1. Types of Strategies
1.1. Integration Strategies
1.1.1. Forward Integration
1.1.1.1. involves gaining ownership or increased control over distributors or retailers
1.1.2. Backward Integration
1.1.2.1. strategy of seeking ownership or increased control of a firm's suppliers
1.1.3. Horizontal Integration
1.1.3.1. a strategy of seeking ownership of or increased control over a firm's competitors.
1.2. Intensive Strategies
1.2.1. Market Penetration Strategy
1.2.1.1. seeks to increase market share for present products or services in present markets through greater marketing efforts.
1.2.2. Market Development
1.2.2.1. involves introducing present products or services into new geographic areas.
1.2.3. Product Development Strategy
1.2.3.1. seeks increased sales by improving or modifying present products or services.
1.3. Diversification Strategies
1.3.1. Related Diversification
1.3.1.1. value chains possess competitively valuable cross-business strategic fits.
1.3.2. Unrelated Diversification
1.3.2.1. value chains are so dissimilar that no competitively valuable cross-business relationships exist.
1.4. Defensive Strategies
1.4.1. Retrenchment
1.4.1.1. Regroups through cost and asset reduction to reverse declining sales and profits.
1.4.2. Divestiture
1.4.2.1. Selling a division or part of an organization. Often used to raise capital for further strategic acquisitions or investments.
1.4.3. Liquidation
1.4.3.1. Selling all of a company’s assets, in parts, for their tangible worth.
2. Michael Porter's Five Generic Strategies
2.1. Cost Leadership emphasizes producing standardized products at a very low per-unit cost for consumers who are price-sensitive.
2.2. Type 1
2.2.1. Low-cost strategy that offers products or services to a wide range of customers at the lowest price available on the market.
2.3. Type 2
2.3.1. Best-value strategy that offers products or services to a wide range of customers at the best price-value available on the market.
2.4. Type 3
2.4.1. Differentiation is a strategy aimed at producing products and services considered unique industry-wide and directed at consumers who are relatively price-insensitive.
2.5. Type 4
2.5.1. Low-cost focus strategy that offers products or services to a niche group of customers at the lowest price available on the market
2.6. Type 5
2.6.1. Best-value focus strategy that offers products or services to a small range of customers at the best price-value available on the market
3. Long term objectives
3.1. Represent the results expected from pursuing certain strategies.
3.2. The time frame usually 2 to 5 years
3.3. An important measure of managerial performance
3.4. Characteristics and Benefits of Objectives
3.4.1. Characteristics
3.4.1.1. Quantitative, measurable, realistic, understandable, challenging, hierarchical, obtainable and congruent across departments.
3.4.2. Objectives
3.4.2.1. 1. provide direction, 2. allow synergy 3. assist in evaluation 4. establish priorities 5. reduce uncertainty
3.5. Financial vs Strategic Objectives
3.5.1. Financial
3.5.1.1. Include those 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
3.5.2. Strategic
3.5.2.1. Include 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 getting new or improved products to market ahead of rivals, and so on.
3.6. Avoid Not Managing by Objectives
3.6.1. Managing by Extrapolation
3.6.2. Managing by Crisis
3.6.3. Managing by Subjectives
3.6.4. Managing by Hope