Tuesday, August 7, 2012

Strategic Management | 3 Main Types of Corporate Strategies


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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