Part A
Development strategies help the management to balance the resources according to the market opportunities in each business area. Top managers responsible for formulating the corporate strategy should look several years ahead to choose the right and consistent direction for the organization that will accomplish the organization’s long- term goals. There are two main types of strategies based on stability and diversification principles. While in stability strategy, management keeps the status quo if the company is doing well and does not take risks associated with more massive growth, diversification strategy, on the contrary it tries to affect growth through the development of new areas which may differ from current businesses.
WD-40
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In fact, diversification is often a suitable corporate strategy when a company has a strong competitive position on the market, but its existing industry is not attractive enough. Or when the business consolidates and becomes mature having reached the limits of growth, most of the companies decide to expand their market or product lines. The first reason to diversify the product line for Rocol Company was to reduce competition within the single industry due to changes in environmental conditions. Rocol earned the original success by producing technically advanced industrial lubricants. However, with broadening of the industrial market, profits of the company fell down. As a result, the management of the company took the decision to diversify the production operations by broadening the frames of the industrial market, including the production of not only industrial lubricants, but also technical compounds, dusters and cleaners (Sekhar, 2010). Thus, the new products belong to the same industry category with the respect to the production, marketing and present customers what can be identified as related diversification. So, within two years of the diversification Rocol Company managed to achieve a wider and more stable market, and maximize annual profits. Moreover, Rocol manufacturer expanded not only the product line, …show more content…
The basic idea was to expand into a new industry sector that would not negatively react to the same economic downturns as the present business activities. If one sales sector is taking a hit in the market, another one will help offset the losses and keep the company viable. At this point diversification strategy becomes also a growth strategy. Thus, the management of Rocol keeps pursuing once established principles of diversification by bringing new products and technical appliances to the consumer market. Moreover, at Rocol Company quality is seen as a part of the company’s strategy and can be described as “a maxim” in everything the company does. (Hiriyappa,
In 1864, Nemislo Guillot brought the first bat and baseball to Cuba. The island quickly adopted the sport and everyone became eager about creating a team. Nemislo Guillot with the help of his brothers, created the first baseball team called, Habana Base Ball Club in 1868. In 1878 the Cuban League was founded and consisted of three teams, Almendares, Habana and Matanzas. Today, baseball has become one of the most popular and played sport in Cuba. Due to the fact that baseball is already a well-known sport in Cuba, Rawlings should have no trouble entering this market.
Nevertheless, it must “defend” its current market share if not increase it, by maintaining premium quality and develop innovative products. The marketing mix strategies will effectively achieve targeted revenue and profitability in the near future.
The company is also leading the way in innovativeness and has already received recognition for introducing innovative products. This is one of the strengths of the company since innovative products will help to differentiate its products from the other competitor products as well as the new products can be exclusively branded as compared to the other flagship products from older Soviet times.
There is an increase in fraudulent robocalls. In one case, someone made a prerecorded robocall pretending to be Google. The robocall told receivers that their business was at risk of being removed from Google’s top search results page. They promised to provide a solution, but the receiver would be charged a fee.
Business strategy is the means by which firm’s plans to achieve its goals and objectives. It can also be termed as organization long-term planning. The strategy covers periods between 3-5 years and sometimes longer. Businesses use two major types of strategy, general or generic and competitive strategies. The overall strategy involves strategies of growth, globalization and retrenchment. The competitive advantage includes low pricing, product and customer differentiation. We will look at the business strategy used by Marks and Spenser (Cole, 1997). The company is a British multinational located at Westminster London and specializes in clothes and luxurious food products.
...ative aspects of diversification, for example through better corporate planning, human recourse management and reaching further synergies between its various business lines.
The scope of this essay is to address coherently with examples a number of key areas of strategy; strategy and its importance, challenges in relation to development and implementation of strategies, and a discussion of the relevance of strategy in the modern
The major issues facing the company comprises of there being multiple businesses with different demands. There are separate levels of performance and success as well as growth chances for each of the sector and the firm needs to tackle with issues in each of these divisions (Dube, J.P., 2004).
This assignment focuses on internal analysis of Ford Motor by doing SWOT analysis and external analysis by doing Pestle analysis. The assignment also focuses on the strategic performance analysis on the basis of Porter’s Diamond Model, BCG Matrix and Blue Ocean Strategy. SWOT analysis showed that, Ford Motor has strength on heritage, global aspect, brand name, innovation etc. It has weakness on market share, global competition and affected by economic recession. The opportunities lie on small cars, fuel efficient cars and production market in India and China due to lower cost. Threats are coming from high price of petrol, raw material, labor and competition from other companies. Pestle analysis showed that, Ford maintained worker friendly company and able to cope up with financial crisis during recession. They focused on advertisement. Also go for joint venture with Microsoft to bring new technology in the car. They produce environmental friendly cars. A...
Diversification is where a company grows into new business areas either similar to existing business or different from existing business allowing a firm to create value by creatively using excess resources. Seprod operates in a number of different and distinctive product markets and several businesses using corporate-level strategy. Seprod operates in the fats and oil business, milk and juice and the sugar industry
...s should choose their strategies at the right time and the right situation. It is clear that Diversification is a very powerful growth strategy but entrepreneurs have to take the risks as there are lots of uncertainties. On the other hand, those external growth strategies are the key of firm growth. Normally when a venture apply external growth strategies successfully, it spreads the risk, lowers the expense, earn more profits and it gives a better opportunities for attracting investors to invest into the business. Growth strategies that available for entrepreneurial ventures are covered and analysed in this essay. Entrepreneurs can learn more knowledge on how growth strategies work including advantages and limitations by reading the literature review, and learn more about how a global company used those strategies in different situation to grow from the case study.
To gain such an outstanding achievement both domestically and internationally, the Aditya Birla Group has adopted two strategies: to diversify their business’s portfolio into a range of sector and to diversify them internationally. Firstly, to reach the first goal, they stepped in many areas such as viscose sta...
The key role in solving strategic tasks belongs to strategic planning, which is the process of developing and maintaining strategic balance between organization’s goals and resources in the changing market environment. The purpose of the strategic planning is to determine the most promising fields of activity providing its growth and prosperity. Strategic planning is a component of a broader concept “strategic management”. All four management functions (planning, organizing, leading and controlling), when talking about strategic management include strategic orientation. When viewing strategic planning from the highest level possible within a company, the planning function is the area that stands out as the most important area which involves a great deal of development and focus.
A study has been conducted to find the reasoning behind the surprisingly abrupt success decrease. It shows that one of main contributing factor includes a new increase in competitors in the area, which may start to create a rivalry with the industry. Competitors can become a huge danger towards companies since this gives the customers more options when deciding which product to purchase. There have also been new entrants, who of which are creating new and different products that are now available to the customers. Customers are also being persuaded by the power of other companies. This is now becoming a very competitive market, which can have a great effect on the company’s success. Although this is just one factor that seems to be affecting sales, there seems to be more contr...
...lopment industry as well as the strengths and weaknesses within the company. The Business Strategy should reflect the main issues that determine the long-term