The course focuses on managing the early growth of newly established businesses, and covers the needs of businesses. The course employs theoretical concepts and models from an international business perspective and is designed to help students to develop their own leadership potential in preparation for managerial roles.
Organizations go through an inevitable progression from growth through maturity, revival, and eventually decline. The broad corporate strategy alternatives, sometimes referred to as grand strategies, are: During the organizational life cycle, managements choose between growth, stability, or retrenchment strategies to overcome deteriorating trends in performance.
Just as every product or business unit must follow a business strategy to improve its competitive position, every corporation must decide its orientation towards growth by asking the following three questions: At the core of corporate strategy must be a clear logic of how the corporate objectives, will be achieved.
Most of the strategic choices of successful corporations have a central economic logic that serves as the fulcrum for profit creation.
Some of the major economic reasons for choosing a particular type corporate strategy are: The non-economic reasons for the choice of corporate strategy elements include: There are four types of generic corporate strategies. A stability strategy is utilized by a firm to achieve steady, but slow improvements in growth Organisational business strategy a retrenchment strategy which includes harvesting, turnaround, divestiture, or liquidation strategies is used to reverse poor-organizational performance.
Once a strategic direction has been identified, it then becomes necessary for management to examine business and functional level strategies of the firm to make sure that all units are moving towards the achievement of the company-wide corporate strategy.
The firm stays with its current business and product markets; maintains the existing level of effort; and is satisfied with incremental growth. It does not seek to invest in new factories and capital assets, gain market share, or invade new geographical territories.
Organizations choose this strategy when the industry in which it operates or the state of the economy is in turmoil or when the industry faces slow or no growth prospects. They also choose this strategy when they go through a period of rapid expansion and need to consolidate their operations before going for another bout of expansion.
Firms choose expansion strategy when their perceptions of resource availability and past financial performance are both high. The most common growth strategies are diversification at the corporate level and concentration at the business level.
Reliance Industry, a vertically integrated company covering the complete textile value chain has been repositioning itself to be a diversified conglomerate by entering into a range of business such as power generation and distribution, insurance, telecommunication, and information and communication technology services.
Diversification is defined as the entry of a firm into new lines of activity, through internal or external modes. The primary reason a firm pursues increased diversification are value creation through economies of scale and scope, or market dominance. In some cases firms choose diversification because of government policy, performance problems and uncertainty about future cash flow.
Internal development can take the form of investments in new products, services, customer segments, or geographic markets including international expansion.
Diversification is accomplished through external modes through acquisitions and joint ventures. Concentration can be achieved through vertical or horizontal growth. Vertical growth occurs when a firm takes over a function previously provided by a supplier or a distributor. Horizontal growth occurs when the firm expands products into new geographic areas or increases the range of products and services in current markets.
Turnaround strategy is a form of retrenchment strategy, which focuses on operational improvement when the state of decline is not severe. Other possible corporate level strategic responses to decline include growth and stability.
A firm adopting the combination strategy may apply the combination either simultaneously across the different businesses or sequentially. Reliance Industries, while consolidating its position in the existing businesses such as textile and petrochemicals, aggressively entered new areas such as Information Technology.Types.
There are a variety of legal types of organisations, including corporations, governments, non-governmental organisations, political organisations, international organisations, armed forces, charities, not-for-profit corporations, partnerships, cooperatives, and educational institutions..
A hybrid organisation is a body that operates in both the public sector and the private sector. Digital success isn’t all about technology: The Digital Business Global Executive Study and Research Project by MIT Sloan Management Review and Deloitte identifies strategy as the key driver in the digital arena.
Companies that avoid risk-taking are unlikely to thrive and likely to lose talent, as employees across all age groups want to work for businesses committed to digital progress.
The calibre of our faculty and research culture is what makes Melbourne Business School (MBS) Australia's preeminent business school. Stability strategy is a strategy in which the organization retains its present strategy at the corporate level and continues focusing on its present products and markets.
Formulation of strategy involves analyzing the environment in which the organization operates, then making a series of strategic decisions about how the organization will compete. Formulation ends with a series of goals or objectives and measures for the organization to pursue.
Accounting Principles. An introduction to the fundamental aspects of financial accounting, including the preparation, presentation and interpretation of financial information within the context of making effective business decisions.