11 Types of Strategies (Examples and Strategy Statements) QUESTIONS.
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11TypesofStrategiesExamplesandStrategyStatementsQUESTIONS.docxChapter 5: Strategies in Action
Complete the fourth column cells with Strategy Statements for the 11 Types of Strategies
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Strategy Type |
Definition |
Example |
Strategy Statement (Enter a brief strategy statement for the company in the Example column. The statement MUST start with an action verb) |
|
Forward Integration |
Gaining ownership or increased control over distributors or retailers |
Amazon began rapid delivery services in some U.S. cities. |
Example: Acquire strategic retailers and distributors in selected U.S. cities. |
|
Backward Integration |
Seeking ownership or increased control of a firm’s suppliers |
Starbucks purchased a coffee farm. |
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Horizontal Integration |
Seeking ownership or increased control over competitors |
BB&T acquired Susquehanna Bancshares. |
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Market Penetration |
Seeking increased market share for present products or services in present markets through greater marketing efforts |
Under Armour signed tennis champion Andy Murray to a 4-year, $23 million marketing deal. |
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Market Development |
Introducing present products or services into new geographic area |
Gap opened its first five stores in China. |
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Product Development |
Seeking increased sales by improving present products or services or developing new ones |
Amazon just began offering its own line of baby diapers and wipes. |
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Related Diversification |
Adding new but related products or services |
Facebook acquired the text-messaging firm WhatsApp for $19 billion. |
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Unrelated Diversification |
Adding new, unrelated products or services |
Kroger and Whole Foods Market are cooking meals, becoming restaurants. |
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Strategy Type |
Definition |
Example |
Strategy Statement (Enter a brief strategy statement for the company in the Example column. The statement MUST start with an action verb) |
|
Retrenchment |
Regrouping through cost and asset reduction to reverse declining sales and profit |
Staples closed 250 stores and reduced by 50% the size of other stores. |
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Divestiture |
Selling a division or part of an organization |
Sears Holdings divested its Land’s End division to Sears’ shareholders. |
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Liquidation |
Selling all of a company’s assets, in parts, for their tangible worth |
The Trump Taj Mahal in Atlantic City, New Jersey, faces liquidation. |
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