①Meaning: Refers to the enterprise's strategy of extending and expanding the enterprise's existing business forward or backward along the product or business chain.

② Advantages: It is helpful to save the transaction costs of buying or selling in the market with upstream and downstream enterprises, control scarce resources, ensure the quality of key inputs or obtain new customers.

③Disadvantages: Increase the internal management costs of the enterprise.

④Category:

⑤Risk:

①Meaning: Refers to the strategy of an enterprise to expand towards the same stage of the industrial value chain. The main purpose of enterprises adopting horizontal integration strategy is to achieve economies of scale to gain competitive advantage.

②Applicable conditions:

Proposition Angle 1: Judgment of the type of integrated strategy.

Proposition Angle 2: Case analysis of the advantages, motivations and applicable conditions of the integrated strategy.

This is a high-frequency test point for subjective questions. Students must understand it thoroughly and memorize it! Emphasis on several issues:

(1) Advantages or motivations of vertical integration:

(2) Applicable conditions for vertical integration:

①Market Penetration - Existing Products Existing Market.

②Market development - new markets for existing products.

③Product development - new products existing market.

Propositional perspective: Type judgments of intensive strategies.

Judgment of intensive strategy type is a frequent test point for objective questions, and it is also a difficult point. Many students are afraid when they encounter this kind of question. But please rest assured, as long as you understand the following questions, you can easily solve it:

(1) Big development? Small development? What exactly counts as “product development”?

(2) Does "changing packaging" belong to product development or market penetration?

(3) Does "gifting new products" belong to "product development"?

(4) What is the secret of judgment?

Question: What is the relationship between intensive and integrated strategies?

Answer: In fact, these are two different ways of classifying strategic types, with different theoretical basis. Therefore, the two are not independent of each other, and there will be conceptual overlap. For example, a meat processing factory acquires an upstream breeding plant and a downstream meat supermarket. What type of strategy does this belong to? Is it a vertical integration strategy or a diversification strategy? In fact, they are all correct! In fact, we can regard vertical integration strategy as a special case of diversification strategy, but with more emphasis on business diversification along the vertical business chain. Therefore, if it is a single-choice question, you should select "vertical integration strategy", and if it is a multiple-choice question, you need to add "diversification strategy" (related diversification).

If we must point out the difference between the two, the integration strategy is more macro in concept. It is to think about how to develop from the perspective of the entire enterprise. It can be extended from the upstream and downstream dimensions of the industry chain, or it can be viewed from the perspective of competition in the same industry. Achieve breakthroughs; while intensive strategies focus on how to achieve sustainable growth through the two dimensions of "product" and "market" and through the recombination of "new" and "old".

① The need for strategic reorganization of large enterprises: for example, in order to raise funds required for capital operations and improve the return on investment of enterprises, etc.

② Short-term behavior of small businesses: For example, the goal of some small entrepreneurs is to "make 1 million yuan." When the goal is basically achieved, the company is no longer willing to bear the cost and risk of continuing to operate.

①External reasons: For example, external environmental crises such as the overall economic situation, industrial cycles, technological changes, policy changes, social values ​​or fashion changes, market saturation, competitive behavior, etc.

② Internal reasons: For example, internal operating mechanisms are not smooth, decision-making errors, poor management, etc.

How effective a contraction strategy is depends on how accurately the company or business situation is judged. And this is a very difficult job.

①The degree of specificity of fixed assets. When assets are highly specific to specific businesses or locations, their transfer and conversion costs are high, making it difficult to exit the existing industry.

②Exit cost. Exit costs include labor agreements, relocation costs, spare parts repair capabilities, etc. If these costs are too high, they can increase barriers to exit.

③Internal strategic connections. This refers to the internal interconnections between a business unit within the enterprise and other business units of the company in terms of market image, marketing capabilities, use of financial markets and sharing of facilities. These connections led the company to consider retaining the business unit to be of strategic importance.

④Emotional disorders. When an enterprise formulates an exit strategy, it will trigger resistance among some managers and employees, because the exit of the enterprise often damages the interests of these personnel.

⑤ Government and social constraints. Taking into account the unemployment problem and the impact on the regional economy, the government sometimes opposes or discourages companies from exiting decisions.

① Mechanism change: changing leadership, changing policies, changing systems, and changing incentives;

② Finance and financial strategy: building financial system, exchanging debt repayment agreement, etc.;

③Cost reduction strategy: reduce labor, materials, expenses, assets (such as lease change, sale and leaseback), departments, and scale.

Question: How to understand "overcoming negative externalities of enterprises"?

Answer: "Negative externality" is an economic concept, which refers to the negative impact of an economic activity on people other than the participants in the activity. For example, a chemical company signed an agreement with City A to build a chemical plant on the outskirts of the city. If the factory cannot eliminate external pollution emissions, it will harm the interests of the citizens of city A, so building a chemical factory has negative externalities. In market games, enterprises often operate with the goal of maximizing their own interests. This strategic arrangement is a rational choice, but this rational choice may not always maximize its own benefits. For example, the enterprise implements A certain strategy triggered more exciting market competition, and companies in the industry started price wars one after another, reducing the overall profits of the industry, and "all losers". This is a typical outcome where individual rationality leads to collective irrationality. But mergers and acquisitions can solve this problem and correct this behavior. As long as one merger and acquisition occurs, the industry that originally had N players can become (N-1), thereby reducing irrational competition among enterprises, that is, reducing competition.

Question: How to find keywords related to "overcoming negative corporate externalities"?

Answer: "Overcoming negative externalities of enterprises" has never appeared in the previous exams with a keyword that exactly matches it. Instead, it is all related to the sentence "enhancing control over the market." Therefore, it is recommended to look for expressions related to "enhancing control over the market" when answering questions. For example:

(1) 2020 real multiple-choice question: "The sales network has expanded to more than two-thirds of the cities and some towns across the country, and its market share has increased by 20%, further consolidating its industry-leading position."

(2) 2019 Comprehensive Real Exam Questions: Wanxin Company’s acquisition of City A Company not only acquired the world’s top battery technology, established business contacts with global mainstream customers, but also gained greater appeal in the field of new energy batteries.

Typical situations include:

① Failure to carefully analyze the potential costs and benefits of the target enterprise;

② Being too hasty makes it difficult to manage the acquired company;

③ Overestimating the attractiveness of the industry where the acquisition target is located;

④ Overestimating one’s ability to manage the acquired company;

⑤ Overestimating the potential economic benefits brought by mergers and acquisitions.

①Value assessment is the focus of the competition between sellers and buyers in M&A strategies. If the acquired company cannot be accurately valued, the acquiring party may bear the risk of paying too high M&A fees;

② High-cost mergers and acquisitions will increase the financial burden of enterprises, causing enterprises to face efficiency challenges from the beginning of mergers and acquisitions.

After completing mergers and acquisitions, enterprises are faced with the integration of strategy, organization, system, business and culture. Among them, the integration of corporate culture is the most basic, core and most difficult task.

Specific measures to prevent political risks in the host country can consider the following points:

① Strengthen the assessment of political risks in the host country and improve the dynamic monitoring and early warning system;

②Adopt a flexible international investment strategy to build a solid foundation for risk control;

③ Implement corporate localization strategies to reduce conflicts and frictions with host countries.

①Equality in mutual exchanges. (Independent legal person, voluntary mutual benefit, independent decision-making)

②The long-term nature of the cooperative relationship. (Long-term cooperation enhances one’s own competitive advantages and maximizes long-term benefits)

③ Complementarity of overall interests. (Non-market transaction relationship, non-auxiliary relationship, which can maximize strengths and avoid weaknesses, reduce transaction costs, and generate synergistic effects)

④Openness of organizational form. (Dynamic, open and loose, gather when opportunities come and disperse when goals are achieved)

The development costs of high-tech products are increasing day by day, and it is difficult for a single enterprise to pay independently. It must be shared by establishing strategic alliances.

By establishing strategic alliances and expanding the density and speed of information transmission, we can avoid the blindness of a single enterprise in market development and research and development and the waste of innovative resources in the whole society caused by working alone, and reduce market development and technological innovation. risks of.

The establishment of strategic alliances is conducive to the formation of a new competition model, replacing competition with cooperation, and reducing the high costs of dealing with fierce competition. This idea of ​​competition and cooperation is not only manifested between suppliers and buyers, but also among competitors in the same industry.

Through strategic alliances, resources sharing and complementary advantages can be achieved.

Establishing extensive strategic alliances can quickly diversify business scope and expand business areas.

The strategic alliance method does not require the integration of enterprises, so it can reduce coordination costs.

When a strategic alliance is formed through a contract or agreement, whether the parties to the alliance can abide by the signed contract or agreement mainly depends on the supervision and management of the enterprise. When a dispute occurs, they often do not choose court judgments or third-party arbitration that are more costly to implement. Alliance members negotiate and resolve among themselves. Therefore, it is necessary to clarify some basic contents when entering into an agreement.

① Strictly define the goals of the alliance;

② Carefully design the alliance structure;

③Accurately evaluate the assets invested;

④Stipulate liability for breach of contract and terms of dissolution.

Alliance companies must trust each other and be oriented toward maximizing the interests of both parties, rather than maximizing their own interests. Once both parties trust each other, the formal alliance contract will become less important, and the alliance relationship will become more stable because of trust.

Trust can reduce the supervision cost between alliance partners, greatly improve the possibility of alliance success, and is the most effective means to influence and control the behavior of alliance partners.

①Consumers:

② Products: The products of all companies in the industry are standardized products, and it is difficult to differentiate products.

③Competitors: Price competition is the main means of market competition.

①Choose an appropriate trading organization form;

② Reduce the costs of various factors;

③ Focus on gathering;

④Equip corresponding production facilities in industries with significant economies of scale to achieve economies of scale;

⑤ Improve the utilization of production capacity;

⑥Improve productivity;

⑦Improve product process design.

①Consumers: Customers’ needs are diverse;

②Product: The product can be fully differentiated and recognized by customers;

③ Competitors: The industry in which the enterprise is located undergoes rapid technological changes, and innovation becomes the focus of competition.

① Have an incentive system, management system and a good creative culture that can ensure the stimulation of employee creativity;

②Have strong R&D capabilities and product design capabilities;

③Have strong marketing capabilities;

④Overall: The ability to improve the quality of a certain business operation, establish product image, maintain advanced technology and establish and improve distribution channels as a whole.

①Consumers: There are differences in needs among buyer groups.

② Product (or market): The target market is relatively attractive in terms of market capacity, growth rate, profitability, competition intensity, etc.

③Competitors: In the target market, there are no other competitors using similar strategies.

Enterprises have limited resources and capabilities, making it difficult to achieve cost leadership or differentiation in the entire industry, and can only select individual market segments.

a. There is a lot of content in cost leadership strategy. Students can memorize it by drawing pictures. Please share the details in class;

b. There is not much content in the differentiation strategy, but there is a certain degree of difficulty in understanding it, especially Article 4 of it, which “has the ability to generally improve the quality of a certain business, establish product image, maintain advanced technology, and establish and improve distribution channels. ”, this clause is usually relatively obscure in cases. If the case contains statements with similar meanings such as “the management’s concept is correct, the decision is correct, or the company has implemented an important strategy or measure”, it will fall under this clause.

① Government policies and local regulations impose restrictions on the concentration of certain industries.

② No enterprise in the new industry has yet mastered sufficient skills and capabilities to occupy an important market share and other factors.

① Difficulties in selecting, acquiring and applying proprietary technology;

② Insufficient supplies of raw materials, parts, funds and other supplies;

③Customer confusion and waiting and watching;

④The reaction of the substituted product;

⑤ Lack of courage and ability to take risks.

①Suitable for early entry:

②Situations not suitable for early entry:

How to understand "products or services with different functions and forms but the same purpose"?

For example, in order to achieve the purpose of leisure, people can choose from many leisure methods, such as watching movies or playing video games. Therefore, playing video games is an alternative to watching movies. From a definition point of view, the concept of alternative products is broader than the concept of alternatives, but in the actual exam, students do not need to worry about the relationship between the two.

When answering the question, you can combine the first two points and the last two points respectively, that is, summarize the blue ocean strategy according to three characteristics:

①Avoid competition and expand non-competitive market space - Keywords: no competition/"I am different from you";

②Create and seize new needs - Keywords: consumers;

③ Break the law of interchange between value and cost, pursue differentiation and low cost at the same time, and integrate corporate behavior into a system - keyword: cost.

① When there is a combination of industry/product A and industry/product B, the corresponding paths include:

②When keywords such as "conform to the trend" and "adapt to the pursuit of ×××" appear: participate in shaping external trends across time;

③When there is a change in the scope of customers: Redefine the buyer group of the industry.

Propositional perspective: Analysis of the basis for market segmentation.

Before 2021, market segmentation basis analysis was a high-frequency test point for objective questions, but in 2021 it will be tested in the form of subjective questions, and students need to pay close attention to it. It is recommended that students follow the following techniques for analysis:

(1) Analysis of geographical segmentation and population segmentation: "Country" is the basis for geographical segmentation, but "nationality" is the basis for population segmentation. Although different countries usually mean different nationalities, the two are essentially different. The essence of a country is the form of community formed by groups of people within a certain range, and the essence of nationality is the identity of an individual belonging to a certain country. In addition, some countries define nationality based on jus soli doctrine, and some countries define nationality based on jus sanguinis doctrine. For example, all children of expatriates will have dual nationality at birth, or children born with dual nationality will have dual nationality because their parents have different nationalities. In short, you should read the question description clearly during the exam and do not confuse "country" and "nationality".

(2) Analysis of psychological segmentation and behavioral segmentation: There are only two cases of psychological segmentation mentioned in the textbook, while the behavioral segmentation basis is more complicated. Therefore, from the perspective of solving the problem, it is recommended that students use the elimination method to judge, because geographical segmentation and population segmentation are easy to judge. As long as you find the "psychological segmentation", you can judge that the remaining segmentation basis belongs to behavioral segmentation. What is psychological segmentation? First, lifestyle (frequently tested): In layman’s terms, it is how a person lives. There are two typical examples, one is "pursuit of fashion/tradition/high quality", the other is "life customs"; Second, personality (rarely examined): refers to a person’s psychological tendencies or characteristics. A typical example is that insurance products can be customized into different categories of products based on the risk preferences/tolerance of different customers.

(3) The meaning of behavioral segmentation basis: Behavioral segmentation basis more directly reflects the differences in consumer needs. Its specific explanation is as follows:

①Meaning: The enterprise regards the entire market as its target market, only considers the commonality of market demand, without considering its differences, and uses one product, one price, and one sales method to attract as many consumers as possible.

② Advantages: Single variety, suitable for mass production and sales, giving full play to the advantages of economies of scale; it can reduce the costs of production, inventory and transportation, reduce the costs of advertising, promotion, market research and market segmentation, and then compete in the market at a low cost Gain a competitive advantage.

③Disadvantages: Poor adaptability. Once market demand changes, it is difficult to adjust the company's production and marketing strategies in a timely manner. Especially after the product life cycle enters the mature stage, the means of competition are too single, so the risk is greater.

①Meaning: The enterprise selects two or more, or even all market segments as target markets, and according to the demand characteristics of different market segments, designs and produces different products, formulates different marketing mix strategies, and targets Meet the needs of customers in different market segments.

② Advantages: Facing a broad market, meeting the needs of different consumers, helping to expand sales and enhance competitiveness; the enterprise has strong adaptability, plenty of room for maneuver, and does not rely on one market or one product.

③Disadvantages: Due to small batch and multi-variety production, enterprises are required to have a high level of management and management; due to the diversification of varieties, prices, sales channels, advertising, and promotion methods, production costs, R&D costs, inventory costs, sales expenses, and market Research costs will increase accordingly, which may reduce economic benefits.

①Meaning: Due to limitations of resources and other conditions, enterprises use one or a few sub-markets with similar properties as the target market, trying to occupy a larger market share in fewer sub-markets.

② Advantages: Especially suitable for small businesses with limited resources, or companies that have just entered a new field. Enterprises can concentrate on using limited resources to implement specialized production and sales, save marketing expenses, and increase product and enterprise visibility.

③Disadvantages: Too much dependence on a single and narrow target market. Once the target market situation suddenly changes, the company has little room for maneuver and high risks. At the same time, when strong competitors enter the target market, the company will be seriously affected.

After the company determines the target market, it performs the first market positioning of the product, also called primary positioning. Generally, new products are launched into the market for the first time.

As market conditions change, products still need innovative positioning, that is, repositioning or repositioning the product. Before repositioning, companies should carefully consider and evaluate whether the cost of improving product features and shifting to another positioning is less than the sales revenue in this new market to ensure that there is still profit after product repositioning.

①Related concepts: width, length, depth and relevance of product portfolio:

②Strategy type:

The definition of new products is relatively broad, mainly referring to products that open up new markets, products that replace existing products, and substitutes for existing products.

Reasons for product development include:

① The enterprise has a high market share and strong brand strength, and has a unique competitive advantage in the market;

② There is potential growth in the market;

③Continuous changes in customer needs require new products, and continuous product updates are the only way to prevent products from being eliminated;

④Need to carry out technological development or adopt technological development;

⑤Enterprises need to respond to competitive innovations in the market.

The three factors that have the greatest impact on pricing are cost, market or consumer demand, and competition. Among them, cost is the lower limit of price, customers' perception of product value is the upper limit, and the prices of competitive companies' products and substitutes provide a reference.

①Cost-oriented pricing method:

②Demand-oriented pricing method:

③Competitive price pricing method:

① Psychological pricing strategies: Pricing strategies adopted to adapt to consumers’ purchasing psychology, mainly include mantissa pricing, integer pricing, prestige pricing and solicitation pricing.

② Product portfolio pricing strategy: including series product pricing, by-product pricing, related product pricing and bundled pricing, etc.

③ Discount and discount strategies: including various price reduction strategies, that is, reducing a certain percentage of the payment based on the original price. There are cash discounts, quantity discounts, transaction discounts, seasonal discounts and promotional discounts, etc.

④Geographical price difference strategy: A price strategy that considers buyers and sellers sharing transportation, loading and unloading, warehousing, insurance and other costs based on the geographical differences between buyers and sellers, including origin price, destination delivery price, unified delivery price, and zoned delivery price and subsidized freight pricing, etc.

① Penetration pricing method (low price): Set a very low price when a new product is launched on the market in order to seize sales channels and consumer groups, making it more difficult for competitors to enter the market. This is a strategy that sacrifices short-term profits for long-term profits.

② Skimming pricing method (high price): Set a higher price at the beginning of the launch of a new product, and gradually reduce the price as production capacity increases. This approach aims to achieve high unit profits during the initial stages of the product life cycle.

③ Satisfactory pricing strategy (middle price): a moderate pricing strategy between the above two pricing strategies. This method is intended to simultaneously achieve the goal of product prices that are acceptable to customers and that the company can make a certain profit at the same time.

①Push strategy (push to consumers through channel dealers): "Push" products to final consumers through marketing channels. Manufacturers' marketing activities (mainly personal selling and trade promotion) are mostly targeted at channel members, motivating them to purchase products and sell to final consumers.

②Pull strategy (direct-to-consumer): Relying on market activities (mainly advertising and consumer promotion) carried out directly by manufacturers to point to final consumers and encourage them to purchase products. If a pull strategy works, consumers will request products from channel members, who in turn will request products from manufacturers.

③Push-pull combined strategy: Enterprises use push strategy and pull strategy together to stimulate market demand through advertising while vigorously promoting to middlemen.

①Manufacturer’s inventory plus direct delivery.

②Manufacturer inventory, direct delivery and in-transit consolidation.

③Distributor inventory plus carrier delivery.

④The distributor's inventory is added to the door for delivery.

⑤Manufacturer or distributor inventory plus customer pick-up.

⑥Retailer inventory plus customer pick-up.

Propositional perspective: Analysis of methods to balance production capacity and demand.

This is a high-frequency test point for objective questions. It is recommended to understand and analyze through the following examples:

(1) Inventory-based production: Analogous to a student canteen, the total number of students dining can be roughly estimated, and the dishes are fried according to fixed recipes. What dishes are ordered by the students and served;

(2) Resource-to-order production: Similar to the cooking competition on TV, the judges give some unexpected themes and requirements on the spot, and the chefs purchase ingredients according to the rules and complete the production;

(3) Order-based production: Analogous to fried takeout, all the ingredients required on the menu are purchased in advance and processes such as cleaning and changing knives are completed. After the customer orders, the food can be cooked directly in the pot.

At the end of each month or quarter, the enterprise's procurement department formulates the procurement plan for the next month or quarter based on the inventory situation. After approval by the manager in charge or the person in charge of the enterprise, the procurement information is sent to the supplier. The supplier receives it and reports it to the supplier. The enterprise quotes, then negotiates and negotiates between the two parties, and finally signs a transaction contract.

① The information communication between the enterprise and the supplier is not sufficient and effective, and sometimes both parties even deliberately conceal some information in order to occupy a favorable position in the negotiation;

② There is only a simple supply and demand relationship between enterprises and suppliers, and there is a lack of cooperation in other aspects;

③ For the purpose of replenishing inventory, there is a lack of consideration of production needs and market changes, which often results in inventory backlogs or short supply, affecting the normal production and operation of the enterprise;

④ Management is simple and extensive, and procurement costs remain high.

The enterprise is production-oriented, and based on the product quantity, structure and inventory situation in the production plan, it calculates and derives the quantity and purchase time of various raw materials and parts that need to be purchased, prepares a procurement plan accordingly, and issues it to suppliers according to the procurement plan. Order.

① The production plan and procurement plan are very detailed. From products to raw materials and parts, from required quantity to required time, from production progress to purchase sequence, everything is clearly specified;

② The calculation and preparation of procurement plans are very complex, especially when there are many types of products and complex product structures. The amount of calculation of various required raw materials and parts and their purchase time is very huge, so computer technology is required. .

Also known as just-in-time procurement, this model means that companies place orders with suppliers based on their own production needs, requiring suppliers to deliver items of the appropriate quantity and quality to the appropriate location at the appropriate time.

①The number of suppliers is small or even a single supplier;

②Enterprises and suppliers establish long-term and stable cooperative relationships;

③The purchase quantity is small and the delivery frequency is high;

④Both enterprises and suppliers care about the improvement and innovation of each other's products and proactively coordinate and cooperate; information sharing is fast and reliable.

The enterprise and the supplier sign an agreement, which stipulates that the supplier shall manage the enterprise's inventory, determine the optimal inventory amount, formulate and implement inventory replenishment measures, and reasonably control the inventory level. At the same time, both parties continue to monitor the implementation of the agreement and revise the agreement content in a timely manner to ensure inventory management. keep improve.

① The company has established a long-term, stable and in-depth cooperative relationship with its suppliers;

② Suppliers can formulate and implement correct and effective replenishment strategies in a timely manner by sharing the company's real-time production consumption, inventory changes, consumption trends and other information, not only meeting the company's needs for various items at the lowest cost, but also doing their best to It greatly reduces various wastes caused by the uncertainty of independently predicting enterprise demand, and greatly saves supply costs;

③ In accordance with the principles of benefit sharing and risk sharing, the enterprise and the supplier negotiate to determine the sharing ratio of relevant management expenses and unexpected losses, as well as the sharing ratio of new profits brought about by inventory improvement, thus laying the foundation for cooperation between the two parties. solid foundation.

Through artificial intelligence, Internet of Things, cloud collaboration and other technologies, we can realize intelligent management of the entire procurement process, including selecting and managing suppliers, purchasing demand and cost analysis, decision-making and approval, order generation, purchase logistics, reconciliation and settlement, invoicing and payment, etc. Each link is automated, visualized, standardized and controllable, and is continuously optimized through real-time monitoring and regular evaluation.

① Based on the digital platform, enterprises and suppliers have established a new cooperative relationship with automatic identification, mutual recognition, direct transactions, and high degree of fit;

② Automation technology has eliminated a large number of manual operations in the past, innovated and optimized the procurement process and even the entire business process of the enterprise;

③ The scientificity, convenience, precision and accuracy of procurement management have been improved unprecedentedly, and the "cost reduction and efficiency increase" are extremely significant; adapting to the development trend of new technologies, the promotion prospects are very broad.

① Carry out internal reconfiguration of personnel, including promotion, transfer, demotion, etc., to fill those vacant positions and meet this part of the human resource needs;

② Provide targeted and specialized training to existing personnel so that they can engage in vacant positions;

③ Carry out personnel replacement, clear out the personnel that the company does not need, and supplement the personnel that the company needs to adjust the personnel structure.

① Expand the scale of operations or develop new growth points to increase the demand for human resources;

② Permanent layoffs or layoffs of employees will bring unstable demand factors to society and are often restricted by the government;

③Encourage employees to retire early and provide preferential policies to employees who are close to retirement age so that they can leave the company early;

④Recruitment freeze means to stop recruiting personnel from outside and reduce supply through natural attrition;

⑤ Shortening employees’ working hours, implementing job sharing, or lowering employees’ wages can also reduce supply;

⑥Training surplus employees is equivalent to reserving personnel to prepare for future development.

① Recruiting personnel from outside, including rehiring retired personnel;

②Adopt various methods to improve the work efficiency of existing employees;

③Extend working hours and let employees work overtime;

④ Reduce the turnover rate of employees, reduce the loss of employees, and at the same time conduct internal deployment and increase internal mobility to increase the supply of certain positions;

⑤ Outsource certain businesses of the company to reduce the demand for human resources.

① Source: First, people in lower-level positions fill vacant positions mainly through promotion (promotion); second, people in positions at the same level fill vacant positions mainly through job transfer or job rotation (transfer or rotation). ; Third, personnel in superior positions mainly fill vacant positions through demotion (demotion).

②Methods: Job announcement method, file recording method.

① Sources: schools, competitors and other companies, the unemployed, elderly groups, veterans and freelancers, etc.

②Methods: Advertising recruitment, out-of-town recruitment, recruitment through professional intermediary structures and recommendation recruitment, etc.

① The size of operating risks is determined by the specific business strategy; the size of financial risks is determined by the capital structure. Together, they determine the total risk of the enterprise.

②The reverse matching of operating risks and financial risks is a strategic principle in formulating capital structure. Here’s why:

③ Different development stages of enterprises have different operating risks, showing a unilateral downward trend. Therefore, the financial risks that enterprises can bear at different stages of development increase unilaterally, so different financial strategies should be adopted.

First, whether value is created depends on the positive or negative value of "return on invested capital - cost of capital".

①Return on invested capital: reflects the profitability of the enterprise and is determined by investment activities and operating activities.

②Capital cost: reflects the expected return rate of equity investors and creditors, and is determined by the expectations of shareholders and creditors and the capital structure.

Conclusion: Return on invested capital - capital cost > 0, value creation (ie economic added value > 0); return on invested capital - capital cost < 0, value depletion (ie economic added value < 0).

Second, whether financing is needed - depends on the positive or negative value of "growth rate - sustainable growth rate".

① Growth rate: measured by expected sales growth rate, determined by the external environment and the company's competitiveness.

Tip: The impact of increasing growth rate on corporate value depends on the positive and negative situation of "return on invested capital - cost of capital". Growth rate can make good things better and bad things worse;

② Sustainable growth rate: refers to the highest growth rate that the company's sales can achieve without issuing new shares and maintaining current operating efficiency and financial policies.

Conclusion: Growth rate - sustainable growth rate > 0, cash shortage; growth rate - sustainable growth rate < 0, cash surplus.

Quadrant I: Financial strategy options for value-added cash shortages.

Quadrant II: Financial strategy options for value-added cash surplus.

Quadrant III: Financial strategy options for impaired cash surplus.

Quadrant IV: Impairment cash shortage financial strategy options.

①The basis for selecting target customers is market segmentation.

② Market segments between countries usually differ in quantity, size and characteristics.

① Export the same standardized product to all markets; (Japan)

② Be sensitive to each local market and act as independent entities; (Europe)

③Launch new products locally and export them if there are similar demands in other countries’ markets. (beautiful)

① Shorten the distance between production and sales and reduce transportation costs;

② You can use local cheap labor, raw materials, energy and other production factors to reduce manufacturing costs;

③ Obtain timely feedback on local market and product information so that production can be adjusted according to market demand;

④Enable enterprises to circumvent various trade and non-trade barriers imposed by the host country government, and sometimes enjoy certain preferential treatment provided by the host country.

①Strength: Possessing monopoly advantages such as products, technology, brands, marketing channels, and economies of scale.

② Positioning: Dominant position, responsible for global value chain strategy formulation, organizational leadership and management, and has absolute control and influence in the global production network.

③Evaluation: Having the most favorable position and the greatest value added in the global value chain.

①Strength: Lack of advantages in key resources such as technology and brand.

②Positioning: A subordinate position that can serve as a bridge between leading companies and local suppliers.

③ Responsibilities: In addition to functions such as core technology research and development and marketing channel construction that must be undertaken by leading companies, they can also undertake peripheral management work such as the production, assembly, and logistics of components.

④Evaluation: Obtain a relatively high status and value added in the global value chain.

①Strength: weak comparative advantage.

②Positioning: The subordinate status of the first-tier supplier.

③ Responsibilities: Contact first-tier suppliers to undertake non-core production activities in non-critical links in the value network, such as simple assembly, initial equipment manufacturing (OEM), etc.

④Evaluation: Being in a lower position in the global value chain can only obtain lower value added.

①Strength: Have certain technical capabilities.

②Positioning; similar to first-tier suppliers, but less dependent on leading companies and less responsible for connecting leading companies with other tier suppliers.

③Responsibilities: Able to provide supporting services for leading enterprises in addition to key link design and marketing, undertake the production of products that leading enterprises have certain technical requirements for, and also independently complete the production of part of the product structure. For example, primary design manufacturers (ODMs) can provide some design services to leading companies.

Different industries face different pressures from globalization. In different industries, multinational companies from developed countries have very different competitive advantages in emerging markets, as shown in the figure below.

Of course, most industries fall somewhere between these two extremes. Local companies can understand the strengths and weaknesses of multinational competitors in these industries, thereby clarifying their appropriate positioning in the industry.

(1) Most companies in emerging markets have some resources that give them a competitive advantage in the local market - suitable for the local market (for example: local sales network, long-term and close government relations).

(2) Some advantages of local enterprises may also become a sharp edge for expansion into other markets - they can be transplanted overseas (for example: using the country's cheap raw materials to reduce export prices). The more such resources, the greater the chance of a company's success abroad. big.

(1) Meaning.

(2) Strategic positioning.

(3) Strategic initiatives.

(4) Issues that need attention.

(1) Meaning.

(2) Strategic positioning.

(3) Strategic initiatives.

(4) Issues that need attention.

(1) Meaning.

(2) Strategic positioning.

(3) Strategic initiatives.

(4) Issues that need attention.

(1) Meaning.

(2) Strategic positioning.

(3) Strategic initiatives.

Proposition perspective: Analysis of corporate strategies in emerging markets (objective questions).

Mainly to determine the type of strategic choice, there are two ways to solve the problem:

(1) Quadrant method: Comprehensive judgment based on the horizontal and vertical axes, but the "pressure of globalization" must be accurately understood. Note: "Foreign brands continue to pour into the country" and "the competition in the ×× market is very fierce" does not mean "the pressure of globalization is high". The original meaning of globalization pressure refers to whether globalization is necessary, in other words, whether standardization is necessary! For example, according to the examples in the textbook, the globalization pressure of aircraft, cameras, and computers is greater because the fixed costs of these products are very high. Multinational companies need to sell products in the market to share the costs, and consumers recognize the benefits brought by their global operations. Standardized products; while clothing, packaged foods, etc. do not need to be standardized and must meet the special needs of local consumers to succeed, so there is little pressure for globalization. However, judging from the situation over the years, this type of questions usually does not directly indicate the magnitude of the pressure of globalization, so this problem-solving method is relatively limited.

(2) Definition method: Judgment based on the “strategic positioning” of four strategic options:

Proposition perspective: case analysis of strategic initiatives of emerging market companies (subjective questions).

Students need to be highly sensitive to the keyword method of each strategy:

(1) Dodgers: do not plan to transform: cooperate/sell; plan to transform: overall definition, market focus, complementary products;

(2) Competitors: Find leaders to compare with (not only cost advantages), tap resources from developed countries, find a market (clear and easy to defend), find breakthroughs (such as business restructuring, process reengineering, etc.); (3) Defenders : Serve domestic consumers, adjust products and services to meet demand, and strengthen channel construction;

(4) Expanders: Transplant experience to surrounding overseas countries.

Tip: This method can also be used for objective questions of type discrimination.

Question: In the "Contender" strategy, do "finding a market with a clear positioning and easy defense" and "finding a suitable breakthrough point in a global industry" mean the same thing? How to distinguish when doing questions?

Answer: Let’s first look at “finding a market with a clear positioning and easy to defend”, which can be broken down into two keywords: “clear positioning” and “easy to defend”, so there are two corresponding case expressions:

(1) Case description of "clear positioning" - Facing competition in globalized industries, companies have found links or positions in the industrial value chain that are more conducive to realizing self-worth;

(2) "Easy to defend" case statement - companies cooperate with foreign companies or join their alliances to become "one family", so that they will not be attacked. Let's look at "finding a suitable breakthrough in a globalized industry" , the corresponding case statement is usually enterprise. After analyzing the external competitive environment, the industry reorganizes or reshapes its own business, processes, etc., that is, by "changing itself" to become a "better self".