The document discusses various corporate level strategies that companies adopt including: 1. Concentrated growth where a company focuses resources on growing a single product, market, or technology. IBM is provided as an example. 2. Acquisitions where a company purchases another firm to gain competencies or market share. Problems with acquisitions are also outlined. 3. Other strategies discussed include vertical integration, horizontal integration, strategic alliances, diversification through concentric or conglomerate means, turnaround, divestiture, liquidation, and bankruptcy. The factors influencing which strategy to adopt based on a company's competitive position and market growth are mapped out.

1. Western International University Corporate Level Strategy Amit Sharma Sarosh Wazir Dheeraj Chhikara Manik Diengdoh Rahul Mukherjee MGT 625 – Strategic Management September 5, 2009

2. Strategic Management Strategic management is the set of managerial decisions and actions that determines the long run performance of the corporate. It involves environmental scanning, strategy formulation, strategy implementation & evaluation and control. Strategic Management Process Mission Objective Environmental Scanning Internal External Strategic Choice Strategy Implementation Corporate Level Management Business Level Management Functional Level Management Evaluation & Control

3. Levels of Strategic Management Corporate Level Strategies Head Office Business Level Strategies Function Level Strategies Division A Division B Marketing Finance Human Resource Operations Marketing Finance Human Resource Operations CEO, Board of Directors & Corporate Staff Divisional Managers & Staff Functional Managers

6. Conditions Favoring a Concentrated Growth Strategy Firm’s industry is resistant to major technological advancements Firm’s targeted markets are not product saturated Firm’s markets are sufficiently distinctive to dissuade competitors in adjacent markets from entering firm’s segment Firm’s inputs are stable in price and quantity and available in amounts and at times needed Firm’s industry is stable Firm’s competitive advantages are based on efficient production or distribution channels Success of market generalists

10. Horizontal Integration It is process of acquiring or merging with industry competitors in an effort to achieve the competitive advantages that come with large scale and scope. Manufacturing Car (3 lakhs – 1 lakhs) Manufacturing Car (3 lakhs – 10 lakhs) Manufacturing Car (25 lakhs – 10 lakhs) In-house Distributers In-house Component Parts Manufacturing Raw material

13. Strategic Alliance Strategic Outsourcing allows one or more of a company’s value-chain activities or functions to be performed by independent specialized companies that focus all their skills and knowledge on just one kind of activity. Distributer Distributer Distributer Distributer Distributer Distributer Regional Center Regional Center Factory Distributer Distributer Distributer Distributer Distributer Distributer Distributer Distributer Distributer Distributer Distributer Distributer Factory FedEx Shared Facility FedEx Shared Facility FedEx Shared Facility FedEx Center

16. Concentric Diversification As per this strategy firm are acquired or new ventures are made that are related to the acquiring firm in terms of technology, market or products. Hence the acquired business possess a high degree of compatibility with the firms current business. Conglomerate Diversification As per this strategy firm are acquired which are not related to the acquiring firm in terms of technology, market or products. The firms engage in this kind of activity as they take this as the most promising investment opportunity.

18. Declining sales or margins Imminent bankruptcy Low High Cost reduction Asset reduction Efficiency maintenance Entrepreneurial reconfiguration Stability Recovery Internal factors External factors Turnaround situation Turnaround response Cause Severity Retrenchment phase Recovery phase (operating) (strategic) A Model of the Turnaround Process

22. Which Strategy to adopt?

25. ? Thank You