BUKIDNON STATE

U N I V E R S I T Y
COLLEGE OF BUSINESS
Business Administration

Combination Strategy
Internalizations Strategy
Restructuring Strategy
Cooperative Strategy
Making use of the other grand strategies
 Stability strategies
- Adopted when the organization attempts to
maintain its current position and focuses only on the
incremental improvement.
 Expansion strategies
-When the firm seeks to achieve faster growth,
compete, achieve higher profits, have greater impact or
occupy a larger market share.
 Retrenchment strategies
- Adopted when an organization aims at
reducing its one or more business operations with the
view to cut expenses.

These Grand strategies are used to achieve long term

objectives.
 BOYSEN PAINT COMPANY

STABILITY-

New variety of “Decorative
Paint”

EXPANSION

Adding new entirely product
“Automotive Paint”

RETRENCHMENT

Eliminate “Painting Contract”
 Occurs when a transaction is handled by an entity
itself rather than routing it out to someone else.
 Export marketing is the practice by which a
company sells products or services to a foreign
country. Products are produced or distributed from
the company's home country to buyers
in international locations.
Types
 Multidomestic Strategy-an international marketing
approach that chooses to focus advertising
and commercial efforts on the needs of a local
market rather than taking a more universal or global
approach.
 Global Strategy- is one that a company takes when it
wants to compete and expand in the global market.
 Transnational Strategy-
an international business structure where a
company's global business activities are coordinated
via cooperation and interdependence between its head
office, operational divisions and internationally located
subsidiaries or retail outlets.
 Coca Cola is a great example of a brand using
international marketing efforts. Though a large
corporation, Coca Cola focuses on small
Community Programs and Invest a lot of time and
money in small- scale charity efforts.
 Restructuring strategy is the corporate
management term for the act of partially
dismantling and recognizing a company for the
purpose of making it more efficient and therefore
more profitable.
 Mergers and acquisitions- integrating administration,
operations, technology and/or products of two firms.
 Legal- changing the legal structure of a firm such as
ownership structure.
 Financial- a change to a firm’s capital structure such as debt
restructuring designed to allow a firm in financial distress to
continue to operate.
 Turnaround- restructuring its administration, operations and
products of an organization that is performing poorly.
1. 5. Repositioning- a strategy designed to move a firm or
business unit to a new business or operational model.
2. 6. Cost restructuring- cutting administrative and
operational costs in response to a downturn or
anticipated downturn in revenue or margins.
3. 7. Divestment- selling or closing a business unit that is
unprofitable, nonstrategic or problematic in some way.
4. 8. Spin-off – restructuring a business unit to be its own
company while retaining some ownership.
 Types
 1. Downsizing- reduction in the number of firms
employees
 Example: Procter & gumble’s cutting of its
worldwide workforce by 15,000 employees
 2. Down scoping- Eliminating businesses that are
unrelated to a firms core businesses.
A leveraged buyout- A party buys all of firms
assets in order to take the firm private

Example: in 2007 Blackstone Group purchased

Hilton Hotels for $26 billion in an LBO, financed
through $5.5 billion in cash and $20.5 billion in
debt.
 It refers to a planning strategy in which two or
more firms work together in order to achieve
common objective.
 This strategy gives to the company the possibility
to fulfill the lack of competitiveness.
 Collusive strategy – illegal agreement between
parties.
 2 types:
 1. Explicit collusion- is when two or more firms
negotiate directly with the intention of jointly
agreeing about the amount to produce and the price
of the products that are produced.
 2. Tacit collusion- occurs where firms undergo
actions that are likely to minimize a response from
another firm, avoiding the opportunity to price cut an
opposition.
 Strategic alliances - cooperative strategy in which
firm combine resources and capabilities to create a
competitive advantage.
 3 types of strategic alliances

 1. Joint venture - is a business agreement that is

actively engaged by two companies who make a
concerted decision to work together to achieve a
specific set of goals.
 2. Equity strategy alliance- is created when one
company purchases a certain equity percentage of
the other company.
 3. Non-equity strategic alliance- when two or more
businesses agree to share resources and capabilities
to gain a competitive advantage without forming a joint
venture and without an equity exchange.
Example:
