Strategic Management chap 6
strategy formulation: corporate strategy
Terms
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- What is retrenchment?
- Turnaround strategies for when times are tough.
- Name three stability strategies
- Pause (timeout), No Change, profit (definding profits by cutting short term expenditures)
- Vertical Growth
- A concentration strategy in which one takes over functions in the value chain previously done by someone else.
- Directional strategy consists of three main parts. Name 'em.
- Growth strategies, stability strategies, retrenchment strategies.
- Name several horizontal growth strategies
- exporting, licencing, franchising, joint ventures, acquisitions, green field development, BOT projects.
- There are three types of retrenchment strategies. Name 'em.
- Turnaround (contraction/consolidation), Captive Company (become a supplier to a single customer) and DIvestment (sell out)
- Why use the GE screen
- It is more subtle, and contains a ton more information. On the downside, it can get cumbersome.
- Why use the BCG screen?
- simple
- Concentration strategies are for what?
- to achieve growth in sales, assets, or profits.
- Corporate strategy has three elements. Name 'em.
- Directional strategy, portfolio strategy, parenting strategy
- Diversification can take two paths. Name 'em
- Concentric (similar product) or Conglomerate.
- What is a stability strategy?
- Continuing current activity patterns.
- Name two forms of Portfolio Analysis
- BCG and GE.
- Horizontal growth:
- A concentration strategy in which one expands into other geographic locations.
- why use concentric over conglomerate growth strategy
- If one is good at something, but the industry is dogging.