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PAUSE/PROCEED WITH CAUTION STRATEGY - STABILITY STRATEGY

Opportunity to rest before continuing a growth or


retrenchment strategy Makes no change to company’s current activities)

NO CHANGE STRATEGY - Decision to do nothing new

GROWTH STRATEGY
DIRECTIONAL STRATEGY
Expands the company’s activities
The degree to which a firm operates in multiple
geographic locations at the same point on an
industry’s value chain.

 CONCENTRATION STRATEGIES RETRENCHMENT STRATEGY

If a company’s current product lines have Reduces the company’s level of activities
real growth potential, concentration of  DIVERSIFICATION
resources on those product lines makes STRATEGIES
sense as a strategy for growth.
CONCENTRIC ( RELATED)
VERTICAL GROWTH - can be achieved by DIVERSIFICATION - when firm has TURNAROUND STRATEGY - emphasizes the
taking over a function previously provided strong competitive position but improvement of operational efficiency and is
by a supplier or by a distributor. industry attractiveness is low probably most appropriate when a corporation’s
problems are pervasive but not yet critical.
 Vertical Integration (the degree
CONGLOMERATE ( UNRELATED)
to which a firm operates CAPTIVE COMPANY STRATEGY – giving up
DIVERSIFICATION -diversifying into an
vertically in multiple locations independence in exchange for security
industry unrelated to its current one.
on an industry’s value chain
from extracting raw materials SELL-OUT/DIVESTMENT STRATEGY
to manufacturing to retailing.)
 Sell-out Strategy - makes sense if
 Backward Integration (going
management can still obtain a good
backward on an industry’s value
price for its shareholders and the
chain)
employees can keep their jobs by
 Forward Integration (going
selling the entire company to another
forward on an industry’s value
firm
chain.)
 Divestment Strategy – corporation
HORIZONTAL GROWTH - expanding its has multiple business lines and it
operations into other geographic locations chooses to sell off a division with low
and/or by increasing the range of products growth potential.
and services offered to current markets.
BANKRUPTCY/LIQUIDATION STRATEGY
 Horizontal Integration - the
 Bankruptcy - giving up management
degree to which a firm operates
of the court in return for some
in multiple geographic locations
settlement of the corporation’s
at the same point on an
obligation.
industry’s value chain.
 Liquidation – converts saleable
Internationals Entity Options: assets to sash and distributes to the
shareholders after obligations are
(Exporting, licensing, franchising, paid.
joint ventures, acquisitions, and etc.)

CONCEPT MAP
Maluping, Mae M. BSA 2