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Semester Fall 2010
“Strategic Management (MGT 603)”
This is to inform that Graded Discussion Board (GDB) will be opened according to the following schedule
Schedule:
Opening Date and Time: January 19,2011 At 12:01 AM
Closing Date and Time: January 21,2011 At 11:59 PM
Topic/Area for Discussion
“ Strategy Analysis and Choice ”
Note: The discussion question will be from the area/topic mentioned above. So start learning about the topic now.
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SOLUTION:
division 1,2 and 4:
Market development.
Product development.
Market penatration.
Diversification strategies.
Forward integration.
Backward integration.
Horizental integration.
Division 3:
Harvesting.
Hold or maintain strategies.
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The divisions that fall under cells 1,2 or 4 are considered in grow and build region which is the most appropriate region for the divisions. Following are the recommended strategies for the divisions which fall into grow and build region.
Intensive (market penetration, market development, product development) OR
Integrative (backward integration, forward integration, and horizontal integration) strategies
Secondly, the divisions which comes under cells 3, 5 or 7 can be properly manages with hold and maintain strategies this position is average for the division market penetration and development strategies are most appropriate strategies. Last, the 6, 8, 9 cells represent harvest or divest which is the weak position for the divisions.
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INTERNAL – EXTERNAL MATRIX TEMPLATE:
these values on axes in the IE matrix.
Cells I, II, and III suggest the grow and build strategy. This means intensive and aggressive tactical strategies. Your strategies should focus on market penetration, market development, and product development. From the operational perspective, a backward integration, forward integration, and horizontal integration should also be considered.
Cells IV, V, and VI suggest the hold and maintain strategy. In this case, your tactical strategies should focus on market penetration and product development.
Cells VII, VIII, and IX are characterized with the harvest or exit strategy. If costs for rejuvenating the business are low, then it should be attempted to revitalize the business. In other cases, aggressive cost management is a way to play the end game.
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