1.

Formulation of Strategies
2. Portfolio Analysis
3. Business Level Strategy
4. Strategy Implementation
5. Corporate Restructuring
6. Strategic Choice
7. Balanced Scorecard
8. Porter’s Diamond Model
9. Delta Model

FORMULATION OF STRATEGIES
LEVELS OF STRATEGY
1. CORPORATE LEVEL
2. BUSINESS UNIT LEVEL
3. FUNCTIONAL LEVEL

CORPORATE STRATEGIC ORIENTATION

1. Growth strategy
2. Stability strategy
3. Retrenchment strategy
4. Combination strategy

Growth strategy
1. Concentration strategy
 Vertical strategy
o Backward integration
o Forward integration
 Horizontal strategy

2. Diversification strategy
 Concentric diversification related
 Conglomerate diversification unrelated

3. Internationalization
 International strategy
 Multinational strategy
 Global strategy
 Transnational strategy

Stability strategy

1. Pause or proceed with caution strategy

2. No change strategy
 3. Profit strategy

Retrenchment strategy

1. Turn around strategy

 Contraction
 Consolidation
2. Captive strategy
3. Sale out or divestment strategy
4. Bankruptcy or liquidation strategy

PORTFOLIO ANALYSIS
1. BCG matrix – Growth Share matrix – Stars, Cash cows, Question marks, Dogs

2. GE nine cell matrix

 Business Unit strength (share) and Industry Attractiveness (growth)
 Grow (invest/expand), Hold (select/earn), Harvest (divest-red)

BUSINESS LEVEL STRATEGY

 Competitive Strategies

 Business strategy depends on

o Industry structure (determined by Porter’s 5 forces)
o Positioning of the firm in the industry (based on competitive advantage -lower
cost/differentiation and competitive scope -breadth of target market broad or narrow)

1. Porter’s generic business level strategies

1. Cost Leadership – Lower cost & broad target
2. Differentiation – Uniqueness & broad target
3. Focus – Lower cost or differentiation & narrow target

2. Value creating activities

o Support activities
1. Firm infrastructure
2. Human resource management
3. Technological development
4. Procurement
o Primary activities
1. Inbound logistics
2. Operations
3. Outbound logistics
 4. Marketing and sales
5. Service

STRATEGIC IMPLEMENTATION
Model of strategic implementation
1. Activating Strategies
(Project Implementation- Procedural Implementation- Resource Allocation)

2. Managing Change
(Structural Implementation- Leadership Implementation-Behavioral Implementation)

3. Achieving Effectiveness
( Functional Implementation- Operational Implementation)

CORPORATE RESTRUCTURING
 Macro level – Global or country level
 Micro level – Corporate or business level, Financial, Operational
 Types – Portfolio restructuring, Financial restructuring, Operational restructuring
 Process of restructuring - Customer focus, Core business processes, Structural
changes through restructuring, Cultural changes

Blue Ocean Strategy – Value Innovation – low cost, high buyer value

 Analysis tools – The Strategy Canvass, The Four Actions Framework (eliminate,
reduce, raise, create)
 A commercially viable blue ocean strategy – buyer utility, price, cost, adoption

STRATEGIC CHOICE
 Process – Focusing, Analyzing, Evaluating, Choosing strategic alternative
 Focusing - visualizing the future state, gap analysis
1. If gap is narrow (stability strategies)
2. If gap is large due to environmental opportunities (growth/ expansion strategies)
3. If gap is large due to past and expected bad performance (retrenchment strategy)
 Analyzing –Selection factors (objective & subjective)

Mc Kinsey 7s framework
 Hard Ss – Strategy, structure, systems
 Soft Ss – Skills, staff, style, shared values
Strategic Evaluation and Control

 Strategic evaluation operates at two levels: Strategic level & Operational level
 The types of strategic controls are: Premise, Implementation, Strategic surveillance,
Special alert control

BALANCED SCORECARD
4 Perspective - Learning & Growth, Internal Process, Customer, Financial Perspective

PORTER’S DIAMOND MODEL

Factor condition, Demand condition, Related and supporting industries, Firm strategy, structure
and rivalry, Government, Chance

DELTA MODEL
Enabled through effective use of technology – System lock in, Total customer solutions, Best
Product