Corporate level strategies include stability, expansion, retrenchment, and combination strategies. Expansion strategies involve increasing business through concentration, integration, diversification, cooperation through mergers/acquisitions, joint ventures, and internationalization. Retrenchment strategies focus on reducing scope through divestment or liquidation when facing threats. Firms evaluate strategies using methods like value chain analysis, financial analysis, benchmarking, and balanced scorecards.

1. .,
Corporate level strategies

2. Grand Strategies
 Stability Strategy: Less risky, stable environment,
expansion threatening, consolidation after
stabilisation
 Expansion strategy: increase pace, more
prospects, increasing the size, advantages
accrue
 Retrenchment strategy:Management try to give
up, threatening environment, unprofitable
situation
 Combination Strategies: Large set up, complex
environment, different businesses

3. Stability strategy
 No change strategy
 Profit strategy
 Pause/proceed strategies

4. Expansion strategy
 Expansion through concentration:one activity
(Bajaj auto)
 Expansion through integration:vertical &
horizontal
 Expansion through diversification:Concentric &
Conglomerative ( different)
 Expansion through
cooperation:Mergers,(horizontal –same, vertical –
process centric, concentric-related), takeovers,
joint ventures, strategic alliance
 Expansion through internationalisation

5. Mergers
 Types: Horizontal, Vertical, concentric,
conglomerate(unrelated)
Issues in mergers: Strategic issues, financial issues,
managerial issues, legal issues
 Reasons:(buyer)
 To increase the value of the orgn stock
 Increase the growth rate & make good investment
 Improve stability of earning and sales
 Balance, complete and diversify product line
 Reduce competition
 Acquire needed resources quickly
 Avail tax concessions and benefits
 Take advantages of synergy
 Seller
 Increase the value of equity
 Increase the growth rate
 Stabilise operations
 Take the benefit of tax legislation
 Deal with top management succession problem

6. Mergers and acquisitions in India
 Tata Steel's mega takeover of European steel major Corus for $12.2 billion.
The biggest ever for an Indian company. This is the first big thing which
marked the arrival of India Inc on the global stage. The next big thing
everyone is talking about is Tata Nano.
 Vodafone's purchase of 52% stake in Hutch Essar for about $10 billion. Essar
group still holds 32% in the Joint venture.
 Hindalco of Aditya Birla group's acquisition of Novellis for $6 billion.
 Ranbaxy's sale to Japan's Daiichi for $4.5 billion. Sing brothers sold the
company to Daiichi and since then there is no real good news coming out of
Ranbaxy.
 ONGC acquisition of Russia based Imperial Energy for $2.8 billion. This
marked the turn around of India's hunt for natural reserves to compete with
China.
 NTT DoCoMo-Tata Tele services deal for $2.7 billion. The second biggest
telecom deal after the Vodafone. Reliance MTN deal if went through would
have been a good addition to the list.
 HDFC Bank acquisition of Centurion Bank of Punjab for $2.4 billion.
 Tata Motors acquisition of luxury car maker Jaguar Land Rover for $2.3 billion.
This could probably the most ambitious deal after the Ranbaxy one. It
certainly landed Tata Motors into lot of trouble.
 Wind Energy premier Suzlon Energy's acquistion of RePower for $1.7 billion.
 Reliance Industries taking over Reliance Petroleum Limited (RPL) for 8500
crores or $1.6 billion.

7. Take over strategies
 Seen after 1991
 Substantial Acquisitions of shares and takeovers
Regulations, 1994 (take over code)
 Procedure: spell out objectives, indicate how
objectives achieved, assess managerial quality,
check the compatibility of business styles,
anticipate and solve problems, treat people with
dignity and concern.

8. Joint venture strategies
 Temporary partnership (consortium)
 Conditions: when difficult to operate alone, when
distinctive competence needed, when hurdles in
setting up organisation
 Types: two firms in one industry, two firms in
different industries, Indian firm and foreign
company in India, Indian firm and foreign
company in that foreign country, Indian firm and a
foreign company in third country.
 Eg. IBM World Trade Corporation and Tata
Industries Ltd formed Tata Information Systems
Ltd, Cummins Engine company and TELCO form
to mfr TELCO engines

9. Strategic alliances
 Yashino and Rangan: agree upon goals but remain
independent, share the benefits, contribute in key
strategic areas-technology, product etc.
 Lando Zeppei: win win attitude, relationship
reciprocal, pooling resources for mutual gain
 Types: Pro-competitive alliances, Non-competitive
alliances,competitive alliance, precompetitive alliance
 Reasons for strategic alliance: entering new market,
reducing manufacturing costs, developing and
diffusing technology
 Managing strategic alliance: define a strategy and
assign responsibility, Phase in the relationship with
partners, Blend the cultures of the partners, provide
for an exit strategy.

10. Expansion through
internationalisation
 International strategy: create product & services to
international markets
 Multi domestic strategy:achieve high level of domestic
response
 Global strategy: low cost structure
 Transactional strategy: low cost and high level
domestic response
 Forms:
 Export entry mode- direct, indirect
 Contractual entry mode-licensing, franchising, technical
agreements, service contracts,contract manufacturing,
production sharing, build-operate-transfer
 Investment entry mode- joint venture, independent
ventures

11. Retrenchment strategy
 Reduce the scope of its activity
 Find out problem areas
 Identify the threats
 Forms:
 Non-recovery situation
 Temporary recovery situation
 Sustained survival situation
 Sustained recovery situation

12. Turnaround strategies
 Reversing a negative trend like
 Negative cash flow
 Negative profits
 Declining market share
 Deterioration in physical facilities
 Overmanning, high turnover of employees, low
morale
 Uncompetitive products or services
 Mismanagement
Approaches:
Surgical
Non surgical or humane

13. Divestment strategies
 Withdraw
 Turn down
 Cut back
 Liquidation strategies
 Combination strategies

14. Methods of Organisational
appraisal
 Value chain analysis
 Quantitative analysis
 Financial analysis
 Non-financial quantitative analysis
 Qualitative analysis
 Comparative analysis
 Historical analysis
 Industry norms
 Benchmarking
 Comprehensive analysis
 Balanced scrorecard
 Key factor rating

15. Value chain analysis (Porter 1985)-
value creating activities
 Porter (1985)
 Value creating activities
 Generic Value chain:
 Primary: inbound logistics, operations,
outbound logistics, marketing and sales,
service
 Supportive activities: Procurement,
HRD, technology development,
infrastructure

17. Quantitative analysis
 Financial Analysis:
 Ratio analysis – liquidity, profitability and leverage
ratios
 Economic value-added analysis (stern stewart &
company US) –profitability in terms of Return on
capital
 Activity Based Costing (ABC)
 Non financial analysis:
 Employee turnover, absenteeism, market ranking,
rate of advertising recall, total cycle time of
production, inventory units, service call rates,
number of patents registered per period

18. Qualitative analysis
 Corporate culture
 Ability and skill component of employees
 Level of morale

20. Comparative analysis
 Historical analysis: past performance
 Industrial norms:competition, cost structure
 Benchmarking: find the best practices
 Performance benchmarking
 Process benchmarking
 Strategic benchmarking
 Generic benchmarking (compare own process to
others)
 Internal benchmarking
 Functional benchmarking
 Competitive benchmarking

22. Comprehensive Analysis :
Balanced Scrore card
 Balanced scorecard :
Robert S Kaplan and
David P Norton
 Customer perspective:
how customer see us?
 Internal business
perspective: what must
we excel at?
 Innovation and learning
perspective: Can we
continue to improve and
create value
 Financial perspective:
How do we look at
shareholders

23. Key factor rating:
 Financial
 Marketing
 Operations
 Personnel
 Management
 General management

24. Thank you