Strategic Management- (corporate level strategies)
Corporate
level strategies attempts to identify strategies that corporations or
organizations decide to pursue for the benefit of the whole organizations.
The various
corporate level strategies will be discussed under the following headings:
1) Grand strategies
a. growth: next year growth rate is higher than the previous year
b. stable growth: next year growth rate is the same as the previous year
c. turnaround: the growth rate is positive as compared to the previous
year
d. combination: organization adopt a few strategies combining some of the
three strategies mentioned above; growth, stable growth and turnaround.
2) Secondary level strategies
a. expand: to increase activities so
that the volume of the output is increased in terms of numbers, weight, size, branches, etc.
b. integrate: to have more control
of the production or services such as through the control of resources
(backward) or the added value of down the line activities as in warehousing,
wholesaling and retailing (forward).
c. diversity: is basically the
increase in the number of outputs produced or services rendered.
d. reduce : that are grouped
together as they all represent actions that are commonly used in corporations
facing some difficulties on their operations as reflected in their negative
performance indicators.
3) Tactical level strategies
a. Organically: to describe tactical strategy where a company would do it through its own strengths and capabilities without the involvement of any other company with similar interest.
b. Joint venture: A joint venture tactical strategy involves a setting up of a new company with equity participation of all the parties involved (can be more than two)
c. Merger: a merger will result in the establishment of a new company while the two or more names of those involved in the merger will not exist anymore.
d. Acquisition/ Takeover: An acquisition and a takeover are almost similar as it involves the buying of the majority equity of the company.
e. Reverse takeover: A reverse takeover involves a listed company. The company that wants to do a reverse takeover is interested to be listed in the stock market.
f. Strategic Alliances: just alliances or understanding between two or more parties that describe to work together to achieve their respective objectives without any structural changes.
g. Licensing/ Franchising: to seek permission to run a business based on that of the licensor. the permission once obtained, allows the company to manufacture or do business on the licensed product or service.
