Wheelen/Hunger

1
Corporate Directional Strategies
2
Corporate Strategy

• Directional Strategy
• Three Grand Strategies
• Growth strategies
• Stability strategies
• Retrenchment strategies

3
Corporate Strategy

• Growth Strategies
• Most widely pursued strategies
• External mechanisms
• Mergers
• Transaction involving two or more firms in which
  stock is exchanged but only one firm survives.
• Acquisition
• Purchase of a firm that is absorbed as an
  operating subsidiary of the acquiring firm.
• Strategic Alliance
• Partnership of two or more firms to achieve
  strategically significant objectives that are
  mutually beneficial.

4
Corporate Strategy

• 2 Basic Growth Strategies
• Concentration
• Current product line in one industry
• Diversification
• Into other product lines in other industries

5
Corporate Strategy

• Basic Concentration Strategies
• Vertical growth
• Horizontal growth

6
Corporate Strategy

• Concentration
• Vertical growth
• Vertical integration
• Full integration
• Taper integration
• Quasi-integration
• Backward integration
• Forward integration

7
Corporate Strategy

• Concentration
• Horizontal Growth
• Horizontal integration

8
Corporate Strategy

• Basic Diversification Strategies
• Concentric Diversification
• Conglomerate Diversification

9
Corporate Strategy

• Diversification
• Concentric
• Growth into related industry
• Search for synergies

10
Corporate Strategy

• Diversification
• Conglomerate
• Growth into unrelated industry
• Concern with financial considerations

11
Corporate Strategy
Exporting Licensing Franchising Joint
Ventures Acquisitions Green-Field
Development Production Sharing Turnkey
Operations BOT Concept Management Contracts
International Entry Options
12
Corporate Strategy

• Stability Strategies
• Pause/proceed with caution
• No change
• Profit strategies

13
Corporate Strategy

• Retrenchment Strategies
• Turnaround
• Captive Company Strategy
• Selling out
• Bankruptcy
• Liquidation

14
International Portfolio Analysis

• 2 Factors
• Countrys attractiveness
• Market size, rate of growth, regulation
• Competitive strength
• Market share, product fit, contribution margin,
  market support