1. Strategic planning benefits companies because
it involves an entrepreneurs’ employees. When an employee is contributing they
help the company reach its own goal by taking ownership. It helps build passion
in the workplace because they feel involved rather than tossed aside and unimportant.
Strategic planning also helps companies set a long-term goal to see its own
future. Strategic planning will help a company in the long run by creating
mechanisms to be ready for unwanted or unknown problems and threats. This type of planning in a company spreads responsibilities
evenly and turns a company’s dream into a reality. Strategic planning when done
right can take a company to another level.
2. Since a cash cow is something brings
in more money with less labor meaning this is something that brings a company a
large profit. I would say to use a Strategic Business Unit (SBU), because this
a profit center. Whether it be its own business or a business unit in a larger
business. SBU’s are responsible for their own profitability. I would say using
an SBU would be the best idea so that they focus only on a cash cow and its
profit rather than other products and their profits.
3. According to the book, strategic
planning is the process of developing and maintaining a strategic fit between
the organization’s goals and capabilities and its changing marketing
opportunities. The steps involved, begin with the company starting by
characterizing its general purpose as a mission. This mission transforms into
supporting goals that guide the organization the correct way. At that point, headquarters
chooses what arrangement of business (portfolio) is best for the organization
to execute. In this way, making a promoting plan that happens at the business-unit,
product and market levels. This helps the organization’s strategic planning with
more refined elements and particular marketing opportunities.
4. Many portfolio planning approaches can
be very laborious, expensive, and hard to apply. One fault with these different
approaches is how they offer little to no help to long term goals/the future.
Even though they can be helpful, they are only helpful for a short period of