ASSIGNMENT NO : 03

NAME JUNAID AHMAD

ROLLNO 45

DEPARTMENT IBL

PROGRAME BBA..FINANCE

SEMESTER 6 TH

ASSIGNMENT TWELVE ACTION STRATGIES

SUBMITTED TO DR.JUNAID

DATE : 18:JUNE:2022
FORWAERD INTEGRATION
Forward integration is a business strategy that involves a form of downstream vertical
integration whereby the company owns and controls business activities that are ahead in the
value chain of its industry,

 Present distributer is expensive unreliable or incapable.

 Quality is expected to grow
 Organization have both copitol and HR .
 Present distributer has high profit margin.
 Present supplier is expensive unreliable or incapable .
 Number of suppliers are small .
 High growth industry.

HORIZONTAL INTERGRATION
Horizontal integration is a competitive strategy in which businesses that are part of the same industry's
value chain unite to enhance output of goods and services .
 Firms gain monopolistic competition.
 Competition in growing industry.
 Increased of managerial expertise.

INTENIVE STRATEGIES

MARKET PERETRATION STRATEGY

 Current market is not saturated .
 Increase in present customers.
 Market share of competitor dedining while total industry sales shares increasing.

MARKET DEVELOPMENTS
 NEW channal of distribution are reliable and inexpensive.
 Firm is very successful as what it does .
 Untopped unsearch market .
 Excess production capacity .
 Basic industry rapidly becoming global .

PRODUCT DEVELOPMENT
 Product in maturity stage of life cycle.
 Rapid technological denelopment .
 Major competitors offer better product.
 Strong research development.
DIVERSIFICATION STRATGIES

CONCENTRIC DIVERSIFICATION
 Current product are in decline stage.
 Adding new related product to increase sale of current product.

CONGLOMERATE DIVERSIFICATION
 Decline in annual scale profit.
 Capital and managerial exist.
 Existing market are saturated.

DEFENSE

RETRENCHMENT
 Firms has failed meet its objective.
 Inefficiency low production poor employe morale.

DIVESTITURE
 Firms has retrenchment fail to attain imporment.
 When division is responsible for the firm over all performonce.
 When large amount cash is needed and connot be obtained from other sources.

LIQUIDUTION
 Whan both retrenchment and divestiture scale .
 Onle alternative of bonk optey