Definition: The Liquidation Strategy is the most unpleasant strategy adopted by the organization that includes selling off its assets and the final closure or winding up of the business operations. It is the most crucial and the last resort to retrenchment since it involves serious consequences such as a sense of failure, loss of future opportunities, spoiled market image, … [Read more...] about Liquidation Strategy
Divestment Strategy
Definition: The Divestment Strategy is another form of retrenchment that includes the downsizing of the scope of the business. The firm is said to have followed the divestment strategy, when it sells or liquidates a portion of a business or one or more of its strategic business units or a major division, with the objective to revive its financial position. The divestment is … [Read more...] about Divestment Strategy
Turnaround Strategy
Definition: The Turnaround Strategy is a retrenchment strategy followed by an organization when it feels that the decision made earlier is wrong and needs to be undone before it damages the profitability of the company. Simply, turnaround strategy is backing out or retreating from the decision wrongly made earlier and transforming from a loss making company to a profit … [Read more...] about Turnaround Strategy
Expansion through Internationalization
Definition: The Expansion through Internationalization is the strategy followed by an organization when it aims to expand beyond the national market. The need for the Expansion through Internationalization arises when an organization has explored all the potential to expand domestically and look for the expansion opportunities beyond the national boundaries. But however, … [Read more...] about Expansion through Internationalization
Expansion through Cooperation
Definition: The Expansion through Cooperation is a strategy followed when an organization enters into a mutual agreement with the competitor to carry out the business operations and compete with one another at the same time, with the objective to expand the market potential. The expansion through cooperation can be done by following any of the strategies as explained … [Read more...] about Expansion through Cooperation
Expansion through Diversification
Definition: The Expansion through Diversification is followed when an organization aims at changing the business definition, i.e. either developing a new product or expanding into a new market, either individually or jointly. A firm adopts the expansion through diversification strategy, to prepare itself to overcome the economic downturns. Generally, the diversification is … [Read more...] about Expansion through Diversification
Expansion through Integration
Definition: The Expansion through Integration means combining one or more present operation of the business with no change in the customer groups. This combination can be done through a value chain. The value chain comprises of interlinked activities performed by an organization right from the procurement of raw materials to the marketing of finished goods. Thus, a firm may … [Read more...] about Expansion through Integration
Expansion through Concentration
Definition: The Expansion through Concentration is the first level form of Expansion Grand strategy that involves the investment of resources in the product line, catering to the needs of the identified market with the help of proven and tested technology. Simply, the strategy followed when an organization coincides its resources into one or more of its businesses in the … [Read more...] about Expansion through Concentration
Pause/Proceed with Caution Strategy
Definition: The Pause/Proceed with Caution Strategy is well understood by the name itself, is a stability strategy followed when an organization wait and look at the market conditions before launching the full-fledged grand strategy. Also, the firm that has intensely followed the expansion strategy would wait till the time the new strategies seeps down the organizational levels … [Read more...] about Pause/Proceed with Caution Strategy
Profit Strategy
Definition: The Profit Strategy is followed when an organization aims to maintain the profit by whatever means possible. Due to lower profitability, the firm may cut costs, reduce investments, raise prices, increase productivity or adopt any methods to overcome the temporary difficulties. The profit strategy can be followed when the problems are temporary or short-lived and … [Read more...] about Profit Strategy