CORPORATE

STRATEGY
 ALLOCATING RESOURCES AMONG
THE DIFFERENT BUSINESS OR
FIRMS

 TRANSFERING RESOURCES FROM

ONE SET OF BUSINESS TO ANOTHER

 MANAGING AND NURTURING A

PORTFOLIO OF BUSINESS
MAJOR
STRATEGIES

2. EXPANSION STRATEGIES
3. STABILITIES STRATEGIES
4. RETRENCHMENT
STRATEGIES
5. COMBINATION STRATEGIES
6. CONCENTRATION
STRATEGIES
EXPANTION
STRATEGIES
 HIGH GROWTH
 BROADNING THE SCOPE OF
BUSINESS
 ALTERNATIVE TECHNOLOGIES
EXPANSION THROUGH
6. CONCENTRATION
7. INTEGRATION
8. DIVERSIFICATION
9. INTERNATIONALISATION
 STABILITIES
STRATEGIES
 MARGINALLY CHANGING BUSINESS - NO
CHANGE

 IMPROVE THE PERFORMANCE - PROCEED

WITH CAUTION

 SUSTAINING MODERATE GROWTH - PROFIT

MOTIVE
RETRENCHMENT
STRATEGIES

 CONTRACTION OF ACTIVITIES

 REDUCTION OF SCOPE OF
BUSINESS

 SLIMMER ORGANISATION
COMBINATION
STRATEGIES

 EXPANSION

 STABILITY

 RETRENCHMENT
CONCENTRATION
STRATEGIES

 MARKET PENETRATION

 MARKET DEVELOPMENT

 PRODUCT DEVELOPMENT
INTEGRATION
STRATEGIES

 COMBINING ACTIVITY
RELATED TO THE PRESENT
ACTIVITY

4. HORIZONTAL INTEGRATION
5. VERTICAL INTEGRATION
 HORIZONTAL
INTEGRATION
 ALSO KNOWN AS
ACQUISITION OR MERGER

 EXISTS BOTH IN MARKETING

AND OPERATION FUNCTIONS

6. MERGER OF BANKS
7. TAKE OVER OF COMPANIES
 ADVANTAGES
OF
HORIZONTAL
INTEGRATION
 INCREASED MARKET POWER

 REPLECATING A SUCCESSFUL
BUSINESS MODEL

 REDUCTION IN INDUSTRY
RIVALRY
DISADVANTAGES
OF
HORIZONTAL
INTEGRATION
 DOES NOT INCREASE THE
VALUE OF AN ORGANISATION

 RULES OF THE GOVERNMENT

 LIMITED ECONOMIC GROWTH

 VERTICAL
INTEGRATION

 MANUFACTURING OF NEW
PRODUCTS

4. PRODUCT SERVES FOR ITS

OWN NEEDS
5. PRODUCT SERVING TO THE
CUSTOMERS
 TYPES OF
VERTICAL
INTEGRATION
 BACKWARD INTEGRATION
2. RETREATING SOURCE OF
RAW MATERIALS

 FORWARD INTEGRATION
5. MOVES THE ORGANISATION
TOWARDS CUSTOMER
 DIVERSIFICATIO
N STRATEGY

 CONCENTRIC OR RELATED
DIVERSIFICATION

 CONGLOMERATE OR
UNRELATED DIVERSIFICATION
 CONCENTRIC
OR
RELATED
DIVERSIFICATION
2. MARKETING REALTED
DIVERSIFICATION

4. TECHNOLOGY RELATED
DIVERSIFICATION

6. MARKETING AND TECHNOLOGY

RELATED DIVERSIFICATION
 RISKS
IN
DIVERSIFICATIO
N
 REQUIRES MANAGERIAL , OPERATIONAL
& FINANCIAL COMPETENCE
 REQUIRES VARIETY OF SKILLS
 NO PROMISE ON REWARDS
 INCREASES ADMINISTRATIVE COST OF
MANAGING , INTEGRATING & CONTROL
OF BUSINESS
INTERNATIONALISAT
ION
 EXPANSION IN INTERNATIONAL
MARKET
 REGULATIONS GOVERNING
TRADE
 PENETRATING FOREIGN
MARKET WHERE THE
PRODUCTS ARE NOT
AVALIABLE
CHARACTERISTICS

 FACTOR CONDITIONS
 DEMAND CONDITIONS
 SUPPORTING INDUSTRIES
 RIVALRY
 MODE OF ENTRY

1. ENTRY BY EXPORT
2. CONTRACTUAL ENTRY
3. INVESTMENT ENTRY
STRATEGIC
DECISIONS
 WHICH INTERNATIONAL
MARKET
 WHEN TO PROCEED
 ON WHAT SCALE
ADVANTAGES
 INCREASED ECONOMY
 EXPANSION OF MARKETS
 ACCESS TO RESOURCES
OVERSEAS
DISADVANTAGES
 HIGH RISK
 CULTURAL DIVERSITY
 BUREAUCRATIC COST
 DISTRIBUTION COST
 TRADE BARRIORS