capstone-week7-8 - Topic: Strategy Formulation Strategy...

Info iconThis preview shows pages 1–15. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Topic: Strategy Formulation Strategy formulation: Anybody can think up strategies The question is whether youre thinking broadly enough, or tunneling Were going to jump right past: Are they profitable? (Of course they are) And talk about: Are they a good fit? Recall Porters basic strategic posture (in the book): Differentiation Low Cost Broad Focus Cost Leadership Differentiation Focus To which weve added: Differentiation Low Cost Broad Focus Retrenchment Stability Growth Strategy Formulation: Growth (stability/retrenchment) Growth tends to be #1 goal Same trap as LTSCA: Tunneling Most firms look in the same 2-3 places So we need a guide to help Plus Especially important today: Even in periods of retrenchment, most firms are still looking to grow elsewhere Especially important today: Recent WSJ reports Pioneer closing TV operations Home Depot closing Expo home design stores Textron (defense) closing real estate financing, agricultural distribution centers UBS AG (Swiss bank) closing US municipal bond group Even Google halted its initiative in creating a search engine for catalogs Strategy Formulation: Growth strategies Intensive Integrative Diversification Intensive Market penetration Market development Product development Integrative Backward Forward Horizontal Diversification Concentric Conglomerate Horizontal Some notation: CP = current products CC = current customers (same thing) CM = current markets NM = new markets IP = improved products TR = technologically related TU = technologically unrelated Intensive Market penetration (CP, CM) (CM = CC) Market development (CP, NM) Product development (IP, CM) Integrative Backward Forward Horizontal Diversification Concentric Conglomerate Horizontal Intensive Market penetration Market development Product development Integrative Backward Forward Horizontal Diversification Concentric (NP/ TR , NM) Conglomerate (NP/ TU , NM) Horizontal (NP/ TR , CM) Intensive Market penetration Market development Product development Integrative Backward (Buy suppliers) Forward (Buy customers) Horizontal (Buy competitors) Diversification Concentric Conglomerate Horizontal Strategy Formulation: A difficult one What about McDonalds new move?...
View Full Document

Page1 / 108

capstone-week7-8 - Topic: Strategy Formulation Strategy...

This preview shows document pages 1 - 15. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online