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Growth strategy, stability strategy and contraction strategy, what are the differences between these three strategies?
Growth strategy, stability strategy and contraction strategy. What's the difference between these three strategies?

Growth: development-oriented, focusing on developing new markets, investing more in talents, capital and technology;

Stability: adhere to the type, adhere to the family business, and do not take risks.

Shrinking type: if the market is not optimistic, it means shrinking business, laying off employees and reducing financial expenses.

What is corporate strategy?

Enterprise strategy means that an enterprise chooses suitable business fields and products according to its own resources and strength according to environmental changes, forms its own core competitiveness, and wins in the competition through differentiation. Modern management science, such as MBA and EMBA, thinks that enterprise strategy is a top-down overall planning process, which is divided into company strategy, functional strategy, business strategy and product strategy.

Enterprise strategy is the general name of all kinds of enterprise strategies, including competition strategy, marketing strategy, development strategy, brand strategy, financing strategy, technology development strategy, talent development strategy, resource development strategy and so on. Enterprise strategy is endless, for example, informatization is a brand-new strategy. Although there are many kinds of enterprise strategies, their basic attributes are the same. They are all strategies aimed at enterprises, and they are all strategies aimed at the integrity, long-term and basic problems of enterprises.

Enterprise goals are: the goal of enterprise profit; The goal of production efficiency; The goal of product structure and product image; The goal of market competitive position. In order to make the enterprise's goal feasible, the following requirements must be met: the enterprise's goal must meet the requirements of the basic task of the enterprise, and the enterprise's goal must be as clear, specific and quantitative as possible; Enterprise goals should be guaranteed by corresponding strategies and measures.

The first factor affecting the strategy should be long-term planning. Mission, core values and vision are the three components of long-term planning and the core part of an enterprise. In the process of strategic planning, the mission and vision always guide the direction and requirements of strategic formulation; Core values guide the strategic thinking mode and implementation strategy.

The second factor that affects strategic management is the external environment. This external environment includes macro environment and industry environment. The so-called macro environment mainly depends on the regional economic situation and the economic situation of each economic cycle. The industrial environment can learn from Porter's five forces model, including suppliers, customers, competitors, substitutes and potential competitors. At the same time, strategic management is also related to internal factors. Internal factors include two aspects. First, the so-called core competitiveness of enterprises advocated by Hamel and C.K.Prahalad. The second is corporate culture. The influence of enterprise culture on enterprise strategy.