What is strategic planning? Flashcards
Who creates strategic plans?
Upper management creates long range plans that provide the overall direction of the company
7 types of growth strategies
Market development, Product development, horizontal integration, vertical integration, conglomerate integration, strategic alliances, E-business
Market Development
Adding new consumers to current markets
discovering new markets to sell current products
Product Development
Inventing new products
modifying existing new ones
Horizontal Integration
Expand company by buying or merging with other corporations in the same industry
Vertical Integration
Company buys it suppliers or distributors
Conglomerate Integration
Buy companies in entirely different industries
Strategic Alliances
Expand internationally by partnering with other companies in other countries
E-business
expand operation by using the internet
Retrenchment strategies
Restructuring, Downsizing, Divestiture
Restucturing
change operations to achieve efficiencies and increase performance
Downsizing
Decreasing the size of the company
laying off workers to reduce costs
Divestiture
Selling off part of the company
ex. ford with volvo and jaguar
