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Corporate Strategies The overall managerial game plan. How management plans to achieve mission and objectives.

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Presentation on theme: "Corporate Strategies The overall managerial game plan. How management plans to achieve mission and objectives."— Presentation transcript:

1 Corporate Strategies The overall managerial game plan. How management plans to achieve mission and objectives.

2 What are the current Corporate Strategies? Organization’s orientation toward growth. Industries or markets in which it will compete. Multi-business corporations it involves decisions regarding position of each business in the organization.

3 Existing MarketNew Market Existing Product New Product Market Penetration Product Development Market Development Diversification Related Unrelated

4 Alternatives for Growth Alternatives for Growth Expansion into existing Businesses Diversification into new Businesses Changes of product, market/ geographical scope Vertical Integration - expanding the Value Chain Related Unrelated

5 Expansion into existing businesses Changes of product, market/ geographical scope Vertical Integration expanding the Value Chain Existing products and markets Market Penetration Existing products into new markets/ geographical scope Market Development New Products into existing markets Product Development Expanding the breadth of product lines Forward: Getting closer to customers Backward: Getting closer to suppliers

6 Diversification into new businesses Related Unrelated Product Technology Process Technology Procurement Basic raw materials Processes or fabricated materials Fabricated components Assembled products Testing Distribution Marketing and sales Retailing Service Federal Gov’t looks at Standard Industrial Classification (SIC) Bases for relatedness:

7 Modes of Growth Internal development Acquiring firms/businesses Collaborative arrangements –Strategic Alliances –Joint Ventures –Licensing

8 Other Types of Corporate Strategies

9 Repositioning Strategies Retrenchment –Assets and/or costs Divestiture Spin-offs

10 Termination Strategies Liquidation Merger Being acquired

11 Market Segment and Product Group Analysis What markets do we currently serve with what product group? What is the contribution to sales, –operating income; net profit, etc.?

12 HUDSON FOODS Market Segments: Retail Food Service Club Store International Other Group of Consumers served Geographical Location

13 HUDSON FOODS PRODUCTS Hudson Foods - Product Groups Chicken TurkeyPortionedLuncheonBeefOther Entrees Meats

14 Chicken TurkeyPortionedLuncheonBeefOther EntreesMeats Retail Food Service Club Store Int’l Other

15 U.S. Restaurant Chain Industry Strategic Groups PRICE Product-Line Breadth Limited Menu Full Menu Low High McDonald Burger King Wendy’s Pizza Hut Chi-Chi’s Red Lobster Olive Garden IHOPBob Evans Shoney’s Denny’s


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