Professional Documents
Culture Documents
Ch 5 -1
Ch 5 -2
Understandable
Congruent
Ch 5 -3
Ch 5 -4
Ch 5 -5
in revenues
in earnings dividends
profit margins
ROI
Greater Higher
Rising
stock price
cash flow
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 5 -6
Improved
Larger market share Quicker on-time delivery than rivals Shorter design-to-market times than rivals Lower costs than rivals Higher product quality than rivals Wider geographic coverage than rivals Achieving technological leadership Consistently getting new or improved products to market ahead of rivals
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 5 -7
by Crisis The true measure of a good strategist is the ability to fix problems
Managing
by Subjectives Do your own thing, the best way you know how
Managing
by Hope The future is full of uncertainty and if at first you dont succeed, then you may on the second or third try
Managing
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 5 -8
Balance
Ch 5 -10
Ch 5 -11
Types of Strategies
Forward Integration
Backward Integration
Horizontal Integration
Ch 5 -12
Backward Integration
Horizontal Integration
Ch 5 -13
Types of Strategies
Market Penetration
Intensive Strategies
Market Development
Product Development
Ch 5 -14
Intensive Strategies
Market Penetration
Seeking increased market share for present products or services in present markets through greater marketing efforts Introducing present products or services into new geographic areas
Seeking increased sales by improving present products or services or developing new ones
Market Development
Product Development
Ch 5 -15
Types of Strategies
Related Diversification
Diversification Strategies
Unrelated Diversification
Ch 5 -16
Diversification Strategies
Ch 5 -17
Types of Strategies
Retrenchment
Defensive Strategies
Divestiture
Liquidation
Ch 5 -18
Defensive Strategies
Retrenchment
Regrouping through cost and asset reduction to reverse declining sales and profit Selling a division or part of an organization
Divestiture
Liquidation
Ch 5 -19
Retrenchment Strategy
Bankruptcy types
Chapter 7 liquidation Chapter 9 municipalities Chapter 11 reorganization Chapter 12 family farmers Chapter 13 small businesses
Ch 5 -21
Ch 5 -22
Vigorous price competition Plentiful supply of identical products Little product differentiation Products used in same ways Low cost to switch Large buyers with power Industry newcomers use low prices to attract buyers
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 5 -23
Many ways to differentiate and buyers perceive the differences as having value Diverse buyer needs and uses Few rival firms following similar differentiation approach Fast paced technological change and evolving product features
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 5 -24
Large, profitable, and growing target market niche Industry leaders do not consider the niche crucial to their success Industry leaders consider it costly or difficult to meet the needs of this niche Industry has many niches and segments Few rivals are specializing on this target segment
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 5 -25
Ch 5 -26
Educational Medical
Institutions
Governmental
Departments
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 5 -27
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Ch 5 -28