Strategic Direction

Options
Strategic Direction

Growth Delay Retrenchment

Decision
Trigger

Turn Captive
Concentration Diversification Exit
around Company
Pause No Change Profit

Vertical Horizontal Related Unrelated

 Strategic Direction
Options Growth
Concentration Diversification

Vertical Horizontal Related Unrelated

Integrate Intensify Diversify into Non-Ag

Related Industries
Network Expand Agricultural
Production Ignore synergy
Cooperatives Replicate Enterprises
For cash flows
Value-Added Network Capture Or
Investments Synergies Risk reduction
Strategic Direction
Options
Delay

Decision
Trigger

Pause No Change Profit

 Strategic Direction
Options
Retrenchment

Turn around Captive Exit

Company

Sellout
Contraction Sole Supplier Divest
Consolidation Preferred Provider Bankruptcy
Outsourcing Contract Grower Liquidation
Which Units to Grow?
Business Unit Growth Matrix
 Based on Ind. Growth Rate & Rel.
Mkt. Share
 4 Quadrants
 Cash Cows – Low Ind. Growth, High Rel.
Mkt. Share
 Normally Delay Strategy
 Stars – High IGR, High RMS
 Normally Growth Strategy
 Question Marks – High IGR, Low RMS
 Growth or Delay Strategy
 Dogs – Low IGR, Low RMS
 Retrenchment Strategy
High
Star ?

IGR
Cash Cow Dog

Low

H Low
igh
Relative Market Share
How Do We Grow?
Growth Options Matrix
 Based on Customers and Products
 4 Quadrants
 Market Penetration
 More of Same Product to Same
Customers
 Horizontal Growth
 Market Development
 Same Product to New Customers
 Horizontal and/or Vertical Growth
 Product Development
 New Product to Same Customers
 Vertical or Horizontal Growth
 Total Diversification
 New Product to New Customers
 Related or Unrelated Diversification
New Market Total
Customer Focus

Development Diversification

Market Product
Penetration Development

Old

Old Product/Service New

 Firm Infrastructure
es g
iti tin

Human Resource Management

M
tiv or

AR
Ac pp

Technological Development

GI
Su

N
Procurement

vice
nd

ting
ons
d

s
s
tiv ry

bou
oun

N
istic

Ser
es

istic

rati

rke
ales

GI
Ac ima
iti

Out
Inb

AR
Log
Log

Ope

Ma
&S
Pr

M
Relationship with suppliers Relationship with buyers
Summary
Doing things right versus doing the right
things.
Choosing what to do and what not to do.
Answering the what, how, who, why, and
when of strategy.