1. The document discusses various corporate strategies including growth, harvest, divestment, and turnaround strategies. 2. It outlines the Ansoff Matrix and generic strategies of market penetration, market development, product development, and diversification. Risk profiles range from lowest for market penetration to highest for unrelated diversification. 3. A template is provided for a generic strategic plan that includes an overall mission and strategy statement, projected performance metrics, and product/market level details on the business definition, portfolio, competition, sales, leadership, and asset utilization.

1. Developing Strategies
Creating and Presenting Strategic Plans

2. • Opportunity
•Poor performance
•External: industry transformation
•Failure looming
•Internal: leadership, management
• New chief executive
Triggers

3. • Grow
•Harvest
•Divest
The Strategies
•Hold
•Recover

4. •Recover
•Early action
•Change top management
•Increase the revenues
•Reduce the assets
•Reduce the costs
•Hold •Hope and monitor
•Harvest •No investment - run down and milk
•Divest •Sell for what you can get
The other Strategies

5. Grow
Organic
Concentric
Conglomerate
Acquisition
Concentric
Conglomerate
+
Slower but
safer
Quicker but
riskier
Grow

6. Markets NewExisting
Diversification
Product
development
Products
New
Existing
Market
development
Market
penetration
The Ansoff Growth Matrix

7. •Differentiation
•Focus
•HVLC
The Generic Strategies

8. 1. Market Penetration
•HVLC using low price
•Differentiation using premium price
M&S: Net profit:
97/98: £815.9 Mn,
01/02 £2.8 Mn,
13/14 £525 Mn.
•Lowest risk
Amazon
Damned if you do and damned if you don’t

9. •Geography
•New segments
•IKEA: 278 stores in 36 countries
•Major high tech: Cloud computing
•Higher risk
2. Market Development

10. •Enhancement of existing
•New product
•Ford: Mondeo, Focus, Fiesta, Ka
•Apple Watch 2015
•Higher risk
3. Product Development

11. Two routes
•Organic
Buying another firmOwn resources
•Acquisition
Two types
•Concentric •Unrelated •Concentric •Unrelated
Lenova ITTHitachiiPad
4. Diversification

12. 4. Diversification: so tricky
•Gallaher Group
•Microsoft
Source: http://www.forbes.com/sites/adamhartung/2013/01/20/sell-microsoft-now-game-over-ballmer-loses/
1970: Diversify: retail distribution, housewares, optical goods,and distilling
1993: Back to tobacco
2007 Sold to Japan Tobacco
‘Microsoft needed a great Christmas season. After years of product stagnation, and a big market shift
toward mobile devices from PCs, Microsoft’s future relied on the company seeing customers demonstrate
they were ready to jump in heavily for Windows8 products – including the new Surface tablet. But that did
not happen. With the data now coming it, it is clear the market movement away from Microsoft products,
toward Apple and Android products, has not changed.’

13. Heuskel, D, Fechtel, A. and Beckman, P., ‘Managing for Value: How the World’s Top Diversified Companies
Produce Superior Shareholder Returns, Boston Consulting Group, available at:
4. Diversification: Does it Pay?
Diversifieds
underperform:
not true
Focus may
add value
More focus
more returns:
not true
Diversifieds better in
US and Asia. Europe
pressure to focus
Diversifieds
have five
performance
levers for value
creation

14. A Generic Strategy Template
• Assume: It will cover this year and the next two years.
•Two Levels: Overall and Product Market

15. Part 1 Overall
Mission: Words such as Leader, Quality, Service, Growth,
Risk.
Strategy: Words such as Growth, High Volume Low Cost,
Differentiation, Brand, Focus, Sales, Competitive Position,
Customers, Asset utilisation, Productivity, Leadership, People,
Market Penetration, Market Development, Product Development,
Diversification, Profitability, Stakeholder Returns, Portfolio
Balance, Leader, Quality, Service, Growth, Risk.
Projected Performance: Income Statements, Balance Sheets,
Cash Flows, Ratios, Profitability, Stakeholder Returns, Risk.
Goals: Qualitative and quantitative.

16. Part 2: Product Market
Business Definition today and in 3 years.
Product market portfolio today and in 3 years: Words such as
Build, Hold, Harvest, Divest, Balance and Risk
Competitive positions today and in 3 years: Words such as Leader,
Follower, Superior, Quality, Customer Balance and and Risk.
Sales by product today and in 3 years: Words such as Relative
Market Share, Quality, Growth, Geographical Spread, Life Cycle,
Concentration, Strategy, Profitability and Risk
Leadership and People Development today and in 3 years: Words
such as Skills, Succession, Training, Absenteeism.
Asset Utilisation today and in 3 years: Words such as Efficiency,
Plant usage, Personal productivity

17. The End