Strategic Alternative Brainstorming

Identify at least one strategic alternative idea in each category from your e-text readings. For at least one of your “preferred” alternatives in each chapter, identify the source (SWOT, 5 Forces, Value Chain, Conference Call, News Article, etc. that might have been the basis for your recommendation). Note that the same idea may fall into two or more categories so it is OK to list it multiple times, but try to come up with something new whenever possible. This is brainstorming, so it does not have to be a “good” strategic alternative, just a valid strategic alternative. Remember the difference between operational effectiveness and strategy. “Doing better” is operational effectiveness . . . “Doing different” is strategy. Make sure your recommendation is from the “doing different”.

After finishing all chapters, review your list and highlight using red text those five alternative you believe have the most potential and should be considered by your team. Share these with your team.

I. Chapter 6 Analysis of Markets and Positioning

A. Market Segmentation: Identify a new market segment and reposition existing or develop new products for that segment

1. Example: Identify a new segment for retirees and seniors who may be now interested in protein shakes as a nutrition and diet alternative. Source: External Scanning on Demographics which shows aging US population.

2.

B. Marketing Mix: Identify a new product, price strategy, promotion (branding) or distribution channel (place).

1.

2.

II. Chapter 7 Growth by Internal Development

A. (Figure 7.1 and 7.3) Growth Options: Choice of Product Development, Diversification, Market Penetration, Market Development taking into account the current strength of competitive position.

1.

2.

B. Product and R&D Investments: Identify R&D and New Product Development or Elimination

1.

2.

III. Chapter 8: Corporate Level Strategies and Restructuring

A. Same Business Diversification (see Table 8.1 for more specific action in a value chain)

1.

2.

B. Related Business Diversification (see Table 8.1 for more specific action in a value chain)

1.

2.

C. Unrelated Business Diversification (see Table 8.1 for more specific action in a value chain)

1.

2.

D. Restructuring by Downsizing

1.

2.

E. Restructuring by Downscoping

1.

2.

F. Restructuring by Realignment

1.

2.

IV. Chapter 9: Growth Via Strategic Alliances

A. Alliance that would Reduce Cost

1.

2.

B. Alliance that would access New Technology

1.

2.

C. Alliance that would Inhibit Competitors

1.

2.

D. Alliance that would Enter New Markets

1.

2.

E. Alliance that would Reduce Cycle Time (gain a manufacturing/logistics advantage)

1.

2.

F. Scale Alliance

1.

2.

G. Link Alliance

1.

2.

H. Joint Venture

1.

2.

V. Chapter 10: Acquisition Strategies

A. Acquisition to expand to International Markets

1.

2.

B. Acquisition to gain Economies of Scale

1.

2.

C. Acquisition to obtain New Product and eliminate internal R&D costs

1.

2.

D. Acquisition to enable diversification strategy (Enter more Attractive Industry)

1.

2.

E. Acquisition to defend against Hostile Acquisition of your firm (buy them before they buy us)

1.

2.

F. Divestiture: Eliminating by closing or sale a division or business that would be acquired by another company.

1.

2.

VI. Chapter 11: International Strategies

A. Exporting

1.

2.

B. Licensing/Franchising

1.

2.

D. Strategic Alliance (see Chapter 10 for reasons)

1.

2.

E. International Acquisition

1.

2.

F. Foreign Direct Investment

1.

2.