The Third Type Of Defensive Strategy Is Liquidation Essay

711 Words Sep 28th, 2016 3 Pages
The third type of defensive strategy is liquidation. This is whenever an organization sells a business and its property. The last corporate-level strategy is a combination strategy. This strategy can be seen as the give and get strategy. An organization will decide to broaden one part of their organization, while at the same time get rid of another part. According to Slack & Parent (2006), “In diversified companies that use combination strategies, one popular technique for analyzing the relative merits and cash flow requirements of their product or service offerings is that developed nu the Boston Consulting Group (BCG)” (pg. 117). The BCG analyzes and pinpoints different strategic business units for the different fields in which the organization competes. These units are then looked at and evaluated by two different criteria. The two different criteria are market share and growth rate. When looking at market share, the market share of the organization is compared to that of its competitors. Growth rate is fixed by the comparing the SBU’s business to the growth rate of the economy. The data from the market share and growth rate are collected and put into a matrix. There are four different cells that the data can fall under. The first cell is labeled stars. This is for the units that are the highest when looking at their market share and growth rate. The second cell is labeled with question marks. The units that fall into this category are uncertain because they have…

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