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CORPORATE DIRECTIONAL

STRATEGIES

According to Fred Nichols, corporate strategy is "a complex network of thoughts, ideas, experiences, objectives, experiences, memories, perceptions and expectations that have been demonstrated in a general guide for specific actions in the pursuit of particular purposes."

Growth

Stability

Retrenchment

Diversification

Concentric

Conglomerate

Concentration

Vertical Growth

Horizontal Growth

The main objective of this strategy is to increase business operations.

In this case, the organization seeks to reduce the size or diversity of operations after reviewing and evaluating segments that are not profitable or necessary.

This strategy is used when the company considers that the performance it is developing is satisfactory. It is characterized by absence of significant changes.

Introduces new business activities with which to boost the growth of the corporation.

It is a strategy that involves the acquisition of companies or brands that compete in the same market or have similarities with the company or with own brands and products.

Its objective is the incorporation of products not related to the activity of the company intended for future customers or potential customers.

.This strategy specializes in a specific segment of the market and its objective is to obtain a competitive advantage that other companies can not match.

This strategy expands the company's actions, forward or backward, and adds value to the chain.

This strategy seeks to incorporate new products or services, but they will not be related to the main product or service that the company was offering.

The contraction is realized when the company has diversified a lot, and the costs of production increase or are dispersed; its purpose is to ensure that all market segments are profitable and fully satisfied.

A strategy of stability pursues the greater possible time in the phase of maturity of the company, recognizing the fruits of the realized investments.

Restructuring

Harvest

Disinvestment

Liquidation

EXAMPLE:

Record companies, which year after year seek and develop new talents of music.

EXAMPLE:

P&G PROTECR AND GAMBLE

"Recently the company announced a plan that includes divesting up to 100 of its current brands. The intention of the US multinational is to concentrate from now on in a maximum of between 70 and 80 brands."

EXAMPLE:

Kellogs company

Following the trend of healthy consumption, this strategy has positioned them and kept them in the market for years.