Biz growth & Strategy

Oct 1, 2016
 Strategy can be defined as the
determination of the basic
long-term goals and objectives
of an enterprise, and the
adoption of courses of action
and the allocation of resources
necessary for carrying out those
goals.
(Alfred D.
Chandler Strategy and Structure)
 The
The Basic
Basic Framework
Framework
Strategy:
Strategy: the
the Link
Link between
between the
the
Firm
Firm and
and its
its Environment
Environment

THE FIRM
THE
Goals &
Values INDUSTRY
STRATEGY
ENVIRONMENT
Resources & STRATEGY
Capabilities Competitors
Customers
Structure & Suppliers
Systems
 Porter's Five Forces Model

Potential
entrants

Threat of
new entrants

Bargaining powerIndustry competitors Bargaining power

of suppliers of buyers
Suppliers Buyers
Rivalry among
existing firms

Threat of
substitutes

Substitute
products
 The value chain

After-sales
service

Human resource Marketing

management

Technological
and sales

development
Outbound
logistics
infrastructure

Procurement
Operations
Firm

Inbound
logistics
Alternative growth strategies

GROWTH
GROWTH OF
OF A
A FIRM
FIRM

Internal
Internal expansion
expansion External
External expansion
expansion

Strategic
Strategic alliances
alliances Mergers
Mergers and
and acquisitions
acquisitions
(1)
(1) Horizontal
Horizontal expansion
expansion
Same
Same product,
product,
but
but increase
increase in
in market
market share
share or
or (1)
(1) Horizontal
Horizontal alliances
alliances
diversification
(1)
(1) Horizontal
Horizontal integration
integration
diversification into
into new
new varieties
varieties Informal
Informal or
or contractual
contractual alliance
alliance Merger
Merger or
or acquisition
acquisition of
of firms
firms
between
between firms at
firms at aa technically
technically producing
producing same
same product
product
similar
similar stage
stage of
of production
production that that at
at the
the same
same stage
stage of
of production
production
may
may lead to a joint venture
lead to a joint venture

(2)
(2) Vertical
Vertical integration
integration
Same
Same product,
product, (2)
(2) Vertical
Vertical alliances
alliances
but
(2)
(2) Vertical
Vertical integration
integration
but expanding to
expanding to different
different stages
stages Informal
Informal or
or contractual
contractual alliance
alliance
of
of the productive process
the productive process Merger
Merger or
or acquisition
acquisition of
of firms
firms
between
between firms
firms producing
producing at at producing
producing at different stages of
at different stages of
different
different stages
stages ofof same
same process
process same
same process
process
that
that may
may lead
lead to
to aa joint
joint venture
venture

(3)
(3) Conglomerate
Conglomerate (3)
(3) Networks
Networks (3)
(3) Conglomerate
Conglomerate
Diversification Informal
Informal or
or contractual
contractual alliance
alliance
Diversification -- introduction
introduction of
of Diversification
Diversification merger
merger or
or
totally between
between firms across
firms across sectors,
sectors,
totally different products
different products acquisition
acquisition ofof firms
firms producing
producing
including
including the
the development
development of of totally
totally unrelated
unrelated products
products
supply
supply chain clusters
chain clusters