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Input Transformational
Process Output
C. Logistics Circle
Warehousing
Delivery Scheduling
Transportation Dispatching
D. Marketing and Sales
through advertisement
study the purchasing pattern of
buyers
Adopted by organization to
increase volume and turnover
Internal or Integrative
Internal Growth Strategy
Market penetration
Market development
Product development
Diversification
Designed to deal with
hypercompetition
Long-term action plans
Comparison of strength and
weaknesses with competitors
Types
• Low-cost Leadership Strategy
▪ offer product and services at lowest cost
• Focus/market-niche differentiation
strategy
▪ Limited market segment with unique
featured products
Innovation strategy
Introduction of new and highly differentiated
product or services
Operational effectiveness strategy
Improve organizational performance through:
▪ Increase work force productivity
▪ Streamlining wasteful and inefficient processes
▪ Better facilities and equipment maintenance
Economies of scale
High volume of produce product to lower cost
Technology strategy
Use of technology for efficient operations
Company do not venture into new markets
or introduce new products.
Reasons for businesses to adopt this
strategy:
It plans to consolidate
When the economy is in recession
It has too much debt
It’s operating in an industry which has reached
maturity phase
When the gains from expansion plans are less than the
costs involved for such expansion
Organization aims at reducing its one
or more business operations with the
view to cut expenses
Modes:
a. Liquidation
Business is terminated and assets sold
b. Divestment
Stockholders sell or set a company as
a separate corporation
c. Turnaround Strategy
Finances