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NAKA BOLD ANG SAGOT TURNAROUND STRATEGY

- Undoing earlier wrong decisions to improve


ORGANIZATIONAL LIFE CYCLE
profitability
- A framework for understanding the stages a
DISINVESTMENT
company goes through as it grows and develops.
- Selling organizational assets to generate funds
JOB DESIGN
urgently.
- It focuses on structuring tasks, responsibilities,
COMPANY OWNERSHIP
and relationships within a job.
- Purchasing an existing company in the foreign
JOB ROTATION
market.
- Shifting employees between different roles or
PIGGYBACKING
departments.
- Partnering with other businesses to sell products
CENTRALIZATION IN ORGANIZATIONAL STRUCTURE
overseas
- Concentrating decision-making authority at the
LIQUIDATION
top or in a single location.
- Closing the business operations permanently.
DECENTRALIZATION IN ORGANIZATION
REASON --- PURSUE SUBSTANTIVE GROWTH STRATEGIES
- Distributing decision-making authority to lower
levels in the hierarchy. - To increase profitability and market share
→ In a decline stage of organizational life cycle, the best Company acquires a smaller startup which complements its
key strategy to consider is exploring new markets and existing product line
diversification. - Related diversification
Not a typical stage in the organizational life cycle Operates a chain of fast-food restaurant and decides to open
- Expansion a chain of fitness centers.
When an organization shifts from centralization to - Unrelated diversification
decentralization, it often seeks to: A company emphasizes safety features to attract customers
- Improve the speed of decision-making. concerned about safety.
JOB ENLARGEMENT - Characteristics-based positioning
- Focuses on providing employees with greater BLUE OCEAN STRATEGY
variety of tasks and responsibilities. - It aims to create a new market space with a little
CENTRALIZATION or no competition.
- A small family-owned business requires all A company decides to expand its product offerings or enter
decisions to be approved by the owner. new markets with its existing products.
JOB SIMPLIFICATION - Product development
- A production worker is responsible for operating First step in strategy formulation process:
multiple machines on the factory floor. - Defining the organization’s mission and objectives
Licensing is a market entry strategy that involves: Establishing brand credibility is important in product
- Selling the right use or sell a product to another positioning – to build trusting relationships with customers.
country.
PRIMARY ADVANTAGE of exporting as a MARKET ENTRY Growth strategy involves selling more products or services
STRATEGY to established customers in existing markets through
- Quick market entry aggressive promotion and distribution.
COUNTERTRADE in the context of international marketing - Market penetration
- Barter system for trading goods
Franchising is a market entry strategy that typically requires: Riskiest growth strategy that involves introducing new
- Strong brand recognition offerings in new markets

OUTSOURCING - Diversification

- Hiring another company to handle international Strategy formulation approach (trying to achieve a
product sales competitive advantage in a single, specific market segment)

PRIMARY OBJ. OF RETRENCHMENT STRATEGY - Focus strategy

- To lower or reduce the costs of business PRODUCT POSITIONING STRATEGY (focuses on associating
operations your brand with competitive pricing)
- Pricing-based positioning
NOT component of SWOT Analysis
- Tactics
NOT a barrier to entry for new entrants into an industry
- High exit barriers
Factor that influences the likelihood of substitutes in an
industry
- Relative price performance and quality of
substitutes
SETTING OBJECTIVES
- A team within an organization defines specific,
measurable targets for sales, production, and
profitability for the next year.
ENVIRONMENTAL SCANNING
- A manager regularly monitors industry trends,
competitor activities, and technological
advancements to stay ahead of potential challenges
and opportunities
CONTINGENCY PLANNING
- During a crisis, a company activates a pre-
developed plan that outlines specific actions to be
taken, communication strategies, and resource
allocation.
SETTING OBJECTIVES
- ABC company establishes its long-term vision and
mission statements to guide its future decisions and
actions.
CONTROL AND FEEDBACK
- Metehan corporation is an organization that
periodically evaluates its plans and performance to
identify areas for improvement and make
necessary adjustments.
DIVERSIFICATION
- ARCE Dairy Corporation is an organization that
manufactures milks and ice cream. They have
decided to acquire XYZ enterprises a smaller
company in a completely different industry.
TACTICAL PLANNING
- A department head develops plans for hiring new
staff, organizing training sessions, and allocating
resources to achieve departmental goals.
MARKET PENETRATION
- A company’s strategic decision to increase
advertising and promotion to capture a larger share
of its existing market.
DIRECTIONAL POLICY MATRIX is used for:
- Evaluating strategic options for growth

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