1. Chapter 9: Strategic Management Strategies Used by Organizations Text Pages 235 - 240

2. Management Fundamentals - Chapter 9 2 Strategies Used by Organizations  Strategic forces to be examined in conducting an industry analysis:  Industry competitors  New entrants  Suppliers  Customers  Substitutes

3. Management Fundamentals - Chapter 9 3 Figure 9.5 Three levels of strategy in organizations— corporate, business, and functional strategies.

4. Management Fundamentals - Chapter 9 4 Strategies Used by Organizations  Questions addressed by different strategic level:  Corporate strategy  In what industries and markets should we compete?  Business strategy  How are we going to compete for customers in this industry and market?  Functional strategy  How can we best utilize resources to implement our business strategy?

5. Management Fundamentals - Chapter 9 5 Strategies Used by Organizations  Growth and diversification strategies: Growth strategies Seek an increase in size and the expansion of current operations. Types of growth strategies:  Concentration strategies (growth of existing business area)  Diversification strategies (growth in new business areas)  Related diversification (acquiring similar businesses)  Unrelated diversification (acquiring different businesses)  Vertical integration (acquiring suppliers)

6. Management Fundamentals - Chapter 9 6 Strategies Used by Organizations  Restructuring and divestiture strategies:  Readjusting operations when an organization is in trouble.  Retrenchment  Correcting weaknesses by making changes to current operations.  Liquidation – business ceases, assets sold  Restructuring  Downsizing and rightsizing  Restructuring through divestiture – selling off parts of the organization

7. Management Fundamentals - Chapter 9 7 Strategies Used by Organizations  Global strategies:  Globalization strategy.  World is one large market; standardize products and advertising as much as possible.  Ethnocentric view – assumes everyone everywhere wants the same thing  Multidomestic strategy.  Customize products and advertising to local markets as much as possible.  Polycentric view – showing respect for market diversity and capabilities of locals to best interpret their strategic implications.  Transnational strategy  Balance efficiencies in global operations and responsiveness to local markets.  Does not have a particular country as its ‘home’  Geocentric view – respect for diversity and values talents around the world

8. Management Fundamentals - Chapter 9 8 Strategies Used by Organizations  Cooperative strategies  Strategic alliances — two or more organizations partner to pursue an area of mutual interest.  Types of strategic alliances:  Outsourcing alliances  Supplier alliances  Distribution alliances

9. Strategic Alliances Supplier Alliance Distribution Alliance Outsourcing Alliance

10. Management Fundamentals - Chapter 9 10 Strategies Used by Organizations  E-business strategies  The strategic use of the Internet to gain competitive advantage.  Popular e-business strategies  Business-to-business (B2B) strategies (IT/Web systems link organizations vertically in supply chain)  Business-to-customer (B2C) strategies (IT/Web systems link businesses with customers.

11. B2B & B2C