Corporate Strategy

CORPORATE STRATEGY 

ALLOCATING RESOURCES AMONG THE DIFFERENT BUSINESS OR FIRMS



TRANSFERING RESOURCES FROM ONE SET OF BUSINESS TO ANOTHER



MANAGING AND NURTURING A PORTFOLIO OF BUSINESS

MAJOR STRATEGIES 2. 3. 4.

5. 6.

EXPANSION STRATEGIES STABILITIES STRATEGIES RETRENCHMENT STRATEGIES COMBINATION STRATEGIES CONCENTRATION STRATEGIES

EXPANTION STRATEGIES  



6. 7. 8. 9.

HIGH GROWTH BROADNING THE SCOPE OF BUSINESS ALTERNATIVE TECHNOLOGIES EXPANSION THROUGH CONCENTRATION INTEGRATION DIVERSIFICATION INTERNATIONALISATION

STABILITIES STRATEGIES 

MARGINALLY CHANGING BUSINESS - NO CHANGE



IMPROVE THE PERFORMANCE - PROCEED WITH CAUTION



SUSTAINING MODERATE GROWTH - PROFIT MOTIVE

RETRENCHMENT STRATEGIES 

CONTRACTION OF ACTIVITIES



REDUCTION OF SCOPE OF BUSINESS



SLIMMER ORGANISATION

COMBINATION STRATEGIES 

EXPANSION



STABILITY



RETRENCHMENT

CONCENTRATION STRATEGIES 

MARKET PENETRATION



MARKET DEVELOPMENT



PRODUCT DEVELOPMENT

INTEGRATION STRATEGIES 

4. 5.

COMBINING ACTIVITY RELATED TO THE PRESENT ACTIVITY HORIZONTAL INTEGRATION VERTICAL INTEGRATION

HORIZONTAL INTEGRATION 

ALSO KNOWN AS ACQUISITION OR MERGER



EXISTS BOTH IN MARKETING AND OPERATION FUNCTIONS

6. 7.

MERGER OF BANKS TAKE OVER OF COMPANIES

ADVANTAGES OF

HORIZONTAL INTEGRATION 

INCREASED MARKET POWER



REPLECATING A SUCCESSFUL BUSINESS MODEL



REDUCTION IN INDUSTRY RIVALRY

DISADVANTAGES OF

HORIZONTAL INTEGRATION 

DOES NOT INCREASE THE VALUE OF AN ORGANISATION



RULES OF THE GOVERNMENT



LIMITED ECONOMIC GROWTH

VERTICAL INTEGRATION 

4.

5.

MANUFACTURING OF NEW PRODUCTS PRODUCT SERVES FOR ITS OWN NEEDS PRODUCT SERVING TO THE CUSTOMERS

TYPES OF VERTICAL INTEGRATION  2.

 5.

BACKWARD INTEGRATION RETREATING SOURCE OF RAW MATERIALS FORWARD INTEGRATION MOVES THE ORGANISATION TOWARDS CUSTOMER

DIVERSIFICATIO N STRATEGY 

CONCENTRIC OR RELATED DIVERSIFICATION



CONGLOMERATE OR UNRELATED DIVERSIFICATION

CONCENTRIC OR

RELATED DIVERSIFICATION 2.

4.

6.

MARKETING REALTED DIVERSIFICATION TECHNOLOGY RELATED DIVERSIFICATION MARKETING AND TECHNOLOGY RELATED DIVERSIFICATION

RISKS IN DIVERSIFICATIO N 

  

REQUIRES MANAGERIAL , OPERATIONAL & FINANCIAL COMPETENCE REQUIRES VARIETY OF SKILLS NO PROMISE ON REWARDS INCREASES ADMINISTRATIVE COST OF MANAGING , INTEGRATING & CONTROL OF BUSINESS

INTERNATIONALISAT ION 





EXPANSION IN INTERNATIONAL MARKET REGULATIONS GOVERNING TRADE PENETRATING FOREIGN MARKET WHERE THE PRODUCTS ARE NOT AVALIABLE

CHARACTERISTICS    

FACTOR CONDITIONS DEMAND CONDITIONS SUPPORTING INDUSTRIES RIVALRY

MODE OF ENTRY 1. 2. 3.

ENTRY BY EXPORT CONTRACTUAL ENTRY INVESTMENT ENTRY

STRATEGIC DECISIONS 

 

WHICH INTERNATIONAL MARKET WHEN TO PROCEED ON WHAT SCALE

ADVANTAGES   

INCREASED ECONOMY EXPANSION OF MARKETS ACCESS TO RESOURCES OVERSEAS

DISADVANTAGES     

HIGH RISK CULTURAL DIVERSITY BUREAUCRATIC COST DISTRIBUTION COST TRADE BARRIORS