Professional Documents
Culture Documents
CHAPTER
4 Corporate
Strategy And
What is Ethics
Planning
LE AR NI NG OUTC OMES
By the end of this topic, you should be able to:
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
INTRODUCTION
Corporate communications involves research into all audiences: receiving information from
them, advising management of their attitudes and responses, helping to set policies that demon-
strate responsible attention to them and constantly evaluating the effectiveness of all corporate
communications programs.
Corporate communications
Receiving information
Advising management
This inclusive role embraces all activities connected with ascertaining and influencing the opin-
ions of a group of people. Thus, this chapter focuses on:
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
The success of a companys communication strategy is largely contingent on how closely the
communication strategy is linked to the strategy of the business as a whole. This is illustrated
in figure 4.1.
Sucessful
Communication Communication Business
strategy strategy strategy
In addition to thoughtful design and careful planning of firm strategy, a company must have
strong corporate communication function to support its mission and vision. Strategy involves
identifying the most important goals/objectives and implementing the policies to get there within
the restraints of the organisation. Strategy is the direction and scope of an organisation through
its configuration of resources within a changing environment, to meet the needs of markets and
to fulfill stakeholders expectations. Strategy is a macro level of level orientation.
Chandler (1962) has determined that strategy is a basic long-term goals and objectives of an
enterprise, and the adoption of courses of action and the allocation of resources necessary for
carrying out these goals.
Adaptive strategy:
concerned development of a variable match between the oppor-
Strategy tunities and risks present in the external environment and the
definitions organisations capabilities and resources for exploiting these op-
portunities.
Interpretive strategy:
which views the organisation as a collection of co-operative
agreements entered into by individual with free will. Focussed
on desired relationship, symbolic actions and communication.
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
They are internal in source and the business venture has absolute control over its
application.
Strategy can only be applied once, after that it is process of application with no
unique element remaining.
The outcome is normally a strategic plan which is used as guidance to define func-
tional and divisional plans, including Technology, Marketing etc.
What do we do?
How do we excel?
WEBSITE visit the website below to learn more about what is strategy.
http://my.execpc.com/~jpurtell/HBR-WhatisStrategy.pdf
SELF-CHECK
1. Give two definitions of strategy.
2. What is linear strategy, adaptive strategy and interpretive strategy?
Communications is a large and nebulous area. Some of the main communications disciplines
are: corporate communications, internal communications, external communications, direct
marketing, advertising, branding, public affairs and investor relation. This is illustrated in fig-
ure 4.5.
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
Corporate
communications
Advertising
As in any other organisational aspect, planning communications strategy is important and ben-
eficial. Communications strategy is designed for as an organisational strategy; it should estab-
lish objectives, audiences, messages, tools and activities, resources, timescales, evaluation and
amendment. This is illustrated in figure 4.6.
Objectives
Evaluation and
amendment Audiences
Tools and
Timescales
activities
Resources
Well performing organisations are the ones to have effective communication as well as em-
ployees who have a good overall understanding of organisational goals. When managers com-
5
CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
municate well and employees understand goals, organisations perform well. Figure 4.7 shows
a meeting of managers with employees.
The organisation should be able to legitimises some issues and de-legitimise other, shape
the memory, make sense out of the confusing and ambiguous, provide point of identity and
evolve.
A good communication strategy leverages multiple methods of communication. Figure 4.8 de-
scribes the methods of communication.
Communication should be two ways and should leverage the workforces ideas about enabling
the strategy thereby; creating the mental support for the enterprise strategy - communications
and a communication strategy is key to the success of strategic planning. The corporate com-
munication strategy must be owned internally, from the top of the organisation to the front line
staff, if it is to be implemented effectively and receive the resources it needs. The figure 4.9
shows the consequences of a good communication strategy.
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
Engaging stakeholders.
Measurable objectives.
Clear indicators.
Clarify before the idea get across it must be clearly defined within the organi-
sation before it can be understood by others intended to be.
Know the purpose of communicating can answer a question What do the or-
ganisation really want to gain by communicating?
Adapt the approach, manner and method to suit purpose its unlikely to get far
if it lets timidity or aggression characterise the words, actions and attitude.
Pick the right time if the timing is right, the idea could be met with considerable
less than justice.
Choose the best place communication channels are important (verbal/non ver-
bal, formal/informal, etc).
Communication strategies should show how they would contribute to the objectives set out
in the corporate communication strategy, as well as setting more local objectives. Corporate
communications are a powerful management tool if approached with strategic integrity, align-
ment and focus.
Therefore strategic and planning is to choose how to get there (putting strategic into practice).
Operational or action plans incorporate four elements. Figure 4.11 illustrates the Elements of
operational or action plans.
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
Each tactics/ action/ activity has one or more specific, immediate (short term) ob-
jectives or targets that are identified as outcomes.
Figure 4.13 shows the different scopes of communication planning. Communications planning
results in planning documents in varied scope:
Communication does not just happen. A good communications strategy allows you to exercise
better control over your work and to frame the issues in a perspective other than research. A
communications strategy removes doubt, emphasises planning, and involves all the project par-
ticipants in raising the visibility of the research. Defining the communications strategy is a task
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
that is best carried out as a group. Figure 4.14 illustrates the steps involved in Communication
plan.
Add values, discussion and participation to come out with the objectives.
The relationship between research, objective and strategy shows in Figure 4.15.
Corporate
Objectives
Third-Party Issues
research Compaign
Create (Global,
Stakeholder National,State)
Leadership Database Stakeholer
Determines Research
Partnership Communication
Goals, (Global, Programs Develop
Objectives National of (Global, Communication
Analysis, National,State) Product
& State)
Geographic Startergy
Scopes Research Development Community Include
& Target Giving feedback
Identify (Local) mechanisms
(Global? Community Setting
Communities Needs
National?
Identify Assessment
State?) Program
Key or 1-on-1
(Local or Development
Influencers
Remote (Local,Remote
site) site)
Source: http://www.ambwashington.um.dk/NR/rdonlyres/9F9740DD-B724-472E-8FE3-
317E2622EA41/0/CommunicatinginaneverchangingworldStigAlbinus.pdf
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
ACTIVITY
SELF-CHECK
1. Operational or action plan incorporate four important elements.
Name all the elements.
2. How mission and vision of the organisation need to be communicated?
Strategic formulation allows the firm to plan its capital budgeting. Figure 4.16 staffs Involving
in Formulation of Strategy.
A strategic plan also gives its decision makers direction other than the maintenance of the status
quo. The firm becomes purely reactive to external pressures and less effective at dealing with
change. In highly competitive markets, a firm without strategy is likely to be out maneuvered by
its rivals and face declining market share or even declining sales. Figure 4.17 show the condi-
tion of a firm without strategy in highly competitive markets.
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
The formulation of sound strategy may be seen as having six important steps. Figure 4.18 il-
lustrates the important steps involved in formulation of strategy.
Create a specific business or competitive strategy that fulfills its corporate goals
(e.g., pursuing a market niche strategy, being a low-cost, high-volume producer).
Implements the business strategy by taking specific steps (e.g., lowering prices,
forging partnerships, entering new distribution channels).
Review strategys effectiveness, measure its own performance, and possibly change
its strategy by repeating some or all of the above steps.
The communication strategy should contain different approaches that can be applied depending
on the message, the audience and the planning required. Aligning your communications and
organisational objectives will also help to reinforce the resourcing of communications activity
within your organisation. The objectives must be clearly defined and clearly understood within
the organisational before it can be understood by the target group.
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
Following this point of view communication relies on two essential functions for its global ac-
tivity: promoting and coordinating internal and external communication. Communication may
broadly by classified into two types. They are Internal communication and External communi-
cation. Figure 4.19 illustrates the classifications of communication.
Classification
of
Communication
Internal External
Communication Communication
Internal communication may be defined as an exchange of facts ideas, opinions that individuals
or departments of an organisation relating to purely inside matters. Information transmission
of various pieces concerning what happens within an organisation rather than its relationship
with the others outside an organisation. This implies the concept of internal communication.
Thus internal or inside communication is concerned which implies transmission and reception
of information clearly, accurately and speedily. Figure 4.20 illustrates internal communication.
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
As generally used inside communication meant given and receiving information by all hierar-
chical levels. It includes vertical communication covering downward communication, upward
communication, horizontal communication and diagonal communication. It includes communi-
cation flowing at any intermediate level as well as at operating level, or top management level,
because internal communication is indeed required by all who work together in an organisation
to accomplish common goal. Figure 4.21 General Forms of Internal Communication.
Top Level
Management
Upward
Internal
Horizontal Horizontal
Communication
Middle Level Middle Level
Management Management
Downward
D
l
na
ia
go
go
ia
na
D
l
Low Level
Employees
Internal communication may either be oral or written. Oral or verbal communication may be
face to face conversation; telephones, meetings, conferences, group discussions, personal in-
structions, lecturers, interviews; counseling, public address system, grapevine, gossip tumor
social affairs etc. Figure 4.22 shows some examples of the oral communications involved in
internal communication.
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
Written internal communication may be through orders, memos, letters, house organs, bulletin
boards, posters, information racks, manuals, handbooks, annual reports, grievance, union pub-
lications. The main methods of internal communication available in a modern office are mes-
senger service, internal mail service, and mechanical devices.
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
The communication internally should change the behaviour and attitude of the employees and
to influence productive activities by keeping them effectively informed. Feedback or interac-
tion is a continuous process. Middle level management called as tactical-management interacts
with tactical managers. Lower level employees called as operating workers communicate with
themselves. Information exchange flow can be seen diagonally. Information flows downward
about the policies, objectives, operations, products etc. Figure 4.24 illustrates the requirements
of effective Internal Communication.
Top management must establish a communication climate other divisions and de-
partments will reflect this climate.
Management must recognise the desire of employees to help their company and
the power of communication to tap this great potential. Employees are willing to
help and communication can turn this desire into action.
Figure 4.25 illustrates how employees must be well informed concerning their mutual interests
in company success.
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
Figure 4.25: Employees must be well informed concerning their mutual tnterests in company success
In real world situation, every organisation is also linked with the outside parties in the form of
suppliers, customers, government, departments, financial institutions, holding and, subsidiary
companies creditors, debenture holders, registrar of companies and other body corporate etc.
Under all circumstances, it should be kept in mind that for the effective running of the organi-
sation an uninterrupted communication channel external to the organisation be maintained to
keep the organisation alive and active. Figure 4.26 shows that an organisation having links with
outside parties.
Suppliers Customers
Government Departments
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
External communication provides a link between the employees and the shareholders and other
third parties. (Lifeblood of the modern business). Figure 4.27 illustrates this. It can be arranged
by oral or verbal communication as well as written media, television, transmitters, telephone
and other modern technologies.
Other third
Employees parties
External
Communication
Share holders
Figure 4.27: External communication links employees, share holders and other third parties
External Communiation
Dealers
Goverment
Public
Customer
Shareholder
Intercorporate
Complaints
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
Stock holders
Communication
Co
ic ts
n
Cu u
io
un i n
m
at
st nic
m pl a
om at
Co Com
er ion
m
ation
ns
Classification
n
icatio
icatio
omer
of External
ganis
Communication
n
mun
Cust
u
r
m
O
Com
Com
Inte r
D nt
Co
mm ealer r n me ion
ve at
un
ica Go u nic
tio mm
n Co
Communication with the shareholders may cover many subject matters such as:
Certificate of transfer.
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
It is with effective communication and appropriate media that a company contacts with public.
A qualitative communication ensures to promote a positive favorable atmosphere, develops
friendly and confident feelings towards the company and its product. Figure 4.31 describes
components of General Public Communication.
To have a regular and prompt press information service and to answer enquiries
from press and radio.
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
Customer is the kingpin and sovereign of the market whose needs a satisfaction and winning
their goodwill are prime important in these days of competitive set-up. They must be commu-
nicated promptly. It is the communication, which establishes the contacts with the customers.
Customer communication helps to establish a relationship with customers who buy and source
of products. The media used-for advertisement can be used effectively to reach the customers.
Business communication with Government covers several dealings touching many Govern-
ment departments. Communication between the Government and the business on several other
matters like wage policy, price policy, foreign policy, industrial policy etc. Government com-
municates national objectives, priorities, achievements, programs through mass media like
television, radio, film and through print media like newspapers magazines, Five Year Plans,
budgets, annual reports, special economic survey report, statistical bulletins, handbooks, etc.
Figure 4.32 shows some of the matters involved in communication between the Government
and the business.
Wage policy
Communication
Industrial policy between Government Price policy
and Business
Foreign policy
The corporate communications officer of the company gives guidance and help to promote
sales. He is a liaison between external parties and the company. Figure 4.33 illustrates the role
of a corporate communications officer in a company.
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
Organisation-1
ion
Ex
ch
at
rm
an
ge
fo
In
In
Inter Corporate
e
for
g
an
Communication
ma
ch
tio
Ex
Exchange Information
Organisation-2 Organisation-3
21
CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
s
int
system. Complaints made by the public arc to
Su
pla
be attended to and suggestions offered should
gg
m
es
be considered. A complaint is really a favour
co
tio
lic
to the company. Communication sets in all
n
b
s
Pu
spheres of enquiries, complaints and sugges-
tions. Figure 4.35 demonstrates the constitu- Response
ents of complaint communication.
Complaints Communication
Figure 4.35: Structure of complaint communication
ACTIVITY
1. Identify internal and external public for any advertising agencies in your city/
`hometown.
2. What are the media being used to access to each of the publics?
SELF-CHECK
1. Provide five characteristics of effective external communication.
2. Provide the difference between external and internal communication.
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
Corporate Level
Head office
CEO, other senior executives, board
of directors and corporate staff
Business Level
Division A Division B Division C
Divisional managers and staff
Marketing Level
Market A Market B Market C
Marketing managers and staff
Figure 4.38 illustrates the main facts involved in corporate level strategy.
Reach:
Defining the issues that are corporate responsibilities; these might include
identifying the overall goals of the corporation, the types of businesses in which the
corporation should be involved, and the way in which businesses will be integrated
and managed. (decision concerning mergers and a Inter corporate communication
acquisitions, strategic alliances etc)
Competitive Contact:
Defining where in the corporation competition is to be localised. Focuses on how to
compete in the product / market / industry segment.
Corporate Level
Strategy Managing Activities and Business Inter-relationships:
Corporate strategy seeks to develop synergies by sharing and coordinating staff
and other resources across business units, investing financial resources across
business units, and using business units to complement other corporate business
activities. Igor Ansoff introduced the concept of synergy to corporate strategy.
Management Practices:
Corporations decide how business units are to be governed: through direct
corporate intervention (centralisation) or through more or less autonomous
government (decentralisation) that relies on persuasion and rewards.
23
CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
Corporations are responsible for creating value through their businesses. They do so by manag-
ing their portfolio of businesses, ensuring that the businesses are successful over the long-term,
developing business units, and sometimes ensuring that each business is compatible with others
in the portfolio.
A strategic business unit may be a division, product line, or other profit center that can be
planned independently from the other business units of the firm. According to Digman (1990)
at this level strategies are often marketing oriented.
At the business unit level, the strategic issues are less about the coordination of operating units
and more about developing and sustaining a competitive advantage for the goods and services
that are produced. Figure 4.39 shows the strategy formulation phase.
Pricing option
Differentiation
Industry competitive
structure(e.g.five Market demand
forces model)
Cost structure
Functional-level
strategies to lower
costs
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
At functional level the main responsibility is to execute the strategies of the organisation (en-
terprise, corporate and business unit by developing annual objectives and short-term strategies.
(i.e corporate communication and human resources strategies).
Functional units of an organisation are involved in higher level strategies by providing input
into the business unit level and corporate level strategy, such as providing information on re-
sources and capabilities on which the higher level strategies can be based. Once the higher-level
strategy is developed, the functional units translate it into discrete action-plans that each depart-
ment or division must accomplish for the strategy to succeed. Figure 4.41 shows a model of
corporate goals and corporate strategic objectives.
CORPORATE VISION
A model of efficiency, professionalism and scientific and technical leadership in the
provision of user- oriented meteorological, hydrological and oceanograhic services in
support of the safety, securtiy and general welfare of the Australian community.
CORPORATE GOALS
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
Resources consist of inputs used in a firms production process: physical and immaterial capital,
human capital, and organisational capital. Figure 4.42 illustrates this. By continuously acquir-
ing and developing resources and capabilities, a firm can achieve a sustainable competitive
advantage that yields economic rents.
The resource-based view emphasises that strategies chosen by a firm are strongly driven by
the internal environment (i.e. existing resources and competencies 3), which means that a firm
conceives its strategy as a fit between internal capabilities and external opportunities. Through
strategic action, a firm seeks to exploit its (internal) resources towards rent-yielding (external)
activities. Figure 4.43 Resources in an organisation.
26
CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
tage into a sustained competitive advantage requires that these resources are heterogeneous in
nature and not perfectly mobile (Barney, 1991; Peteraf, 1993).
Practically all firms base their business objectives on satisfying their customers needs. Re-
source and competence-based strategy making provides real insight into your firms Strengths
and Weaknesses, an aspect many firms neglect. Figure 4.44 shows analysing the strength and
weakness of an organisation.
Strengths Weaknesss
Resource-based strategy is the one approach that concentrates on the individuality of each firm,
the important differences between each firm and its competitors. Resource and competence-
based approaches are particularly valuable when entering new markets. Figure 4.45 illustrates
a practical frame work of resource-based strategy analysis.
A Resource Based Approach to Strategy Analysis: A Practical Framework.
4. Select a strategy which best exploits
the firms resources and capabilities Strategy
relative to external opportunities.
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
Basically, in this type of strategy internal communication is very much involved. Internal com-
munications refers to all communications with organisation Effective communication with staff
and other internal audience is important for the successful functioning of any organisation:
Figure 4.46 refers Importance of Effective communication in organisation.
Intranet.
Payslip messages.
Team Brief - Team brief has three primary objectives: the timely sharing of infor-
mation to all levels staff; the capturing of feedback from staff at all levels for shar-
ing with the Executive Management Team; and the reinforcement of the manager/
team leader role in actively communicating with front-line staff.
SELF-CHECK
1. Provide five characteristics of effective external communication.
2. Provide the difference between external and internal communication.
Blue Ocean Strategy (BOS) where both markets and profits are yet to be discovered. Blue
Ocean Strategy is not about competing; its ultimately about creating new markets and making
the competition irrelevant.
A blue ocean is created when a company achieves value innovation that creates value simul-
taneously for both the buyer and the company. The innovation (in product, service, or deliv-
ery) must raise and create value for the market, while simultaneously reducing or eliminating
features or services that are less valued by the current or future market. Figure 4.47 refers an
organisation achieves value innovation.
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
The Principles:
To break from the competition and reconstruct market boundaries.
To focus on the big picture, not the numbers.
To reach beyond existing demand.
Break the value-cost trade off.
Get the strategic sequence right - sequence of buyer utility, price, cost, and adoptions.
Good communication at all levels supports patient care and satisfaction, service planning
and development.
Aims raise awareness, informing plan development, promote achievement and success,
etc.
Annual Report.
Website.
Written communications.
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
Media relations.
Competitive positioning is about defining how youll differentiate your offering and create
value for your market. Positioning helps establish your product or services identity within the
eyes of the purchaser.
Before you position your product or service, you should answer the following strategic ques-
tions about your market and your products or services given in table 4.2.
Table 4.2: Strategic Questions about Market Products and Services
Strategic Questions
Once youve answered these strategic questions based on your market research, you can then
begin to develop a positioning strategy for your business plan. At this strategy, communication
is done through both type of communication. Communication is through internal and also ex-
ternal using verbal and non-verbal variables. Branding is crucial, media related and also printed
matters are most used.
ACTIVITY
1. Think one product for each of the strategies described above.
2. Why the organisation used the mentioned strategy to promote
their products?
SWOT analysis is a formal framework for identifying and framing organisational growth op-
portunities. SWOT is an acronym for the organisations Strengths and Weakness and external
Opportunities and Threats. Many organisations perform SWOT analysis as part of their goal- or
objective-setting process. Figure 4.49 illustrates the SWOT analysis.
30
CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
Helpful to Harmful to
achieving the achieving the
objective objective
Internal origin
(attributes of the
organisation)
STRENGTHS WEAKNESSES
External origin
(attributes of the
environment)
OPPORTUNITIES THREATS
STRENGTHS WEAKNESS
Innovative Complacent
Good reputation Traditional and hierarchical
OPPORTUNITIES THREATS
To acquire
A properly conducted SWOT analysis goes beyond the simple preparation of lists. Attention
need to be placed on evaluating strengths, weaknesses, opportunities, and threats and drawing
conclusions about how each might affect the organisation taking the above analysis into consid-
eration we can see that our corporate communications programme will have a number of jobs
to do in support of corporate objectives. An international corporate and government relations
campaign will be required if the organisation.
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
Table 4.4 shows the ten steps involves for a strategic corporate communications plan:
Source: http://www.nku.edu/~turney/prclass/readings/plan2.html#research
32
CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
The first questions that need to be addressed e.g. With whom does the organisation need to have
relationships? And what does it want these people to think about the organisation? Can be an-
swered after a little introspection and discussion with top management. Keep in mind that these
are ultimately top managements decisions, not the corporate communications practitioners.
The corporate communications people should speak out and try to influence who is included
and who is excluded from this list, but they rarely make the final decision.
1. Who are the organisations key target audiences?
Depending upon the nature of the audiences, these listings may be as short and simple as the
names of key people, organisations, and communities or as long and complex as psycho de-
mographic profiles of prospective buyers of a particular product. For most organisations the
list will include a mix of short and long identifications. Thats fine. Consistency isnt the goal;
useful information is. Long audience identifications, if they include unique characteristics, ap-
peals that are particularly effective with this audience, or the best ways of reaching the audi-
ence, can be very useful.
Source: http://www.nku.edu/~turney/prclass/readings/plan-str.htm.
Be aware, however, that there is a tendency among some corporate communications people to
become enchanted by various elite media and to make them a regular part of their media rela-
tions audience simply because of their prestige.
Media relations specialists all over the world, for instance, dream of getting coverage in The
New York Times, not because their constituents read or would be influenced by The New
York Times but simply because it is The Times and reaching it is a pinnacle of journalistic
success.
33
CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
NOTES A few years ago a southeastern citys special events coordinator, speaking to a
corporate communications class, admitted that getting mentioned on The Today
Show had been his number one media relations goal for two years before he
finally succeeded. And, it remains one of his primary objectives today. He beams
with pride each time he recalls Willard Scott mentioning his event on The Today
Show even though he admits it didnt have any effect at all on attendance. Af-
ter all, he said, how could it? -- Over 99 percent of the people who watched
The Today Show that morning lived too far away to even think of attending the
event.
Source: http://www.nku.edu/~turney/prclass/readings/plan2.html#research
34
CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
3. What view does the organisation want this audience to have of it? Or, what kind of rela-
tionship does the organisation want to have with this audience?
Both of these questions boil down to essentially the same thing, a reflection of what the or-
ganisation hopes to accomplish by interacting with this audience. It may be having them pur-
chase products or services, or voting for specific political candidates, or supporting new leg-
islation, or any number of other things, depending upon the organisation and the audience.
The more clearly and concretely this view is expressed, the more helpful it will be for future
planning and relationship building. Statements like We want this audience to think of us as an
asset to the community. are practically worthless for planning purposes.
Once the target audiences and desired relationships have been nailed down, the next step is to
explore the existing relationship the organisation has with each of those audiences and to decide
whether it needs any adjustment. This calls for more than internal discussion. Simply letting
the corporate communications staff and/or organisational managers speculate will never yield
reliable information.
You need to check with people who actually know actual members of the target audiences.
Carefully conducted research, whether its done by the corporate communications staff or by
hired research consultants, is the only way to get vital and meaningful information about the
audiences you need to reach. Its critical to successful planning that such research be done, and
that its findings then be incorporated into the plan as its being developed.
4. What is this audiences current view of our organisation? Or, what is the organisations
current relationship with this audience?
The exact phrasing should correspond to question 3 so the answers can be juxtaposed, showing
where the relationship is now compared to where the organisation wants it to be.
This is not something to be guessed at. This question, more than any other part of the strategic
planning process, requires accurate, non-ambiguous answers. Virtaly all the rest of the planning
process, including the setting of specific objectives and the measurement of success, is based on
the information gathered at this step. Figure 4.52 shows the relationship between the audience
and organisation.
35
CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
This third stage of the planning process integrates the first two stages with a series of questions
that build upon and further explore the responses to the earlier questions.
7. How does this audiences current view of the organisation differ from the desired one?
Or, how does the organisations current relationship with this audience compare with what the
organisation wants it to be?
Arriving at this answer obviously calls for comparing what the organisations managers said
about the desired relationship. This comparison lets the organisation know which of its relation-
ships are moving along on track and which most in need of adjustment are. A frequent outcome
of this planning step is a prioritised list of relationships, which need immediate attention.
8. What message themes will have the greatest impact on this audience?
In some instances, especially when an organisation is closely tied to an issue that has a
strong emotional context for its audiences, the responses to this question end up being iden-
36
CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
tical to the responses to question 5. In other cases, when the issues audiences feel strongly
about (question 5) have no connection with the organisation, there may be little correlation.
However, something that has become increasingly common in recent years as organisa-
tions seek more and more ways to establish additional linkages to their constituents is that
the perceived strength of an audiences feeling about a particular topic will inspire the
organisation to take a similar public stance on that issue even though it has no direct bear-
ing on the organisation and would otherwise have gone unnoticed by its management.
The means of reaching the audience, which are identified here, need to be appropriate, avail-
able, and affordable. In many instances, it may be most effective to list several different means
of communicating with each audience, specifying which means and medium is most appropri-
ate for various types of situations.
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
Tactical public relations objectives are developed by analysing the organisations strategic plan,
particularly responses to question 7 which reveal how each audiences current view of the or-
ganisation differs from what the organisation would like it to be.
In addition to identifying which relationships are most in need of attention, this analysis allows
the organisation to identify common threads among its various relationships and its audiences
perceptions of it: Figure 4.54 describes the Questions based on analysing the organisations
strategic plan.
These findings then become the basis for developing a prioritised list of objectives--specific,
short-term goals which often include or are linked to a project, publication, special event, or
other task whose achievement can be readily measured. The assumption and intent is that suc-
cessfully completing these objectives will, over time, ultimately lead to the realisation of the
organisations long-term goals.
11. What short-term objectives will lead to the goals of the strategic plan?
There are any numbers of potentially useful ways public relations objectives can be identified,
organised, and prioritised. Two of the most common are described below.
Project-oriented objectives focus on specific work products (e.g., news releases, publications,
etc.) or tasks (e.g., holding an open house, testifying before a legislative sub-committee, etc.)
that end up on a giant to do list of projects that will enhance the organisations public rela-
tions. These can be either new initiatives or a continuation of current activities.
Usually the first consideration in trying to prioritise such a list is predicting how many people
will be affected. The more people it will impact, the higher its priority is likely to be, although
some consideration is also given to cost, ease of completion, and precedent. If its relative cheap,
easy to do, and is something the organisation has been doing for a long time e.g., publishing a
monthly employee newsletter continuing to do it may rise to the top of priority list regardless of
how many people are actually affected by it. Figure 4.55 shows employee newsletter.
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
Relationship-oriented objectives focus on the organisations various publics and the quality of
its relationships with each of them. Recognising that the ideal of having a perfect relationship
with each and every public is rarely attained and that its almost impossible to devote equal time
and attention to every separate audience, this approach tries to list the organisations relation-
ships in the order in which they should be given attention.
The priority given to any particular relationship is based on a combination of that publics im-
portance to the organisation and an assessment of how far from ideal its current relationship
with the organisation is. The more important the public is and the further from ideal its relation-
ship is, the higher its priority becomes.
Regardless of which approach is used, the end result of this step in tactical planning is a list of
objectives the organisation will attempt to achieve. However, given the wide variety of tasks/re-
lationships that may be included in this list and the differing degrees of complexity that theyre
likely to have, a grid format is no longer suited to reporting the plan. From this point on, it may
be far more effective to use a page by page planning format in which each objective is placed
on a separate page and questions 12-15 are answered in whatever length and detail is required
without worrying about the fact that the plans for meeting some objectives will be longer than
others.
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
Consequently, primary audience contacts can include a mix of corporate communications peo-
ple, management executives, technical specialists, and others, all of who are chosen for their
rapport with a particular audience rather than their job titles.
The plan for realising the objectives are given in the question answer format, some answers may
be long some short. They are:
12. What specific actions or messages will lead to achieving this objective?
This is a deceptively short and
simple question that really requires
multiple answers and may involve
far more members of the organisa-
tion than the corporate communi-
cations staff if the actions that ap-
pear to be needed involve more than
communication activities, require
large expenditures of time and/or
money, or if they will require any
changes in established policies and
procedures. Figure 4.56 refers large
expenditures of time and/or money
needed to achieve short-term objec-
tives.
Figure 4.56: Large expenditures of time and/or money to achieve
short-term objectives
Planning the communication as-
pects alone can be an enormous task requiring that media choices and formats be specified
down to the level of identifying a spokesperson, selecting styles, tones, themes, and linked
appeals, as well as message content. And, each of these decisions needs to take into account
all available information about the audiences media preferences special interests, and issues
or appeals that are of particular concern to
them as shown in their responses to ques-
tions 5 and 6 in the strategic planning process.
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
The number of people who attend an open house, for instance, is easy to count but, in and
of it, doesnt indicate how these people feel about the organisation or if their tour of its fa-
cilities changed their opinions in any way. To find out the latter, you may have to ask them.
Thats much more difficult than doing a headcount, but its also much more likely to provide
meaningful information. Figure 4.59 shows an example of open house.
Similarly, some media relations people measure their success by the number or percentage
of their news releases that are used by the media or by the number of inches or minutes of
coverage their stories receive. Still others have a complex formula that assigns a dollar val-
ue to their each story thats run based on audience size and amount of coverage. While these
measures may gauge the amount of media coverage an organisation receives, and perhaps
its success in placing stories in the media, they dont necessarily measure the organisations
success in building relationships with its key audiences because they dont show how much
or what kind of impact this media coverage has on the people who see it. They often dont
even indicate whether the people who see the coverage are the people the organisation re-
ally needs to reach. Figure 4.60 shows examples of mass medias.
Keep in mind that
the ultimate goal of
corporate communi-
cations is helping an
organisation maxi-
mise the benefits
of its relationships
with all its various
publics. Its goal is
not necessarily get-
ting news coverage
or publishing em-
ployee publications
or having a large
turn out for an open
house or you get
the idea. Whatever
evaluation methods
Figure 4.60: Mass medias are used must focus
on how well the or-
ganisations relationships are being handled, not how quickly or how well a to do list is com-
pleted.
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
Planning starts with a mission statement. The best starting point for corporate communications
planning is to review the organisations mission statement and goals. These documents sum-
marise what the organisation is and what its trying to accomplish, and they should provide the
focus for every decision the organisation or any sub-unit within it makes and every action it
takes. This should be especially true of corporate communications efforts
Consequently, many corporate communications plans start with a copy of the organisations
mission and goals. The next element these plans include is a mission statement for the corpo-
rate communications unit, which spells out what that unit does and how it assists and supports
the organisation in carrying out its mission. Beyond this point different planners structure their
plans in various ways to reflect their views of what corporate communications is and what it
does. Figure 4.61 illustrates various ways to reflect what corporate communications is and what
it does:
Others put their emphasis on activities like publications, special events, speech
writing, and media relations.
And, those who see relationship building as the essence of corporate communica-
tions often build their strategic plans around their organisations most important
publics and target audiences.
Figure 4.61: Various ways to reflect what corporate communications is and what it does
The approach outlined here is a fifteen-step comprehensive planning process that combines both
strategic and tactical corporate communications planning. The first ten steps develop a strategic
plan and can be used without completing the last five steps. Those last five steps, however, build
upon the initial strategic plan and can be used to produce much more detailed tactical plans.
Keep in mind, however, that this is only one of dozens of different but equally valid ways of
doing corporate communications planning. Relatively speaking, its a moderately complex ap-
proach to planning. Its detailed enough to encompass the main elements needed to execute a
successful corporate communications program, but short enough to avoid redundancy and not
get bogged down in unnecessary and confusing minutia.
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
SUMMARY
1. A strategy is a plan that integrates an organisations major goals, policies, and action
sequences into a cohesive whole.
3. Strategies are different from tactics in that, they are proactive, they are internal in source,
can be applied only once, the outcome is strategic plan. Strategic planning is the formal
consideration of an organisations future course.
4. Communication strategy should establish objectives, audiences, messages, tools and ac-
tivities, resources, timescales, evaluation and amendment. A good communication strat-
egy leverages multiple methods of communication. Strategic communication means us-
ing corporate communications to create, strengthen or preserve, among key audiences,
opinion favourable to the attainment of corporate goal.
5. A good communications strategy allows you to exercise better control over your work
and to frame the issues in a perspective other than research.
8. Communication may broadly by classified into two types. They are Internal communica-
tion and External communication.
10. Under all circumstances, it should be kept in mind that for the effective running of the
organisation an uninterrupted communication channel external to the organisation be
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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
maintained to keep the organisation alive and active. External communication provides
a link between the employees and the shareholders and other third parties.
12. A blue ocean is created when a company achieves value innovation that creates value
simultaneously for both the buyer and the company.
13. Swot analysis and market research are identified as actions needed to reach the objec-
tives.
glossary
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CORPORATE STRATEGIES AND PLANNING l CHAPTER 4
reference
Books
Quinn, J.B. (1980). Strategies for Change. Logical Incrementalism. Homewood: Rich-
ard D. Unwin.
Mintzberg, Henry, Lampel, J., & Ahlstrand, B. Strategy Safari. A Guided Tour through
the Wilds of Strategic Management.
Web Links
http://www.wiltshirepct.nhs.uk/Publications/Strategies/CommunicationStrategy.pdf
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