PAUSE/PROCEED WITH CAUTION STRATEGY -
Opportunity to rest before continuing a growth or
retrenchment strategy
NO CHANGE STRATEGY - Decision to do nothing new
GROWTH STRATEGY
Expands the company’s activities
 CONCENTRATION STRATEGIES
If a company’s current product lines have
real growth potential, concentration of
resources on those product lines makes
sense as a strategy for growth.
VERTICAL GROWTH - can be achieved by
taking over a function previously provided
by a supplier or by a distributor.
 Vertical Integration (the degree
to which a firm operates
vertically in multiple locations
on an industry’s value chain
from extracting raw materials
to manufacturing to retailing.)
 Backward Integration (going
backward on an industry’s value
chain)
 Forward Integration (going
forward on an industry’s value
chain.)
HORIZONTAL GROWTH - expanding its
operations into other geographic locations
and/or by increasing the range of products
and services offered to current markets.
 Horizontal Integration - the
degree to which a firm operates
in multiple geographic locations
at the same point on an
industry’s value chain.
Internationals Entity Options:
(Exporting, licensing, franchising,
joint ventures, acquisitions, and etc.)
STABILITY STRATEGY
Makes no change to company’s current activities)
DIRECTIONAL STRATEGY
The degree to which a firm operates in multiple
geographic locations at the same point on an
industry’s value chain.
RETRENCHMENT STRATEGY
Reduces the company’s level of activities
 DIVERSIFICATION
STRATEGIES
CONCENTRIC ( RELATED)
DIVERSIFICATION - when firm has TURNAROUND STRATEGY - emphasizes the
strong competitive position but improvement of operational efficiency and is
industry attractiveness is low probably most appropriate when a corporation’s
problems are pervasive but not yet critical.
CONGLOMERATE ( UNRELATED)
CAPTIVE COMPANY STRATEGY – giving up
DIVERSIFICATION -diversifying into an
independence in exchange for security
industry unrelated to its current one.
SELL-OUT/DIVESTMENT STRATEGY
 Sell-out Strategy - makes sense if
management can still obtain a good
price for its shareholders and the
employees can keep their jobs by
selling the entire company to another
firm
 Divestment Strategy – corporation
has multiple business lines and it
chooses to sell off a division with low
growth potential.
BANKRUPTCY/LIQUIDATION STRATEGY
 Bankruptcy - giving up management
of the court in return for some
settlement of the corporation’s
obligation.
 Liquidation – converts saleable
assets to sash and distributes to the
shareholders after obligations are
paid.
CONCEPT MAP
Maluping, Mae M. BSA 2