Business Strategy Strategic Alternatives Strategic Alternatives - PowerPoint PPT Presentation

Business Strategy Strategic Alternatives Strategic Alternatives Nikolaos Karanasios Assistant Professor CEO of the Serres Business & Innovation Centre 07

CREATION CREATION A team of «investors» decides to found a new company. ● Among the investors may also be «legal entities» / «Legal ● persons». The investors assume the risk of loosing their money, wishing ● for success.

EXPANSION EXPANSION Geographinc expansion. ● Addition of new products and / or Sevices. ● Addition of new «subjects». ● Horizontal Integration. ● Vertical Integration. ● Total (diagonal) Integration. ●

DEVELOPMENT DEVELOPMENT Increment og the Market Share. ● Improvement of the Effectiveness (profitability). ● Improvent of dealing with risks. ● Improvement of cash-flows. ●

DIVERSIFICATION DIVERSIFICATION Change of products / services Line. ● Change of the Target Market. ● Change of the Financial Sources ● Change of «partners» (distributors, Research & Development, ● Accounting etc). Changes of individual characteristics of products, are NOT ● strategic diversification.

MOVEMENT - REDEPLOYMENT MOVEMENT - REDEPLOYMENT Change of company headqarters. ● Changes of the Production (even the country) of production and ● sales. Changes of premises type. ● Near translocation. ●

RESTRUCTURE / REENGINEER RESTRUCTURE / REENGINEER Add / Stop Functions. ● New Segmentation of Functions. ● New Structure approach (from functions to processes). ● Change of the Organization Chart (communication between ● profit / cost segments).

SHRINK SHRINK Abbandonement of geographic territories. ● Ceasing the offer of product / service Line. ● Replacement of function with out-sourcing. ● Decrement of Capital. ●

ACQUISITION ACQUISITION Friendly Acquisition (the owners of the company agree to sell ● it). Aggressive acquisition (The majority owners of the company ● shares are being bought at the Stock Exchange Market. Buy-out of enough capital for a management control. ●

MERGER Two or more companies are joined, loosing their autonomy. ● Participation in a group of companies, maintaining their ● autonomy. Transfer of Capital Ownership to an Equity participations ● company [Holding].

DEMERGER / SPLIT DEMERGER / SPLIT Division of a Group in its components – they regain autonomy. ● Division of a company and transformation to a group. ● Division of a company and transformation to a Holding. ●

DISSOLUTION DISSOLUTION Divestment. Sell-out of the assets and restitution of capital to ● the shareholders. Bankruptcy procedure. ● Buying of own shares. ● Liquidation. ●

DISCONTINUE DISCONTINUE Stopping of productive and commercial operations, but ● continuing to pay dues and collect from clients. Dormant (after settlement of Tax and Social Security depts). ● The company may restart without new foundation.

STOP STOP Abbandonement of all assets – after settlement of all depts. ● Abbandonement of Management. There are no candidates ● among the shareholders.

LEGAL FORM RESTRUCTURE LEGAL FORM RESTRUCTURE Change from partnership to Capital ownership (Lim, Ltd, Corp., ● Inc. S.A., GmbH, etc). Transformation to European Company. ● Transformation to European Cooperative. ● Transformation from Company to Cooperative or vice-versa. ●

GENERATION GENERATION Creation of an affiliate without other share-holders. ● Creation of an affiliate together with other natural or legal ● persons. Creation of a company together with ex staff memers (Spin ● Out). Creation of a company together with Researchers (spin off). ●

SALE SALE Sale of an entire company to another, a Group or a Holding. ● Sale of a part of a company to another. ● Sale of Shares to other investors. ●

ALLIANCE ALLIANCE Participation in a Group of companies. ● Participation in an Alignement (cluster). ● Exchange of shares between companies (not investors) of the ● same sector. Exchange of shares for the risk dispersion. ● Common undertaking of works (joint venture). ●

It is Not Strategy: It is Not Strategy: Diversification of a product or a service. ● Change of the Marketing Mix. ● Change of the policy about human Resources. ● The renegotiation of Credits / Depts. ●