MindMap Gallery Corporate Strategy and Risk Management
Chapter 3: Strategic Choice, organizes the contents of overall strategy, business unit strategy, functional strategy, and international business strategy. Come and take a look.
Edited at 2023-03-29 22:25:12El cáncer de pulmón es un tumor maligno que se origina en la mucosa bronquial o las glándulas de los pulmones. Es uno de los tumores malignos con mayor morbilidad y mortalidad y mayor amenaza para la salud y la vida humana.
La diabetes es una enfermedad crónica con hiperglucemia como signo principal. Es causada principalmente por una disminución en la secreción de insulina causada por una disfunción de las células de los islotes pancreáticos, o porque el cuerpo es insensible a la acción de la insulina (es decir, resistencia a la insulina), o ambas cosas. la glucosa en la sangre es ineficaz para ser utilizada y almacenada.
El sistema digestivo es uno de los nueve sistemas principales del cuerpo humano y es el principal responsable de la ingesta, digestión, absorción y excreción de los alimentos. Consta de dos partes principales: el tracto digestivo y las glándulas digestivas.
El cáncer de pulmón es un tumor maligno que se origina en la mucosa bronquial o las glándulas de los pulmones. Es uno de los tumores malignos con mayor morbilidad y mortalidad y mayor amenaza para la salud y la vida humana.
La diabetes es una enfermedad crónica con hiperglucemia como signo principal. Es causada principalmente por una disminución en la secreción de insulina causada por una disfunción de las células de los islotes pancreáticos, o porque el cuerpo es insensible a la acción de la insulina (es decir, resistencia a la insulina), o ambas cosas. la glucosa en la sangre es ineficaz para ser utilizada y almacenada.
El sistema digestivo es uno de los nueve sistemas principales del cuerpo humano y es el principal responsable de la ingesta, digestión, absorción y excreción de los alimentos. Consta de dos partes principales: el tracto digestivo y las glándulas digestivas.
Chapter 3 Strategic Choice
overall strategy
Main types
development strategy
integrated strategy
vertical integration
horizontal integration
intensive strategy
market penetration
Existing products and existing markets
Market Development
Existing product names and new markets
product development
New products and existing markets
Diversification Strategy
New products and new markets
related diversification
unrelated diversification
stabilization strategy
contraction strategy
reason
active cause
passive cause
Way
austerity and concentration strategies
Turn to strategy
abandon strategy
difficulty
Judgment of enterprise or business conditions
exit barriers
main method
Alternative paths
M&A strategy
type
According to industry
horizontal merger
vertical merger
Diversified M&A
Attitude of the acquired party
friendly
hostility
Identity of the acquiring party
Industrial capital mergers and acquisitions
Financial capital mergers and acquisitions
Acquisition funding sources
lever
Unleveraged
motivation
Avoid entry barriers, enter quickly, seize market opportunities, and avoid various risks
Gain synergy
Overcome corporate externalities, reduce competition, and enhance market control
Reason for failure
Improper decision-making (beforehand)
Paying exorbitant M&A fees (in progress)
The enterprise cannot be integrated well after the merger (ex post facto)
Facing political risks due to cross-border mergers and acquisitions (special circumstances)
Internal Development (New Build) Strategy
motivation
shortcoming
Application conditions
Corporate strategic alliance
Basic Features
formation motivation
Promote technological innovation
Avoid business risks
Avoid or reduce competition
Realize resource complementation
Open up new markets
Reduce coordination costs
Main types
Joint venture
Mutual shareholding investment
functional protocol
Control
Enter into an agreement
Strictly define the goals of the alliance
Carefully design alliance structure
Accurately assess invested assets
Specify liability for breach of contract and dissolution clauses
Establish an alliance of cooperation and trust
business unit strategy
basic competitive strategy
Cost leadership strategy
Advantage
create barriers to entry
Enhance bargaining power
Reduce the threat of substitutes
Stay ahead of the competition
risk
Implementation conditions
market outlook
resources and capabilities
Differentiation Strategy
Advantage
create barriers to entry
Reduce customer sensitivity
Enhance bargaining power
Resist the threat of substitutes
risk
Implementation conditions
market outlook
resources and capabilities
centralization strategy
Advantage
risk
Implementation conditions
market outlook
resources and capabilities
Comprehensive analysis of basic strategies - "Strategy Clock'
Competitive Strategies for Small and Medium Enterprises
Scattered industries
Causes
Low barriers to entry or existing barriers to exit
Diverse market demands lead to high product differentiation
There are no economies of scale or it is difficult to achieve economies of scale
Strategic Choice
Overcome fragmentation – gain cost advantage
Franchise or franchise
Technological innovation to create economies of scale
Discover industry trends early
Enhance added value - improve product differentiation
Specialization - Goal aggregation
Specialization by product type or product segment
Customer Type Specialization
Potential pitfalls
Avoid seeking dominance
Maintain strict strategic constraints
Avoid over-centralization
Understand competitors' strategic goals and overhead costs
Avoid overreacting to new products
Emerging industry
Common characteristics within the industry
technological uncertainty
strategic uncertainty
Rapid changes in costs
Budding businesses and start-ups
first time buyer
Development barriers and opportunities
Difficulties in selecting, acquiring and applying proprietary technology
Inadequacy of raw materials, parts, capital and other supplies
Confused customers wait and see
Reactions to substituted products
Lack of courage and ability to take risks
Strategic Choice
Shape industrial structure
Correctly Treat the Externalities of Industrial Development
Pay attention to changes in industry opportunities and obstacles, and take the initiative in industrial development and changes
Choose the right time and field to enter
blue ocean strategy
connotation
in principle
Principles of strategy development
Rebuilding market boundaries
Focus on the big picture rather than the numbers
Go beyond existing needs
Follow a sound strategic sequence
Strategy Execution Principles
Overcome key organizational barriers
Make execution part of the strategy
Fundamental rules for reconstructing market boundaries
Path 1: Examine alternative industries
Path Two: Across Strategic Reorganization
Path 3: Redefine the industry’s buyer groups
Path 4: Look at complementary products or services
Path 5: Reset customers’ functional or emotional appeals
Path Six: Across Time
functional strategy
marketing strategy
Market segment(s)
consumer market segmentation
Geographic segmentation
population segmentation
psychographic segmentation
behavioral segmentation
Industrial market segmentation
User's industry category
User scale
User's geographical location
buying behavior factors
Target market selection (T)
undifferentiated marketing strategy
Differentiated marketing strategy
centralized marketing strategy
Market positioning (P)
Strategies to seize or fill market gaps
Market positioning strategies to coexist and confront concentrators
Market positioning strategies to replace competitors
Design marketing mix
Product Strategy
product mix strategy
Brand and Trademark Strategy
product development strategy
Price Strategy
Basic pricing methods
cost oriented pricing
demand-based pricing
Competition Oriented Pricing
Main pricing strategies
psychological pricing strategies
Product portfolio pricing strategy
Discounts and discount strategies
Geographical Spread Strategy
New product pricing strategy
penetration pricing
skimming pricing
Satisfied with pricing strategy
Distribution strategy
promotion strategy
Promotional mix elements
advertising promotion
Business promotion
public relations
personal selling
Promotional mix strategy
push strategy
pull strategy
push-pull strategy
research and development strategy
type
Product Research - New Product Development
process research
Power source
demand pull
technology push
strategic role
basic competition
Value Chain
Ansoff matrix
Product Lifecycle
R&D positioning
Become a company that introduces new technology products to the market
Become an innovative imitator of successful products
Become a low-cost producer of successful products
Become an imitator of low-cost producers of successful products
R&D strategy
Production operations strategy
Main factors and stages involved in production operations strategy
batch
type
demand changes
visibility
Contents of production operations strategy
Product (service) selection
market conditions
Internal production and operation conditions of the enterprise
financial conditions
Differences in work goals among various departments of the enterprise
Make or buy options
Production and operation mode selection
High volume, low cost
Multiple varieties, small batches
Supply chain and distribution network selection
Competitive Focus of Production Operations Strategy
Delivery time
quality
cost
manufacturing flexibility
Production process planning and capacity planning
Procurement strategy
Supply strategy
Few or single source strategy
The strategy of multiple sources of goods and small batches
Balanced supply strategy
Trading straregy
market trading strategies
short term cooperation strategy
Functional alliance strategy
Innovative alliance strategies
Procurement model
Traditional procurement model
MRP procurement model
JIT procurement model
VMI Procurement Model
HR strategy
effect
It is a strategic and consistent approach to acquiring, developing, managing and stimulating an enterprise's key resources so that the enterprise can achieve the goal of sustainable competitive advantage.
planning
content
step
supply and demand balancing strategy
Obtain
Recruitment channels and methods
Selection and recruitment
Human resource acquisition strategies that match corporate competitive strategies
Training & Development
Training and Development Process
type
Human resource development and training that matches competitive strategies
Grade
performance plan
performance monitoring
performance appraisal
performance feedback
Matching performance management with the company’s basic competitive strategy
salary incentives
Remuneration composition and fairness principles
pay level strategy
Compensation composition strategy
Corporate competitive strategy and compensation strategy
financial strategy
concept
establish
Financing channels and methods
Financing costs
optimal capital structure
dividend distribution strategy
choose
Financial strategy selection based on product life cycle
Financial strategy choices based on value creation or growth rate
international business strategy
Motives for international business operations of enterprises
seek market
seeking efficiency
seek resources
Seek ready assets
Main way
Export trade
Target market selection
Target market regional path
Traditional method (continuous method)
New method (discontinuous method)
Select target customers
Choosing Distribution Channels and Export Marketing
Export trade pricing
Pricing is on the high side in order to obtain greater returns than the domestic market
Set prices that are close to the revenue levels in overseas markets and domestic markets
Pricing is low in the short term, even if profits are low or even losses are incurred
As long as profits can be increased after offsetting variable costs, prices should be set at a price that can sell products in excess of domestic market demand.
Foreign Direct Investment
Wholly owned subsidiary
joint venture
non-equity form
International operations of enterprises in global value chains
The idea and concept of global value chain
International division of labor within products
Global production network
global value chain
Enterprise international operations and global value chain construction
Corporate role positioning
Leading companies
first grade supplier
Other tier suppliers
contract manufacturer
Division of labor model
Bureaucratic value chain
market value chain
Captive value chain
Modular value chain
Relevant value chain
Global value chain and enterprise upgrading in developing countries
Types of enterprise upgrades
Process upgrade
product upgrade
Function upgrade
Value chain upgrade
Global value chain division of labor model and enterprise upgrading
strategy type
international strategy
Multi-country localization strategy
globalization strategy
transnational strategy
Corporate strategy for emerging markets
Allocate resources according to product features
Strategic choices for local companies
Defender's Strategy: Use Home Advantage to Defend
The expander’s strategy: extending local advantages overseas
Dodge strategy: avoiding the impact of multinational corporations
Contender Strategy: Confrontation on a Global Scale
advantage
spread risk
Easier access to capital markets
When enterprises cannot grow in their original industries, they find new growth points
Utilize underutilized resources
Use surplus funds
Receive funds or other financial benefits
Use the company's image and reputation in one industry or market to enter another industry or market
Applicable scenarios
market growth
Interests are limited to existing products or market areas
Other companies leave the market for various reasons
The company has a strong market position
Market penetration strategies are associated with lower risk, high senior management involvement, and require less investment
main method
Expand market share
Develop niche markets
maintain market share
Suitable scenario
The industry in which the company operates is highly competitive
Economies of scale in the industry in which the enterprise is located are relatively significant
The horizontal integration of enterprises complies with anti-monopoly laws and regulations and can obtain certain anti-monopoly status in local areas.
The industry in which the company operates has great growth potential
The enterprise has the capital, human resources, etc. required for horizontal integration
Main risks of vertical integration strategy
Risks associated with unfamiliarity with new business areas
Vertical integration, especially backward integration, generally involves a large amount of investment and strong asset specificity, which increases the exit costs of enterprises in this industry.
Main applicable conditions for backward integration strategy
The company's existing suppliers have high supply costs or poor reliability and are unable to meet the company's needs for raw materials, parts, etc.
Few suppliers and many demand-side competitors
The industry in which the company operates has great growth potential
The enterprise has the funds, human resources, etc. required for backward integration
Profit in the supply chain is higher
The stability of enterprise product prices is very critical for enterprises. Backward integration is conducive to controlling raw material costs, thereby ensuring the stability of product prices.
Main applicable conditions for forward integration strategy
The company's existing sellers have high sales costs or poor reliability and are unable to meet the company's sales needs.
The industry in which the company operates has great growth potential
The enterprise has the funds, human resources, etc. required for forward integration
The profit in the sales process is higher