ASALAMUALIKUM

Corporate level strategies

Content
Corporate-level Strategy and Types (01)
Integration Strategies and types (23)
Diversification And Types (54)
Synergy And Performance (66)
BCG Matrix (15-54)
Group Members
 KHUBAIB (01)
ASSADULLAH (23)
FAWAD (54)
ZAINAB (66)
SAMEED AKBAR (15-54)
corporate-level strategy

A corporate-level strategy is a plan made by a

company to see which organizations they interact
with over a given period.

A corporate-level strategy can be used by a small

business to increase its profits over the next
fiscal year, whereas a large corporation can be
lookafter/overseeing the operations of multiple
businesses to achieve more complex goals like
selling the company or entering a new market.
Types of corporate-level strategy

Stability
strategy
Expansion strategy
Retrenchment strategy  
Combination strategy 
Stability strategy
Stability strategy is a strategy in which the
organization retain/keep its present strategy at the
corporate level and continues focusing on its
present products and markets
Make no change to the company’s current
activities
The firm stays with its current business and
product markets; maintains the existing level of
efforts; and is satisfied with incremental growth.
Organization choose this strategy when the
industry faces slow or no growth prospects.
Expansion strategy

Also known as growth or intensification

strategies
Expand the company’s activities
Adopted to accelerate/promote the rate of
growth of sales, profits and market share
faster by entering new markets, acquiring
new resources, developing new
technologies and creating new managerial
capabilities
RETRENCHMENT
STRATEGY 
When aims at concentration of its activities
through substantial/major reduction of the
scope of one/more of its businesses
This is done through an attempt to find out
the problem areas and diagnose the causes
of the problems
Basically retrenchment strategies are a
response to decline in industries and
markets
COMBINATION STRATEGY
When Organization adopts a mixture of
stability, expansion, and retrenchment
either at same time in its different
businesses or at different times in same
business with the aim of improving its
business
Integration strategies
Vertical
Integration
Horizontal Integration
Vertical Integration

 When an organization starts making new

product that serve its own needs, vertical
integration takes place
Any new activity undertaken with the
purpose of either supplying inputs (raw
material) or serving as a customer for
outputs (distribution) is vertical
integration
Horizontal Integration

 Itis process of acquiring or merging with

industry competitors in an effort to
achieve the competitive advantages that
come with large scale and scope.
Horizontal growth can be achieved by
internal expansion or by external
expansion through mergers and
acquisitions of firms offering similar
products and services
Diversification
Multi-business corporations have
diversified beyond a single business
Diversification is defined as
the entry of a firm or business unit into
new lines of activity, either by processes
of internal business development or
acquisition, which entail changes in its
administrative structure, systems and
other management processes.
Types of Diversification
 Related (Concentric) Diversification  
When an organization takes up an activity in
such a manner that it is related to the existing
business definition, it is related diversification
Unrelated (Conglomerate) Diversification

When an organization adopts a strategy which

requires taking up those activities which are
unrelated to the existing business definition
Synergy
 Synergy refers to the benefits gained
where activities or assets complement
each other so that their combined effect is
greater than the sum of the parts
BCG Matrix
THANKS