u5 Flashcards
(14 cards)
organic growth strategies
market penetration
consolidated growth
product development
diversification
meanings of organic stategies
market penetration: low price entry , price increase targeting new customers
Consolidated growth: adjust business structure
product development: modify product to customers needs and sustain market share
diversification: enters a new market with a new product or service
business level strategies
low cost, low cost , maximize sales
differentiation of unique premium offerings
Focused on low cost for niche market
Focused on differentiation in niche market
spheres of planning
strategic long term
tactical implementation of strategy with certain departments
operational day to day execution
type of goals
strategic goals top level
tactical middle level
operational lower level
planning process
1 set a goal
2 develop alternative plans
3 evaluate different plans
4 choose best one
5 implement
6 re evaluate
key variables when planning
organisational purpose
Commitment of stakeholders, what to achieve
mission statement
What edge do you have in the market
Organisational value: What does the company stand for
experience of management
Past knowledge helps with making plans
function of planning
Efficiency in task completion and timelyness
help in adapting to and taking new opportunities
ensure the alignment
Disadvantages of planning
time-consuming and costly
Inflexibility reduced creativity
Delays in decision-making
benefits planning
minimize risks and threats defense
Encourage good coordination chemistry
Expand business activities
importance of planning
promotes coordination cohesion in company
gives the organisation direction guidance
Identify risks and how to manage them defense
inorganic growth
integration, acquire competitor horizontal or supplier, vertical
corporate combination-collaborations
joint ventures- a new entity to share resources with a partner
Strategic alliance -partnership to lessen risk and cost
type of integration
vertical: backward supplier
forward distributer retailer
A horizontal different company
defense Strats
turn around corrective action, retrenchment cost cost-cutting, revenue growth, sales focus
exit strat liquidation, bankruptcy, etc
