterCream

pasteurization

PRODUCT MIX OF AMUL

MIX… PRODUCT FOR EVERY ONE

Amul never forgot its “primary customer”

- Amul collects 447,000 ltrs of milk from 2.12 million farmers (many illiterate)

Product for youth - Amul launched Chocolate milk under

brand name of ‘Amul Kool Koko’ targeting the

youth

Product for diabetic people - India’s First Pro-Biotic Wellness Ice

cream & Sugar Free Delights For Diabetics

MIX… PRODUCT FOR EVERY ONE

Product for the health conscious

- Amul Launched “low fat, low cholesterol

bread spreads”

Product for the price sensitive India

- Low Priced Amul Ice Creams and affordable ‘sagar’ whitener

Product for the urban class - Amul launched emmental,

gouda and pizza mozzarella cheese

BCG MATRIX

AMUL – BCG MATRIX

Business

growth

Rate

Relative Market Share

High Low

High

Low

Amul Chocolate

Amul Butter

Amul Cheese

Amul Chocolate drink

Amul Ice-cream

AMUL – PRODUCT PORTFOLIO

Category Market Share Market Position

Butter, Ghee 85% 1

Milk Powder 40% 1

Cheese 50% 1

Ice-cream 24.75% 2

Sweets 50% 1

Chocolate Drink 90% 1

Chocolate 10% 3

SWOT ANALYSIS

Weaknesses•Risks of highly complex supply chain system•Strong dependency on weak infrastructure•Alliance with third parties who do not belong to the organized sector

Opportunities•Penetrate international markets•Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc

Threats•Competitors - Hindustan Lever, Nestle and Britannia•Still competition from MNCs in butter•Growing price of milk and milk products•Ban on export of milk powder

Strengths•Largest food brand in India •High Quality, Low Price•World's Largest Pouched Milk Brand•Annual turnover of US $1504 million •Highly Diverse Product Mix•Robust Distribution Network

ANSOF MATRIX

MARKET PENETRATION Setting up of parlors more customers through intensive

distribution trying to find place in retail stores.

MARKET DEVELOPMENT shifting focus from urban to rural, 900

new stores capturing market of diabetic and health

conscious people. Amul Taaza- long life version of milk

PRODUCT DEVELOPMENT Amul Cool Amul Pizza Stamina Amul Masti

DIVERSIFICATION STRATEGY concentric-new product for new subject,

old technology. Eg probiotic ice creams, sugar free

conglomerate-new product for new market-eg pizzas, sport drink

horizontal- new product new technology- online order

PORTER’S FIVE FORCES MODEL

INDUSTRY ANALYSIS : PORTER’S 5 FORCES