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Chapter 2 Themes for Class Discussion

Chapter 2 Themes for Class Discussion. Corporate Strategy Decisions and Their Marketing Implications. In defining their strategies, should companies pursue broadly or narrowly defined missions? What are the advantages of each approach?.

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Chapter 2 Themes for Class Discussion

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  1. Chapter 2 Themes for Class Discussion Corporate Strategy Decisions and Their Marketing Implications

  2. In defining their strategies, should companies pursue broadly or narrowly defined missions? What are the advantages of each approach?

  3. Ansoff says there are four strategies for growing a business. Let’s consider their merits and drawbacks.

  4. High Stars Question marks 5 2 4 1 6 Market growth rate (in constant dollars) 3 10% Cash cows Dogs 7 11 12 8 9 10 13 Low 10 0.1 1 Relative market share Source: Adapted from Barry Hedley, “Strategy and the Business Portfolio,” Long Range Planning 10 (February 1977). Tools for Allocating Resources in Diversified Companies: The BCG Growth Share Matrix

  5. Industry attractiveness High Medium Low 1 1 2 High Business’s competitive position 1 2 3 Medium 2 3 3 Low Tools for Allocating Resources in Diversified Companies: The GE Nine-Cell Matrix 1 Invest/grow 2 Selective investment/ maintain position 3 Harvest/divest

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