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Types of Business Strategies Business Studies Grade 12 Study Notes

Types of Business Strategies Business Studies Grade 12 Study Notes. This study note on Types of Business Strategies for Grade 12 Business Studies covers a wide range of strategies employed by businesses to achieve their goals, mitigate risks, and improve performance. These strategies can be broadly classified into Integration Strategies, Intensive Strategies, Diversification Strategies, and Defensive Strategies.

  1. Integration Strategies involve combining resources, capabilities, or activities of two or more organizations to achieve a common goal. They include Horizontal, Vertical, and Conglomerate Integration strategies.
  2. Intensive Strategies aim to increase market share with existing products or services in the current market. They consist of Market Penetration, Market Development, and Product Development strategies.
  3. Diversification Strategies involve expanding a company’s operations into new markets or industries that are different from its existing operations. Concentric Diversification, Horizontal Diversification, and Conglomerate Diversification are the three main types of diversification strategies.
  4. Defensive Strategies help companies reduce their exposure to risk and protect themselves from potential losses. Retrenchment, Divestiture/Divestment, and Liquidation are the three main defensive strategies.

These strategies are vital for organizations to navigate the competitive business environment, capitalize on opportunities, and address various challenges. The choice of strategy depends on the company’s goals, resources, capabilities, and market conditions.

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