This chapter discusses various types of strategies companies use including intensive strategies like market penetration and product development, integration strategies like forward and backward integration, diversification strategies, defensive strategies, and Michael Porter's generic strategies. It also covers means for achieving strategies such as joint ventures, mergers and acquisitions, outsourcing, and first mover advantages. Key terms discussed include different types of integration, diversification, Porter's strategies, and strategic management concepts.

2. Chapter Outline Long-Term Objectives Types of Strategies Integration Strategies

3. Chapter Outline ( cont’d ) Intensive Strategies Diversification Strategies Defensive Strategies

4. Chapter Outline ( cont’d ) Michael Porter’s Generic Strategies Means for Achieving Strategies First Mover Advantages

5. Chapter Outline ( cont’d ) Outsourcing Strategic Management in Nonprofit & Governmental Organizations Strategic Management in Small Firms

13. Long-Term Objectives 25% on long-term objectives 75% on annual objectives Function 50% on long-term objectives 50% on annual objectives Division 75% on long-term objectives 25% on annual objectives Corporate Basis for Annual Bonus/Merit Pay Organizational Level Varying Performance Measures by Organizational Level

17. Types of Strategies Operational Level Functional Level Division Level Corp Level A Large Company

18. Types of Strategies Operational Level Functional Level Company Level A Small Company

20. Types of Strategies Vertical Integration Strategies Forward Integration Backward Integration Horizontal Integration

28. Types of Strategies Intensive Strategies Market Penetration Market Development Product Development

36. Types of Strategies Diversification Strategies Concentric Diversification Conglomerate Diversification Horizontal Diversification

44. Types of Strategies Defensive Strategies Retrenchment Divestiture Liquidation

49. 2003 Examples Callaway Golf recently acquired Top-Flite Golf Company Horizontal Integration McDonalds recently acquired a paper cup producer Backward Integration Doll maker & mail order firm, Pleasant Co., opened a retail store in Manhattan Forward Integration

50. 2003 Examples GM developing hydrogen powered automobiles or Pfizer developing a new antismoking pill Product Development JetBlue is adding dozens of new routes Market Development SABMiller Plc spent $500 million in 2003 on marketing its Miller brands of beer Market Penetration

51. 2003 Examples Viacom acquired Comedy Central, from AOL Horizontal Diversification The video-rental firm Blockbuster may acquire the DVD and music direct-marketing firm Columbia House Conglomerate Diversification Microsoft launched its first personal computers that double as entertainment centers Concentric Diversification

52. 2003 Examples Sprint liquidated its Web-hosting division Liquidation ConocoPhillips recently sold its Circle K convenience store chain to Alimentation Couche-Tard, a Canadian firm Divestiture America West Airlines closing its hub at Columbus, Ohio and laying off 390 employees Retrenchment

55. Michael Porter’s Generic Strategies Cost Leadership Strategies Differentiation Strategies Focus Strategies

65. Recent Mergers Converse Nike Handspring Palm People Soft Oracle Montana Mills Krispy Kreme Doughnuts Pharmacia Pfizer National Steel Corp U.S. Steel Inktomi Corp Yahoo Rational Software Corp IBM Acquired Firm Acquiring Firm