Corporate-level Strategies

Management can obtain an overall view of the corporate portfolio by placing the present an desired position of all business units on the matrix. Figure 4-13 illustrates the general corporate-level strategies available to an organization.

Generally, when a business unit is high on industry attractiveness and business strengths, the natural corporate-level strategy is to invest heavily and peruse a growth strategy. When attractiveness and business strengths are low, the strategy is normally to harvest or divest.

* Step 5: Forecasting of trends for each external factor. Several techniques for forecasting external factor will be described in Chapter 6.

* Step 6: Developing the desired position for each internal factors. This means determining what moves need to be made within each controllable factor to result in the desired competitive position.

* Step 7: Desired positioning of each business in the attractiveness-strength matrix. After forecasting industry attractiveness and the development of the business' strength, graphically representing the proper positioning of a business in the attractive- strength matrix may appear simple. In practice, Steps 6 and 7 are carried out simultaneously.

* Step 8: Formulation of strategies for each business. The analysis conducted so far has provided us with all the elements necessary for outlining the strategy to be pursued for developing each business.


Previous page Next page
Strategic Decision Making Aids
The information on this page may not be reproduced, republished or mirrored on another webpage or website.
Copyright 1998-2014 24xls.com