Salam everyone !
I will continue to share with all of you about the corporate
level strategies.
Corporate level strategies are built to identify strategies
that corporation or organizations decide to pursue for the benefit of the whole
organization.
These are usually decided at the top management.
top management would focus on overall status of the organization and where it
should be going from the point onwards.
The various corporate level strategies will be discuss under
the following :
I.
Grand strategies :
a)
Growth : year’s growth rate
is higher than the previous year
b)
Stable Growth : next year’s
growth rate is the same as the previous year
c)
Turnaround : the growth
rate is positive as compared to the previous year
d)
Combination : organization
adopt a few strategies combining some of the three strategies mentioned above ;
growth, stable growth and turnaround
II.
Secondary level :
a)
Expansion strategy :
increase in terms of number, branches and etc
(no new product introduce)
b)
Integrate : more control on
production or service.
·
Backward : control the
availability of resources
·
Forward : control of the
added value activities
·
Horizontal : control the
business operations
c)
Diversify : increase in the
number of outputs produced or services rendered
·
Concentric : increase in the number of outputs in the same
industry or related to the current activities
·
Conglomerate : increase in
the number of outputs not related to the existing activities
·
Horizontal : diversify
because of request by its regular
clients.
·
Geographical : company goes
into a new country for the first time to carry out the current business
activities
d)
Reduce : action when facing
some difficulties on their operation and want to avoid negative performance.
·
Retrenchment : option to
cut cost
·
Divestiture : interpreted
from various angles
·
Liquidation :selling of the
whole company
III.
Tactical level strategies :
a)
Organically : company
growth with their strength and capabilities ; setting a branch, recruiting and
training
b)
Joint venture : A + B = C
(a joint venture with an agreed upon equity composition)
c)
Merger : establishment new
company while the companies name before
are not exist anymore
d)
Acquisition/ Takeover : by
buying the majority equity of the company
e)
Reverse takeover :
interested to be listed in the stock market.
f)
Strategic alliances :
understanding between two or more parties to work together without any structural changes
g)
Licensing / Franchising :
seek permission to run a business based
on licensor.
Corporate level strategies are important to the company. We need to
have a good corporate team to make a good business.
That’s all from me,
thank you.
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