CHAPTER 7 Strategy Formulation Corporate Strategy STRATEGIC MANAGEMENT
- Slides: 22
CHAPTER 7 Strategy Formulation: Corporate Strategy STRATEGIC MANAGEMENT & BUSINESS POLICY 11 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER 1
Corporate Strategy 3 Key Issues – –Firm’s directional strategy (Growth, Stability, Retrenchment) –Firm’s portfolio strategy –Firm’s parenting strategy 2
Corporate Directional Strategies 3
Corporate Strategy Directional Strategy – –Orientation toward growth • Expansion, contraction, status quo • Concentration or diversification • Internal development or acquisitions, mergers, or alliances 4
Corporate Strategy Directional Strategy – – 3 Grand Strategies • Growth strategies • Stability strategies • Retrenchment strategies 5
Corporate Strategy Growth Strategies -–External mechanisms • Mergers • Acquisitions • Strategic alliances 6
Corporate Strategy Growth Strategies -– 2 Basic forms • Concentration • Diversification 7
Corporate Strategy Basic Concentration Strategies -–Vertical growth –Horizontal growth 8
Corporate Strategy Vertical Growth -–Vertical integration • Full integration • Taper integration • Quasi-integration • Long-term contract 9
Corporate Strategy Vertical Growth -–Backward integration –Forward integration 10
Corporate Strategy Concentration -–Horizontal Growth • Horizontal integration 11
Corporate Strategy Basic Diversification Strategies -–Concentric Diversification –Conglomerate Diversification 12
Corporate Strategy Concentric Diversification -–Growth into related industry –Search for synergies 13
Corporate Strategy Conglomerate diversification -–Growth into unrelated industry –Concern with financial considerations 14
Corporate Strategy International Entry Options -–Exporting –Licensing –Franchising –Joint Ventures –Acquisitions –Green-Field Development 15
Corporate Strategy International Entry Options -–Production Sharing –Turnkey Operation –BOT Concept (Build, Operate, Transfer) –Management Contracts 16
Corporate Strategy Stability Strategies -–Pause/proceed with caution –No change –Profit strategies 17
Corporate Strategy Retrenchment Strategies -–Turnaround –Captive Company Strategy –Selling out –Bankruptcy –Liquidation 18
Corporate Strategy Portfolio Analysis -–Resource commitment on best products to ensure continued success –Resource commitment on new costly products high risk 19
BCG Matrix (Portfolio Analysis) 20
GE Business Screen (Portfolio Analysis) High Winners A Winners B C Question Marks Industry Attractiveness D Winners E Medium Average Businesses F Losers G Low Profit Producers Strong H Losers Average Weak Business Strength/Competitive Position 21
Corporate Strategy Corporate Parenting Strategy -–Strategic factors –performance improvement –Analyze fit 22
- Strategy formulation corporate strategy
- Strategic control
- What is corporate strategy in strategic management
- Why problem formulation follow goal formulation
- Strategy formulation vs strategy implementation
- Corporate governance chain
- Corporate governance and social responsibility
- Corporate governance strategic management
- Business strategy vs corporate strategy
- Resource based model
- Cultural aspects of strategy choice
- Objectives of corporate finance
- Shrm vs hrm
- Types of strategy formulation
- Build execution into strategy
- Blue water strategy
- Formulation of functional strategy
- Analysing the 6 strategic options megxit
- Formulation of functional strategy
- Managerial process of crafting and executing strategy
- Corporate level cooperative strategy
- Strategic meetings management strategy
- Factors affecting strategic choice