MCC604 C4

CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING
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:
1. Explain the importance of corporate planning and strategy;
2. Elaborate the strategy and planning in corporate communication;
3. Determine the importance of strategy, SWOT analysis and strategy intent.
1
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
Research into all audiences
Receiving information
Advising management
Helping to set policies
Constantly evaluating the

Responsible attention
Effectiveness of all corporate
to audiences
communications programs
This inclusive role embraces all activities connected with ascertaining and influencing the opin-
ions of a group of people. Thus, this chapter focuses on:
STRATEGY INTENT: MISSION AND VISION STATEMENTS
2
4.1 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
Figure 4.1: Success of communication 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.
Quinn (1980) described a strategy as a pattern or plan that integrates an organisa-

tions major goals, policies, and action sequences into a cohesive whole. A well-for-
mulated strategy helps to allocate an organisations resources into a unique and vi-
able posture based on its relative internal competencies and shortcomings, antici-
pated changes in the environment and contingent moves by intelligent opponents.
Chaffee (1985:90) grouped strategy definitions into 3 groups: Figure 4.2 shows the groups of
strategy definitions.
Linear strategy:
which is focussed on planning; consists of integrated decisions,
actions or plan that will set and achieve organisational goal.
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.
Figure 4.2: Strategy definitions
3
Figure 4.3 describes how strategies are different from tactics.
Strategies are different from tactics in that:
They are proactive and not re-active as tactics are.
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.
Figure 4.3: Different between strategies and tactics

Strategic planning is the formal consideration of an organisations future course. All strategic
planning deals with at least one of three key questions as given in figure 4.4.
What do we do?
For whom do we do it?
How do we excel?
Figure 4.4: Key questions on strategic planning
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?
Strategy and Planning in Corporate

4.2
Communications
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.
4
Corporate
communications
Investor relation Public affairs
Internal The main External

communications communication communications
disciplines
Branding Direct marketing
Advertising
Figure 4.5: Main communication disciplines
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
Evaluation Communications Messages

strategy
Tools and
Timescales
activities
Resources
Figure 4.6: Establishments of communications strategy
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
municate well and employees understand goals, organisations perform well. Figure 4.7 shows
a meeting of managers with employees.
Figure 4.7: Manager communicate with employees

Source: http://www.kln.gov.my/uploadimage/karachi/26072008035612.JPG
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.
What is your communication strategy after development of the strategic plan?
A good communication strategy leverages multiple methods of communication. Figure 4.8 de-
scribes the methods of communication.
Executive events meetings.
Focus groups and.
Traditional staff meetings.
Figure 4.8: 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.
6
Engaging stakeholders.
Using consultants and research to provide a baseline.
Measurable objectives.
Clear indicators.
Figure 4.9: Consequences of a good communication strategy

Communications have common principles, which are restricted to each kind. Ideas, goals, vi-
sion and mission of the organisation have to be communicated through: Figure 4.10 shows the
common principles of communications.
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).
Follow up the communication.
Figure 4.10: Common principles of communications
NOTES What is Strategic communication?

Strategic communication means using corporate or institutional communica-
tions to create, strengthen or preserve, among key audiences, opinion favorable
to the attainment of institutional/corporate goal.
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.
7
Each business function (marketing/ corporate communication/ human resources

etc) needs to identify key audiences and undertake routine research.
Each tactics/ action/ activity has one or more specific, immediate (short term) ob-
jectives or targets that are identified as outcomes.
A clear time frame for completion
Accountability, by identifying persons responsible for each action in the plan
Figure 4.11: Elements of operational or action plans
Corporate communications is the strategic management of issues and relationships between

an organisation and its vari-
ous constituent audiences.
The strategic communications
planning is to define strategic,
actionable goals and an imple-
mentation approach and plan,
to guide communications and
others in designing, prepar-
ing and executing strategic
communications. Figure 4.12
shows the strategic communi-
cation planning.
Figure 4.12: Communications planning is very crucial
Source: http://www.asis.org/SIG/SIGIII/Album/2006/BusinessMeeting.jpg
Figure 4.13 shows the different scopes of communication planning. Communications planning
results in planning documents in varied scope:
A planning framework: goals set, target audiences, strategic results identified.
A communication strategy: substantive and operational priorities and approaches

defined.
Components plans: implementation plans for identified programs.
Figure 4.13: Communications planning
The Relationship Between Research,

4.3
Objective and Strategy
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
8
that is best carried out as a group. Figure 4.14 illustrates the steps involved in Communication
plan.
Researches, analyses and structures a conversation or a dialogue on the subject matter.
Add values, discussion and participation to come out with the objectives.
Developments of the consensus output the strategy/plan.
Figure 4.14: Steps involved in communication planning
The relationship between research, objective and strategy shows in Figure 4.15.
Burson - Marsteller Stackholder Dialogue : Core Elements
Planning Research and Analysis Program Execution
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)
Use feedback to assess performance and refine startegy
Figure 4.15: Relationship between research, objective and strategy
Source: http://www.ambwashington.um.dk/NR/rdonlyres/9F9740DD-B724-472E-8FE3-
317E2622EA41/0/CommunicatinginaneverchangingworldStigAlbinus.pdf
9
ACTIVITY
Study a strategic planning of any organisation. Present it to the class.
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?
4.4 Importance of Strategies
A strategic plan, when communicated to all members of an organisation, provides employees

with a clear vision of what the purposes and objectives of the firm are. The formulation of
strategy forces organisations to examine the prospect of change in the foreseeable future and to
prepare for change rather than to wait passively until market forces compel it.
Figure 4.16: Staffs involving in formulation of strategy
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.
10
Highly Competitive Market Highly Competitive Market
Company with strategy Company without strategy
Figure 4.17: Firm without strategy in highly competitive markets
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.
Choose the business or businesses in which it wishes to engage - in other words,

the corporate strategy.
Articulate a mission statement consistent with its business definition.
Develop strategic objectives or goals and set performance objectives.
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.
Figure 4.18 Important steps involved in formulation of strategy
The Different Types and Levels of

4.5
Communication Strategy
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.
11
Communication assumes a fundamental importance in internal and external organisations dy-

namics allowing an easier individuals interaction and performance.
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
Figure 4.19: Two types of communication
4.5.1 Internal 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.
Figure 4.20: Internal communication
12
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
Figure 4.21: General forms of internal communication
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.
13
Figure 4.22: Examples of oral communication

Figure 4.23 shows some examples of the verbal communications involved in internal commu-
nication.
Figure 4.23: Examples of written communication
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.
14
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.
The requirements for effective Internal communication involves:
Internal communication must be recognised as an essential tool of management. It

is a way to achieve corporate objectives, build teamwork, and motive: It can make
managers become better leaders. This requirement recognises that, employee at-
titudes and resulting performance are improved by effective communication.
Employees must be well informed concerning their mutual interests in compa-

ny success. Managements position on issues needs to be known and employees
should be persuaded to take actions that will best serve mutual interests and
goals.
Individual managers must actively support the corporate communication efforts;

Managers must develop teamwork among them and work cooperatively with the
corporate office. Management has responsibilities to create a climate conducive to
communication and to maintain a flow through open channels.
Great emphasis must be placed on communication and measurement. Communi-

cation cannot be left to chance. There must be a plan who communicates that how
to whom, for what purpose and to what effect.
Top management must establish a communication climate other divisions and de-
partments will reflect this climate.
A long-term investment in professional talent and communication programming

must be made. Programming and qualified people cost money, but it is well
spent.
Management must recognise its responsibility to listen as well as to speak. If the

boss is not a good listener, those who report to him will soon stop trying to com-
municate.
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 4.24: The requirements of effective internal communication
Figure 4.25 illustrates how employees must be well informed concerning their mutual interests
in company success.
15
Figure 4.25: Employees must be well informed concerning their mutual tnterests in company success
4.5.2 External Communication:
Channels of communication consist of vertical internal communication like downward com-

munication upward communication, horizontal communication, diagonal communication, are
all relating to matters within the organisation.
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
Organisations Holding and subsidiary

Financial institutions companies
link with
other parties
Creditors Debenture holders
Registrar of companies Other body corporates
Figure 4.26: Organisation having links with outside parties
16
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
As we already learned in the previous chapters, communication is characterised as two way

process, continuing process and is a social process. Two or more people are involved in the
process. In internal communication the process is among the employees, may be upward com-
munication downward communication. A modern business organisation is a complex organisa-
tion not only of individuals or group of individuals within the organisation but to interact with
outside individuals and groups. Figure 4.28 shows the structure of what a external communica-
tion is.
External Communiation
Dealers
Goverment
Public
Customer
Shareholder
Intercorporate
Complaints
Figure 4.28: External communication

Source:http://www.rocw.raifoundation.org/masscommunication/BAMC/organisation
behaviour/lecture-notes/lecture-15.pdf
17
Externally an organisation has to communicate with customers, shareholders, sister-corpora-

tions, dealers, government and its department general public and entertaining complaints, sug-
gestions, enquiries etc. External communication broadly classified into seven categories. Figure
4.29 describes its catagories.
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
Figure 4.29: classification of external communication
Figure 4.30 illustrates what Stock holders Communication are.
(a) Stock holders Communication
Communication with the shareholders may cover many subject matters such as:
Issue of share certificate.
Share transfer application and procedure.
Certificate of transfer.
To mobilise funds, pay divided, interest on fixed deposits received.
To issue dividend warrant, proxy form, dividend coupon.
To issue notices, agenda of the various meetings.
To respond to correspondence received from them.
18
Correspondence relating to calls, forfeiture, transmission, communication on mat-

ters relating to statutory requirements etc.
Describing organisational problems and objectives of the company in terms of

special current developments in the companys folder and other stockholder com-
munication.
Drafting and circulating to all stockholders a transcript or highlightsof the annual

progress at the companys annual meetings.
Giving response to each stockholders inquiry, which must be prompt to create

goodwill.
Informing by way of circulating or distributing to all shareholders occasional re-

prints dealing with developments vital to them.
Figure 4.30: Stockholders communication
(b) General Public Communication
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.
Public information consists:
Preparing and distributing news releases.
Public meetings, press conferences between the company and representatives of

press, radio and television.
To have a regular and prompt press information service and to answer enquiries
from press and radio.
Releasing periodic advertisement in mass media circulating throughout the country

and in respect of certain commodities, information to customers directly.
General public communication (personalised mass mailings, to the editors of news-

papers, magazines, radio and television directors, educational institutions, religious
institutions, public relation offices) and officials and other local opinion leaders.
Motion picture is another important medium for public communication.
Figure 4.31: General public communication
19
(c) Customer Communication
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.
(d) Government Communication
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
Figure 4.32: Communication between government and business
(e) Dealer Communication
A dealer effects substantial turnover involving in buying, selling, supplying or distributing

goods directly or indirectly for cash or deferred payment or for commission. A quality of the
product the trading policy, practice, procedure and the image the dealers have to promote are
the fundamental factors, which must be given major consideration in the subject matter of com-
munication.
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.
20
Figure 4.33: Role of a corporate communications officer

Source: http://www.jlhaddock.com/untitled3.jpg
(f) Inter Organisation Communications
Inter corporate communication implies process of information exchange between companies.

Inter industry intra industry-information exchange is necessary to make comparison and to run
on smooth and competitive lines. Inter company communication to bridge up the communica-
tion gap between the organisation and outside entities.
Communication between the organisations on various functional performances highlights the

points of strength and weakness in individual company performance. The inter firm information
exchange facilitates inter-firm comparison which provides an objective and realistic measure-
ment of comparable efficiency of the firms interse. Figure 4.34 demonstrates an example of
inter organisation communications.
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
Figure 4.34: Example of inter organisation communications
21
(g) Complaints Communication
Public complaints and suggestions and re-

sponse constitute complaint communication
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.
4.6 Hierarchal Levels of Strategy
The different levels of strategy in the organisation involve the following:
Corporate Strategies In what businesses should we compete / be in?
How do we compete in the different industries that

Industry Level Strategies
our businesses are in?
How should we compete against particular firms

Firm Level
(i.e., direct competition against another firm)?
Figure 4.36: The three hierachical levels of strategy
22
Figure 4.37 shows the different levels of strategy in the organisation.
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
Functional Level Business Business Business

Functional managers function function function
Marketing Level
Market A Market B Market C
Marketing managers and staff
Figure 4.37: Different levels of strategy in the organisation

Source: Copyright C. W. L. Hill and G. R. Jones, The Dynamics of Business-Level Strategy,
(unpublished manuscript, 2002).
4.6.1 Corporate Level Strategy
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.
Figure 4.38: Corporate level strategy
23
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.
4.6.2 Business Unit Level Strategy
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.
At the business level, the strategy formulation phase deals with:
Positioning the business against rivals.
Anticipating changes in demand and technologies and adjusting the strategy to

accommodate them.
Influencing the nature of competition through strategic actions such as vertical

integration and through political actions such as lobbying.
Figure 4.39: Strategy formulation phase
Figure 4.40 shows the dynamics of business-level strategy.
Pricing option
Differentiation
Industry competitive
structure(e.g.five Market demand
forces model)
Cost structure
Functional-level
strategies to lower
costs
Figure 4.40: Dynamics of business-level strategy

Source: Copyright C. W. L. Hill and G. R. Jones, The Dynamics of
Business-Level Strategy,(unpublished manuscript, 2002).
24
4.6.3 Functional Level Strategy:
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
CONSOLIDATING WORD CLASS CAPTURING NEW PREPARING FOR THE

BASIC OPERATIONS SERVICE PROVISION OPPORTUNITIES FUTURE
To consolidate and To upgrade and enhance To promote and To anticipate and respond
maintain the integrity of the Bureaus essential expand the range of effectively to new needs,
the Bureaus essential services the the cost recoverable and opportunities and trends
basic infrastructure and community at large and commercial services to in the application of
ensure its efficiency, to the major statutorily- specialised users and meteorology, oceanography
effectiveness and defined sectors of its identifiable user groups. and hydrology to national
ongoing renewal. user community. environmental, economic,
social and cultural goals.
CORPORATE STRATEGIC OBJECTIVES
Long-term development Continuous New charging policy Investment in research.

strategy. improvement. Competitive neutrality.
Integration of earth
Stronger user focus. system science.
Consolidation of basic Increased cost
Infrastructure. World class weather recoverble services. Support of envionmental
forecasting. strategy service.
Integrated systems Expansion of
development. commercial service. Commitment to education
Enhanced community
access. and training.
Staff development and
Enhanced access for
renewal. Sustained international
Increased public service users.
benefit. involvement.
Management
information. Increased revenue
Upgraded ocean and generation. Cooperation in the
Streamlined environmental South - west Pacific.
administration. services.
Figure 4.41: Corporate goals and corporate strategic objectives

Source: http://blueprint.eponym.com/_photos/Good conversation in trenches.jpg
25
4.7 The Different Types and Levels of Strategy
4.7.1 Resource-Based Strategy
According to resource-based theory, a firm is defined as a collection of resources and capabili-

ties (PENROSE, 1959; BARNEY, 1991; FOSS, 1998).
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.
Physical and immaterial capital
Human capital Resources Organisational capital
Figure 4.42: Resources
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.
Figure 4.43: shows different resources in an organisation

The resource-based view (RBV) is an economic tool used to determine the strategic resources
available to a firm. The fundamental principle of the RBV is that the basis for a competitive
advantage of a firm lies primarily in the application of the bundle of valuable resources at the
firms disposal (Wernerfelt, 1984; Rumelt, 1984). To transform a short-run competitive advan-
26
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
Technological skills Absence of important skills

Leading brands Weak brands
Distribution channels Poor access to distribution
Customerloyality/Relationships Low customer retention
Production quality Unreliable products/service
Scale Sub-scale
Managment Management
Figure 4.44: Strength and weakness of an organisation

Source: www.tolanrealty.com/cma.htm
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.
3. Appraise the rent generating potential of

resources and capabilities in terms of 5. Identify resource gaps
Competitive Advantage
a) their potential for sustainable CA which need to be filled.
b) the appropriability of their returns Invest in replenishing,
augmenting and
2. Identify the firms capabilities: What can upgrading the firms
the firm do more effectively than its resource base.
rivals? Identify the resources inputs to Capabilities
each capability, and the complexity
of each capability.
1. Identify and classify the firms resources.

Appraise strengths and weaknesses
relative to competitors. Identity Resources
opportunities for better utilisation of
resources.
Figure 4.45: Strategy analysis

Source: http://ocw.mit.edu/NR/rdonlyres/51CB10DE-D5E8-41C9-8403-C5FEB7406F09/0/rbv_theoryf_ca.pdf
27
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.
Staff Update - Communications Team for electronic distribution (newsletter, email,

etc).
Intranet.
All-staff and group emails.
Board meetings held in public.
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.
Todays Read - daily summary of local and regional media coverage.
EMT (Executive Management Team) drop-in sessions.
Figure 4.46: Importance of effective communication
SELF-CHECK
1. Provide five characteristics of effective external communication.
2. Provide the difference between external and internal communication.
4.7.2 Resource-Based Strategy
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.
28
Figure 4.47: organisation achieves value innovation
Table 4.1: Blue Ocean Strategy
So what is blue ocean strategy?

Created uncontested market space
Make the competition irrelevant.
Create and capture new demand.
Break the value-cost trade off.
Align the whole system of a firms activities in pursuit of differentiation and low cost.
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.
External communications relates to all communication activities with external stakeholders,

which can cover any audience separate to internal staff and stakeholders.
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.
Audiences for external communications.
Board meetings held in public.
Annual Report.
Leaflets, posters and other written materials.
Website.
Written communications.
29
Media relations.
Emergencies and on-call arrangements.
Figure 4.48: External communication involves in blue ocean strategy
4.7.3 Positioning Strategy
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
Market profile Size, competitors, stage of growth.

Customer segments Groups of prospects with similar wants & needs.
Competitive analysis. Strengths, weaknesses, opportunities and threats in the landscape.
How youll position your offering to focus on opportunities in the
Positioning strategy
market?
Value proposition The type of value youll deliver to the market.
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?
4.8 SWOT Analysis, Market Research
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
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
Figure 4.49: SWOT analysis
It is sometimes useful to apply SWOT analysis to categories of activity. One-way to approach

this is to divide these considerations by SWOT analysis. The first two elements, Strengths and
Weaknesses, can be seen as internally driven and particular to the organisation. The other two,
Opportunities and Threats, are normally external and will have been largely identified through
the PEST analysis. The four elements can be seen as mirror segments in a quadrant. Table 4.3
gives a brief example for SWOT analysis.
Table 4.3: SWOT Analysis
STRENGTHS WEAKNESS
Innovative Complacent
Good reputation Traditional and hierarchical
OPPORTUNITIES THREATS
To expand Instability of the economic conditions
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.
31
Strategy Development and Implementation; Tac-

4.9
tics and Actions in CorporateCommunication
Table 4.4 shows the ten steps involves for a strategic corporate communications plan:
Table 4.4: Strategic Corporate Communications Plan
1. Who are the organisations key target audiences?

Audience and goal
2. Why is this audience important to the organisation?
identification
What view does the organisation want this audience to have of
3.
it?
4. What is this audiences current view of the organisation?
Reporting research
5. What issues and appeals are important to this audience?
findings
6. Which media does this audience use and trust the most?
How does this audiences current view of the organisation dif-
fer from the desired one?
7.
This is determined by comparing responses to items 3 and 4
above.
What message themes will have the greatest impact on this au-
Assessment and plan 8. dience?
development These should reflect the findings from question 5 above.
What are the best ways of reaching this audience?
9. These should be selected in light of the findings from question
6 above.
Who will serve as the organisations primary contact for work-
10.
ing with this audience?
Selecting and setting What short-term objectives will lead to the goals of the strate-
11.
objectives gic plan?
What specific actions or messages will lead to achieving this
12.
objective?
What resources will be needed for these tasks?
13. Identify specific people, equipment, and funds needed for each
Actions needed to item in question 12 above.
reach these objectives When should it be done?
14. Specify a timetable for accomplishing each item listed in 12
above.
15. How will success in achieving each objective be evaluated?
Source: http://www.nku.edu/~turney/prclass/readings/plan2.html#research
32
4.9.1 Audience and Goal Identification
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.
2. Why is this audience important to the organisation?

No matter how obvious it seems, each audience should be evaluated in terms of its relevance
and importance to the organisation. Data about the audiences abstract or general importance
e.g., how big it is, how politically influential it is, or how rich its members are is not enough and
can, in fact, be very misleading. The critical information needed is how and why this audience
affects the organisation. What does it, or could it do, to help, or to hinder, the organisation in
reaching its goals?
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
Figure 4.50: The New York Times

Source: http://www.kinetic4health.co.uk/media/Dr%20Bronner/Dr%20Bronner%20New%20York%20Times.JPG
Similarly, lots of promotions people for

local festivals and special events spend hun-
dreds of dollars and countless hours of time
trying to get Willard Scott to mention their
event on The Today Show on the morning it
takes place.
Figure 4.51: The today show

Source: http://www.thesneakychef.com/images/
media/today-show-001.jpg
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
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.
4.9.2 Reporting Research Findings
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
Figure 4.52: Relationship between the audience and organisation
5. What issues and appeals are important to this audience?

Some bare-bones planners consider these to be extraneous questions, and at one level they may
be. They are not absolutely essential for properly assessing the organisations current relation-
ships or for determining what can be done to improve them, but the information they provide
can be extremely helpful later, during tactical planning and while carrying out a corporate com-
munications campaign.
6. Which media does this audience use and trust the most?
If these questions are included in the planning process, they should be asked in the broadest
possible ways. Responses about preferred media or channels of communication should not be
limited to the major mass media, but should also take narrower and more selective communica-
tion techniques -- everything from interpersonal conversations to public speeches to telephone
calls to direct mail to the Internet -- into account. And the list of important or appealing issues
should not be restricted only to issues, which are directly related to the organisation and its
mission.
4.9.3 Assessment and Plan Development
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
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.
9. What are the best ways of reaching this audience?

As with question 8, there are some instances in which responses to this item are nearly iden-
tical to the media preferences identified for the audience in question 6. At other times, the
audiences stated preferences may not be suitable or affordable for the organisation to use.
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.
10. Who will serve as the or-

ganisations primary contact for
working with this audience?
Even though corporate

communications is concerned
with all of an organisations re-
lationships, the corporate com-
munications practitioners them-
selves are not always the most
appropriate point persons for
working with every audience.
Figure 4.53: Employees meeting with companys CEO

Some prestigious, high
profile audiences political fig-
ures, major business executives, etc. may not be satisfied dealing with corporate communi-
cations staff members. They may expect and warrant the personal attention of the CEO or
the chairman of the board. Figure 4.53 shows the managers meeting with CEO.
Other audiences may be so engrossed with technical issues that they need to dealt with by
subject matter specialists and technical experts.
Still others may not care who they deal with, just so someone from the organisation pays
attention to them.
37
4.9.4 Selecting and Setting Objectives
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.
What do people think it does well?
What do they think it does poorly?
What do they like about it?
What do they dislike about it?
What would they like to have changed?
Figure 4.54: Questions 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.
38
Figure 4.55: Employee newsletter

Source: http://www.kinetic4health.co.uk/media/Dr%20Bronner/Dr%20Bronner%20New%20York%20Times.JPG
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.
Generally speaking, performance or production oriented planners, especially public relations

practitioners who are using a first or second phase approach to public relations, are likely to
prefer the first approach and to emphasise task-oriented planning. Third-phase public relations
practitioners and relationship-builders are more likely to use the second approach.
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.
39
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.
4.9.5 Actions Needed to Reach these Objectives
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.
13. What resources will be needed for these

tasks?
This is another deceptively simple question
that may take a lot of time and effort to fully
answer. However, honest and realistic esti-
Figure 4.57: Resources needed for an organisation mates of the personnel, time, equipment, and
40
money required to achieve each objective

let planners compare the expected effort and
expense of completing the project with the
likely outcome, a rudimentary cost-benefit
analysis. It also helps with scheduling and
work assignments when/if the project is ac-
tually undertaken. For both reasons its im-
portant to estimate the necessary resources
as accurately as possible. Figure 4.57 shows
resources needed for an organisation.
Resource estimates need to include routine
Figure 4.58: Estimation of resources
staff time and effort plus everyday office ex-
penses such as postage and copying in addition to obvious and extraordinary expenses such as
hiring freelancers, purchasing materials or outside services, or renting special equipment. When
appropriate, estimates should be reported on both a per instance basis and as a total cost over the
life of the plan. Figure 4.58 refers some of the resources in estimation process.
14. When should it be done?

In some instances, this answer is a specific day, date, or time or perhaps a recurring, periodic
response, e.g., once a year, once a month, or each payday. In other cases, the answer may out-
line a contingency that may, or may not ever, occur, e.g., when the companys stock price drops
below 15 times earnings or if a high level executive is indicted.
15. How will success in achieving each objective be evaluated?
Figure 4.59: Open house

Source: http://static.travelmuse.com/docs/artwork/columns/taste-buds/festivals/taste-buds-festivals-gilroy-
garlic-full.jpg
41
In selecting or setting up evaluation mechanisms, corporate communications people need to

keep a sharp eye on what it is they really need /want to measure so theyre dont inadvertently
end up measuring something easy to measure but irrelevant. Not everything measurable is
meaningful in all contexts.
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.
42
4.10 Strategy Intent: Mission and Vision Statements.
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:
Some put primary emphasis on policy research and issues management.
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.
43
SUMMARY
1. A strategy is a plan that integrates an organisations major goals, policies, and action
sequences into a cohesive whole.
2. Linear strategy is focused on planning, adaptive strategy is concerned with development

of a variable match between opportunities and risks and the organisations capabilities
and resources for exploiting these opportunities and interpretive strategy is a collection
of co-operative agreements entered into by individual focussed on desired relationship,
symbolic actions and communication.
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.
6. A strategic plan, when communicated to all members of an organisation, provides em-

ployees with a clear vision of the objectives of the firm. A strategic plan also gives its
decision makers direction.
7. 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.
8. Communication may broadly by classified into two types. They are Internal communica-
tion and External communication.
9. Internal communication is exchange of facts, opinions that individuals or departments

of an organisation relating to purely inside matters. It includes vertical communication
covering downward communication, upward communication, horizontal communica-
tion and diagonal.
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
44
maintained to keep the organisation alive and active. External communication provides
a link between the employees and the shareholders and other third parties.
11. Stock holders Communication, General Public Communication, Customer communi-

cation, Government communication are some of other communications discussed in
detail.
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
Articulate - Express or state clearly.
Consensus - Agreement in the opinion reached by a group as a

whole.
Contingent - A gathering of persons representative of some larger
group.
Deferred payment - Arrangement for payment at a later date for goods

and services.
Forfeiture - The act of surrendering something as a penalty for a

mistake or fault or failure to perform.
Gossip - Light informal conversation for social occasion.
Grapevine - Gossip spread by spoken communication
Hierarchal - Classified according to various criteria into successive

levels.
Liaison -- A channel for communication between groups.
Niche - A position particularly well suited to the person who oc-

cupies it.
45
Nebulous - Lacking definite form or limits.
Transcript - A written record (usually typewritten) of dictated or re-

corded speech
reference
Books
Barney, J.B. (1996). Gaining and Sustaining Competitive Advantage. Addison-Wesley,

Reading, MA.
Grant, R.M. (1991). The Resource-Based Theory of Competitive Advantage. Implica-

tions for Strategy Formulation (114-135). California Management Review, spring.
Ansoff, H.I. & McDonnell, E. (1990). Implanting Strategic Management. Prentice

Hall.
Chandler, A.D. (1962). Strategy and Structure. Mass: MIT Press.
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
multiple choice questions

1. Strategies are different from tactics because ___________ .
A. they are proactive
B. they are sourced externally
C. they can be applied many times
2. An organisation performs well if ____________ .

A. its employees understand its goals
B. its products are superior in the market
C. its goals are kept well guarded
46
3. Corporate communications are a ______________ .

A. powerful management tool
B. powerful market research tool
C. powerful advertising tool
4. The corporate communication can get far ______________ .

A. if its attitude, words and action are timid
B. if its attitude, words and action are aggressive
C. if its words, action and attitude are not timid / aggressive
47

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CHAPTER 4 l CORPORATE STRATEGIES AND PLANNING

1. Explain the importance of corporate planning and strategy;

2. Elaborate the strategy and planning in corporate communication;

3. Determine the importance of strategy, SWOT analysis and strategy intent.

Research into all audiences

Helping to set policies

Constantly evaluating the

STRATEGY INTENT: MISSION AND VISION STATEMENTS

4.1 Corporate Strategies and Planning

Figure 4.1: Success of communication strategy

Quinn (1980) described a strategy as a pattern or plan that integrates an organisa-

Figure 4.2: Strategy definitions

Figure 4.3 describes how strategies are different from tactics.

Strategies are different from tactics in that:

They are proactive and not re-active as tactics are.

Figure 4.3: Different between strategies and tactics

For whom do we do it?

Figure 4.4: Key questions on strategic planning

Strategy and Planning in Corporate

Investor relation Public affairs

Internal The main External

Branding Direct marketing

Figure 4.5: Main communication disciplines

Evaluation Communications Messages

Figure 4.6: Establishments of communications strategy

Figure 4.7: Manager communicate with employees

What is your communication strategy after development of the strategic plan?

Executive events meetings.

Focus groups and.

Traditional staff meetings.

Figure 4.8: Methods of communication

Using consultants and research to provide a baseline.

Figure 4.9: Consequences of a good communication strategy

Follow up the communication.

Figure 4.10: Common principles of communications

NOTES What is Strategic communication?

Each business function (marketing/ corporate communication/ human resources

A clear time frame for completion

Accountability, by identifying persons responsible for each action in the plan

Figure 4.11: Elements of operational or action plans

Corporate communications is the strategic management of issues and relationships between

A planning framework: goals set, target audiences, strategic results identified.

A communication strategy: substantive and operational priorities and approaches

Components plans: implementation plans for identified programs.

Figure 4.13: Communications planning

The Relationship Between Research,

Researches, analyses and structures a conversation or a dialogue on the subject matter.

Developments of the consensus output the strategy/plan.

Figure 4.14: Steps involved in communication planning

Burson - Marsteller Stackholder Dialogue : Core Elements

Planning Research and Analysis Program Execution

Use feedback to assess performance and refine startegy

Figure 4.15: Relationship between research, objective and strategy

Study a strategic planning of any organisation. Present it to the class.

4.4 Importance of Strategies

A strategic plan, when communicated to all members of an organisation, provides employees

Figure 4.16: Staffs involving in formulation of strategy

Highly Competitive Market Highly Competitive Market

Company with strategy Company without strategy

Figure 4.17: Firm without strategy in highly competitive markets

Choose the business or businesses in which it wishes to engage - in other words,

Articulate a mission statement consistent with its business definition.

Develop strategic objectives or goals and set performance objectives.