Strategic Management Strategies Students Name Department Institutional Affiliation

Strategic Management Strategies Student’s Name Department, Institutional Affiliation Course Number and Name Instructor’s Name Date

Directional Strategy • An organization’s directional strategy entails three orientations or grand strategies, including growth, retrenchment, and stability strategies. • Corporations’ mission and vision act as the most significant elements of directional strategy. • The adoption of the various strategies help management teams to accomplish the set objectives.

Concentration Strategy • Concentration strategy involves understanding everything about market development, penetration, and product creation or development. • Some components of concentration strategy include vertical and horizontal growth. • Vertical integration entails taking over some functions provided by a supplier previously while horizontal integration focuses on the expansion of operations into other areas.

Diversification Strategy • Firms consider diversification strategy as a way of improving the various business activities, which includes widening the scope across different products and target areas. • Concentric (related) diversification – The approach helps the firm to develop a strong competitive position despite the low attractiveness nature of the industry. • Conglomerate (unrelated) diversification – Through this approach, organizations diversify into industries unrelated to their current affiliations.

Retrenchment Strategy • A firm uses retrenchment approach when it realizes it has a weak competitive position in some or all its product lines due to poor performance. • Some of the strategies that firms consider under retrenchment approach include turnaround, contraction, consolidation, captive company, sell-out, divestment strategies. • Other strategies considered include bankruptcy and liquidation to avoid making losses due to poor performance in the market.