Chapter 5 Strategies in Action

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Chapter 5Strategies in Action

• Strategic Management Concepts Cases
• 10th Edition
• Fred DavidPowerPoint Slides by
• Anthony F. Chelte
• Western New England College

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Long-Term Objectives
Objectives --

• Quantifiable
• Measurable
• Realistic
• Understandable
• Challenging

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Long-Term Objectives
Objectives --

• Hierarchical
• Obtainable
• Congruent
• Time-line

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Long-Term Objectives
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Financial vs. Strategic Objectives
Financial Objectives

• Growth in revenues
• Growth in earnings
• Higher dividends
• Higher profit margins
• Higher Earnings per share
• Improved cash flow

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Types of Strategies
Corp Level
A Large Company
Division Level
Functional Level
Operational Level
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The Balanced Scorecard
Robert Kaplan David Norton --

• Strategy evaluation control technique
• Balance financial measures with non-financial
  measures
  
• Balance shareholder objectives with customer
  operational objectives

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Types of Strategies
Forward Integration
Vertical IntegrationStrategies
BackwardIntegration
HorizontalIntegration
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Types of Strategies
MarketPenetration
IntensiveStrategies
MarketDevelopment
ProductDevelopment
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Types of Strategies
ConcentricDiversification
DiversificationStrategies
ConglomerateDiversification
HorizontalDiversification
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Types of Strategies
Retrenchment
DefensiveStrategies
Divestiture
Liquidation
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2003 Examples
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2003 Examples
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2003 Examples
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2003 Examples
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Michael Porters Generic Strategies
Cost Leadership Strategies
Differentiation Strategies
Focus Strategies
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Recent Mergers
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First Mover Advantages

• Benefits a firm may achieve by entering a new
  market or developing a new product or service
  prior to rival firms.

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Outsourcing
Business-process outsourcing (BPO)

• Companies taking over the functional operations
  of other firms