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Strategic Options: Identified by The Sub-Committee

The sub-committee has identified four strategic options for Fabrikam Residences to address the challenges presented by MEXIT: 1) Cost reduction through cost cutting and crisis stabilization to improve cash flows, 2) Market expansion by targeting new foreign markets beyond CETA given reduced exports to CETA, 3) Product diversification to protect against reduced revenue from a single product, and 4) Value chain reconstruction to offer different prices/costs through a radical reconstruction of legacy value chains.

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567 views3 pages

Strategic Options: Identified by The Sub-Committee

The sub-committee has identified four strategic options for Fabrikam Residences to address the challenges presented by MEXIT: 1) Cost reduction through cost cutting and crisis stabilization to improve cash flows, 2) Market expansion by targeting new foreign markets beyond CETA given reduced exports to CETA, 3) Product diversification to protect against reduced revenue from a single product, and 4) Value chain reconstruction to offer different prices/costs through a radical reconstruction of legacy value chains.

Uploaded by

amal joy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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FR

FABRIKAM RESIDENCES
Strategic Options
I d e n ti fi e d b y t h e s u b - c o m m i tt e e
FR
Strategic Options

Cost Reduction Market Expansion


• • Comes under Crisis Stabilization, • Telford Engineering can take MEXIT as an
wherein our top priority is to improve opportunity to expand its foreign
our immediate Cash Flows following the markets beyond CETA.
MEXIT. • Although exports volume to CETA will
• COST CUTTING is a key strategy to fall, the potential weakening of M$ can
turnaround. be used as an opportunity to deal with
other countries as they will find our
products more affordable now.

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FR
Strategic Options

Product Diversification Value Chain Reconstruction


• Our core function is manufacturing • Reconstructing legacy value chains to
trestles for bridges. offer different value at different prices
• We can protect ourselves against and costs is often overlooked as an
reduced revenue by diversifying our important part of continuous
product range. improvement.
• Reduced dependance on single product • Such a radical reconstruction can be a
for revenue will diversify our risk very important turnaround strategy.

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