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Identifying Strategic Alternatives
Identifying Strategic Alternatives
“STRATEGIC ALTERNATIVES”
PRESENTED BY:
MANDEEP RANGSHA (GM 21/16)
EXPANSION STRATEGY
STABILITY STRATEGY
RETRENCHMENT STRATEGY
COMBINATION STRATEGY
(A) EXPANSION STRATEGY
(i) Concentration : moving resources to more
developing product lines in one industry.
Horizontal growth:(expanding sideways).
Vertical growth:(taking over a function previously
provided by a supplier or by a distributor).
(ii) Diversification: moving resources to
product lines in different industries.
Concentric: (related )
Conglomerate: (unrelated)
(B). STABILITY STRATEGY
1.TURNAROUND
2. Captive Strategy
3.DISVESTMENT/
SELL OUT
D) COMBINATION STRATEGIES
OBJECTIVES SSUBJECTIVE
FACTORS FACTORS
STRATEGY CHOICE
Factors affecting in Strategic Alternatives
Cost
WELL-SUITED
Dependable
Riskiness Stability
Flexibility
STRATEGIES TO AVOID
1.Follow the
Leader