Chapter 1: Over View of Business Policy and Strategic Management



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SM Chapt 1

Key terms


7. Strategies
  • Strategies are the means by which long-term objectives will be achieved. Business strategies may include geographic expansion, diversification, acquisition, product development, market penetration, retrenchment, divestiture, liquidation, and joint ventures.
  • Strategies are potential actions that require top management

  • decisions and large amounts of the firm’s resources.
  • In addition, strategies affect an organization’s long-term prosperity, typically for at least five years, and thus are future- oriented.

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