The document discusses various corporate level strategies including:
1) Growth strategies like mergers, acquisitions, and strategic alliances which are designed to achieve sales and profit growth.
2) Stability strategies like maintaining the status quo to prioritize profit over growth.
3) Retrenchment strategies involving downsizing through turnarounds, consolidations, divestments, and even bankruptcy or liquidation.
The key factors in choosing a strategy include an analysis of the industry lifecycle, competitive environment, and a company's resources and capabilities. Strategic fit and international expansion are also important considerations at the corporate level.
A focused cost leadership strategy requires competing based on price to target a narrow market.
A firm that follows this strategy does not necessarily charge the lowest prices in the industry. Instead, it charges low prices relative to other firms that compete within the target market.
A focused cost leadership strategy requires competing based on price to target a narrow market.
A firm that follows this strategy does not necessarily charge the lowest prices in the industry. Instead, it charges low prices relative to other firms that compete within the target market.
united nation development programs and its bird eye view and united states agency for international development and objectives area coverage by the both programs and the progress or the achievements done by the UNDP and USAID
Business Portfolio Analysis is an organisational strategy formulation technique that is based on the philosophy that Organisations should develop strategy..... much as they handle investment portfolios..
It is done where the company attempts to widen the scope of its business definition in such a manner that it results in serving the same set of customers. The alternative technology of the business undergoes a change.
Diversification strategy ( megha and rakesh)Rakesh Kumar
this ppt is regarding how a company or business can use strategy of diversification its business.there are basically two types of diversification strategy which are adopt by business.
Before she became one of the biggest names in Philippines showbiz industry, Maymay Entrata also had her fair share of life struggles.
Before she became one of the biggest names in Philippines showbiz industry, Maymay Entrata also had her fair share of life struggles.
Starting at the age of 14th, Entrata began auditioning for various reality television shows to fulfill her ambition of becoming an actress, but she failed. After being rejected several times, Entrata almost did not audition for Pinoy Big Brother Lucky 7 however, her grandfather got ill, she saw it as a reason to try again. Guess what? Entrata went on to win the competition, finally she did it. I really admire her for being who she is, what she is, and where she became. I am proud to say she is a bisaya and that's our biggest similarities. Her skills are one of a kind, she can act, dance, sing, and model. I really love how she boosts her confidence even though there are a lot of bashers around her, and I want to apply it to myself to be a strong and independent woman. Maymay is a beautiful and multitalented young woman with a wacky personality that’s extremely likable. She’s a dreamer and she never lost sight of them and who she’s dreaming it for.
I always admire people who dream big dreams and work hard to reach them. Watching Maymay everyday has given me inspiration to fight for my dreams and work hard even for those dreams I have let go because it deemed impossible.Before she became one of the biggest names in Philippines showbiz industry, Maymay Entrata also had her fair share of life struggles.
Starting at the age of 14th, Entrata began auditioning for various reality television shows to fulfill her ambition of becoming an actress, but she failed. After being rejected several times, Entrata almost did not audition for Pinoy Big Brother Lucky 7 however, her grandfather got ill, she saw it as a reason to try again. Guess what? Entrata went on to win the competition, finally she did it. I really admire her for being who she is, what she is, and where she became. I am proud to say she is a bisaya and that's our biggest similarities. Her skills are one of a kind, she can act, dance, sing, and model. I really love how she boosts her confidence even though there are a lot of bashers around her, and I want to apply it to myself to be a strong and independent woman. Maymay is a beautiful and multitalented young woman with a wacky personality that’s extremely likable. She’s a dreamer and she never lost sight of them and who she’s dreaming it for.
I always admire people who dream big dreams and work hard to reach them. Watching Maymay everyday has given me inspiration to fight for my dreams and work hard even for those dreams I have let go because it deemed impossible.
Starting at the age of 14th, Entrata began auditioning for various reality television shows to fulfill her ambition of becoming an actress, but she failed. After being rejected several times, Entrata almost did not au
Similar to Chapter 4 corporate level strategies (20)
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
🟢 Bank Added
🟢 Card Verified
🟢 Full SSN Provided
🟢 Phone Number Access
🟢 Driving License Copy
🟢 Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1(218) 203-5951
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
2. Categories of Business Organizations
• Corporation
– Stock or non-stock
• Sole/ Single Proprietorship
• Partnership
• Cooperative
3. • Group of companies/ Conglomerate
– Growing number of independently organized
business organization
• Mother or parent company
– Serves as the core or the unifying factor in the
overall strategic direction of the entire business.
4. • Holding firm / holding company
– Influences other small business organizations
known as subsidiaries
• Subsidiaries / Affiliates
– Partly capitalized or wholly owned by the mother
company
• Diversified business group
– Involves a variety of business concerns with one
given out business opportunities for the other or
one is serving as major contractor or supplier of
member or affiliates of the business empire
5. The Nature of Corporate Level Strategy
• Corporate strategy
– independent or single business unit (SBU) forming
part of the family of business or group business
concerns needs to be bothered with its own
business level strategy
6. The Nature of Corporate Level Strategy
• Highly diversified business organizations
– Group of individuals business organizations with
individual charters or corporate status registered
in appropriate agencies of the government
7. • Corporate level strategy
– Serves as the guiding star of all the individual
business organizations belongs to the group of the
conglomerate
– broad or corporate wide strategy synchronizing
various business level strategies into a cohesive
and coordinated efforts to achieve the vision of
the entire business organization
3 main categories acc. Wheelen and Hunger
– Stability
– Growth
– Retrenchment
8. The 4 E’s to addressing Corporate Strategy by
Thompson and Cats-Baril
a. Extend
• Extending the business by going beyond its
current business model by adapting a new
business model or entering into new businesses
b. Expand
• This option takes the form of adding products or
services within the context of the companies’
existing business concern or present area of
operation
9. The 4 E’s to addressing Corporate Strategy
by Thompson and Cats-Baril
a. Exit
• This option takes the form of making some
sacrifice by dropping some product lines and
services or business units deemed uncompetitive
or unprofitable or less profitable to operate
b. Enhance
• This option takes the form of adding functionality
or improving a product or service that is
currently being offered
10. ENHANCEMENT EXTENSION
Add functionality or improve a Adopt new business model or
product or service that is currently E enter new businesses
offered X
T
E
N
ENHANCE D
EXPAND
E
X
I
T
EXIT EXPANSION
Drop a product or service Add products and services
line or exit a business within an existing business
Ways that a Business Strategy can evolve
11. Key Issues in Corporate Level Strategy
• The firm’s overall orientation towards
growth, stability, or retrenchment (directional
strategy)
• The industries or markets in which the firm
competes through its products and business units
(portfolio strategy)
• The manner in which management coordinates
activities, transfers resources and cultivates
capabilities among product lines and business
units (parenting stategy)
12. Prosper
BPR and other Adopt Best
Cost Cutting Trigger Practices
and Operational Point
Parity
Initiatives
Survive
RIP
Fail
Yesterday Today Tomorrow
Current Choices Faced by Executives in
the Digital Economy
13. Strategic Choices at the Corporate Level
• Business closure
– An undesired act of folding up or shutting down
non-profitable business units to control or avoid
further losses
• Business disposal
– Calls for disposing or unloading some of the
members subsidiaries, affiliates or investments
14. Strategic Choices at the Corporate Level
• Business acquisition
– Option of business establishment meant to
expand their size and make their presence felt in
whatever area they want to do business
• Business reorganization
– This option may or may not lead to ownership
changes among members of the organization
15. Strategic Choices at the Corporate Level
• Business start-up
– Realizing the need create new business units to
cater to market opportunities
• The impact of doing nothing different
– This option is simply status quo which also comes
in the form of pause or no change strategy
16. The Corporate Expansion Option
As shown in the next figure, a single business
organization that is well managed is likely to
grow in size and in number eventually
becoming a conglomerate or highly diversified
company within many individual business
organizations forming part of the family.
17. Customers / End Users
I
V N
E D Forward integration
R I
T R
I E
C C
A T
L
Horizontal The Horizontal
diversification Company integration
C
I O
N M
T P
E E
G T
R Backward integration
I
A T
T O Suppliers
I R
O S Horizontal integration / diversification
N
Basic Model for Integration and Diversification
Options
18. Corporate strategy
Business
(Division level strategy)
Functional
c
strategy
Hierarchy of Strategy
19. Corporate
Business strategy 1
Business strategy 2
Business strategy 3
Business strategy 4
Corporate Strategy and Business Strategy
20. Vertical Integration Option
Evolves around the notion of how far or close
a business is from the source of raw materials
or the final consumer of the product
Involve engaging in business activities to the
level of sources of supply or forward in the
direction of final consumers
21. Vertical Integration Continuum
• Espoused by Harrigan postulates that vertical
integration strategy may be in full or in part
ranging from outsourcing to full integration
Full Taper Quasi Long-term
Integration Integration Integration contract
Continuum of Vertical Integration Option
22. Forward Vertical Integration
• An option where the firm engages in business
activities in the area of distribution and
retailing of the product or service directly to
the customers
23. Situations favoring forward integration
• present distributors are especially expensive
or unreliable or incapable of meeting the
firm’s distribution needs;
• availability of quality distributors is so limited
as to offer a competitive advantage to those
firms that integrate forward;
• advantages of stable production are
particularly high;
24. Situations favoring forward integration
• organization competes in an industry that is
growing and is expected to continue to grow
markedly;
• organization has both the capital and human
resources needed to manage the new
business of distributing its own products;
• present distributors or retailers have high
profit margins
25. Backward Vertical Integration
• A corporate option to engage in the business
concentrating the efforts at the stage of raw
materials production or close the source of
raw materials
26. Situations favoring backward integration
• present suppliers are especially expensive or
unreliable or incapable of meeting the firm’s
distribution needs;
• The number of suppliers is small and the
number of competitors is large;
• organization competes in an industry that is
growing rapidly;
27. Situations favoring backward integration
• Organization’s present channels of distribution
can be used to market the new products to
current customers;
• New products have counter cyclical sales
patterns compared to an organization’s
present products
28. Conglomerate Diversification
Conglomerate diversification (unrelated
diversification)
a diversification option that involves investing in or
buying into business organizations whose products
and/or services have nothing to do or not related to
the kind of products it is presently dealing with.
29. Situations favoring conglomerate diversification
• Organization’s basic industry is experiencing
declining annual sales and profits;
• Organization has the capital and managerial
talent needed to compete successfully;
• Organization has the opportunity to purchase
an unrelated business;
30. Situations favoring conglomerate diversification
• Financial synergy exists between the acquired
and acquiring firm;
• Existing market for an organization’s present
products are saturated; and
• Antitrust action could be charged against an
organization that historically has concentrated
on a single industry
31. Concentric Diversification
• Concentric diversification (related diversification)
A corporate diversification option that
involves engaging or dealing with products or
services that are somehow related to or
associated with what the firm is presently
handling.
32. Situations favoring concentric diversification
• Organization competes in a no-growth or a
slow-growth industry;
• Adding new, but related products significantly
would enhance the sales of current products;
• New, but related, products could be offered at
highly competitive prices;
33. Situations favoring concentric diversification
• New, but related, products have seasonal sales
levels that counterbalance an organization’s
existing peaks and valley;
• Organization’s products are currently in the
decline stage of the product life cycle; and
• Organization has strong management team
34. Strategic Fit
the relatedness in making decisions
concerning the appropriateness of the
strategic moves vis-à-vis the various operating
divisions or business units of the company
Degree of relationship or connectivity
35. Categories of strategic fit acc. To
Thompson and Strickland
• Product fit
• Operating fit
• Management fit
36. Directions of Corporate Level Strategies
According to Wheelen and Hunger:
• Growth strategy
• Stability strategy
• Retrenchment strategy
37. Growth Strategy Options
Designed to achieve growth in
sales, assets, profits or some combination
Categories:
• Merger
• Acquisition
• Strategic alliance
38. Stability strategies
This option is sometimes viewed as having lck
of strategy s the firm simply opts to stay put or
maintain the current array of businesses
Forms:
• Pause/proceed with caution
• No change strategy
• Profit strategy
39. Retrenchment strategies
Evolves around the concept of reduction in a
variety of aspects usually in terms of
size, capital, personnel complement and the
like.
Forms:
• Turnaround strategy
– Contraction
– Consolidation
• Sell-out/Divestment strategy
• Bankruptcy strategy
• Liquidation strategy
40. International and Other Entry Options
Usually done by multinational or foreign-
based organizations
designed to explore other markets beyond
their usual or original place of doing their
business
41. Strategies in entering the Int’l markets
• Exporting • Production sharing
• Licensing • Turnkey operations
• Franchising • Management contract
• Joint venture • Build-Operate-
• Acquisition Transfer or BOT
• Greenfield concept
development • Outsourcing
42. Strategic Alliance
Used for the purpose of achieving mutual
advantage and certain strategic or specific goals
Done through a process of exploration and
negotiation with targeted parties or business
concerns leading to signing up an alliance
document in the form of memorandum of
agreement, memorandum of understanding and
/or contracts stipulating mutual desire to attain
specific objective and expressing support for one
another.
43. Objectives in strategic alliance
• To collaborate on technology development or
new product development;
• To fill gaps in technical or manufacturing
expertise;
• To acquire new competencies
• To improve supply chain efficiency
• To gain economies of scalein production and
marketing; and
• To acquire or improve market access via joint
marketing agreements
44. Guidelines in forming strategic alliances
• Pick a good partner, one that shares a
common vision;
• Be sensitive to cultural differences;
• Recognize that the alliance must benefit both
sides
• Both parties have to deliver on their
commitments in the agreement;
45. Guidelines in forming strategic alliances
• Structure decision-making process so actions
can be taken swiftly when needed; and
• Parties must do a good job of managing the
learning process, adjusting the alliance
agreement over time to fit new circumstances
46. Success factors in alliances:
• Ability of an alliance to endure depends on
how well partners work together;
• Success of partners in responding and
adapting to changing conditions; and
• Willingness of partners to renegotiate the
bargain.
47. Failure factors in alliances:
• Diverging objectives and priorities of partners;
• Inability of partners to work well together;
• Emergence of more attractive technological
paths;
• Marketplace rivalry between one or more
allies; and
• Merger and acquisition strategies.
48. Benefits of mergers and acquisition
• More or better competitive capabilities;
• More attractive line-up of products/services;
• Wider geographic coverage;
• Greater financial resources to invest in
R&D, add capacity, or expand;
• Cost-saving opportunities;
• Filling in of resource or technological skills;
• Greater ability to launch next-wave
products/services
49. Pitfalls of merger and acquisition
• Resistance from rank-and-file employees;
• Hard-to-resolve conflicts in management
styles and corporate cultures;
• Tough problems in combining and integrating
the operations of the once-different
companies; and
• Greater-than-anticipated difficulties in
achieving expected cost-savings, sharing of
expertise, and achieving enhanced
competitive capabilities
50. Advantages of Outsourcing
• Improves firm’s ability to obtain high quality
and/or cheaper components or services;
• Improves firm’s ability to innovate by
interacting with “best-in-the-world” suppliers;
• Enhances firm’s flexibility
• Increases firm’s ability to assemble diverse
kinds of expertise speedily and efficiently;
• Allows firm to concentrate its resources on
performing those activities internally
51. Conditions to consider in outsourcing:
• Activity can be performed better or more
cheaply by outside specialists
• Activity is not crucial to achieve a sustainable
competitive advantage
• Risk exposure to changing technology and/or
changing buyer preferences is reduced
52. Conditions to consider in outsourcing:
• Operations are streamlined to
– Cut cycle time
– Speed decision-making
– Reduce coordination costs
• Firm can concentrate on doing those “core”
value chain activities that best suit its resource
strengths and capabilities
53. Situations favoring Joint Venture:
• When privately owned organization is forming
a joint venture with a publicly owned
organization;
• When a domestic organization is forming a
joint venture with a foreign company;
• The distinctive competencies of two or more
firms complement each other especially well;
54. Situations favoring Joint Venture:
• When some project is potentially very
profitable, but requires overwhelming
resources and risks;
• When two or more smaller firms have trouble
competing with a large firm; and
• When there exists a need to introduce a new
technology quickly.
55. Situations favoring Retrenchment:
• An organization has a clearly distinctive
competence but has failed to meet its
objectives and goals consistently over time;
• An organization is one of the weaker
competitors in a given industry;
• An organization is plagued by inefficiency, low
profitability, poor employee morale, and
pressure from stockholders improve
performance;
56. Situations favoring Retrenchment:
• An organization has failed to capitalized on
external opportunities, minimize external
threats, take advantage on internal
strengths, and overcome internal weakness
over time;
• An organization has grown so large so quickly
that major internal reorganization is needed.
57. Situations favoring Divestiture:
• When an organization has pursued a
retrenchment strategy and it failed to
accomplish needed improvements;
• When a division needs more resources to be
competitive than the company ca provide;
• When a division is responsible for an
organizations overall poor performance; and
• When a division is a misfit with the rest of the
organization.
58. Situations favoring Liquidation:
• When an organization has pursued both
retrenchment strategy and a divestiture
strategy;
• When an organization’s only alternative is
bankruptcy;
• When the stockholders of a firm can minimize
their losses by selling the organization’s
assets.