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CHAPTER 5 - Coggle Diagram
CHAPTER 5
Five characteristics
- Quantitative: measurable
- Understandable: clear
- Challenging: achievable
- Compatible: consistent vertically and horizontally in a chain of command
- Obtainable: realistic
Types of strategies
- Forward Integration - Gaining ownership or increased control over distributors or retailers
- Backward Integration - Seeking ownership or increased control of a firm’s suppliers
- Horizontal Integration - Seeking ownership or increased control over competitors
- Market Penetration - Seeking increased market share for present products or services in present markets through greater marketing efforts
- Market Development - Introducing present products or services into new geographic area
- Product Development - Seeking increased sales by improving present products or services or developing new ones
- Related Diversification - Adding new but related products or services
- Unrelated Diversification - Adding new, unrelated products or services
- Retrenchment - Regrouping through cost and asset reduction to reverse declining sales and profit
- Divestiture - Selling a division or part of an organization
- Liquidation - Selling all of a company’s assets, in parts, for their tangible worth
Intensive strategies
Market Penetration Strategy - seeks to increase market share for present products or services in present markets through greater marketing efforts
Market Development - involves introducing present products or services into new geographic areas
Product Development Strategy - seeks increased sales by improving or modifying present products or services
Integration Strategies
Forward Integration - involves gaining ownership or increased control over distributors or retailers
Backward Integration - strategy of seeking ownership or increased control of a firm's suppliers
Horizontal Integration - a strategy of seeking ownership of or increased control over a firm's competitors
Defensive strategies
Retrenchment - Regroups through cost and asset reduction to reverse declining sales and profits
Divestiture - Selling a division or part of an organization
& Often used to raise capital for further strategic acquisitions or investments
Liquidation - Selling all of a company’s assets, in parts, for their tangible worth
Retrenchment - occurs when an organization regroups through cost and asset reduction to reverse declining sales and profits
Value chain analysis
The process whereby a firm determines the value (price minus cost) of each and all activities that went into producing and marketing a product, from purchasing raw materials to manufacturing, distributing, and marketing those products
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