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20 Cards in this Set
- Front
- Back
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Corporate strategy |
Choice of direction of firm and management of its business/product portfolio |
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Directiona strategy |
Firms overall orientation toward growth stablity or retrenchment |
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Portfolio strategy |
Industries/markets that the firm competes through it products |
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Directional strategy |
Growth strategy-expand activity Stability strategy-no change in activity Retrenchment strategy-reduction in activity |
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Growth strategies |
Merger- 2 or more corps exchange stock to create 1 new corp Acquisition- purchase of another company |
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Diversification strategies |
Concentric- growth in related industry when there is strong comp adv but low attractiveness Conglomenrate- diversification in an unrelated industry to current one |
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Stability strategies |
Pause/proceed with caution No change Profit |
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Pause and proceed with caution |
Opportunity to rest b4 continuing growth |
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No change strategy |
Decsion to do nothing new or continue current operations |
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Profit strategy |
Decision to do nothing new in worsening situation |
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Retrenchment strategies defn |
Used when firm has weak comp position in some or all product lines from bad performance |
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Types of retrenchment strategies |
Turnaround strategy Contraction Consolidation Captive company Sell out Divestment Bankruptcy Liquidation |
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Turnaround strategy |
Emphasizes on improving operational efficiency when problems are not critcal |
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Contraction |
Cut costs |
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Consolidation |
Stabilisation of new leaner corporation |
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Captive company |
Company gives up independence in exchange for security |
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Sell out strategy |
Management obtain good price for shareholders and employees keep their jobs |
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Divestment |
Sale of division with low growth potential |
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Bankruptcy |
Give up management of firm to court for a settlement |
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Liquidation |
Management terminates the firm |
