Strategy Module 2 - Environmental Factors and Corporate Strategies Flashcards
What are the major environmental factors?
Economic Climate, Globalization, Political and Legislative, Technological, Demographic, Social/Cultural
What is corporate strategy and what question does it answer?
Corporate strategy refers to an organization’s overall strategy and organizational-level decisions that focus on long-term survival.
The question corporate strategy answers is “What business should we be in?”
What are the three different types of corporate strategies?
Restructuring, Growth, Stability
What are the different types of restructuring strategies?
Turnaround, Divestiture, Liquidation, Bankruptcy
Explain what the turnaround strategy is and what type of corporate strategy it is.
The turnaround strategy is an attempt to increase the viability of an organization. It is a restructuring strategy.
Explain what the divestiture strategy is and what type of corporate strategy it is.
The divestiture strategy is the sale of a division or part of an organization. It is a restructuring strategy.
Explain what the liquidation strategy is and what type of corporate strategy it is.
The liquidation strategy is the termination of a business and the sale of its assets.
Explain what the bankruptcy is and what type of corporate strategy it is.
Bankruptcy is the formal procedure in which an appointed trustee in bankruptcy takes possession of a business’ assets and disposes of them in an orderly fashion. Bankruptcy is a restructuring strategy.
What are the different types of growth strategies?
Incremental Growth, International Growth, Acquisition, Merger
Explain what the incremental growth strategy is and what type of corporate strategy it is.
The incremental growth strategy is a linear or gradual expansion of the business and is attained by expanding the client base, increasing products/services, changing the distribution networks, or using technology. It is a growth strategy.
Explain what the international growth strategy is and what type of corporate strategy it is.
The international growth strategy is attained by seeking new customers or markets by expanding internationally. It is a growth strategy.
Explain what the acquisition strategy is and what type of corporate strategy it is.
The acquisition strategy is the purchase of one company by another. It is a growth strategy.
Explain what the merger strategy is and what type of corporate strategy it is.
The merger strategy is when two organizations combine resources to become one organization. It is a growth strategy.
What is a stability strategy?
Maintenance strategies where companies do not wish to see their companies grow and so their strategic HRM practices remain constant. Also known as status quo, neutral, or do nothing strategy. These strategies eventually lead to a retrenchment strategy.
