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Corporate Strategies. The overall managerial game plan. How management plans to achieve mission and objectives. What are the current Corporate Strategies?. Organization’s orientation toward growth. Industries or markets in which it will compete.
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Corporate Strategies The overall managerial game plan. How management plans to achieve mission and objectives.
What are the current Corporate Strategies? • Organization’s orientation toward growth. • Industries or markets in which it will compete. • Multi-business corporations it involves decisions regarding position of each business in the organization.
Growth Matrix Existing Market New Market Existing Product Market Penetration Market Development Diversification Related Unrelated Product Development New Product
Alternatives for Growth Changes of product, market/ geographical scope Expansion into existing Businesses Vertical Integration - expanding the Value Chain Alternatives for Growth Related Diversification into new Businesses Unrelated
Expansion into existing businesses • Existing products and markets • Market Penetration Changes of product, market/ geographical scope • Existing products into new markets/ • geographical scope • Market Development • New Products into existing markets • Product Development • Expanding the breadth of product lines Vertical Integration expanding the Value Chain Forward: Getting closer to customers Backward: Getting closer to suppliers
Diversification into new businesses Bases for relatedness: Federal Gov’t looks at Standard Industrial Classification (SIC) Product Technology Process Technology Procurement Basic raw materials Processes or fabricated materials Fabricated components Assembled products Testing Distribution Marketing and sales Retailing Service Related Unrelated
Modes of Growth • Internal development • Acquiring firms/businesses • Collaborative arrangements • Strategic Alliances • Joint Ventures • Licensing
Repositioning Strategies • Retrenchment • Assets and/or costs • Divestiture • Spin-offs
Termination Strategies • Liquidation • Merger • Being acquired
Market Segment and Product GroupAnalysis What markets do we currently serve with what product group? What is the contribution to sales, operating income; net profit, etc.?
HUDSON FOODS Market Segments: Retail Food Service Club Store International Other • Group of Consumers served • Geographical Location
Hudson Foods - Product Groups Chicken Turkey Portioned Luncheon Beef Other Entrees Meats HUDSON FOODS PRODUCTS
Chicken Turkey Portioned Luncheon Beef Other Entrees Meats Retail Food Service Club Store Int’l Other
U.S. Restaurant Chain Industry • Strategic Groups High Red Lobster Olive Garden Pizza Hut Chi-Chi’s IHOP Bob Evans Shoney’s Denny’s PRICE McDonald Burger King Wendy’s Low Limited Menu Full Menu Product-Line Breadth