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Business Strategy Essay Example

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Business Strategy

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Substantive growth will increase the wealth of the business and help the business to fund its future projects from the wealth coming from growth. The wealth coming from the substantive growth is also helpful and considerable when a business carries out strategic evaluation and selection. With these strategies the business can become strong and competitive with a large market share. When larger businesses achieve substantive growth, it is not only beneficial for the company but also for the society in a social perspective. Substantive growth can help the business to set the priorities and fulfill the strategies by implementing them step by step (Sekhar, 2009, p.In contrast, the retrenchment strategy in business is a strategy where the business cuts down the operational activities being carried out in order to become financially stable. The business would back out from certain markets and cut down expenses by reducing diversity and the size of the overall business. The goal is to achieve a beneficial turnaround to ensure the application of suitable strategies. This also helps the business to look at the future threats and opportunities for the business and then evaluate the strategies. This strategy must be beneficial for the business when it reaches a stage where it is not financially stable, too much debt and too little funds to pay them off.On various occasions, the businesses need to adopt certain alternative strategies to limited growth, substantive growth and retrenchment. These alternative strategies to limited growth are market penetration, market development and product development. Alternative strategies to substantive growth are horizontal integration, related diversification, vertical integration and unrelated diversification. Strategic alternatives for retrenchment are turnaround and divestment.The market penetration strategy is a strategy which allows the business to lower the price for the product which is initially promoted in the targeted market. Through this the business can achieve more sales revenue through limited products in a defined market. Market development is a low risk strategy which is based on the strategy of specialization where a business specializes in a product, increases its range and applies possible modifications to reach customers in the specified market area. Product development is the strategy in which a business modifies its existing

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preview essay on Business Strategy
  • Pages: 10 (2500 words)
  • Document Type: Essay
  • Subject: Business
  • Level: Undergraduate
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