Team 6 Michael Grizzle, Ryan Moeller, Stuart Gaston, Tate Rouche, Justin Schamp, Rachel Strat

 Corporate Strategy = a strategy concerned with the choices of what business(es) to be in and what to do with those businesses  Single-Business Organization = a business primarily in 1 industry  Ex: Coca-Cola  Multiple-Business Organization = a business that is in more than 1 industry  Ex: PepsiCo, Shell

 3 types  Moving an organization forward (growth strategy)  Hope to expand the organization’s activities or operations  Keeping an organization as is (stability strategy)  Keep the organization from expanding, but also not declining  Reversing an organization’s directions (renewal strategy)  Describing problem the organization has, and then installing a renewal strategy

 A strategy that expands the products offered or markets served by an organization or expands it’s activities or operations either through current business(es) or through new business(es)  5 growth strategies  Concentration = concentrates on its primary line of business and looks for ways to meet its growth goals by expanding  Vertical Integration = an organizations grows by gaining control of its inputs, outputs, or both  Horizontal Integration = an organization grows by combining operations with 1 of its competitors  Diversification = an organization grows by moving into a different industry  International = expanding into global markets

 3 ways  Mergers/Acquisitions  Merger = a legal transaction in which 2 or more organizations combine operations through an exchange of stock and create a 3 rd entity  Acquisition = an outright purchase of an organization by another  Internal Development  Grows by creating and developing new business activities itself  Strategic Partnering  2 or more organizations establish a partnership by combining resources, distinctive capabilities, and core competencies

 When an industry is in a period of rapid upheaval  When an industry is facing slow or no growth opportunities  When an organization has been growing rapidly  When a large firm is in the maturity stage of it’s life cycle

 Primarily involves not growing  Not allowing the organization to decline

 Renewal strategies = strategies the reverse the decline of the organization and put it back on a positive track  Reasons for performance declines  Inadequate financial controls  Uncontrollable costs or too high costs  New competitors  Unpredicted shifts in customer demand  Overexpansion/too rapid of growth  Slow or no response to significant external or internal changes

 2 main types  Retrenchment  A short-run renewal strategy designed to address organizational weaknesses that are leading to performance declines  Turnaround  A renewal strategy that’s designed for situations in which the organization’s performance problems are more serious  Ex: Sears, Delta Airlines, Chrysler, GM

 Involves 2 actions: cutting costs and restructuring  Cost cutting  restructuring

 Corporate goals  Increased earnings  Maximized stockholder wealth  Increased market share  Strong global presence  Increased revenues  High product quality  Strong customer satisfaction

 Efficiency = an organization’s ability to minimize resource use in achieving organizational goals  Effectiveness = an organization’s ability to reach its goals  Productivity = a specific measure of how many inputs it takes to produce outputs

 Portfolio = an organization’s various business units  Uses 2 matrices to summarize internal and external factors  BCG matrix  McKinsey-GE stoplight matrix

 Organization might need to change their strategies if the results are weak or not having the intended results  Ex: Microsoft  Acquired various internet and web startup companies  Redesigned software  Reshuffled administrative duties