Alternative Strategies for Courts Belize Ltd.

Purpose

This exercise will give you practice labeling hypothetical strategies that a firm could pursue.

Instructions For each of the strategies listed below, identify a hypothetical strategy that you believe may be good for Courts to pursue.

Refer to Chapter 4 for a description of the strategies. For each of the strategies, state what Courts can do as an example. For example, For Divestiture: Courts (Unicomer) can sell Tropigas Ltd.

a. Forward Integration

b.Backward Integration

c. Horizontal Integration

d.Market Penetration

e. Market Development

f.Product Development

g.Related Diversification

h. Unrelated Diversification

i. Retrenchment

j. Divestiture

k. Liquidation

TABLE 4-4 Alternative Strategies Defined and Recent Examples Given Strategy Definition Example Forward Integration Gaining ownership or increased control over distributors Amw.on began rapid delivery services in some or retailers US cities Backward Integration Seeking ownership or increased control of a firm's Starbucks purchased a coffee farm. suppliers Horizontal Integration Seeking ownership or increased control over competitors BB&T acquired Susquehanna Bancshares Market Penetration Seeking increased market share for present products or Under Armour signed tennis champion Andy services in present markets through greater marketing Mumay to a 4-year, 523 million marketing deal. cfforts Market Development Introducing present products or services into new Gap opened its first five stores in China geographic area Product Development Seeking increased sales by improwing present products or Amw on just began offering its own line of baby Services or developing new ones diapers and wipes Related Diversification Adding new but related products or services Facebook acquired the text messaging fimm WhatsApp for $19 billion Unrelated Diversification Adding new, unrelated products or services Kroger and Whole Foods Market are cooking meals, becoming restaurants Retrenchment Regrouping through cost and asset reduction to reverse Staples closed 250 stores and reduced by 50% declining sales and profit the size of other stores Divestiture Selling a division or part of an organization Sears Holdings divested its Land's End division to Sears' shareholders. Liquidation Selling all of a company's assets, in parts, for their The Trump Taj Mahalin Atlantic City, New tangible worth Jersey, faces liquidation TABLE 4-4 Alternative Strategies Defined and Recent Examples Given Strategy Definition Example Forward Integration Gaining ownership or increased control over distributors Amw.on began rapid delivery services in some or retailers US cities Backward Integration Seeking ownership or increased control of a firm's Starbucks purchased a coffee farm. suppliers Horizontal Integration Seeking ownership or increased control over competitors BB&T acquired Susquehanna Bancshares Market Penetration Seeking increased market share for present products or Under Armour signed tennis champion Andy services in present markets through greater marketing Mumay to a 4-year, 523 million marketing deal. cfforts Market Development Introducing present products or services into new Gap opened its first five stores in China geographic area Product Development Seeking increased sales by improwing present products or Amw on just began offering its own line of baby Services or developing new ones diapers and wipes Related Diversification Adding new but related products or services Facebook acquired the text messaging fimm WhatsApp for $19 billion Unrelated Diversification Adding new, unrelated products or services Kroger and Whole Foods Market are cooking meals, becoming restaurants Retrenchment Regrouping through cost and asset reduction to reverse Staples closed 250 stores and reduced by 50% declining sales and profit the size of other stores Divestiture Selling a division or part of an organization Sears Holdings divested its Land's End division to Sears' shareholders. Liquidation Selling all of a company's assets, in parts, for their The Trump Taj Mahalin Atlantic City, New tangible worth Jersey, faces liquidation