STRATEGIC MANAGEMENT

Discussion Question #1: Discuss ten (10) strategies and their advantages in connection with the corporation’s goals and objectives as listed on page 14 of your text. (30 points) (A 2-page response is required.)

strategic acquisition can redefine an entire industry. there are 3 different types of Strategy that have been stated by “Wheelen and Hunger”. Strategy will also include the level of technology and the activities to be undertaken in order to reach the objectives.A strategy of a corporation is a comprehensive master plan stating how corporation will achieve its mission and objectives. and where these activities will take place. Strategies and strategic objectives are closely intertwined. etc. the merger gave the two companies a complete range of financial-services products to cross-sell to their combined customers across a broad range of global markets. leasing companies. higher growth markets or new customers. Different strategies related to the Corporate goals and objectives as listed above are:  Growing scale. Corporate Strategy which comprises of stability. Research and development costs can be spread across the entire global market. This rationale lay behind merger activity in the 1990s by Emerson. GE.) – Utilization of resources (ROE or ROI) – Market leadership (market share) Broadly. how this can be done. When Travellers Group acquired Citicorp. maintenance providers. On rare occasions a bold. manufacturers and parts suppliers. The principal elements are to determine what business the company is in. in his book. what products and services it plans to offer. A goal is an open-ended statement of what one wants to accomplish with no quantification of what is to be achieved and no time criteria for completion. changing the boundaries of competition and forcing rivals to re-evaluate their business models. Business Strategy which consists of competitive and cooperative strategies and functional Strategy which is about whether the company is a technological leader or a technology follower. among operators.   . As per “Wheelen and Hunger”. the increasing globalization of the pharmaceuticals industry led to the mergers of Pfizer with WarnerLambert. Corporate goals and objectives include: – Profitability (net profits) . growth and retrenchment issues related to Organization. Some analysts believed GE's attempted acquisition of Honeywell would have fundamentally altered relationships in the aircraft industry.Growth (increase in total assets. new products. the additions should be closely related to a company's existing business. It maximizes competitive advantage and minimizes competitive disadvantage. For example. and Reuters. and of SmithKline Beecham with GlaxoWellcome. Redefining industry. Objectives tell us what is to be achieved: strategies. Expanding into related businesses. But most importantly. This can mean expanding business to new locations. and what customers and market segments it plans to service. Mergers most often aim to grow scale.

A key source of the cost advantage of Japanese manufacturers of electronics and vehicles has been design for manufacture. Economies of scale have conventionally been associated with manufacturing activities. scale economies are increasingly important in other functions. smaller car manufacturers such as Rover. As a result. engineers. Volvo and Saab have sought either merger or collaboration. together with the flexibility to close surplus capacity during troughs in demand. However. General Motors owns Saab. The right blend of product quality. Economies of scale: It exists whenever proportionate increases in the amounts of inputs employed in a production process result in a more than proportionate increase in total output. Jaguar and Volvo cars are now owned by Ford.     fd  Pricing strategy: This is based on consumers' perceptions of value. Marketing Strategy: Marketing at its simplest is the process of winning customers for products or services. Product design: Manufacturing costs vary with product design. The economics of capital-intensive industries such as steel and chemicals are similar. features. costs and prices is very difficult to achieve but can be critical to success. The most difficult and challenging issues are not identifying the features and performance which customers want. It may begin with a new product. Developing a new model range of motor cars typically costs over US $1 billion. cost efficiency depends on utilizing capacity to the full. Capacity utilization: Where production capacity is costly to install and remove. Increasingly design engineering is performed concurrently. costs and margins are highly sensitive to capacity utilization. but determining the price premium that differentiation will support. This is also important from the profitability point of view. Renault. Or it may start from the point of an existing market and the search for a way of winning a bigger share or a more profitable share of it than competitors. while Renault owns 38 per cent of Nissan. marketers and customers can collaborate in all production phases from conception to sale. and Mars' chocolate ice-cream were born out of imagination and trial and error in which insight rather than market research findings played the critical role. one for which a market has to be created. Efficient capacity utilization requires accurate demand forecasting before and after expansion. such as the Sony Walkman or the video recorder. as for example when Virgin entered the financial services market. The ability to operate close to capacity is critical to lowering unit costs and earning a profit. In manufacturing industries. . Jaguar. A significant theme across a wide range of industries has been redesigning products in order to reduce the number of components and to facilitate automated assembly. design. Chrysler's people carriers. Differentiation strategy: Successful differentiation is rooted in the firm's ability to understand customer demand and to match the customers' demand for something special with its ability to supply unique product and service features. The Macintosh personal computer. It can be approached in two ways. especially those which are capital intensive (oil refining) or complex assembly tasks (motor vehicles). so that designers. new product development costs are the principal source of scale economies.

M. Wiley. 1-2. & Hunger. Chs. L. J. NJ: Prentice Hall. Wheelen. (2008). P. M (1994) Corporate Level Strategy. ( 2003). Strategic management and business policy (11th ed. A and Alexander. New York Sadler.Campbell. pp.Bibliography:vdsfgergefdfgdh Goold. Strategic Management. D. Upper Saddle River. . 1-54.. Kogan Page.). T.