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Chap 5

The document discusses different levels of strategies in organizations, including corporate strategies. It defines corporate strategy as determining what businesses a company is in or wants to be in. It describes types of corporate strategies like growth, stability, and renewal. It also discusses how corporate strategies are managed using tools like the BCG matrix.

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annequynh1809
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19 views25 pages

Chap 5

The document discusses different levels of strategies in organizations, including corporate strategies. It defines corporate strategy as determining what businesses a company is in or wants to be in. It describes types of corporate strategies like growth, stability, and renewal. It also discusses how corporate strategies are managed using tools like the BCG matrix.

Uploaded by

annequynh1809
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 5

STRATEGY
CHOICES
choices

roger martin 'playing to win'


3
LEVELS OF STRATEGIES IN ORGANISATIONS
Corporate Strategies
What is corporate strategy?
A corporate strategy is one that determines what
businesses a company is in or wants to be in and
what it wants to do with those businesses.
‘to engage efficiently, responsibly and profitably in oil,
oil products, gas, chemicals and other selected
businesses

‘to be the world’s best quick‐service restaurant


chain’

‘refocusing on core businesses’


Corporate Strategies
Types of Corporate Strategy
 Growth: expansion into new products
and markets.
 Stability: maintenance of the status quo.

 Renewal: address organizational weaknesses


that are leading to performance declines.
Growth Strategy
Expanding the number of products offered or
markets served, either through its current
business(es) or through new business(es).
a. Concentration
Concentrates on a primary line of business and
increasing the number of products offered or
markets served.
Growth Strategy
b. Vertical Integration
 Backward vertical integration: attempting to
gain control of inputs (become its own
supplier).

 Forward vertical integration: an organization


becomes it s own d istributor and is abl e to
control its utpu ts.
Growth Strategy
c. Horizontal Integration
A company grows by combining with other
organizations in the same industry - that is,
combining operations with competitors.
Growth Strategy
4.Diversification
 Related Diversification - when a company

grows by combining with firms in different,


es
but related, industri
.

 Unrelated Diversification - When a company

grows by combining with firms in different


and unrelated industri
es
Stability Strategy
A strategy characterized by an absence of
significant change in what the organization
is currently doing.
Renewal Strategy
A strategy designed to address
organizational weaknesses that are leading
to performance declines.
Corporate Strategies
How Are Corporate Strategies
Managed? BCG M atrix developed
by the Boston
Consulting
Group
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Focus on International
scope
Internationalisation brings:
 Opportunities

 Pitfalls and Risks

 Activity: Discuss what are the potential risks

and pitfalls of international expansion for


your company?

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