1. Chapter 9 Corporate Strategy Alternatives: Managing Organisational Scope

2. Strategic Management 4e., Viljoen & Dann © 2002 Pearson Education Australia 2 Objectives appreciate the importance of the concepts of the strategic gap and strategic fit identify and describe alternative methods and directions for strategy development isolate those corporate strategy alternatives that are most likely to suit the specific requirements of a given organisation understand the relationship between strategic objectives, strategic alternatives and the specific strategic requirements of an organisation

3. Strategic Management 4e., Viljoen & Dann © 2002 Pearson Education Australia 3 Strategic gap analysis its purpose measurements quantitative qualitative its value who should do it

4. Strategic Management 4e., Viljoen & Dann © 2002 Pearson Education Australia 4 Levels of strategy corporate level strategies business-level strategies operational level strategies

5. Strategic Management 4e., Viljoen & Dann © 2002 Pearson Education Australia 5 Framework for developing corporate strategic alternatives Generic corporate strategy alternatives market penetration market development product development diversification

6. Strategic Management 4e., Viljoen & Dann © 2002 Pearson Education Australia 6 Simple corporate strategy matrix Same New Same Market penetration Product development New Market development Diversification Products/ Services Markets/ Clients

7. Strategic Management 4e., Viljoen & Dann © 2002 Pearson Education Australia 7 Corporate strategy matrix: Quadrant 1 market penetration continuation consolidation divestment

8. Strategic Management 4e., Viljoen & Dann © 2002 Pearson Education Australia 8 Corporate strategy matrix Quadrant 2 product development (new products) Idea generating and screening Financial analysis Test marketing Concept testing and product development Product launch

9. Strategic Management 4e., Viljoen & Dann © 2002 Pearson Education Australia 9 Corporate strategy matrix Quadrant 2 financial analysis break even volume payback period return on investment concept and product development test marketing

10. Strategic Management 4e., Viljoen & Dann © 2002 Pearson Education Australia 10 Corporate strategy matrix Quadrant 2 product extension product life cycle (PLC) vertical integration

11. Strategic Management 4e., Viljoen & Dann © 2002 Pearson Education Australia 11 Corporate strategy matrix Quadrant 3 market development (new markets) market extension(similar markets) international questions

12. Strategic Management 4e., Viljoen & Dann © 2002 Pearson Education Australia 12 Corporate strategy matrix Quadrant 3 benefits of an international strategy strategy, structure and rivalry related and supporting industries

13. Strategic Management 4e., Viljoen & Dann © 2002 Pearson Education Australia 13 Corporate strategy matrix Quadrant 3 factor conditions demand conditions

14. Strategic Management 4e., Viljoen & Dann © 2002 Pearson Education Australia 14 Corporate strategy matrix Quadrant 4 corporate diversification strategies reasons why organisations diversify survival stability productive utilisation of resources adaptation of changing customer needs growth miscellaneous

15. Strategic Management 4e., Viljoen & Dann © 2002 Pearson Education Australia 15 Diversification alternatives for a hypothetical pharmaceutical company New (related technology) New (unrelated technology) SameHorizontal diversification Concentric diversification Similar  Marketing related New  Marketing & technology related  Technology related Conglomerate Diversification Products Markets