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MindMap Gallery Strategic choice - overall strategy (stability strategy, contraction strategy)

Strategic choice - overall strategy (stability strategy, contraction strategy)

Strategic choice - overall strategy (stable strategy, contraction strategy) mind map includes: stable strategy (limited to the operating environment and internal conditions, the company's expected operating conditions during the strategic period), contraction strategy (judgment of the company's OR business ( Beforehand)) etc.

Edited at 2022-03-14 13:01:58

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Strategic choice - overall strategy (stability strategy, contraction strategy)

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Outline

overall strategy

stabilization strategy

Limited by the operating environment and internal conditions, the company's expected operating conditions during the strategic period A strategy that is basically maintained at the scope and level of the strategic starting point (a balance between environment, strategy, and organization)

How to do it: Concentrate resources on original business lines and products to increase its competitive advantage

Applicable conditions: Stable strategy is suitable for companies whose forecasts of the environment during the strategic period will not change much and whose operations were quite successful in the early stage.

Risk: Changes in the external environment

contraction strategy

Refers to the strategy of an enterprise to reduce its original business scope and scale

Reasons for implementation

active cause

¨Large enterprises: the need for strategic reorganization ¨Small businesses: short-term behavior

passive cause

¨External reasons: Environmental changes lead to corporate crises ¨Internal business decision-making issues: Enterprises lose competitive advantage

Way

Improve first, otherwise give up

Shrink and Focus Strategies (Throttling)

Mechanism change (manage)

Adjust the management leadership team Re-formulate new policies and management control systems to improve incentive and restraint mechanisms

cost cutting strategy (Production)

Reduce labor costs, material costs, administrative expenses and assets, etc. Reduce the size of divisions and functions

Finance and Financial Strategy (finance)

Introduce and establish effective financial control systems Negotiate with key creditors and re-sign repayment agreements, etc.

Turn to strategy (Open source)

¨Internal business decision-making issues: Enterprises lose competitive advantages and reposition or adjust existing products and services (products) ¨Internal business decision-making issues: Enterprises lose their competitive advantage and adjust their marketing strategies and launch new initiatives (marketing) in terms of price, advertising, channels, etc.

abandon strategy

Franchise, subcontracting, outright sale, management OR leveraged buyout, divestiture into shares OR spin-off, asset swap and strategic trade

difficulty

Judgment of corporate OR business (beforehand)

¨The life cycle of the company's products as well as future profitability and development trends ¨Current market conditions of product OR units, and opportunities to regain competitive advantage ¨How to use the freed resources?

exit barriers (internal, external, direct, indirect)

¨Fixed asset specificity ¨Exit costs (labor agreements, costs of relocation, spare parts repair capabilities) ¨Emotional disorders ¨Internal barriers (relationship barriers, financial market confidence, vertical integration) ¨Government and social constraints