List and
discuss the different types of corporate strategies.
Answer:
The three
main types of corporate strategies are growth, stability, and renewal.
a. Growth -
A growth strategy is when an organization expands the number of markets served
or products offered, either through its current business(es) or through new
business(es). Because of its growth strategy, an organization may increase
revenues, number of employees, or market share. Organizations grow by using
concentration, vertical integration, horizontal integration, or
diversification.
b.
Stability - A stability strategy is a corporate strategy in which an
organization continues to do what it is currently doing. Examples of this
strategy include continuing to serve the same clients by offering the same
product or service, maintaining market share, and sustaining the organization's
current business operations. The organization does not grow, but does not fall
behind, either.
c. Renewal
- When an organization is in trouble, something needs to be done. Managers need
to develop strategies, called renewal strategies, that address declining
performance. The two main types of renewal strategies are retrenchment and
turnaround strategies.
Source: Management, 11e
(Robbins/Coulter)
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