Corporate strategy and three types,”specifies what business to be in and what to do with those businesses. There are three types:1. Growth Strategy. Organization expands the number of markets served or products offered, either through its current business(es) or through new business(es). Ways to grow:• Concentration. Growing by focusing on primary line of business and increasing the number of products offered or markets served in this primary business.• Vertical integration. Growing by gaining control of inputs or outputs or both.- Backward vertical integration. Organization gains control of inputs by becoming its own supplier.- Forward vertical integration. Organization gains control ofoutputs by becoming its own distributor.• Horizontal integration. Growing by combining with competitors.• Diversification. Growing by moving into a different industryRelated diversification. Different but related industries. ‘Strategic fit’.Unrelated diversification. Different and unrelated industries. ‘no strategic fit’.2. Stability Strategy. Organization continues-often during periods of uncertainty todo what it is currently doing’ to maintain things as they are.3. Renewal Strategy. Organization is in trouble and needs to address declining performance.• Retrenchment strategy. Minor performance problems.• Turnaround strategy. More serious performance problems requiring more drastic action In both renewal strategies
managers can cut costs and restructure organizational operations.”