Strategic Management

1. Identify three local businesses in your city. (Mcdo, Jollibee, & Shakeys) What three strategies do these three firms pursue? (see photo for reference) List the strategies in order of prevalence.

a. Each alternative strategy has countless variations. For example, market penetration can include adding salespersons, increasing advertising expenditures, couponing, and using similar actions to increase market share in a given geographic area. TABLE 5-4 Alternative Strategies Defined and Exemplified Strategy Definition 2011 Examples Forward Gaining ownership or increased control over Forward Integration-Starbucks reached a deal Integration distributors or retailers with Green Mountain Coffee Roasters for that firm to sell packs of Starbucks Tazo-branded coffee and tea in their brewers Backward Seeking ownership or increased control of a firm's Backward Integration-Dell Inc. acquired network Integration suppliers security (virus protection) producer Secure Works Inc. Horizontal Seeking ownership or increased control over Horizontal Integration-French drugmaker Integration competitors SanofiAventis purchased U.S. biotech drugmaker Genzyme for $20.1 billion Market Seeking increased market share for present products Market Penetration-Neiman Marcus (NM) Penetration or services in present markets through greater launched NM Daily to attract less-affluent cus- marketing efforts tomers and hired a new "Managing Editor of Social Media" (Jean Scheidnes) to tweet and post for NM Market Introducing present products or services into new Market Development-Hawaiian Airlines began Development geographic area offering flights from Hawaii to Seoul, Korea, and Tokyo, Japan-rather than mostly flying to and from the U.S. mainland Product Seeking increased sales by improving present Product Development-Apple introduced the new Development products or services or developing new ones iPad 2 Related Adding new but related products or services Related Diversification-Amazon.com began al- Diversification lowing users to pay $79 per year for "Amazon Prime," which allows users to stream over 5,000 movies and TV shows Unrelated Adding new, unrelated products or services Unrelated Diversification-Many banks now own, Diversification by default, many properties, putting many banks reluctantly in the real estate and/or property management business Retrenchment Regrouping through cost and asset reduction to Retrenchment-Borders closed 200 of its 488 reverse declining sales and profit superstores and laid off 6,000 of its 19,500 employees Divestiture Selling a division or part of an organization Divestiture-Marriott sold its timeshare business, creating the world's largest autonomous time- share business, consisting of 71 properties with 33,000 rooms Liquidation Selling all of a company's assets, in parts, for their Liquidation-Blockbuster Inc. barely escaped tangible worth liquidation in March 2011