Exercise4J

Classify Some Strategies

Purpose This exercise can improve your understanding of various strategies by giving you experience classifying strategies. This skill will help you use the strategy-formulation tools presented later. Consider the following 12 (actual or possible) strategies by various firms:

1. Dunkin Donuts is increasing the number of its U.S. stores to over 15,000.

2. Brown-Forman Corp. selling its Hartmann luggage and leather-goods business.

3. Motorola, which makes TVs, acquired TerayonCommunication, a supplier of TV equipment.

4. Macys department stores adding bistros and Starbucks coffee shops at many of its stores.

5. Dell allowing Wal-Mart to begin selling its computers. This was its first move away from direct mail order sellingof computers.

6. Motorola cutting 7,500 additional jobs.

7. Hilton Hotels building 55 new properties in Russia, the United Kingdom, and Central America.

8. Video-sharing website YouTub launching its services in nine new countries.

9. Cadbury SchweppesPLC slashing 7,500 jobs, shedding product variations, and closing factories globally.

10. General Electric selling its plastics division for $11.6 million to Saudi Basic Industries Corp. of Saudi Arabia.

11. Cadbury Schweppes PLC, the maker of Trident gum, buying Turkish gum maker Intergum.

12. Limited Brands selling its Express and Limited divisions to focus on its Victorias Secret and Bath & Body Works divisions. Instructions Step

1 On a separate sheet of paper, write down numbers 1 to 12. These numbers correspond to the strategies described.

Step 2 What type of strategy best describes the 12 actions cited? Indicate your answers.