17-05-2014, 12:02 PM
TYPES OF STRATEGIES
TYPES OF STRATEGIES.pdf (Size: 53.54 KB / Downloads: 154)
MODERNIZATION STRATEGIES
Developing new technology strategy i.e. technological
upgradation as a strategy
- Increased production, lower cost, improve
efficiency and productivity
- Extensively used by Indian organization -
stability - prior to expansion & diversification
If pace of modernization is low - internal stability
strategy, high - internal expansion strategy
Merge with another company - for modern -
external expansion strategy
JOINT VENTURE
•2 firms in one industry
•2 firms across different industries
•Indian & foreign firm in India
•Indian & foreign firm in foreign country
•Indian & foreign firm in third country
Last two types are on increase now
MANAGING TURNAROUND
•Existing team - support external consultant - if C.E
- credibility - rare
•Existing team - withdraws temporarily - turnaround
specialist - employed
•Replace existing team / C.E
Approaches:
- Surgical
- Human approach
ACTION PLAN FOR TURNAROUND
• Analysis of product, market, production process,
competition, market segment positioning
• Clear thinking - market place &production logic
• Implementation of plans - target - setting,
feedback, remedial action
Strategy Implementation
• Evolve a systematic procedure to implement the
strategy chosen
Procedural implementation plan
Proper resource allocation plan
Structural implementation plan
Functional implementation plan
Behavioural implementation plan
• Evaluate and control through strategic and
operational control measures
• Success of a strategy is very much dependent
on how the strategy is executed