This takes place through horizontal mergers and

This preview shows page 4 - 6 out of 7 pages.

. This takes place through horizontal mergers and acquisitions. (within the same industry) 3.) Decline * these two aren’t really strategies, since no company would choose to enter into either of them. 4.) Corporate Combinations Inter-Relationship between Generic and Grand Strategies Generic Strategy Cost Leadership Differentiation Focus Grand Strategy Forward Integration Concentrated Growth Concentrated Growth 4 | P a g e Turnaround This strategy involves strengthening the distinctive competencies of the organisation in order to break a downward trend in sales and profits . Divestiture Involves selling a division or part of the organisation to raise capital for further acquisitions or investments. (eg. mining industries) Liquidation* A planned and orderly way of converting the assets of the organisation into cash in an attempt to minimise losses for the shareholders of the organisation. Bankruptcy* All the assets of the organisation are sold in parts for their tangible worth . Creditors are compensated to the extent that cash allows and the rest of the debt is then written off. Joint Ventures A temporary partnership formed by two or more organisations for the purpose of capitalising on a particular opportunity . Partners contribute their own proportional amounts of capital, distinctive skills, managers and technologies to the specific venture. Strategic Alliances Strategic alliances differ from joint ventures in that the organisations involved do not share ownership in a specific business venture . They tend to share skills and expertise for a defined period , usually linked to the life cycle of a specific project Consortia Consortia are large interlocking relationships between organisations in a particular industry . These relationships represent the most sophisticated form of strategic alliance as they involve multi-partner alliances and highly complex linkages between groups of organisations. Some of the linkages are financial, whereby organisations own majority equity stakes in one another. Other relationships involve the complex sharing of technologies, resources or value creating activities among partners.
Image of page 4

Subscribe to view the full document.

Backward Integration Product Development Product Development Horizontal Integration Market Development Horizontal Integration Concentrated Growth Conglomerate Diversification Concentric Diversification Joint Ventures Horizontal Integration Joint Ventures Strategic Alliances Concentric Diversification Strategic Alliances - Strategies are formed through formal or informal procedures - Strategies are more than just a plan – it’s a behaviour and a way of thinking , requires diverse inputs from all departments in an organisation. - Strategic planning is concerned with the future of the firm & it’s the responsibility of top management.
Image of page 5
Image of page 6
  • Fall '19
  • Distell

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes