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Strategies in Action, AZYURA HUMAIRA, 120310180025 - Coggle Diagram

- - - - Quantitative
      - Measurable
      - Realistic
      - Understandable
      - Challenging
      - Hierarchical
      - Obtainable
      - Congruent across departments
  - - - Provide direction by revealing expectations
      - Allow synergy
      - Aid in evaluation by serving as standards
      - Establish priorities
      - Reduce uncertainty
      - Minimize conflicts
      - Stimulate exertion
      - Aid in allocation of resources
      - Aid in design of jobs
      - Provide basis for consistent decision making
  - - - associated with growth in revenues, growth in earnings, higher dividends, larger profit margins, greater return on investment, higher earnings per share, a rising stock price, improved cash flow, and so on
    - - such as a larger market share, quicker on-time delivery than rivals, shorter design-to-market times than rivals, lower costs than rivals, higher product quality than rivals, wider geographic coverage than rivals, achieving technological leadership, consistently agetting new or improved products to market ahead of rivals, and so on.
- - - - Integration difficulties
        
        Inadequate evaluation of target
        
        Large or extraordinary debt
        
        Inability to achieve synergy
        
        Too much diversification
        
        Managers overly focused on acquisitions
        
        Too large an acquisition
        
        Difficult to integrate different organizational cultures
        
        Reduced employee morale due to layoffs and relocations
  - - - Secure access and commitments to rare resources
      - Gain new knowledge of critical success factors and issues
      - Gain market share and position in the best locations
      - Establish and secure long-term relationships with customers, suppliers, distributors, and
      - investors
      - Gain customer loyalty and commitments
- - - - When an organization’s present distributors are especially expensive, or unreliable, or incapable of meeting the firm’s distribution needs.
        
        When the availability of quality distributors is so limited as to offer a competitive advantage to those firms that integrate forward.
        
        When an organization has both the capital and human resources needed to manage the new business of distributing its own products.
        
        When the advantages of stable production are particularly high; this is a consideration because an organization can increase the predictability of the demand for its output through forward integration.
        
        When an organization competes in an industry that is growing and is expected to continue to grow markedly; this is a factor because forward integration reduces an organization’s ability to diversify if its basic industry falters.
        
        When present distributors or retailers have high profit margins; this situation suggests that a company profitably could distribute its own products and price them more competitively by integrating forward.
  - - - When an organization’s present suppliers are especially expensive, or unreliable, or incapable of meeting the firm’s needs for parts, components, assemblies, or raw materials.
      - When the number of suppliers is small and the number of competitors is large.
      - When an organization competes in an industry that is growing rapidly; this is a factor because integrative-type strategies (forward, backward, and horizontal) reduce an organization’s ability to diversify in a declining industry.
      - When an organization has both capital and human resources to manage the new business of supplying its own raw materials
      - When the advantages of stable prices are particularly important; this is a factor because an organization can stabilize the cost of its raw materials and the associated price of its product(s) through backward integration
      - When present supplies have high profit margins, which suggests that the business of supplying products or services in the given industry is a worthwhile venture.
      - When an organization needs to quickly acquire a needed resource
  - - - When an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for “tending substantially” to reduce competition.
      - When an organization competes in a growing industry.
      - When increased economies of scale provide major competitive advantages.
      - When an organization has both the capital and human talent needed to successfully
        manage an expanded organization.
      - When competitors are faltering due to a lack of managerial expertise or a need for particular resources that an organization possesses; note that horizontal integration would not be appropriate if competitors are doing poorly, because in that case overall industry sales are declining.
- - - - When current markets are not saturated with a particular product or service
      - When the usage rate of present customers could be increased significantly
      - When the market shares of major competitors have been declining while total
        industry sales have been increasing
      - When increased economies of scale provide major competitive advantages.
      - When the correlation between dollar sales and dollar marketing expenditures historically
        has been high.
  - - - When new untapped or unsaturated markets exist.
      - When an organization has the needed capital and human resources to manage
        expanded operations.
      - When an organization is very successful at what it does.
      - When an organization has excess production capacity.
      - When an organization’s basic industry is rapidly becoming global in scope.
      - When new channels of distribution are available that are reliable, inexpensive, and
        of good quality.
  - - - When an organization has successful products that are in the maturity stage of the product life cycle; the idea here is to attract satisfied customers to try new (improved) products as a result of their positive experience with the organization’s present products or services.
      - When an organization competes in an industry that is characterized by rapid technological developments
      - When an organization competes in an industry that is characterized by rapid technological developments
      - When an organization competes in a high-growth industry.
      - When an organization has especially strong research and development capabilities
- - - - Type 1: Cost Leadership—Low Cost
      - Type 2: Cost Leadership—Best Value
      - Type 3: Differentiation
      - Type 4: Focus—Low Cost
      - Type 5: Focus—Best Value