Portfolio Analysis of Strategies At Different Levels

Management job is not to see company as it is But as it can become

DIFFERENT LEVELS OF STRATEGY

Corporate level strategies Business level strategies

Functional level strategies

Michael Porters Generic Competitive Strategies

BROAD TARGET

COST LEADERSHIP

DIFFERENTIATION

NARROW TARGET

FOCUSED COST LEADERSHIP

FOCUSED DIFFERENTIATION

Low-cost Product/services

Differentiated Products/services

Cost Leadership (lower cost/broad target) Differentiation (differentiation/broad target) Focus (lower cost or differentiation/narrow target)

Michael Porters Five Forces Model

Corporate Level Strategies

KINDS OF GRAND STRATEGIES

Stability Strategy
Maintenance of Status Quo Sustainable Growth

Growth Strategy
Internal Growth Concentration Strategies Mergers Takeover/Acquisition Horizontal Integration Conglomerate Diversification

Retrenchment Strategies
Turnaround Captive Company

Combination Strategies
Portfolio Restructuring

Downsizing
Transformation Divestment Liquidation

Vertical Integration
Joint Ventures

Integration
Petroleum Exploration
Backward Linkage

Petroleum Production

Backward Linkages

Refining

Original Company

Sales to Wholesaler/Dealer

Forward Linkage

Sales to Retailer

Forward Linkage

Boston consulting group (BCG) growth-share matrix

GE 9 CELL/GE PLANNING GRID/STOP LIGHT MATRIX

Invest/Expand Select/Earn Harvest/Divest

TAILORING STRATEGY: PRODUCT LIFE CYCLE

1. Emerging/Embyonic 2. Growth/Shakeout 3. Mature 4. Decline

MCKINSEYS 7 S FRAMEWORK