In a company, the mission and vision established are based on the strategic planning inside the company itself in order to lead or guide the company to achieve sustainability in future and avoid any loss. The sustainability is very important because it is related to the long term earnings and expansion of the company. The right selection and preparation of management and strategic planning will ensure the stability and strength of the company to face any problems and changes in business market that usually depend on the factors such as globalization and rapid technological advances. The company that has enough planning can compete with its competitor for a longer period of time and will not be face bankruptcy.
The process of strategic planning can be prepared at three interconnected levels which are corporate, business and market levels. A strategic chain management can be made by using the integration of these three levels because each one is related to other levels. Business levels are depend on corporate levels while market levels are depend on business levels.
It cannot be avoid that marketing is one of the priority that a company should give hundred percent attention to ensure its stability. This is because marketing field is closed related to the customer. Without a good marketing strategy, the product that produced by certain company will not able to attract people to buy it. As the result, the company will not gain profit otherwise they will be loss.
So, marketing strategy must be understand enough and should be well prepared because it looks at customer needs and want and a company must find the best solution to satisfy them creatively and profitably. Marketing is a strategic process of matching the company to its best market opportunities. The relationship between marketing and the three strategic business unit (corporate, business and market levels) is marketing will help to accomplish the specified business objectives in each level of these strategic business.
It is important to generating and maintaining satisfied customers because it can become the conducting principles for planning the three strategic plans which are corporate plan, business plan and marketing plan. Function of corporate plan is to allocate corporate resources while business plan priortise strategic business resources and market plan localize market competition.
As most of us already know, strategic planning is a difficult task to complete and in order to simplify this process, a generic forcefield systems planning approach has been established. A forcefield strategic planning concept is a practical framework which forces the corporate, business and marketing strategy to work in cycle for synergy. This planning concept is developed basically from four factors which are situation analysis, goals, strategy and driving forces. Situation analysis is the analysis of current situation that we are existing now. It determines what the level of our current situation is. Then goals are the aim or our target in the future. Strategy is the key to achieve our goals. It connects the situation analysis with the goals. Next, driving forces are the factors that lead to our success in achieving our target.
To make the forcefield strategic planning concept more understandable, we can say that the “strategy” of the corporate plan is the input to the “situation” in the business plan whose strategy is derived from a key “driving force” in the corporate plan. Similarly, the “strategy” from the business plan is the input to the “situation” in the market plan whose strategy is derived from a key “driving force” in the business plan. From this explanation we can see how the corporate, business and market plan are related to each other and it is a series of integrated thinking in the strategic chain management. Strategic planning process should define the direction, business decision and marketing activities of a company which improve unique competitive advantages to ensure the sustainability of the company.
The forcefield strategic planning concept can be divided into three categories which are corporate, business and market forcefield systems model. Each of these forcefield systems model has the four factors that develop planning concept which are situation analysis, goals, strategy and driving forces like has been discussed earlier.
Now we see into each of the model. First and foremost is corporate forcefield systems model. This system model is driven by the mission statement in a company and focusing on strategic thoughts. The goal in a company is based on the mission. The strategy and driving forces must be set properly to transform the company from previous situation to another higher level of situation that give more competitive advantage. Secondly is business forcefield systems model. In this system model, the inputs are provided from the corporate forcefield systems model to realize its mission statement. The strategy factor from the corporate forcefield systems model now become the situation analysis for the business forcefield systems model. This model also has its own goals, strategy and driving forces. Lastly is market forcefield systems model. The business forcefield systems model provides inputs to this system model. The strategy factor in business forcefield systems model will become the situation analysis for the business forcefield systems model. Like the other model, this model also has its own goals, strategy and driving forces.
In a nutshell, the strategic chain management model consists of corporate, business and market level. It is the managerial process of integrating and reinvesting the company’s business, products and markets for profit and growth through a series of focusing and prioritizing exercise. Global thinking (at the corporate and business levels) and regional market planning (at the market level) is supported by the forcefield systems model. The best way in maintaining competitive advantage of a company is by focusing on maximization of its core characteristics or capabilities.
At a certain level, the Pareto rule also can be applied which based on the 80/20 ratio. The Pareto Principle stated that a small number of causes are responsible for a large percentage of the effect and usually a 20 percent to 80 percent ratio. This basic principle translates well into quality problems and most of quality problems result from a small number of causes. This principle can be applied to almost anything, from the science of management to the physical world. Based on this rule, 20% of the success factors may generate as much as 80% of the company’s overall performance or 20% of the customers may generate as much as 80% of the company’s profit.
A strategic chain management triangle can be build to connect between corporate, business and market level. Corporate level is connected to business level through communication. Then, business level is connected to market level through consistency. Next, market level is connected back to corporate level through commitment. All of these communication, commitment and consistency are the corporate values that permeate the company to achieve common understanding and encourage enthusiasm to deliver consistency in its customer care to the market.
Corporate level provide the best cost while business level provide the best product or service and market level provide the best solutions for the customers. In the middle of this triangle is the best performance and profit that gain by a company at the customer level. Profit is generated for the customers because of the best performance at the customer level. Actually, strategic chain management triangle aims for win-win situation between the company and its customers. Both of these parties will get the benefit from the partnership that has been made. Last but not least, formal strategic chain management is a source of competitive success.
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