SBA- CHAPTER 4

13問 • 1年前

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It the process through which the strategists know the extent to which a strategy is able to achieve its objectives.

Strategy Evalution

According to them,“Evaluation of strategy is that phase of strategic management process in which the top managers determine whether their strategic choice as implemented is meeting the objectives of the enterprise.”

Professor William F. Glueck and Lawrence R. Jauch

It is the process by which a company expands on its own capacity. In an organic growth strategy, a business utilizes all of its resources – without the need to borrow – to expand its operations and grow the company.

Organic Growth

Inorganic Growth

Growth by merger ot acquisition

happen when two or more businesses work together to create a win-win situation. For example, Company A and Company B may decide to combine their distribution facilities so they can share mutual resources and cut the costs associated with shipping.

Strategic Alliances

It refers to a strategy of acquiring a company in the same business line or the same level of supply chain. It refers to the merger of two concerns at approximately the same level in the production supply chain hierarchy. They may belong to different industries but come together to improve the economies of scale and increase synergies.

Horizontal Integration

It refers to a strategy of acquiring a company who is at the different level of supply chain usually the lower level. It is a competitive strategy that results in a business taking complete control over one or many stages in the production or distribution cycle. Generally, the strategy involves two different companies partnering to improve efficiency and retain ownership of the phase.

Vertical Integration

when a business adds or expands its existing product lines or markets. For example, a phone company that adds or expands its wireless products and services by purchasing another wireless company is engaging in related diversification.

Related Diversification

when a business adds new, or unrelated, product lines or markets. For example, the same phone company might decide to go into the television business or into the radio business. This is unrelated diversification: there is no direct fit with the existing business.

Unrelated diversification

is a practice done by organizations to gain a better financial position by lowering or reducing the costs of any of its business operation. ( cost cutting and restructuring)

Retrenchment strategy

is a form of retrenchment strategy when a company realizes that it has made wrong decisions earlier. Now, it needs to undo some of its works before it could impact the company’s profitability and income. It’s a strategy where you retreat and back from the earlier made wrong decision, and transform the company’s position from loss to profitability. (ex. Change of leadership, cost efficiency strategies)

Turnaround Strategy

refers to the act of partially or entirely selling organizational assets to generate funds urgently. The urgency could be caused by a legal or regulatory compliance issue. It is also referred to as divestiture.

Divestment

is a closure strategy when businesses sell their assets in order to wind up their business operations. Many business experts consider it an unpleasant strategy because you terminate the business operations permanently.

Liquidation

VITMOLOGY-PPT2

Anndrea S. Galupo · 22問 · 1年前

VITMOLOGY-PPT2