Professional Documents
Culture Documents
Strategic Management G-5
Strategic Management G-5
U N I V E R S I T Y
COLLEGE OF BUSINESS
Business Administration
Combination Strategy
Internalizations Strategy
Restructuring Strategy
Cooperative Strategy
Making use of the other grand strategies
Stability strategies
- Adopted when the organization attempts to
maintain its current position and focuses only on the
incremental improvement.
Expansion strategies
-When the firm seeks to achieve faster growth,
compete, achieve higher profits, have greater impact or
occupy a larger market share.
Retrenchment strategies
- Adopted when an organization aims at
reducing its one or more business operations with the
view to cut expenses.
STABILITY-
New variety of “Decorative
Paint”
EXPANSION
Adding new entirely product
“Automotive Paint”
RETRENCHMENT
Eliminate “Painting Contract”
Occurs when a transaction is handled by an entity
itself rather than routing it out to someone else.
Export marketing is the practice by which a
company sells products or services to a foreign
country. Products are produced or distributed from
the company's home country to buyers
in international locations.
Types
Multidomestic Strategy-an international marketing
approach that chooses to focus advertising
and commercial efforts on the needs of a local
market rather than taking a more universal or global
approach.
Global Strategy- is one that a company takes when it
wants to compete and expand in the global market.
Transnational Strategy-
an international business structure where a
company's global business activities are coordinated
via cooperation and interdependence between its head
office, operational divisions and internationally located
subsidiaries or retail outlets.
Coca Cola is a great example of a brand using
international marketing efforts. Though a large
corporation, Coca Cola focuses on small
Community Programs and Invest a lot of time and
money in small- scale charity efforts.
Restructuring strategy is the corporate
management term for the act of partially
dismantling and recognizing a company for the
purpose of making it more efficient and therefore
more profitable.
Mergers and acquisitions- integrating administration,
operations, technology and/or products of two firms.
Legal- changing the legal structure of a firm such as
ownership structure.
Financial- a change to a firm’s capital structure such as debt
restructuring designed to allow a firm in financial distress to
continue to operate.
Turnaround- restructuring its administration, operations and
products of an organization that is performing poorly.
1. 5. Repositioning- a strategy designed to move a firm or
business unit to a new business or operational model.
2. 6. Cost restructuring- cutting administrative and
operational costs in response to a downturn or
anticipated downturn in revenue or margins.
3. 7. Divestment- selling or closing a business unit that is
unprofitable, nonstrategic or problematic in some way.
4. 8. Spin-off – restructuring a business unit to be its own
company while retaining some ownership.
Types
1. Downsizing- reduction in the number of firms
employees
Example: Procter & gumble’s cutting of its
worldwide workforce by 15,000 employees
2. Down scoping- Eliminating businesses that are
unrelated to a firms core businesses.
A leveraged buyout- A party buys all of firms
assets in order to take the firm private