REPORT IN BUSINESS POLICY AND STRATEGY (MITCH)

Strategyformulationcorporatestrategy

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Unformatted text preview: giving up of independence in exchange for security. Strategy Formulation: Corporate Strategy Strategy Formulation: Corporate Strategy Retrenchment Strategies Sell – Out/Divestment Strategy ­ If a corporation with a weak competitive position in its industry in unable either to pull itself up by its bootstraps or to find a customer to which it can become a captive company, it may have no choice but to sell out. Bankruptcy/Liquidation Strategy ­ When a company finds itself in the worst possible situation with a poor competitive position in an industry with a few prospects, management has only a few alternatives – all of them distasteful. Strategy Formulation: Corporate Strategy Strategy Formulation: Corporate Strategy Portfolio Analysis Assessing Business Unit’s Competitive Position Possession of desirable core competencies Relative market share Profit margins relative to competitors Ability to match or beat rivals on product quality and service Relative cost position Knowledge of customers and markets Technological capabilities Caliber of management Strategy Formulation: Corporate Strategy Strategy Formulation: Corporate Strategy Portfolio Analysis BCG Growth­Share Matrix s s s s questions marks: business growth rate ­ high; relative competitive position ­ weak stars: business growth rate ­ high; relative competitive position ­ strong cash cows: business growth rate ­ low; relative competitive position ­ strong dogs: business growth rate ­ low; relative competitive position ­ weak BCG Matrix BCG Matrix Strategy Formu...
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