ASSIGNMENT OF CORPORATE

STRATEGY

TOPIC- TYPES OF CORPORATE

STRATEGIES

SUBMITTED TO-MR. VIKAS TYAGI

SUBMITTED BY –KOMAL SHARMA
ROLL NUMBER – 180154
SECTION –A {MBA }
 CORPORATE STRATEGY

CORPORATE STRATEGY IS ALSO KNOWN AS

GRAND OR MASTER STRATEGY . It provide
general plan by which the company
intends to achieve in long term goals. It
basically falls in to four types-expansion
,stability retrenchment and combination
.Companies which have many product
lines in various stages of development can
adopt any number of these grand
strategies.
 TYPES OF CORPORATE
STRATEGIES

STABILITY STRATEGY
GROWTH/EXPANSION STRATEGY
RETRENCHMENT STRATEGY
COMBINATION STRATEGY
 STABILITY STRATEGY
 STABILITY STAREGY –THE BASIC APPROACH IS ‘AINTAIN PRESENT COURSE :
STEADY AS IT GOES’.THE FOCUS IS ON MAINTAINING AND DEVELOPING
COMPETITIVE ADVANTAGES CONSISTENT WITH THE PRESENT RESOURCES.
TYPES OF STABILITY STRATERGY
 NO CHANGE STRATEGY-IT IS A DECISION TO NOTHING NEW THAT IS TO
CONTINUE WITH PRESENT BUSINESS DEFINITION.THIS IS ALSO KNOWN AS
ABSENCE OF STRATEGY WHILE IN REALITY IT IS NOT SO.TAKING NO DECISION IS
SOMETIMES A DECISION TO.
 PROFIT STRATEY-NO FIRM CAN CONTINUE WITH A NO-CHANGE STRATEGY
.SOMETIMES THINGS DO CHANGE AND THE FIRM IS FACED WITH A
SITUATIONWHERE IT HAS TO DO SOMETHING .THIS STRATEGY IS ADOPTED IN
LARGE COMPANY WHERE THE GENERATING CASH FLOW IS MAIN CONCERN.
 CAUTION STRATEGY-IT IS ADOPTED BY THOSE ORGAINISATION WHOSE PAST
HISTORY IS FULL OF GROWTH.IN SUCH A CASE IT IS DESIRABE TO MAINTAIN
STABILITY FOR SOMETIME TO TAKE THE ADVANTAGE OF FUTURE GROWTH
OPPORTUNITIES .
 GROWTH STRATEGY
IT IS ALSO KNOWN AS GROWTH STRATEGY IT PROVIDE
OUTLINE OR DRAFT FOR THE ORGANISATION TO
ACHIEVE LONG TERM BUSINESS OBJECTIVES. IT PERMIT
THE ORGANISATION TO GROW EVEN IF THE INDUSTRY IS
IN MATURITY STAGE.
TYPES OF GROWTH STARETGY
CONCENTATION STRATGIES
DIVERSIFICATION STRATEGIES
INTEGRATION STRATEGIES
INTERNATIONAL STRATEGIES
COOPERATIONSTRATEGIES
 CONCENTARTION STRATEGIES-ITS AIM IS TO INCREASE THE MARKET SHARE OF
THE COMPANY BY LAUNCHING NEW PRODUCTS AND SERVICES AND BY
INCREASING THE NUMBER OF OFFERINGS TO THE COMPANY IN THE MARKET.
 DIVERSIFICATION STRATEGIES-IN THIS COMPANY ENTERS INTO NEW LINES OF
BUSINESS FROM THE EXISTING LINES OF BUSINESS.IT CALLS FOR NEW SET OF
CAPABILITIES FROM THE EXISTING ONES.
 INTEGRATION STRATEGIES-IT DENOTES EFFORT BY THE COMPANY TO MOVE UP
OR MOVE DOWN ITS VALUE CHAIN AND ADDING TO ITS PRESENT ACTIVITIES
OF THE ORGANISATION.
 INTERNATIONAL STRATEGIES-UNDER THIS THE ORGANISATION EXOAND THEIR
MARKET BY OFFERING THEIR PRODUCT AND SERVICES TO THE NATIONAL
BOUNDARIES OR MARKET.
 CO-OPERATION STRATEGIES – IT IS THE EFFORT BY THE COMPANY TO
CONSTANTLY ENGAGE WITH THEIR COMPETITORS IN SUCH A MANNER THAT
THE END RESULT IS AN INCREASED VALUE FOR THE CUSTOMER OF THE
COMPANY.
 RETRENCHMENT STRATEGY

 RETRENCHMENT STRATEGY -IT IS FOLLOWED WHEN THE

ORGANISATION AIMS AT A CONTACTION OF ITS
ACTIVITIES THROUGH SUBSTANTIAL REDUCTION OR
ELIMINATION OF THE SCOPE OF ONE OR MORE OF ITS
BUSINESSES IN TERMS OF THEIR CUSTOMER GROUP
,CUSTOMER FUNCTION –EITHER SINGLY OR JOINTY – IN
ORDER TO IMPROVE ITS OVERALL PERFORMANCE.

TYPES OF RETRENCHMENT STRATEGY

 TURNAROUND
 DIVESTMENT
 LIQUIDATION
 TURNAROUND STRATEGY IT IS REVERSING A NEGATIVE
TREND.THE OVERALL GOAL OF TURNAROUND STRATEGY
IS TO RETURN AN UNDERPERFORMING OR DISTRESSED
COMPANY TO NORMAL IN TERMS OF ACCEPTABLE LEVEL
OF PROFITABILITY,SOLVENCY,LIQUIDITY AND CASHFLOW.
 DIVESTMENT-IT INVOLVE SALE OR LIQUIDATION OF A
PORTION OF THE BUSINESS,OR A MAJOR DIVISION, PROFIT
CENTRE OR SBU. IT IS A PART OF REHABILITATION PLAN
AND ADOPTED WHEN A TURNAROUND STRATEGY HAS
BEEN ATTEMPTED BUT HAS PROVED TO BE UNSUCCESSFUL.
 LIQUIDATION –WHEN THE COMPANY HAS BEEN
UNSUCCESSFUL ,THE ONLY REMAINING ALTERNATIVEIS
LIQUIDATION,OFTEN INVOLVING A BANKRUPTCY.THE
ADVANTAGE OF LIQUIDATION OVER BANKRUPTCY IS THAT
THE BOARD AND TOP MANAGEMENT MAKE THE DECISION
RATHER THAN TURNING THEM OVER THE COURT, WHICH
OFTEN IGNORE SHAREHOLDERS INTERESTS.
 Combination strategy
A combination strategy is said to be employed
by a company when it tries to achieve several
business objectives with the aid of single
strategy.it involve objectives like growth ,
consolidation or stability .it aimed to achieve
competitive position of a company in the
industry . The organisation attempts to achieve
two or more business objectives at the same
time . For example reliance industries started off
as a textile manufacturer. However because of
distribution inefficiencies in the market the
company was forced to open retail outlets of its
own brand name “VIMAL “
 TYPES OF COMBINATION STRATEGY
 SIMULTANEOUS COMBINATION –THIS STRATEGY CAN BE USED IN THE
FOLLOWING WAYS:
 divesting a SBU or product line while at the same time adding a
SBU or product line somewhere else.
 For some products or businesses the company may adopt a
turnaround strategy whereas for other it may adopt a growth
strategy .
 The company may be harvesting some products whereas for others
it may follow growth strategy.
 SEQUENTIAL STRATEGY- THIS CAN BE USED BY THE COMPANY IN
SEVERAL WAYS :
 At first employing a growth strategy and than switching over a
stability strategy .
 First employing a turnaround strategy then using the growth strategy
once the ground level situation gets better .