Describe the three major types of corporate strategies and how the BCG matrix is used to manage those corporate strategies?
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Answer:
The three types of Organizational strategy are Growth, Stability, and Renewal. ... Due to its growth plan anorganization may increase profits, number of employees, or market share.
Explanation:
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The three types of Organizational strategy are Growth, Stability, and Renewal. A growthstrategy is when an organization expands the number of markets served or productsoffered, either through its current business or by creating affiliates. Due to its growth plan anorganization may increase profits, number of employees, or market share. Businesses grow by usingconcentration (focusing on its primary line of business), vertical integration (the combination of twoor more divisions normally handled by separate companies), horizontal integration (combining withcompetitors), or diversification (related - combining with other businesses in the same industries, orunrelated - combining with businesses in different or unrelated industries). A stabilitystrategy is a corporate strategy in which an organization continues to do what it iscurrently doing.A renewalstrategy addresses functions that are declining. There are two main types of renewalstrategies: retrenchment and turnaround. A retrenchment strategy is used when the issue is minorand it will help stabilize processes, renew organizational resources and capabilities, and bring theorganizational back to being competitive again. The turnaround strategy is used when the problem isserious and drastic action is required to fix the problem. In both strategies it may be necessary to cutcosts and restructure how the business is run; in a turnaround strategy these steps are moreextensive. The BCG matrix provides a framework for understanding various businesses and helps managersestablish priorities for distributing resources. It was developed by the Boston Consulting Group andpresented the idea that an organization could be assessed and by using the matrix to identify whichaspect of a company offered high potential and which were low and therefore the most logical to getrid of. Any division that fell into the Low-Low section should be sold off, the High-High were thearea’s to invest in. Anything that fell into either to the low-high categories could be assessed andeither improved to make a viable part of the business, or sold off to get as much for them aspossible