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Chapter Five Strategic in Action (Establishing Long Term Objectives)
Chapter Five Strategic in Action (Establishing Long Term Objectives)
Strategies in Action
Strategic Management:
Concepts & Cases
13th Edition
Fred David
Measurable Hierarchical
Realistic Obtainable
Understandable Congruent/alike
Copyright © 2011 Pearson Education, Inc. Ch 5 -4
Publishing as Prentice Hall
Copyright © 2011 Pearson Education, Inc. Ch 5 -5
Publishing as Prentice Hall
Copyright © 2011 Pearson Education, Inc. Ch 5 -6
Publishing as Prentice Hall
Financial vs. Strategic Objectives
Financial Objectives
Growth in revenues
Growth in earnings
Higher dividends
Larger profit margins
Greater ROI
Higher earnings per share
Rising stock price
Improved cash flow
Copyright © 2011 Pearson Education, Inc. Ch 5 -7
Publishing as Prentice Hall
Financial vs. Strategic Objectives
Strategic Objectives
Larger market share
Quicker on-time delivery than rivals
Lower costs than rivals
Higher product quality than rivals
Wider geographic coverage than rivals
Achieving technological leadership
Consistently getting new or improved
products to market ahead of rivals
Forward
Integration
Vertical Backward
Integration Integration
Strategies
Horizontal
Integration
Market
Penetration
Intensive Market
Strategies Development
Product
Development
Related
Diversification
Diversification
Strategies
Unrelated
Diversification
Unrelated
Adding new, unrelated products or
Diversification services
Retrenchment
Defensive Divestiture
Strategies
Liquidation
Type 3 Differentiation
Merger / acquisition
Outsourcing
Educational Institutions
Medical Organizations
Governmental Agencies and
Departments