Alternative Strategies As of Nov 3 2016

Alternative
Strategies
Copyright 2013 Pearson Education
5-2
Walt Disney Company

(Theme park Company)
1984 Profits: $242 Million

Theme Park Operations: 77 percent of profits
Consumer Products: 22 percent of profits
(Licensing Mickey Mouse, Donald Duck etc)
Filmed Entertainment: 1 percent of profits
Walt Disney took over when Roy O. Disney died
Walt Disney Company

Hired Michael Eisner - 1984
-Value both the filmed entertainment legacy and theme park
operations
- Focused on the animation and movie studios
1. Increased admission prices at theme parks
1984 - $186 m
1994 - $688 m
2. Focused on movie studios (character development)
1984 - $2.42 m
1994 - $845 m
3. Diversified into television (ABC), hotels, retail stores,
sport team, cruise line, publishing, consumer
products, licensing, etc.
Consumer products revenue
1984 - $53 m
1994 - $433 m
(Huey & McGowan, 1995)
Market Cap: 1984 = $2 billion 1994 = $28 billion
Disney animators created The Little Mermaid in

1989 had box office receipts of $83.5 million. It
won an Oscar.
Beauty and the Beast was released in 1991, setting
new box office records for an animated film
($145.8 million).
The Lion King came out in 1994 and has had box
office sales of over $328.5 million and has sold
over 30 million copies in the home video
market.
Market Cap 1994 = $28 billion
Market Cap: 1984 = $2 billion

6
The DIVERSIFICATION efforts

described involved acquiring
new resources for the firm.
Taken together, these actions

and changes led to phenomenal
growth in the market
capitalization of Walt Disney.
Market Cap: 1984 =

$2 billion
Market Cap 1994 = $28 billion
1. Increased admission
prices at theme parks
2. Focused on movie
studios (character
development)
3. Diversified into television (ABC), hotels,
retail stores, sport team, cruise line,
publishing, consumer, products,
licensing, etc.
5-8
Defining Strategic Management

A strategic plan is a companys game plan.
A strategic plan results from tough managerial choices
among numerous good alternatives, and it signals
commitment to specific markets, policies, procedures,
and operations.
Walt Disney Company Market Cap 1994 = $28 billion

1-9
Defining Strategic Management

Strategies
the means by which long-term objectives will
be achieved

5-10

Sample of Umbrella STRATEGIES
Forward Integration
Backward Integration
Horizontal Integration
Market Penetration
Market Development
Product Development
Related Diversification
Unrelated Diversification
Retrenchment
Divestiture
Liquidation

Most organizations
simultaneously pursue a
combination of two or more
strategies,
but a combination strategy
can be exceptionally risky if
carried too far.
No organization can afford to

pursue all the strategies that
might benefit the firm.
Difficult decisions must be
made and priorities must be
established.
Alternative Strategies
1. Forward Integration
2. Backward Integration
3. Horizontal Integration
4. Market Penetration
5. Market Development
6. Product Development
7. Related Diversification
8. Unrelated Diversification
9. Retrenchment
10. Divestiture
11. Liquidation
5-12
9. Retrenchment
10. Divestiture
11. Liquidation
INTEGRATION STRATEGY
(gaining control over distributors,
suppliers and/or competitors)
INTENSTIVE STRATEGY
(effort of firms competitive position
with its existing products is to improve)
DIVERSIFICATION STRATEGY
(diversify into other products)
DEFENSIVE STRATEGY
(strategy to save the company)
5-13
9. Retrenchment
10. Divestiture Classification of
11. Liquidation Strategies with
countless
variation
INTENSTIVE STRATEGY
DEFENSIVE STRATEGY
Collective
classification
5-14
Alternative Strategies Defined

and Exemplified
5-15
Alternative Strategies Defined

and Exemplified
5-16
Integration Strategies
(gaining control over distributors, suppliers and/or
competitors)
1. Forward integration
2. Backward integration
3. Horizontal integration
Strategy Trend, Rationale, Basis
COMPANY A AND ITS SUPPLIERS vs COMPANY B AND ITS SUPPLIERS
COMPANY A & ITS BUSINESS PARTNERS vs COMPANY B & BUSINESS PARTNERS
Global Focus: Doing international business, sourcing suppliers abroad
Pressure from the top management for Productivity and Efficiency
5-17
- involves gaining ownership or increased control over distributors

or retailers
Examples:
Unilever created partnerships with convenient stores.
-Low mark up price for the convenient stores
(OPERATION AND IT PERSPECTIVE)
-Shelf space or slotting
-Sharing of database on inventory data
-Twice a week meeting in reporting product sales and rejected products
-Unilever may lease a near warehouse to store its inventory for quick
distribution to 7 eleven and ministop
-Giving of cash incentives or awards to convenient stores with highest sales for
consumer products
-Acquisition of locally owned convenient stores in provinces and convert it to
special Unilever product stores.
5-18

or retailers
Examples:
Manufacturing companies are creating
alliances with shopping malls SM Malls (since
SM is implementing an international expansion)
Input
Nestle
Distributors
Retailers
consumers
5-19

or retailers
Examples:
MacBook Distributors are closely monitored by the
Head Office of Apple
-Apple is giving complete training or frequent product knowledge
seminar of apple gadgets
Franchising strategy of Jollibee/ McDo

-Frequent auditing of Jollibee branches (OPERATIONS
PERSPECTIVE)
-Providing incentives and recognitions for franchise owners with
high audit compliance
-McDonald will obligate all its Luzon restaurant to renovate the
dining area.
5-20
1. Forward Integration Guidelines

When an organizations present distributors
are especially expensive
When the availability of quality distributors is
so limited as to offer a competitive
advantage
When an organization competes in an
industry that is growing
When present distributors or retailers have
high profit margins
5-21
INTEGRATION
STRATEGY
- strategy of seeking ownership or increased

control of a firms suppliers
Example
Coca Cola agreed with San Miguel Packaging on a 3
year supplier contract for glass bottles
Coca cola will deploy an operation officer to the glass

manufacturing plant of San Miguel to check sanitation or
production quality of glass bottles (OPERATION
PERSPECTIVE)
Coca cola may give recognition award to best suppliers
Coca cola needs stable pricing of raw materials (Financial
Strategy)
By implementing backward integration strategy, Coca needs to
hire experienced purchasing officers (Human Resource)
5-22
INTEGRATION
STRATEGY

Example
Coca Cola agreed with San Miguel Packaging on a 3
year supplier contract for glass bottles
Coca cola will deploy an operation officer to the glass

manufacturing plant of San Miguel to check sanitation or
production quality of glass bottles (OPERATION
PERSPECTIVE)
Coca cola may give recognition award to best suppliers
Suppliers
Coca with
cola
needs
stable
pricing of raw materials (Financial
highest
policy
compliance
No rejects (No bubbles, no cracks)
Strategy)
Suppliers who follows ISO9000, ISO14000
By
implementing
backward integration strategy, Coca needs to
On time
delivery
Follows
just in time system
hire
experienced
purchasing officers (Human Resource)
5-23
INTEGRATION
STRATEGY

Example
Acquisition of coal powered plant by big
manufacturing companies.
Common practice is partial acquisition (LEGAL MATTERS IS

CRUCIAL HERE)
Has to be supported with high financial returns
5-24
INTEGRATION
STRATEGY

Example
Subcontracting of coffee beans of Starbucks
to Cavite Coffee Farmers.
Starbucks might give education benefits to son or daughter of

the coffee farmer (Corporate Social Responsibility)
Starbucks will provide the supply of coffee seeds or planting
materials
Starbucks will frequently visit the coffee farmers to check
agricultural problems and other issues.
In-store communication for Rustan Coffees care to farmers
(Marketing perspective)
5-25
INTEGRATION
STRATEGY

Example
Subcontracting of coffee beans of Starbucks
to Cavite Coffee Farmers.

materials
In-store communication for Rustans care to farmers (Marketing
perspective)
5-26
INTEGRATION
STRATEGY
Career Tipsownership
/ Dos and Donts or increased
- strategy
Careful!!of seeking
There are so many options in recommending strategies,
control of a firmsmake
suppliers
it sure to select few, and it is really appropriate for
Example
the company
Do research if the company has done it before, make it
Subcontracting sure
of this
coffee
beans
of Starbucks
time it will
be different
Consider the financial implication of this detailed
to Cavite CoffeeFarmers.
strategy

materials
In-store communication for Rustans care to farmers (Marketing
perspective)
5-27
2.Backward Integration Guidelines

When an organizations present suppliers
are especially expensive or unreliable
When the number of suppliers is small and
the number of competitors is large
When the advantages of stable prices are
particularly important
When an organization needs to quickly
acquire a needed resource
5-28
INTEGRATION
STRATEGY
- a strategy of seeking ownership of or increased

control over a firms competitors
Example
Oligopoly of Shell, Petron and Caltex
Frequent club or association meetings for
industry updates (Management)
Tie up with government controlling body
Oil deregulation issues (LEGAL)
5-29
INTEGRATION
STRATEGY
- a strategy of seeking ownership of or increased

control over a firms competitors
Example
Barong manufacturers in Lumban tried to collaborate

for close pricing and quality to overcome competitors in
Bulacan and Taal.
Collaborative advertisement of barong from Lumban
Jollibee purchased majority ownership of Mang

Inasal
SM acquired Waltermart (now being controlled by SM); Acquisition
of Macro; Then converted to SM Hypermarkets).
5-30
3. Horizontal Integration Guidelines

When an organization can gain monopolistic
characteristics in a particular area or region

without being challenged by the federal
government
When an organization competes in a growing
industry
When increased economies of scale provide
major competitive advantages
When competitors are faltering due to a lack of
managerial expertise
5-31
Intensive Strategies
(effort of firms competitive position with its
existing products is to improve)
4. Market penetration strategy

5. Market development strategy
6. Product development strategy
Smart Consumers (environment and health conscious, demanding,
multitasking)
Globalization
Rapid Product Development
Pressure from the top management and shareholders to perform or increase
the sales revenue
5-32
INTEGRATION
STRATEGY
- seeks to increase market share for present products

or services in present markets through greater marketing
efforts
Example
Philippine Airline tries to increase market share by
improving their services (Operations and Marketing)
Mabuhay millage card
McDonald provides (Marketing)
Discount coupons to trigger more sales.

Free sandwich on labor day to first 100 customer
Coca cola glass
5-33
INTEGRATION
STRATEGY
- seeks to increase market share for present products or services

in present markets through greater marketing efforts
Example
With the greater marketing efforts of BPI, convincing its
customers to deposit more, avail time deposits,
-Installation of Software (or Customer Relationship
Management or CRM Software) that will monitor client transactions
(Operations and IT)
CRM software aims to
Increase deposits of clients with less than P100,000
Convince clients for more car loan
or Requiring each BPI branch to accumulate 30 car loans annually
5-34
INTEGRATION
STRATEGY
- seeks to increase market share for present products

or services in present markets through greater marketing
efforts
Example
Globe and Smart created heavy advertisement and
promotions.
To overtake Smart, Globe may hire the most competitive

Marketing people and executives to create more brand
awareness (MARKETING PERSPECTIVE) examples only
Ayala will invest in technology infrastructure for Globe and
create more tower for effective signal system (OPERATIONS
PERSPECTIVE) examples only
5-35
INTEGRATION
STRATEGY
Example
Starbucks promo on planner.
Customer loyalty card programs (SM advantage, Suki
Card of Mercury Drugs, Everyday Rewards of 7
Eleven)
Small Milk Tea Business are offering free drinks on the 11th
purchase of the customer
Clothing companies provide discount whenever their employee
buy their own products; with ceiling amount
Octoberfest of San Miguel Beer, Sports or Marathon

Event of Nestle Milo (to maintain awareness of their
products and increase sales)
5-36
INTEGRATION
STRATEGY
Example
Due to Octoberfest, the company is
more sales of beer!
Starbucks anticipating
promo on planner.
Customer loyalty card programs (SM advantage, Suki
San Miguel
BeerEveryday
Incorporated
must of 7
Card of Mercury
Drugs,
Rewards
Eleven) ensure that their PROCESS of beer
production is capable of big volume of
Small Milk Tea Business are offering free drinks on the 11th
beer.
purchase of
the customer
All Market Penetration Strategies is
Clothing companies provide
discount
whenever their
employee
connected
to Operations
Strategy
buy their own products; with ceiling amount
Octoberfest of San Miguel Beer, Sports or Marathon

Event of Nestle Milo (to maintain awareness of their
products and increase sales)
5-37
INTEGRATION
STRATEGY
Example
Pfizer will create mobile advertisement to increase
sales of its paracetamol (to compete with Biogesic
paracetamol of Unilab)
Pfizer must hire and give benefits to the most competent Sales
Rep or Medical Representatives (HR PERSPECTIVE)
Pfizer must allocate increase advertising expense (FINANCIAL
PERSPECTIVE)
Unilab does not believe in selling effort and product

development effort because everything has been done
to paracetamol drugs. So their Market Penetration
Strategy is in the Brand Marketing through its endorser
John Lyod.
5-38
INTENSIVE STRATEGY
4. Market Penetration Guidelines

When current markets are not saturated with a
particular product or service

When the usage rate of present customers
could be increased significantly
When the market shares of major competitors
have been declining while total industry sales
have been increasing
When increased economies of scale provide
major competitive advantages
5-39
INTEGRATION
STRATEGY
- involves introducing present products or

services into new geographic areas
Example:
Introduction of J.Co Donut to malls
Increasing number of store outlet of Red Ribbon
and 7 Eleven to Visayas and Mindanao Region
Jollibee invested huge resources to finance

expansion of Red Ribbon to catch up with
Goldilocks (Finance Strategy, e.g. equity or debt
financing?)
Increasing number of stores of Puregold
(Operations)
Facebook marketing for small enterprises
Centrum was introduced to senior citizen
5-40
INTEGRATION
STRATEGY

Example:
Increasing number of store outlet of Red Ribbon

financing?)
(Operations)
Application of
PROJECT
MANAGEMENT
5-41
INTEGRATION
STRATEGY

Careful!!
Example:
Career Tips / Dos and Donts
There are so many options
recommending strategies,
Increasing number of store outlet of Red Ribbon inmake
it sure to select few,

financing?)
(Operations)
and it is really appropriate

for the company
Do research if the company
has done it before, make it
sure this time it will be
different
Consider the financial
implication of this detailed
strategies
INTEGRATION
STRATEGY
Example:
Misterdonut (many years ago) chosed Michael V. to
develop market to the masses and communicate low
cost strategy
Nescafe is conducting product activation and
sponsorship to campus colleges and universities
because it is target the students to drink nescafe coffee.
So the Nestle Finance Department budgets
sponsorship (Marketing Perspective)
PAL will develop the market or serve the airline
transportation requirement in Mainland China
Develop Website with Chinese Translation

(I.T. PERPECTIVE)
5-43
5. Market Development Guidelines

When new channels of distribution are
available that are reliable, inexpensive, and of

good quality
When an organization is very successful at
what it does
When new untapped or unsaturated markets
exist
When an organization has excess production
capacity
5-44
INTEGRATION
STRATEGY
- seeks increased sales by improving or modifying

present products or services
Examples:
Continuous product innovation of Nokia, Samsung and
Sony.
San Miguel Packaging Corporation invites suppliers in
product development
Getting inputs and technical recommendation on how to

effectively convert plastic resins into plastic crates and plastic
tubes (combined BACKWARD INTEGRATION AND PRODUCT
DEVELOPMENT)
5-45
INTEGRATION
STRATEGY

Examples:
Pascual Laboratory is doing product development in
their medicine drugs
Medium sized family-owned corporation try to avoid all external

sources of funds in order to avoid entanglements and to keep
control of the company within the family (Financial Strategy)
5-46
INTEGRATION
STRATEGY

Examples:
Colleges and Universities are introducing new courses
Quick service restaurants are introducing new products
in their menu
Wendys and Jollibee are frequently getting feedbacks from

dining customer for product evaluation
For small enterprise, this pertains to innovation or

uniqueness strategy.
5-47
INTEGRATION
STRATEGY

Examples:
Commercial bank creates various financial service
(varying interest rates, credit card, mutual funds, time
deposits)
-Online payment and transfer of fund (IT and Operations

matters)
5-48
INTEGRATION
STRATEGY

Examples:
For Commercial Banks like BPI
Other Areas of service improvement in the regular bank operations
Commercial Bank
Operations
Finance
Marketing
Teller Scheduling
Check Clearing
Collection
Transaction processing
Facilities design/layout
Vault operations
Maintenance
Security
Investments
Security
Real estate
Loans
Commercial
Industrial
Financial
Personal
Mortgage
Accounting
Trust Department
Auditing
INTEGRATION
STRATEGY

Examples:
Commercial Bank
Operations
Finance
Teller Scheduling
Check Clearing
Collection
Vault operations
Maintenance
Security
Investments
Security
Real estate
Accounting
Auditing
-Dont forget also that the

manifestation of these
3 Strategic Concepts are
Marketingimplemented strongly by
Loans
OPERATIONS
Differentiation
(better)
Commercial
Industrial
Financial
Response
Personal
(faster)
Mortgage
Cost
leadership
(cheaper) Trust Department
INTEGRATION
STRATEGY

Examples:
Commercial Bank
Operations
Teller Scheduling
Check Clearing
Collection
Vault operations
Maintenance
Security
Finance
Market Penetration
Marketing
Loans
Investments
Market Development Commercial
Security
Product Development Industrial
Real estate
Financial
Personal
-All these INTEGRATION
Mortgage
STRATEGIES are affecting these
Accounting
examples of operations issues in a
Trust Department
commercial bank
Auditing
Differentiation
(better)
Response
(faster)
Cost
leadership
(cheaper)
Check Available
Technologies and/
or Softwares
Examples:
Commercial Bank
Operations
Finance
Teller Scheduling
Check Clearing
Collection
Vault operations
Maintenance
Security
Investments
Security
Real estate
Loans
Differentiation
(better) Commercial
Accounting
Cost
leadership
(cheaper) Trust Department
Auditing
Marketing
Industrial
Financial
Response
Personal
(faster)
Mortgage
6. Product Development Guidelines

When an organization has successful products
that are in the maturity stage of the product life

cycle
When an organization competes in an industry
that is characterized by rapid technological
developments
When major competitors offer better-quality
products at comparable prices
When an organization competes in a highgrowth industry
5-53
Diversification Strategies
7. Related diversification
8. Unrelated diversification
Globalization and expansion
Rapid Product Development
Competition
Sustainability and anticipation of the future
Synergies of Businesses
Pressure from the top management and shareholders to perform
DIVERSIFICATION
STRATEGY
- Adding new but related products and services
-Value chains possess competitively valuable crossbusiness strategic fits
Examples:
Diversification of Ginebra to other non-alcoholic
beverage like Ice Tea and Bottled Juice
Ginebra must be careful in diversification strategy
because it might affect the Masculine Brand Identity of
their core alcohol products (MARKETING/ BRANDING
PERSPECTIVE)
The new products must be carefully studied based on
market demand and with low threat from competitors
5-55
DIVERSIFICATION
STRATEGY
- Adding new but related products and services
-Value chains possess competitively valuable crossbusiness strategic fits
Examples:
Plans of some colleges and universities (in
preparation for K-12.) is to offer diploma or short
courses.
5-56
DIVERSIFICATION
STRATEGY
Examples:
Ayala enters various business (originally from mall
and office leasing and house and lot, now into
condominiums, apartments, subdivision, hotels,
etc)
Ateneo offers seminars and trainings and short
diploma courses
Ateneo and its executives e.g. Dean and Rector will
convince trainors and speakers to render time for
providing the seminar. (HR perspective)
5-57
7. Synergies of Related Diversification
Transferring competitively valuable

expertise, technological know-how, or other
capabilities from one business to another
Combining the related activities of separate
businesses into a single operation to
achieve lower costs
Exploiting common use of a well-known
brand name
5-58
7. Related Diversification Guidelines
When an organization competes in a nogrowth or a slow-growth industry

When adding new, but related, products
would significantly enhance the sales of
current products
When new, but related, products could be
offered at highly competitive prices
When an organization has a strong
management team
5-59
- Adding new but unrelated products and services
- value chains are so dissimilar that no competitively

valuable cross-business relationships exist
Example
Banks owning the real state property (LEGAL
MATTERS) and now for leasing and selling
San Miguel Corporation purchased petroleum
companies, toll highway and airports
5-60
8. Unrelated Diversification Guidelines

When revenues derived from an organizations
current products would increase significantly by

adding the new, unrelated products
When an organizations present channels of
distribution can be used to market the new
products to current customers
When an organizations basic industry is
experiencing declining annual sales and profits
5-61
8. Unrelated Diversification Guidelines
When an organization has the opportunity to

purchase an unrelated business that is an
attractive investment opportunity
When existing markets for an organizations
present products are saturated
When antitrust action could be charged
against an organization that historically has
concentrated on a single industry
5-62
Defensive Strategies
9. Retrenchment
10. Divestiture
11. Liquidation
Sustainability
Recovery of investment
Minimize financial damages
5-63
DEFENSIVE STRATEGY
9. Retrenchment Strategies
Retrenchment
occurs when an organization regroups
through cost and asset reduction to reverse
declining sales and profits
also called a turnaround or reorganizational
strategy
designed to fortify an organizations basic
distinctive competence
5-64
DEFENSIVE STRATEGY
9. Retrenchment Guidelines
When an organization is one of the weaker
competitors in a given industry
When an organization is plagued by
inefficiency, low profitability, and poor
employee morale
When an organization has grown so large so
quickly that major internal reorganization is
needed
5-65
9. Retrenchment
DEFENSIVE
STRATEGY
Example:
-Layoff employees and giving separation cost
(legal matters and finance)
-Rotation of managers to different departments
-Minimizing of operations expenses (FINANCIAL
PERSPECTIVE)
-Closing of Mang Pepe (under Jollibee Group of

Companies)
5-66
DEFENSIVE STRATEGY
10. Divestiture Strategies

Divestiture
Selling a division or part of an organization
often used to raise capital for further strategic
acquisitions or investments
5-67
DEFENSIVE STRATEGY
10. Divestiture Strategies

Divestiture
Example
-When Ayala sold its Burger King
San Miguel sold Coca Cola
5-68
DEFENSIVE STRATEGY
10. Divestiture Guidelines

When an organization has pursued a
retrenchment strategy and failed to accomplish

needed improvements
When a division needs more resources to be
competitive than the company can provide
When a division is responsible for an
organizations overall poor performance
When a division is a misfit with the rest of an
organization
5-69
DEFENSIVE STRATEGY
11. Liquidation Strategies

Liquidation
selling all of a companys assets, in parts, for
their tangible worth
can be an emotionally difficult strategy
5-70
DEFENSIVE STRATEGY
11. Liquidation Guidelines

Examples
Liquidation of Export Bank
5-71
DEFENSIVE STRATEGY
11. Liquidation Guidelines

When an organization has pursued both a
retrenchment strategy and a divestiture
strategy, and neither has been successful
When an organizations only alternative is
bankruptcy
When the stockholders of a firm can
minimize their losses by selling the
organizations assets
5-72
9. Retrenchment
10. Divestiture
11. Liquidation
INTENSTIVE STRATEGY
with its existing products)
DEFENSIVE STRATEGY
5-74
But, still, the non
managers (fresh
9. Retrenchment
graduates) must
10. Divestiture demonstrate their
in the
11. Liquidation contribution
strategy of the
company
INTENSTIVE STRATEGY
Notice: Technical skills
are highly utilize during
the early years of
DEFENSIVE
STRATEGY
working in
the
(strategy
to save the company)
company.
9. Retrenchment
10. Divestiture
11. Liquidation
INTENSTIVE STRATEGY
Graduate of Legal
Management must use
their . . .
DEFENSIVE STRATEGY
As Middle
Manager or Top Manager
Alternative
Strategies
(President or VP), there will be more
heavy job responsibilities. They need to
set strategy plan to direct the company
INTEGRATION
towards the
vision, mission STRATEGY
and objective
INTENSTIVE STRATEGY
Skills in strategic management DIVERSIFICATION STRATEGY
8. Unrelated
Diversification
formulation,
implementation and
9. Retrenchment
evaluation become more useful as the
DEFENSIVE
STRATEGY
non managers or fresh graduates
are
10. Divestiture
promoted.
11. Liquidation
Conceptual and
Problem Solving
Skills
Trend in career growth
Multitasking
Show your conceptual or

problem solving skills
especially in strategic
management of the
companies

Alternative Strategies As of Nov 3 2016

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Alternative Strategies As of Nov 3 2016

Uploaded by

Copyright:

Available Formats

Alternative

Copyright 2013 Pearson Education

Walt Disney Company

1984 Profits: $242 Million

Walt Disney took over when Roy O. Disney died

Walt Disney Company

Market Cap: 1984 = $2 billion 1994 = $28 billion

Disney animators created The Little Mermaid in

Market Cap 1994 = $28 billion

Market Cap: 1984 = $2 billion

The DIVERSIFICATION efforts

Taken together, these actions

Market Cap: 1984 =

Market Cap 1994 = $28 billion

Copyright 2013 Pearson Education

Defining Strategic Management

Walt Disney Company Market Cap 1994 = $28 billion

Market Cap: 1984 = $2 billion

Defining Strategic Management

Walt Disney Company Market Cap 1994 = $28 billion

Market Cap: 1984 = $2 billion

Walt Disney Company Market Cap 1994 = $28 billion

Market Cap: 1984 = $2 billion

No organization can afford to

Alternative Strategies Defined

Copyright 2013 Pearson Education

Alternative Strategies Defined

Copyright 2013 Pearson Education

Copyright 2013 Pearson Education

- involves gaining ownership or increased control over distributors

- involves gaining ownership or increased control over distributors

Copyright 2013 Pearson Education

- involves gaining ownership or increased control over distributors

Franchising strategy of Jollibee/ McDo

1. Forward Integration Guidelines

- strategy of seeking ownership or increased

Coca cola will deploy an operation officer to the glass

- strategy of seeking ownership or increased

Coca cola will deploy an operation officer to the glass

- strategy of seeking ownership or increased

Common practice is partial acquisition (LEGAL MATTERS IS

- strategy of seeking ownership or increased

Starbucks might give education benefits to son or daughter of

- strategy of seeking ownership or increased

Starbucks might give education benefits to son or daughter of

There are so many options in recommending strategies,

Starbucks might give education benefits to son or daughter of

2.Backward Integration Guidelines

- a strategy of seeking ownership of or increased

- a strategy of seeking ownership of or increased

Barong manufacturers in Lumban tried to collaborate

Jollibee purchased majority ownership of Mang

3. Horizontal Integration Guidelines

characteristics in a particular area or region

4. Market penetration strategy

- seeks to increase market share for present products

Mabuhay millage card

McDonald provides (Marketing)

Discount coupons to trigger more sales.

- seeks to increase market share for present products or services

- seeks to increase market share for present products

To overtake Smart, Globe may hire the most competitive

Octoberfest of San Miguel Beer, Sports or Marathon