Team 6
Michael Grizzle, Ryan Moeller, Stuart Gaston, Tate Rouche,
Justin Schamp, Rachel Strat
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Corporate Strategy = a strategy concerned with
the choices of what business(es) to be in and
what to do with those businesses
Single-Business Organization = a business
primarily in 1 industry
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Ex: Coca-Cola
Multiple-Business Organization = a business
that is in more than 1 industry
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Ex: PepsiCo, Shell
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3 types
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Moving an organization forward (growth strategy)
 Hope to expand the organization’s activities or
operations
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Keeping an organization as is (stability strategy)
 Keep the organization from expanding, but also not
declining
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Reversing an organization’s directions (renewal
strategy)
 Describing problem the organization has, and then
installing a renewal strategy
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A strategy that expands the products offered or markets served by
an organization or expands it’s activities or operations either
through current business(es) or through new business(es)
5 growth strategies
 Concentration = concentrates on its primary line of business
and looks for ways to meet its growth goals by expanding
 Vertical Integration = an organizations grows by gaining
control of its inputs, outputs, or both
 Horizontal Integration = an organization grows by combining
operations with 1 of its competitors
 Diversification = an organization grows by moving into a
different industry
 International = expanding into global markets
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3 ways
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Mergers/Acquisitions
 Merger = a legal transaction in which 2 or more
organizations combine operations through an exchange of
stock and create a 3rd entity
 Acquisition = an outright purchase of an organization by
another
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Internal Development
 Grows by creating and developing new business activities
itself
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Strategic Partnering
 2 or more organizations establish a partnership by combining
resources, distinctive capabilities, and core competencies
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When an industry is in a period of rapid
upheaval
When an industry is facing slow or no growth
opportunities
When an organization has been growing
rapidly
When a large firm is in the maturity stage of
it’s life cycle
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Primarily involves not growing
Not allowing the organization to decline
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Renewal strategies = strategies the reverse the
decline of the organization and put it back on a
positive track
Reasons for performance declines
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Inadequate financial controls
Uncontrollable costs or too high costs
New competitors
Unpredicted shifts in customer demand
Overexpansion/too rapid of growth
Slow or no response to significant external or
internal changes
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2 main types
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Retrenchment
 A short-run renewal strategy designed to address
organizational weaknesses that are leading to
performance declines
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Turnaround
 A renewal strategy that’s designed for situations in
which the organization’s performance problems are
more serious
 Ex: Sears, Delta Airlines, Chrysler, GM
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Involves 2 actions: cutting costs and
restructuring
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Cost cutting
restructuring
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Corporate goals
Increased earnings
 Maximized stockholder wealth
 Increased market share
 Strong global presence
 Increased revenues
 High product quality
 Strong customer satisfaction
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Efficiency = an organization’s ability to
minimize resource use in achieving
organizational goals
Effectiveness = an organization’s ability to
reach its goals
Productivity = a specific measure of how many
inputs it takes to produce outputs
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Portfolio = an organization’s various business
units
Uses 2 matrices to summarize internal and
external factors
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BCG matrix
McKinsey-GE stoplight matrix
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Organization might need to change their
strategies if the results are weak or not having
the intended results
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Ex: Microsoft
 Acquired various internet and web startup companies
 Redesigned software
 Reshuffled administrative duties