Strategic Management

1. STRATEGIC MANAGEMENT
(LB229)
Topic: Major Strategy Options
Dr. Subhasmita Biswal
Department of Humanities and Social Sciences
SNIL
SIKSHA O ANUSANDHAN

2. Major Strategy Options
1
•Stability
2 •Growth/Expansion
3
•Retrenchment
4
•Combination

3. Stability Strategy
Stability strategy
• It continues to serve in the same or similar markets
and deals in same products and services.
• The strategic decisions focus on incremental of
functional performance
• Example: SAIL

4. Characteristics of stability strategy
• The aim is to enhance functional efficiencies in and incremental way,
through better deployment and utilization of resources
• It does not involve redefinition of business
• Safety oriented strategy
• It does not require fresh investments
• The risk is also less
• The environment face is very stable
• It is not a “do nothing strategy”. It involves keeping track of new
development to ensure that the strategy continues to make sense
• This strategy is basically for mature business

5. Growth/Expansion Strategy
• Enlargement or increasing same line of
products.
Expansion can be done in four ways
• Expansion through Intensification
• Expansion through Diversification
• Expansion through Mergers/ Acquisition
• Expansion through Strategic Alliance

6. Intensification
• It can be done in three ways:
•Market Penetration
•Market Development
•Product Development

7. Diversification Strategy
Entering into totally new business
Types
Related Unrelated

8. Related Diversification
•Vertical Integrated diversification
•Horizontal Integrated diversification
•Concentric Integrated diversification

9. Vertical Integrated diversification
• The firm remains vertically within the same
process
• Vertical integrated Diversification are of two
types:
• Backward integration
• Forward Integration

10. Horizontal Integrated diversification
• When an organization takes of the same types
of products at the same level of production or
marketing process it is said to follow strategy
of horizontal integrated diversification.
• Example:
• TATA takes over JAGUAR and Land Rover

11. Concentric Integrated diversification
• In this new business is linked to the existing
business through process, technology or
marketing.
• Example:
• Bakery Business

12. Unrelated Diversification
• It is also known as Conglomerate
diversification.
• Entering into new business which is not at all
link to the existing business.
• Examples are:
• ITC, WIPRO, Patanjali