Zacarias, Aeris Regine M.

Strategic Management Section 1 April 15, 2020

Types of Strategies

Consider the following 12 (actual or possible) strategies used by various firms and determine the
appropriate type of strategy

MARKET PENETRATION 1.Dunkin’ Donuts is increasing the number of its U.S. stores from
5,500 to 15,000.
LIQUIDATION 2. Brown-Forman Corp. sold its Hartmann luggage and leather-goods business.
RELATED DIVERSIFICATION 3. Motorola, which makes TVs, acquired Terayon
Communication, a supplier of TV equipment.
UNRELATED DIVERSIFICATION 4. Macy’s department stores is adding bistros and
Starbucks coffee shops at many of its stores.
FORWARD INTEGRATION 5. Dell just allowed Wal-Mart to begin selling its computers. This
was its first move away from direct mail order selling of computers.

RETRENCHMENT 6. Motorola cut 7,500 additional jobs.

MARKET DEVELOPMENT 7. Hilton Hotels is building 55 new properties in Russia, the
United Kingdom, and Central America.
MARKET DEVELOPMENT 8. Video-sharing website YouTube launched its services into nine
new countries.
RETRENCHMENT 9. Cadbury Schweppes PLC is slashing 7,500 jobs, shedding product
variations, and closing factories globally.
DIVESTITURE 10. General Electric sold its plastics division for $11.6 million to Saudi Basic
Industries Corp. of Saudi Arabia.

BACKWARD INTEGRATION 11. Cadbury Schweppes PLC, the maker of Trident gum, just
bought Turkish gum maker Intergum.
DIVESTITURE 12. Limited Brands is selling its Express and Limited divisions to focus on its
Victoria’s Secret and Bath & Body Works divisions.