Concentric Diversification / Related Diversification

 Situations favoring in concentric diversification:

1. Competes in no-growth or slow growth industry
2. New but related significant products that will surely enhance the sales of the current products
3. New but can be offered in high value
4. New but have seasonal sales level that will counterbalance the existing organization’s peaks and valley
5. Currently in decline stage
6. Strong management team

Strategic Fit or Degree of Relationship or Connectivity among the business concerns or managed by the mother unit of
the business.

 3 Areas:
1. Product Fit
2. Operating Fit
3. Management Fit

Directions of Corporate Level Strategies

 Growth Strategy
1. Merger
2. Acquisition
3. Strategic Alliance

 Stability Strategy
1. Pause/ Proceed with Caution
2. No change strategy
3. Profit Strategy

 Retrenchment Strategy
1. Turnaround Strategy
o Contraction
o Consolidation
2. Sell out/ Divestment Strategy
3. Bankruptcy Strategy
4. Liquidation Strategy

International and Other Entry Options

o Exporting
o Licensing Agreement
o Franchising Agreement
o Joint Venture
o Acquisition
o Greenfield development
o Production Sharing
o Turnkey Operations
o Management Contract
o Build-Operate Transfer (BOT Strategy)
o Outsourcing