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Type of startigies
Chapter 5
Strategies in Action

A journey of a thousand miles begins with a single step Copyright 2005 Prentice Hall

中國諺語
Ch 5 -1

Chapter Outline
Long-Term Objectives

Types of Strategies

Integration Strategies

Copyright 2005 Prentice Hall

Ch 5 -2

Chapter Outline (cont’d)
Intensive Strategies

Diversification Strategies

Defensive Strategies

Copyright 2005 Prentice Hall

Ch 5 -3

Chapter Outline (cont’d)
Michael Porter’s Generic Strategies

Means for Achieving Strategies

First Mover Advantages

Copyright 2005 Prentice Hall

Ch 5 -4

Chapter Outline (cont’d)
Outsourcing

Strategic Management in Nonprofit &
Governmental Organizations

Strategic Management in Small Firms

Copyright 2005 Prentice Hall

Ch 5 -5

Strategies in Action

Companies Embrace Strategic Planning

-- Quest for higher revenues
-- Quest for higher profits

Copyright 2005 Prentice Hall

Ch 5 -6

Long-Term Objectives






Long-term objectives represent the results expected from pursuing certain strategies.
Strategies represent actions to accomplish long-term objectives.
The time frame for objectives and strategies should be consistent, usually from two to five years

Copyright 2005 Prentice Hall

Ch 5 -7

Long-Term Objectives (Characteristics)
Quantifiable

Measurable
Realistic

Congruent across departments
Time-line

Understandable

Challenging
Hierarchical
Obtainable

Copyright 2005 Prentice Hall

Ch 5 -8

Long Term Objectives (Examples)










Growth in assets
Growth in sales
Profitability
Market share
Earnings per share
Degree and nature of diversification
Degree and nature of vertical integration
Social responsibility

Copyright 2005 Prentice Hall

Ch 5 -9

Financial vs. Strategic
Objectives
Financial Objectives
Growth in revenues
Growth in earnings
Higher dividends
Higher profit margins
Greater return on
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