SM Ch-4

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CHAPTER-4- Strategic Choices


Tera Course Mera Guidance
www.atacademy.co.in
info@atacademy.co.in
Stability Expansion / Growth
CA CS Amit Tated
Characteristics Characteristics
Same Business Same Product 1. Redefinition of Business
Functional Efficiencies 2. Opposite of Stability Retrenchment Strategic Options
No Redefinition 3. Fresh Investment
Safe 4. Mammoth Growth
No Fresh Investment 5. Highly Versatile Turnaround
Less Risk 6. Intensification & Diversification My Notes:
Concentrate on Resources Action Plan
Modest Growth Reason 1. Current Problems
1. Environment Demands Pace 2. Analyze & Develop
Reason 2. Strategist Feel More Satisfied Strategic Plan
3. Greater Control 3. Implementing Emergency
Maturity Stage
4. Experience Curve Action Plan
Staff Feels Comfortable
5. Multiple Forms 4. Restructuring Business
Stable Environment
5. Returning Normal
Expansion is Threat
After Rapid Expansion, Types of Expansion
Consolidate Elements
1. Changes in Top
2. Credibility
3. Neutralising Pressure
Internal Form External Form 4. Quick Payoff
5. Cost Reduction
6. Revenue Generation
Intensification Merger / Acquisitions
Market Penetration 1. Horizontal
Market Development 2. Vertical Divestment
Product Development 3. Co generic
4. Conglomerate Action Plan
Diversification 1. Business Mismatch
Strategic Alliance 2. Negative Cash flow
Concentric Political 3. Severity of Competition
Organisational 4. Technology upgradation
Vertically Integrated
Strategic 5. Better Alternative
(Forward / Backward)
Economic
Horizontally Integrated
Characteristics
Conglomerate 1. Sell out Some Business
2. Integral Part of Corporate
Strategy
Innovation
Solve Complex Problem
Increase Productivity
Competitive Advantage

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Strategic Options
Tera Course Mera Guidance
www.atacademy.co.in
Ansoff’s Matrix ADL Matrix BCG Matrix GE Matrix
info@atacademy.co.in
CA CS Amit Tated

1 Ansoff’s Matrix 2 GE Matrix 3 ADL Matrix

BCG Matrix 4

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