Corporate Strategy Notes
Turn around strategies, Business Model and Generic strategies notes a) Turnaround Strategies for Businesses in Crisis
Signs of a crisis; declining performance measures e.g mkt share, roce, margins, revenues, profits, increasing costs, staff exodus
Sources of a crisis
Defects in management/ Poor management/neglecting key tasks
Failure to change with changing environment
Over-expansion
Corruption
Lack of resources
Too much debt
Poor strategy
Failure to control costs/high costs
Saturated mkts
Poor integration
High competition (unanticipated)/competitive forces
Political change
Change in tastes
Entrance of new products
Turnaround strategies are needed when a business worth rescuing goes into crisis; the objective is to arrest and reverse the sources of competitive and financial weaknesses as quickly as possible. Management’s first task to is to diagnose what lies at the root of poor performance.
Curing these kinds of problems and turning the firm around can involve any of the following actions:
• Selling off assets to raise cash to save the remaining part of the business
• Revising the existing strategy
• Launching efforts to boost revenues
• Pursuing cost reduction
• Using a combination of these efforts
• Retrenchment (staff & non performing sbus)
• Assert reduction/sale
• Revenue increasing
• Financial restructuring (low cost money)
• Mgnt & cultural change
• Product & mkt development
b) Business Model
What Exactly is a Business Model?
1. The plan implemented by a company to generate revenue and make a profit from operations.
2. It is (a) what a bus does and (b) how a business makes money doing those things.
3. A business model is simply the nuts and bolts of how a business plans to generate revenue and profits. It details your long-term strategy and day-to-day operations.
4. The term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business,
Signs of a crisis; declining performance measures e.g mkt share, roce, margins, revenues, profits, increasing costs, staff exodus
Sources of a crisis
Defects in management/ Poor management/neglecting key tasks
Failure to change with changing environment
Over-expansion
Corruption
Lack of resources
Too much debt
Poor strategy
Failure to control costs/high costs
Saturated mkts
Poor integration
High competition (unanticipated)/competitive forces
Political change
Change in tastes
Entrance of new products
Turnaround strategies are needed when a business worth rescuing goes into crisis; the objective is to arrest and reverse the sources of competitive and financial weaknesses as quickly as possible. Management’s first task to is to diagnose what lies at the root of poor performance.
Curing these kinds of problems and turning the firm around can involve any of the following actions:
• Selling off assets to raise cash to save the remaining part of the business
• Revising the existing strategy
• Launching efforts to boost revenues
• Pursuing cost reduction
• Using a combination of these efforts
• Retrenchment (staff & non performing sbus)
• Assert reduction/sale
• Revenue increasing
• Financial restructuring (low cost money)
• Mgnt & cultural change
• Product & mkt development
b) Business Model
What Exactly is a Business Model?
1. The plan implemented by a company to generate revenue and make a profit from operations.
2. It is (a) what a bus does and (b) how a business makes money doing those things.
3. A business model is simply the nuts and bolts of how a business plans to generate revenue and profits. It details your long-term strategy and day-to-day operations.
4. The term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business,