STRATEGIC MANAGEMENT

GRAND STRATEGIES

GRAND STRATEGIES

CONCENTRATION- The firm directs its resources to the profitable growth of a single product, in a single market with a single technology. MARKET DEVELOPMENT PRODUCT DEVELOPMENT INNOVATIONS HORIZONTAL INTEGRATION

GRAND STRATEGIES

VERTICAL INTEGRATION JOINT VENTURE CPCENTRIC DIVERSIFICATION CONGLOMERATE DIVERSIFICATION RETRENCHMENT/TURNAROUND- COST REDUCTION (OR) ASSET REDUCTION

GRAND STRATEGIES

DIVESTITURE SALE OF BUSINESS OR A MAJOR BUSINESS COMPONENT. THE BUYER WILLING TO PAY A PREMIUM ABOVE THE VALUE OF FIXED ASSETS FOR A GOING CONCERN LIQUIDATION SOLD NOT AS A GOING CONCERN.

LONG TERM OBJECTIVES

PROFITABILITY PRODUCTIVITY COMPETITIVE POSITION EMPLOYEE DEVELOPMENT EMPLOYEE RELATIONS TECHNOLOGICAL LEADERSHIP PUBLIC RESPONSIBILITY

LONG TERM OBJECTIVESQUALITIES

SUITABLE UNDERSTANDABLE MEASURABLE FLEXIBILITY ACCEPTAB;E ACHIEVABLE MOTIVATING

Grand strategy clusters

RAPID MKT. GROWTH

Conentration V.integration Concen. Div.

Con. Div, Conglomerate J.v

Horizontal int. Divestiture Liquidation

Turnaround Con. Div, Comglo Divestuture liquidation
WEAK COMPETITIVE POSITION

STRONG COM. POS.

SLOW MKT. GROWTH

BEHAVIOURAL CONSIDERATIONS AFFECTING ST. CHOICE

ROLE OF PAST STRATEGY DEGREE OF FIRMS EXTERNAL DEPENDANCE ATTITUDE TOWARDS RISK INTERNAL POLITICAL CONSIDERATIONS TIMING COMPETITIVE REACTION

CONTINGENCY APPROACH

MEANING:CHANGES IN THE INDUSTRY AND ENVN., MAY DIFFER FROM FORECASTS AND ASSUMPTIONS STEP 1: THE CRITICAL ASSUPTIONS ON WHICH SUCCESS OF CHOSEN ST. DEPENDS ARE IDENTIFIED. S2 :IDENTIFY THE SCENERIO THAT MAY TURN OUT TO BE DIFFERENT FROM BASIC FORECAST S3 : IDENTIFY THE TRIGGER POINTS - SPECIFIC DEVIATIONS IS KEY FORECASTS OF INDUSTRY (OR) ENVN., CONDITIONS