Strategic Management: Formulation and Implementation

Generic Corporate Strategy Alternatives

The managerial role of corporate strategy is to have a consciously formulated game plan for the entire enterprise, one that establishes a coherent corporate direction and one the defines how each business unit fits into the corporate picture.

In this context, the components of strategic management discussed so far provide a basis for outline the strategic options available to the organization. There are many terms used to identify strategic options and several ways of classifying them.

The most commonly referred to options classified into five groups. Thus, top managers may elect to pursue:

These options are not mutually exclusive. Each classification will be described in the following section.

Corporate-level Strategies Options

  1. GROWTH STRATEGIES
    1. Concentration
      1. Market development
      2. Product Development
      3. Horizontal Integration
    2. Vertical Integration
      1. Backward integration
      2. Forward integration
      3. Diversification
    3. Diversification
      1. Concentric
      2. Conglomerate
    4. Implementation of Growth Strategies
      1. Internal growth
      2. Acquisition
      3. Mergers
      4. Alliances
  2. STABILITY STRATEGY
  3. ENDGAME STRATEGIES
  4. DEFENSIVE STRATEGIES
    1. Turnaround
    2. Divestment
    3. Liquidation
    4. Bankruptcy
    5. Captive
  5. COMBINATION STRATEGIES