Strategies Used by Organizations

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Strategies Used by Organizations by Mind Map: Strategies Used by Organizations

1. B2B Business Strategy: Utilizes IT and web portals to link organizations vertically that are members of their supply chain. Companies such as Wal-Mart use the B2B strategy. Its suppliers link to the firm's information system and manage the inventories for their own products electronically.

2. B2C Business Strategy: Utilizing IT and web portals to link organizations with their customers. More success comes from B2C if the strategy is fully integrated with the supporting functional strategies and operations. Dell has a benchmarking standard where customers can customize the computer they are ordering from home utilizing their website.

3. Co-Opetition: When two or more competitors work co-operatively on projects which will benefit all parties involved at the end. BMW and Daimler are co-operating with one another to develop new motors and components for hybrid cars

4. Strategic Alliance: When two or more organizations create a partnership to purse an area of interest which they both have an interest in. Many organizations such as IBM, EDS, and Infosys are given IT function from other companies with the belief that these services are going to be much delivered much better by firms with specialized expertise.

5. Combination: When more than one strategy is pursued at the same time such as stability and renewal. For example, Globe and Mail at the same time the severance plan was announced, the plans for introducing new printing technology was also enhanced and the colour was also improved.

6. Renewal: This strategy tries to find solutions of problems and overcome any weakness which may be hurting an organization's performance. When Phillip Crawley, chief executive and publisher of Globe and Mail saw problems with dropping customer demand in a recessionary economy, he declared a voluntary severance plan for 10% of its Canadian staff.

7. Stability: This strategy tries to keep an already existing course of action without implementing major changes into it. For a retail firm such as Alloy inc. stability might mean working with its current customers in the same markets and in ways similar to those of the past and also avoiding any major investments in new initiatives,

8. Divestiture: This strategy also reduces the size however, this time by selling some parts of the organization to keep focus on the core competencies, cutting costs and improving the operating efficiency. This strategy is used when organizations become over-diversified and have many problems managing all the complexity. For example, General Electric, during its first four years of operation divested 117 of its business units, which accounted for 20% of GE's assets.

9. Downsizing: This strategy decreases the size of operations by often times reducing the workforce it has. General Motors is one of many automobile companies in Canada which released hundreds of working individuals in their factories.

10. Turnaround: The focus here is on fixing specific problems in performance. McDonald's, for example, had its executives realize they were falling way behind in coffee sales in comparison to Starbucks and Tim Hortons in Canada, McDonald's then made its turnaround strategy called "Plan to Win" where a more coffee house atmosphere was developed, additions such as wireless internet was added to the restaurants along with changing internal decorations.

11. Diversification: Growth pursued with diversification is growth gotten by acquiring other businesses and areas or investing in them. Related diversification is a strategy where growth is gotten by acquiring new businesses or entering business areas that are related to what the company already does. Tropicana acquired PepsiCo's beverage industry due to its expertise in that area. Unrelated diversification is when acquiring of different business companies/areas different from what the company already does. Tata Group is a company that originally did textile work but now has acquired 98 companies in industries such as steel, chemicals, telecommunications, etc.

12. Vertical Integration: Where a business acquires suppliers which are the backward vertical integration or distributors which would be the forward vertical integration. Coca-Cola and PepsiCo are two companies that pursued the forward vertical integration by buying some of their major bottlers

13. Concentration: Growth through concentration is when expansion occurs in the same business area. Since the limits to grow in a domestic market, some Canadian firms are expanding their businesses into markets south of the border and throughout the world. Tim Hortons, Canadian Tire, and Roots all use growth strategies while not forgetting about their primary business

14. Transnational Strategy: Balancing out the efficiencies in global operations and its response from the local market. Firms following this strategy try to be not known well nationally and try to blend in with the global economy to fully tap its business potential. For example, Ford, draws upon the designs, distribution, and manufacturing expertise to make car "platforms" that are changed for regional taste efficiently.

15. Multi-Domestic Strategy: When products and advertising for them are customized as much as possible to best fit the local needs in different countries/regions. McDonald's is a company that changes the food on its menu to best fit the local needs such as having a junior chicken being served as a sandwich in North America but a tandoori chicken sandwich being served in India.

16. Globalization Strategy: Seeing how differently products are developed and advertised worldwide. Firms that use this strategy see the world as one big market, a company that utilizes this strategy is Gillette. They make their latest razors and sell them around the world and advertised the same way globally, with the assumption they had that everyone wants the same thing.

17. Growth and Diversification Strategies: Growth is one of the most popular strategies because it is seen as essential for long-run survival in some industries and because organizations have a variety of options to choose from in how to pursue their growth.

18. Co-Operative Strategy: When two or more organizations make joint ventures that are common for both companies in international business.

19. E-Business Strategies: Strategically using the Internet to gain some form of competitive advantage

20. Global Strategies: When a firm approaches the global economy and the different risks it took along with the opportunities it received. Grand or master strategy for growth is used with the support of a global strategy.

21. Restructuring and Divestiture: When organizations are suffering trouble such as from a bad economy or too much growth/diversification, the organization makes its new goal to be renewal.

22. Grand or Master: Corporate-level strategies begin here, and are generally known as the growth, stability, renewal, and combination strategies. These strategies indicate the time period over which long-range objectives are to be achieved.