1. Corporate strategy - This is true whether the firm is a small 3.
3. Growth - growth is used when you want to move beyond current
company or a large multinational corporation (MNC). In a large
multiple-business company, in particular, corporate strategy is
concerned with managing various product lines and business units for
maximum value. In this instance, corporate headquarters must play
the role of the organizational “parent,” in that it must deal with
various product and business unit “children.” Even though each
product line or business unit has its own competitive or cooperative
strategy that it uses to obtain its own competitive advantage in the
marketplace, the corporation must coordinate these different
business strategies so that the corporation as a whole succeeds as a
“family.
2. Directional Strategy - Directional strategy is the game plan a
company decides on and implements to grow business, increase
profits, and accomplish goals and objectives. Without a directional
strategy, companies may lose sight of their goals and objectives or
wander off track with projects and plans. A directional strategy keeps
companies focused in the most strategic way possible while
continuing to grow both revenue and products and services offered
to customers.
Portfolio Analysis - is essentially a process of looking at a company's
products and services and categorizing them based on how well
they're performing and their competitiveness. The categorizing helps
a company recognize where they should invest, reorganize, cut costs,
and improve their overall business, so that it's more efficient and
profitable.
Parenting strategy - In the form of corporate headquarters, the
parent has a great deal of power in this relationship. If there is a good
fit between the parent’s skills and resources and the needs and
opportunities of the business units, the corporation is likely to create
value.
achievements associated with your product, performance, profit or
other business measure. Growth strategies can be very risky and
involve forecasting and analysis of many factors that affect expansion
such as availability of resources and markets. Growth is not only
necessary but also desirable since growth is an indication of effective
management and it attracts quality employees as a result. However,
growth must be properly planned and controlled, otherwise
organizations can fail. STARBUCKS. Risk Taker
Stability - If the environment is stable and the organization is doing
well, then it may believe that it is better to make no changes. An
organization would apply stability strategy if it is satisfied with the
same product line, serving the same consumer groups and
maintaining the same market share and the management does not
want to take any risks that might be associated with expansion. Worst
tactic
Retrenchment - primarily means reduction in product, services or
personnel. This strategy is generally useful in the face of tough
competition, scarcity of resources and declining economy. Under
certain situations, retrenchment strategy becomes highly necessary
for the very survival of the company, even though it may reflect
poorly on the management of such a company. Metrobank.
4. Concentration & diversification
5. Vertical growth - can include focusing on current customers and
clients to increase their spending on your products and services, or
developing new products to sell to your base.
Zara. The secret to their success is vertical integration – from design
to manufacture to retail. Unlike companies like Gap and H&M; that
purchase their clothes from suppliers, Zara makes most of its own. It
also allows the company to respond to seasonal and fashion changes
very quickly. While Gap and H&M; may take up to nine months to
introduce a new line of clothing, Zara can do it in two to three weeks.
Horizontal growth - involves seeking out new clients and customers in
your immediate area to buy your current offerings and expanding
your reach to other locations to grow your customer base.
Facebook's acquisition of Instagram in 2012 for a reported $1 billion.
Both Facebook and Instagram operated in the same industry and
were in similar production stages in regard to their photo-sharing
services. Facebook, looking to strengthen its position in the social
media and social sharing space, saw the acquisition of Instagram as
an opportunity to grow its market share, increase its product line,
reduce competition and access potential new markets
6.
backward - Amazon.com backward vertically integrated when it
became not only a bookseller but a book publisher. As a bookseller,
Amazon.com buys books from various suppliers, such as publishing
companies. By becoming a publisher itself, it has integrated into its
business the role of supplier and can sell books that its own
publishing company publishes. Starbucks, china
forward - reviously Airline companies used to sale air tickets through
travel agents, but now they are doing it themselves. So a customer
can get a cheap ticket directly from the company
full – zara
taper - Firms are "taper integrated" when they are backward or
forward integrated but rely on outsiders for a proportion of their
suppliers or distribution. Coca-Cola and Pepsi both having integrated
bottling subsidiaries while also relying on independent bottlers for
production and distribution in some markets
quasi - An example of forward quasi-integration would be a paper
company acquiring part interest in an office products chain in order
to guarantee that its products had access to the distribution channel.
8. long term contract
9. horizontal they are referring to a strategy in which a firm acquires
similar firms to increase its market share and profits.
10. exporting – cathodes, copper
Licensing - about 90 percent of the $160 million a year in sales at
Calvin Klein Inc. comes from licensing the designer's name to makers
of underwear, jeans and perfume. The only merchandise the New
York-based company makes itself, in fact, are its women's apparel
lines. The downside of licensing is that you settle for a smaller piece
of the pie.
Franchising – kerimo
Joint ventures –coca cola san Miguel
Acquisition – URC: hunts binenta kay century, pldt & Globe – san
Miguel
Green - n April 2015, Toyota announced its first green field project in
Mexico in three years, a $1.5 billion manufacturing plant in
Guanajuato. The factory is scheduled to open in 2019 with 2,000
employees and capacity to produce 200,000 cars per year. In total,
Mexico attracted 366 green field investment projects in 2014, due in
large part to the low costs of labor and manufacturing in the country,
as well as its proximity to markets in the United States.
Product – outsourciong
Turn key -The facilities are transferred to the host country or firm
when they are complete. The customer is usually a government
agency of
BOT - It then turns the facility over to the government at little or no
cost to the host country. Power Purchase Agreements, in which a
government utility acts as offtaker and purchases electricity from a
privately owned plant
Mgt – cp
11. concentric - a company acquires or develops new products or
services (closely related to its core business or technology) to enter
one or more new markets. Paper, ballpen sterling
Comglomerate - occurs when the firm diversifies into an area(s) totally
unrelated to the organization current business. Mcdo hotel
12.pause - is a stability strategy followed when an organization wait
and look at the market conditions before launching the full-fledged
grand strategy.
profit - The profit strategy is an attempt to artificially support profits
when a company’s sales are declining by reducing investment and
short-term discretionary expenditures.
13. turn around - when it feels that the decision made earlier is wrong
and needs to be undone before it damages the profitability of the
company. Simply, turnaround strategy is backing out or retreating
from the decision wrongly made earlier and transforming from a loss
making company to a profit making company.
Sell out -ibenta