IDENTIFYING

“STRATEGIC ALTERNATIVES”

PRESENTED BY:
MANDEEP RANGSHA (GM 21/16)

Dept of Management, TURA CAMPUS

NORTH EASTERN HILL UNIVERSITY
 Contents
1.Hierarchical levels of strategy.
Corporate strategies.
Business unit strategies.
Functional area strategies.
2.Strategies analysis and choice.
3.Factors affecting in Strategic Alternatives.
4.Strategies to avoid.
5.Refernce.
6.Conclusion.
 HIERARCHICAL LEVELS OF STRATEGY
Strategy is a set of analytical techniques for
understanding and influencing your company’s
position in the market place.
Strategy is concerned with the match between the
companies internal capabilities and its external
environment.
1.Corporate strategies: Business to venture into.
2.Business unit strategies: Tactics to beat the
competition.
3.Functional area strategies: Operational methods to
implement the tactics.
1.CORPORATE LEVEL STRATEGIES

EXPANSION STRATEGY

STABILITY STRATEGY

RETRENCHMENT STRATEGY

COMBINATION STRATEGY
(A) EXPANSION STRATEGY
(i) Concentration : moving resources to more
developing product lines in one industry.
Horizontal growth:(expanding sideways).
Vertical growth:(taking over a function previously
provided by a supplier or by a distributor).
(ii) Diversification: moving resources to
product lines in different industries.
Concentric: (related )
Conglomerate: (unrelated)
 (B). STABILITY STRATEGY

Here the organization retains its present STRATEGY at the

“corporate level” and continues focusing on its present
products and markets in predictable environment.
(i) Pause/Proceed With Caution Strategy : an
opportunity to rest before continuing a growth or retrenchment
strategy .
(ii) No Change Strategy- decision to do nothing new but to
continue current operations and policies for the foreseeable
future.
(iii) Profit Strategy –decision to do nothing new in a
worsening situation but instead to act as though the company’s
problems are only temporary.
 (C.) RETRENCHMENT STRATEGY
A company may pursue retrenchment strategy when it has
a weak competitive position in some or all of its product
lines

1.TURNAROUND

2. Captive Strategy

3.DISVESTMENT/
SELL OUT
 D) COMBINATION STRATEGIES

Reasons for adopting combination strategies are given below

 Rapid Environment change
 Liquidate (quit) one unit, develop another.
 Involves both divestment & acquisition (take over)
 2. BUSINESS STRATEGY
It focuses on improving the competitive position of a
company’s business unit’s products or services
“within” the specific industry or market segment that
the company or business unit serves
A. Competitive – battling against all competitors for
advantage which includes Low-cost leadership,
Differentiation and Focus strategies
B. Cooperative – working with one or more
competitors to gain advantage against other
competitors which is also known as Strategic
alliances.
 A.COMPETITIVE BUSINESS STRATEGY
(PORTER’S GENERIC STRATEGY)
According to Porter, there are three generic
strategies that a company can undertake to attain
competitive advantage: cost leadership,
differentiation, and focus.
 B. COOPERATIVE BUSINESS STRATEGY
(STRATEGIC ALLIANCE)
REASONS FOR FORMING STRATEGIC ALLIANCES:
1.To gain access to foreign markets.
2.To reduce financial risks.
3.To reduce political risks.
4.To achieve competitive advantage.
5.To set technological standards.
6.To shape industry growth.
 FUNCTIONAL STRATEGY
• Functional strategy ENABLES corporate and
business unit objectives and strategies by
maximizing resource productivity.
STRATEGIES ANALYSIS AND CHOICE
FOCUSSSING ON EVALUATING CONSIDERING
STRATEGIC STRATEGIC DECISION
ALTERNATIVES ALTERNATIVES FACTORS

OBJECTIVES SSUBJECTIVE
FACTORS FACTORS

STRATEGY CHOICE
Factors affecting in Strategic Alternatives

Cost

WELL-SUITED
Dependable

Riskiness Stability

Flexibility
STRATEGIES TO AVOID

1.Follow the
Leader

2.Hit Another Home Run

3.Arms race 4.Do

Everything
CONCLUSION
 REFERNCE
http://businessjargons.com/combination-
strategy.html
http://businessjargons.com/stability-strategy.html
http://businessjargons.com/grand-strategies.html
http://businessjargons.com/expansion-
strategy.html
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