This chapter discusses various business strategies including vertical integration strategies like forward, backward, and horizontal integration. It also discusses intensification strategies such as market penetration, market development, and product development. Types of diversification strategies like concentric, horizontal, and conglomerate diversification are defined. Defensive strategies such as retrenchment, divestiture, and liquidation are also introduced. The chapter provides examples of organizations pursuing different strategies and guidelines for determining the appropriate strategy. It emphasizes the importance of understanding a business' preferences and market situation to deploy effective strategies.

1. Paññāsāstra University of Cambodia
Subject:
Business Planning and Policy Development
Chapter 5
STRATEGIES IN ACTION
Prof: PEN RATANA
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2. Group 5 members
• Ms. Pheng Sreyleak ID: 37802
• Ms. Pen Kanika ID: 74801
• Mr. Roeun Nakry ID: 41669
• Ms. Rort Pisey ID: 49096
• Ms. Ken Vannary ID: 27149
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3. Contents
I. Introduction
II. Objectives
III. Long-Term Objectives
IV. Types of Strategies
1. Vertical Integration Strategies
2. Intensives Strategies
3. Diversification Strategies
4. Defensive Strategies
V. Conclusion
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4. I. Introduction
• This unit brings strategic management to life with
many contemporary examples. Sixteen types of
strategies are defined and exemplified, including
Michael Porter’s generic strategies: cost leadership,
differentiation, and focus. Guidelines are presented for
determining when it is most appropriate to pursue
different types of strategies. An overview of strategic
management in nonprofit organizations, governmental
agencies, and small firms is provided.
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5. II. Objectives
This chapter is objected as below:
1. Discuss the value of establishing long-term objectives
2. Identify sixteen types of business strategies
3. Identify numerous examples of organizations pursuing
different types of strategies
4. Discuss guidelines when particular strategies are most
appropriate to pursue
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6. III. Long-Term Objectives
• Long-term objectives represent the results expected
from pursuing certain strategies. Strategies represent
the actions to be taken to accomplish long-term
objectives. The time frame for objectives and
strategies should be consistent, usually from two to
five years.
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7. IV. Types of Strategies
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Forward
Integration
Horizontal
Integration
Backward
Integration
Vertical Integration
Strategies

8. 1. 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.
• Horizontal Integration: Seeking ownership of or
increased control over a firm’s competitors.
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9. IV. Types of Strategies
Intensives
Strategies
Market
Development
Market
Penetration
Product
Development
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10. 2. Intensives 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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11. IV. Types of Strategies
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Diversification
Strategies
Concentric
Horizontal
Conglomerate

12. 3. Diversification Strategies
• Concentric Diversification: Adding new, but related, products or
services.
• Horizontal Diversification: Adding new, unrelated products or
services for present customers.
• Conglomerate Diversification: Adding new, unrelated products
or services. 12

13. 4. 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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14. V. Conclusion
 Successful business requires effective business strategies.
 Different business with different situations pursue different
business strategies and capitalize different benefit.
 Therefore, it is important to understand individual business
preference and market situation in order to deploy effective
and right business strategies.
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15. Q & A
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