GMS 200 Chapter 7: chapter 7 notes.doc

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chocolateeel952

24 Apr 2012

School

Ryerson University

Department

Global Management Studies

Course

GMS 200

Professor

Peter Rambert

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GMS 200 Full Course Notes

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Document Summary

Growth strategy expansion of organizations current operations. Stability strategy maintains current operations without substantial changes. Renewal strategy --- tries to solve problems and overcome weaknesses that are hurting performance -- cut sizes and rearrange operations. Combination strategy puruses growth, stability and or retrenchment in some compbonation. Growth through concentration: growing within the same business area. Growing through diversification growing by acquisition of or investment in new and different business areas. Growth through vertical integration growth by acquiring suppliers or distributers. Restructuring correct weaknesses by changing the mix or reducing the scale of operations. Turn around focuses on fixing specific performance problems ie mcdonalds adding more coffee. Restructuring by downsizing decrease the size of operations often by reducing the work force. Restructuring by divestiture sells off parts of the organization to refocus attention on core business areas. Globalization strategy adopts standardized products and advertising worldwide. Multi-domestic strategy customizes products and advertising to best fit local needs.

Related Questions

To create value for shareholders via diversification, a company must
A) get into new businesses that are profitable.
B) diversify into industries that are growing rapidly.
C) spread its business risk across various industries by only acquiring firms that are strong competitors in their respective industries.
D) diversify into businesses that can perform better under a single corporate umbrella than they could perform operating as independent, stand-alone businesses.
E) diversify into businesses that have either key success factors or value chains that are similar to their present businesses.