strama midterm 3rdyear

extend

It means extending the business by going beyond its current business model by adopting a new business model or entering into new businesses.

Expand

This option takes the form of adding products and/or services within the context of the company's existing business concern or present area of operation.

Exit

This option takes the form of making some sacrifice by dropping some product lines and services or business units deemed uncompetitive or unprofitable or less profitable to operate

Enhance

This option takes the form of adding functionality or improving a product or service that is currently being offered.

Business closure

. This is an undesired act of folding up or shutting down nonprofitable business units to control or avoid further losses. This effort means avoiding or controlling dissipation of assets of the firm and recover whatever is left out of the business. Operationally, this means declaring either bankruptey, liquidation or simply closing down to withdraw from the business.

Business disposal

This calls for disposing or unloading some of the members, subsidiaries, affiliates orinvestments in other business concerns deemed unprofitable or less profitable and/or deemed a burden to the mother organization. Operationally, this option could take the form of divestiture by way of selling out the entire business unit or selling its interests or shares in any of its affiliates or members which the corporation partly owns.

Business acquisition

This is an option of business establishments meant to expand their size and make their presence felt in whatever area they want to do business.It is a growth strategy that in operations may take the form of acquisition and merger. The idea is to scout for existing firms that the company can buy out as a whole or it may also take the form of acquiring substantial share in the ownership or stockholding of the firm, thus, gaining control of its operations and making it a force to reckon with as part of the conglomerate

Business reorganization

This option may or may not lead to ownership changes among members of the organization or the conglomerate nor it may result to business acquisition or disposal options. Rather, it may result to restructuring, reorganizing and consolidating to make the entire organization more responsive to the needs of the time. It is more of an internal shake-up which is either dressing down or dressing up to make the conglomerate more manageable and competitive. Operationally, it can take the form of consolidation, and retrenchment (downsizing) or reorganization that may even lead to expanding organizational structure and manpower complement. Hence, it may also lead to hiring and firing to make an organization lean and mean.

Business start up

Realizing the need to create new business units to cater to market opportunities, this option means purposely organizing another business concern instead of simply acquiring an existing business organization or investing in it.

The impact of doing nothing different

Sounding weird and uncalled for, status quo can be an option if after a thorough study and analysis such situation is deemed appropriate. At the corporate level, any move to expand, reduce or invest requires serious study.

vertical integration

evolves around the notion of how far or close a business is from the source of raw materials or the final consumer of the product. V

Vertical integratio

involves engaging in business activities to the level of sources of supply or forward in the direction of final consumers as diagrammatically explained i

full integration

Under this scenario, the firm internally makes 100 percent of its key supplies and completely controls its distributors. This means that the firm ventures into the incredible task of creating or producing all the raw materials it needs to be able to produce a product and does all the needed services to push the product to the market and sell to its targeted market

Taper integration

In this case, a firm internally produces less than half of its own requirements and buys the rest from outside suppliers. This option takes the form of using its resources to contain a majority of the inputs to its product so that it has a certain level of control of the market price. The remaining minority of its inputs or materials is sourced from the open market.

Quasi-integration

. In this concept, the company does make any of its key supplies but purchases most of its requirements from outside suppliers that are under its partial ownership or control.

Long-term contracts

, In this scheme, the company signs an agreement or contract with another firm providing agreed upon goods and services for a specified period of time. U

Forward vertical integration

is another corporate option where the firm engages in business activities in the area of distribution and retailing of the product or service directly to the customers. W

Backward vertical integration

is a corporate option to engage in the business concentrating the efforts at the stage of raw materials production or close the source of raw materials.

Horizontal diversification,

however, is generally perceived as a strategy that evolves around the idea of seeking ownership or increased control over the direct and indirect competitors of the business.

Direct competitors

are those business concerns whose products and services are of the same kind with what is offered by the business and where price and marketing strategies of each firm are strong determinants to competitiveness. These firms include those firms in direct or head-on course with each other or belonging to the rival firms within the industry.

Indirect competitors

on the other hand refer to those business organizations whose products or services are not in direct collision course or head-on competition with one another but are potential threats to the business because its products or services are considered alternatives or substitutes. Business organizations having the same business operations that somehow affect the level of competition among business rivals are considered indirect.

Conglomerate diversification

is also known as unrelated diversification and concentric diversification is also known as related diversification.

Conglomerate or unrelated diversification

is a diversification option that involves investing in or buying into business organizations whose products and/or services have nothing to do or not related to the kind of products or services it a presently dealing with. This option allows the company to venture into other products or services not only as a fallback but as a venue or opportunity for other expansionary options in the future.

Concentric or related diversification

is a corporate diversification option that involves engaging or dealing with products or services that are somehow related to or associated with what the firm is presently handling. Doing this option is done either by investing in a new business or start-up or simply investing in existing business organizations.

Product fit

This kind of fit is achieved when distribution channels, sales forces, promotion techniques, or customers can be handled at the same time for more than one product or service. For instance, a soft drink business organization can engage in the business dealing with bottled mineral water or any other product where it can make use of its expertise in marketing and distributing soft drink products.

Operating fit.

This type of fit involves economies being realized in certain areas like purchasing, warehousing, production and operations, research and development, or personnel from more than one product or services. For instance, a company dealing with production of pants and other clothing lines can enter into the business dealing with underwares and other clothing accessories

Management fit.

This kind of fit occurs when managers are given responsibility over areas of accumulated exposure from one line of business to another. For example, a company with record success in life insurance business may opt to enter in a business dealing with pre-need plans (e.g., educational plans, memorial plans, and the like)

Turnaround strategy.

This strategy emphasizes on the improvement of operational efficiency and is probably most appropriate when a corporation's problems are pervasive but not yet critical. The basic turnaround strategy comes in two ways, namely

Contraction

. It is the initial effort to quickly "stop the bleeding" with a general across-the-board cutback in size and costs.

Consolidation

. It implements a program to stabilize the now-learner

Sell-out/Divestment strategy.

This strategy is resorted to when a company has a weak competitive position in its industry and unable to either pull itself up by its bootstraps or find a customer to which it can become a captive company. The sell-out strategy makes sense if management can still obtain a good price for its shareholders and the employees can keep their jobs by selling the entire company to another firm.

Bankruptcy strategy

. Bankruptey involves giving up management of the firm to the courts in return for some settlement of the corporation's obligation. Top management hopes that once the court decides the claims on the company, the company will be stronger and better able to compete in a more attractive industry.

Liquidation strategy

. In contrast to bankruptcy, which seeks to perpetuate the corporation, liquidation is the termination of the firm's business operation. Because the industry is unattractive and the company too weak to be sold as a going concern, management may choose to convert as many saleable assets as possible to cash, which is then distributed to the shareholders after all the obligations are paid. T

Exporting

The basic and traditional or usual strategy to explore the foreign markets which basically refer to shipping goods produced in the company's home country to other countries. This option means that the exporting company usually engages local/domestic company

licensing agreemen

t and this is a scheme wherein the licensing firm grant rights to another firm in the host country to produce and/or sell a product or service. The licensee pays compensation to the licensing firm in return for technical expertise and other considerations referred to in the licensing agreement.

Strategic alliance

is an option to take where it might be costly or disadvantageous to engage in any of the other strategies already discussed.

holy alliance or cooperative strategy

mean as meant to pursue competitiveness. It is an option taken on account of the following reasons and justification