GMS 200 Chapter Notes - Chapter 7: Instrumentalism, Ikea, Specific Performance

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Deborah De Lange

Document Summary

Growth strategy: expansion of the organization"s current operations (market share, total sales, operating locations) Stability strategy: maintains current operations without substantial changes. Renewal strategy: tries to solve problems and overcome weaknesses that are hurting performance: liquation: business operations cease & assets are sold to pay creditors. Combination strategy: purses growth, stability and/or retrenchment in some combination. Growth is most common/popular grand strategies- viewed as necessary for long-run survival: concentration: expansion within same business area. Diversification: growth by acquisition of or investment in new & different business areas. Related diversification: acquiring businesses/ entering areas related to what one already does. Unrelated diversification: acquiring businesses/entering areas that are different from what already does. Vertical integration: acquiring suppliers (backwards v. i. ) or distributors (forwards v. i. ) Restructuring corrects weaknesses by changing the mix/ reducing the scale of operations to reverse/ change an ineffective approach and reorganizing to compete better in the future.