Types of Strategy

David F.R.2012Chap4ProjectPaperDraft

FIRST DRAFT

TOPIC: TYPES OF STRATEGIES

1.0 OVERVIEW:

1.1 Introduction:

Hundreds of companies today, including, IBM, Wells Fargo, and General Electric, have embraced strategic planning fully in their quest for higher revenues and profits.

1.2 Example: UPS:

Kent Nelson, former chair of UPS, explains why his company has created a new strategic planning department: “Because we’re making bigger bets on investments in technology, we can’t afford to spend a whole lot of money in one direction and then find out five years later it was the wrong direction.”

1.3 The flow of this project paper:

This chapter brings strategic management to life with many contemporary examples. Sixteen types of strategies are defined and exemplified, including Michael Porter’s generic strategies: cost leadership, differentiation, and focus. Guidelines are presented for determining when it is most appropriate to pursue. An overview of strategic management in nonprofit organizations, governmental agencies, and small firms is provided. As showcased below, Petronas is an example company that for many years has exemplified excellent strategic management.

1.4 Excellent Strategic Management Showcased: Petronas:

PETRONAS, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company, wholly owned by the Government of Malaysia. Headquartered in Kuala Lumpur, PETRONAS owns the entire oil and gas resources in Malaysia and is responsible for developing and adding value to these resources. In 2013, Fortune ranked PETRONAS as the 75th largest company in the world, the 19th most profitable company in the world, and the most profitable company in Asia. PETRONA has business interests in 35 countries and is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas as well as downstream oil refining, marketing and distribution. Revenue derived from PETRONAS provides roughly 45...