Corporate strategy<br />
The New Reality - #1<br />Firms must learn to compete differently if they are to achieve strategic competitiveness in the ...
The use of new technologies (e.g., Amazon.com)
Diversifying the product line (e.g., Barnes and Nobles into music as a catalyst for growth)</li></li></ul><li>The New Real...
 Consolidation (e.g., the merger of Exxon and Mobil)
 Combining online selling with physical stores  (e.g., CompUSA’s new strategy)</li></li></ul><li>The New Reality - #3<br /...
Have New Business Model (maybe changes every 5 years?)
Identify Core Competencies and then improve the four capabilities
Outsource non-core competencies
Create a “Brand Management Company”</li></li></ul><li>Brief Overview of Corporate Strategy<br />Those strategies concerned...
Key Questions of Corporate/Firm-level Strategies<br />1. What businesses should the corporation/enterprise be in?<br />2. ...
Organizational Growth: External and/or Internal<br />External and Internal Growth Strategy<br />One that involves the atta...
Types of Growth Strategies<br />International<br />Concentration<br />Organizational<br />Growth<br />Diversification<br /...
Unrelated Businesses</li></ul>Vertical Integration<br /><ul><li>Related Businesses
Unrelated Businesses</li></ul>Horizontal<br />Integration:<br />Along Value Chain<br />
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Corpor ate

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Corpor ate

  1. 1. Corporate strategy<br />
  2. 2. The New Reality - #1<br />Firms must learn to compete differently if they are to achieve strategic competitiveness in the 21st-century competitive landscape. To provide an idea of what this means, new ways of competing may include:<br /><ul><li> bringing new good and services to market more quickly
  3. 3. The use of new technologies (e.g., Amazon.com)
  4. 4. Diversifying the product line (e.g., Barnes and Nobles into music as a catalyst for growth)</li></li></ul><li>The New Reality - #2<br /><ul><li> Shifting product emphasis (e.g., U-Haul’s new focus on accessory sales) (i.e., Dual Branding)
  5. 5. Consolidation (e.g., the merger of Exxon and Mobil)
  6. 6. Combining online selling with physical stores (e.g., CompUSA’s new strategy)</li></li></ul><li>The New Reality - #3<br /><ul><li> Dell Model for Growth
  7. 7. Have New Business Model (maybe changes every 5 years?)
  8. 8. Identify Core Competencies and then improve the four capabilities
  9. 9. Outsource non-core competencies
  10. 10. Create a “Brand Management Company”</li></li></ul><li>Brief Overview of Corporate Strategy<br />Those strategies concerned with the broad and long-term questions of what business(es) the organization is in and what it wants to do with those businesses<br />
  11. 11. Key Questions of Corporate/Firm-level Strategies<br />1. What businesses should the corporation/enterprise be in?<br />2. How should the corporate/G.O. office manage the array of business units (GBU’s/SBU’s/ Wholly owed subsidiaries)<br />Corporate Strategy is what makes the corporate whole add up to more than the sum of its business unit parts<br />
  12. 12. Organizational Growth: External and/or Internal<br />External and Internal Growth Strategy<br />One that involves the attainment of specific growth objectives by increasing the level of an organization’s capabilities<br />Typical growth strategies include goals for:<br />Increase in sales revenues<br />Profits<br />Other balanced scorecard performance measures<br />
  13. 13. Types of Growth Strategies<br />International<br />Concentration<br />Organizational<br />Growth<br />Diversification<br /><ul><li>Related Businesses
  14. 14. Unrelated Businesses</li></ul>Vertical Integration<br /><ul><li>Related Businesses
  15. 15. Unrelated Businesses</li></ul>Horizontal<br />Integration:<br />Along Value Chain<br />
  16. 16. Corporate Strategy<br />Corporate objectives<br />Profitability<br />ROI<br />Return on shareholder’s equity<br />$ profit<br />etc. <br />Discounted cash flow<br />Market share <br />
  17. 17. Corporate Development Strategy<br />Market<br />Penetration<br />Product Development<br />Current Markets<br />Market Development<br />New Markets<br />Diversification<br />New Products<br />Current Products<br />
  18. 18. Corporate Strategy<br />Corporate development strategy <br />Market penetration<br />Market development<br />Product development<br />Diversification <br />forward integration<br />backward integration<br />related (concentric) diversification<br />unrelated (conglomerate) diversification<br />
  19. 19. Corporate Strategy<br />Resource allocation<br />Boston Consulting Group model (Boyd, Walker & Larreche, pp. 41, 42)<br />Industry attractiveness -- business position matrix (General Electric model) (Boyd, Walker & Larreche, p. 44)<br />
  20. 20. BCG Matrix<br />Question Marks<br />Market Growth Rate<br />Stars<br />Cash Cows<br />Dogs<br />Relative Market Share<br />
  21. 21. Industry Attractiveness—Business Position Matrix<br />High<br />1<br />1<br />2<br />Competitive position<br />1<br />2<br />3<br />Medium<br />3<br />Low<br />2<br />3<br />High<br />Medium<br />Low<br />Industry Attractiveness<br />
  22. 22. Thank you<br />

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