Corporate

Strategic
Management
 Corporate
Level

Business Level

Functional
Level

3
1. Expansion Strategy
Also, known as Growth or Intensification Strategy.
• WHEN? • WHY?
Aims at: High Growth, Reasons:
Increasing scope. ✓ Environment Change
✓Market Development
✓ Size increase
✓Product Development
✓ Competition Control
✓Mergers and Acquisitions ✓ Psychological aspect
✓Franchises
✓Joint Ventures
✓Diversification

TYPES-
1. Concentration
2. Integration
3. Diversification 5
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2. Retrenchment
Strategy
Trim the FAT to SLIMMER
organization.
• WHEN? • WHY? ✓ TYPES-
Aims at: Reasons:
Contraction of 1. Turnaround
✓ Continuous
activities Losses
through- 2. Divestment
✓ Uncontrollable
○Substantial Competition 3. Liquidation
Reduction or
Elimination of ✓ Stability can be
scope of one or ensured by re-
more business. allocation from
unprofitable.

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“
“STABILITY
+EXPANSION
+RETRENCHMENT
= COMBINATION.”

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✘ It is also known as “mixed” and “hybrid” strategy.
✘ It can be sequentially or simultaneously.

WHY?
✘ Organisation- large and faces complex environment.
✘ Situational Demand
✘ Multi-business organisations

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Thanks!
Any questions?

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