This document discusses different types of strategies that companies can employ as part of their strategic management. It describes long-term objectives, financial and strategic objectives, the balanced scorecard technique, levels of strategies for large and small companies, and various intensive, vertical integration, diversification, and defensive strategies. Key strategies mentioned include market penetration, product development, forward and backward integration, related and unrelated diversification, retrenchment, divestiture, and liquidation.

1. Ch 5 -1
Chapter 5
Strategies in Action
Strategic Management:
Concepts & Cases
13th
Edition
Fred David
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2. Ch 5 -2
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3. Ch 5 -3
Long Term Objectives
 Quantitative
 Measurable
 Realistic
 Understandable
 Challenging
 Hierarchical
 Obtainable
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4. Ch 5 -4
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5. Ch 5 -5
Financial vs. Strategic Objectives
Financial Objectives
Growth in revenues
Growth in earnings
Higher dividends
Larger profit margins
Greater ROI
Higher earnings per share
Rising stock price
Improved cash flow
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6. Ch 5 -6
The Balanced Scorecard
Robert Kaplan & David Norton –
Strategy evaluation & control technique
Balance financial measures with
nonfinancial measures
Balance shareholder objectives with
customer & operational objectives
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7. Ch 5 -7
Levels of Strategies –
Large Company
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8. Ch 5 -8
Levels of Strategies –
Small Company
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9. Ch 5 -9
Types of Strategies
Vertical
Integration
Strategies
Forward
Integration
Backward
Integration
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10. Ch 5 -10
Vertical Integration Strategies
Forward
Integration
Gaining ownership or increased
control over distributors or retailers
Backward
Integration
Seeking ownership or increased
control of a firm’s suppliers
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11. Ch 5 -11
Types of Strategies
Intensive
Strategies
Market
Penetration
Market
Development
Product
Development
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12. Ch 5 -12
Intensive Strategies
Market
Penetration
Seeking increased market share for
present products or services in
present markets through greater
marketing efforts
Market
Development
Introducing present products or
services into new geographic areas
Product
Development
Seeking increased sales by
improving present products or
services or developing new ones
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13. Ch 5 -13
Types of Strategies
Diversification
Strategies
Related
Diversification
Unrelated
Diversification
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14. Ch 5 -14
Diversification Strategies
Related
Diversification
Adding new but related products or
services
Unrelated
Diversification
Adding new, unrelated products or
services
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15. Ch 5 -15
Types of Strategies
Defensive
Strategies
Retrenchment
Divestiture
Liquidation
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16. Ch 5 -16
Defensive Strategies
Retrenchment
Regrouping through cost and asset
reduction to reverse declining sales
and profit
Divestiture Selling a division or part of an
organization
Liquidation
Selling all of a company’s assets, in
parts, for their tangible worth
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