Professional Documents
Culture Documents
Strategies in Action
Strategic Management:
Concepts & Cases
13th Edition
Fred
David
Long Term Objectives
■ Quantitative ■ Challenging
■ Measurable ■ Hierarchical
■ Realistic ■ Obtainable
■ Understandable
Financial vs. Strategic Objectives
Financial Objectives
■ Growth in revenues
■ Growth in earnings
■ Higher dividends
■ Larger profit margins
■ Greater ROI
■ Higher earnings per share
■ Rising stock price
■ Improved cash flow
Ch 5 -5
The Balanced Scorecard
nonfinancial measures
■Balance shareholder objectives with
customer & operational objectives
Ch 5 -6
Levels of Strategies –
Large Company
Ch 5 -7
Levels of Strategies –
Small Company
Ch 5 -8
Types of Strategies
Forward
Integration
Vertical Backward
Integration
Strategies Integration
Ch 5 -9
Vertical Integration Strategies
Forward Gaining ownership or increased
Integration control over distributors or retailers
Ch 5 -10
Types of Strategies
Market
Penetration
Intensive Market
Development
Strategies
Product
Development
Ch 5 -11
Intensive Strategies
Seeking increased market share for
Market present products or services in
Penetration present markets through greater
marketing efforts
Ch 5 -12
Types of Strategies
Related
Diversificatio
n
Diversification
Strategies
Unrelated
Diversificatio
n
Ch 5 -13
Diversification Strategies
Unrelated
Adding new, unrelated products or
Diversification services
Ch 5 -14
Types of Strategies
Retrenchment
Defensive Divestiture
Strategies
Liquidation
Ch 5 -15
Defensive Strategies
Regrouping through cost and asset
Retrenchment reduction to reverse declining sales
and profit
Ch 5 -16