Occurs when an organization regroups through cost and asset reduction to reverse declining sales and profit.

Sometimes called a turn-around or re-organizational strategy. Designed to fortify an organizations basic and distinctive competence.

 When an organization has clearly distinctive competence but has failed consistently to meet its objectives and goals over time. When the organization is one of the weaker competitors in a given industry. When an organization is plagued by inefficiency, low profitability, poor employee morale, and pressure from stockholders to improve performance.

 When an organization has failed to capitalize on external opportunities, minimize external threats, take advantage of internal strengths, and overcome internal weaknesses over time; that is, when the organizations strategic managers have failed (and possibly will be replaced by more competent individuals).

 Entails selling off land and buildings to raise needed cash, pruning product lines, closing marginal businesses, closing obsolete factories, automating processes, reducing the number of employees, and instituting expense control system.

Sony sheds 10,000 staff in major reorganization

BBC News, 12 April 2012

 Selling a division or part of an organization. Used to raise capital for further strategic acquisitions or investments.

 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; this can result from radically different markets, customers, managers, employees, values or needs.

 The company sells one of its divisions to focus on their core business activities or in other operations or field.

Apple and Microsoft group buys Nortel patents BBC News, 1 July 2011

Shunned Starbucks in Aussie exit BBC News, 4 August 2008

 Occurs when two or more companies from a temporary partnership or consortium for the purpose of capitalizing on some opportunity. Often, the two or moir sponsoring firms from a separate organization and have shared equity ownership in the new entity.

 When a privately owned corporation is forming a joint venture with a publicly owned organization; there are some advantages of being privately held such as close ownership; there are some advantages of being publicly held, such as access to stock issuances as a source capital. These advantages can be synergistically combined in a joint venture.

 When a domestic organization is forming a joint venture with a foreign country; joint venture can provide a domestic company with the opportunity of obtaining local management in a foreign country.

When the distinctive competencies of two or more firms complement each other especially well.
When two or more smaller firms have trouble competing with a large firm. When there exists a need to introduce a new technology quickly.

 Jointly Controlled Operations:

Involve the use of asset and other resources.

Combine their operations, resources and expertise in order to manufacture market and distribute jointly a particular product. Jointly Controlled Assets: Involve the joint control and often the joint ownership of one or more assets contributed to, or acquired for the purpose of the joint venture and dedicated to the purpose of joint venture.

 Jointly Controlled Entities: Establishment of a corporation; partnership or other entity; there is a contractual arrangement that establishes joint control over the economic activity of the entity.

Swedish Match and Philip Morris International announce global joint venture to commercialize smoke-free tobacco products Swedish Match Press Release, 3 February 2009

 termination of the firm. a process by which a company's existence is brought to an end.

involves giving up management of the firm to the courts in return for some settlements of the corporations obligations.

 No one is interested in buying a weak company in an unattractive industry. (Industry is unattractive and the company is too weak to be sold as a going concern.) When a company finds itself in the worst possible situation with poor competitive position in an industry. When a corporation sees no hope of being able to operate successfully or to obtain the necessary creditor agreement.

 Management may choose to convert as many saleable assets as possible to cash, which is then distributed to the shareholders after all obligations. The liquidator collects the assets of the company (including uncalled capital; that is, amounts unpaid on shares) and pays the creditors in order of priority.

The liquidator distributes any surplus funds to the shareholders.