Question 4: Discuss the various grand strategies at the Corporate Level i.e.

Stability,
Growth and Retrenchment.
In Growth, the company seeking growth faces different subgroups for it: horizontal growth
(concentration), diversification and vertical growth.
Horizontal growth there are 3 components to horizontal growth. First a company may
decide to look for new customers. Second, a company may decide to pursue new
product. Third, the company may pursue new locations.
Vertical Integration it is an integration along a supply chain. An example would be if
a retailer now manufactures the products it sells, that is considered as increasing its level
of vertical integration.
Diversification there are 2 types of diversification. First is related diversification,
which is a common core of ones resources and capabilities. With this, synergy rises
because the related activity can increase the value and economies of scale can save
money. Second is the unrelated diversification where it is used to lower the relative risk.
Basically it is like a portfolio, the more different each portfolio is to each other the better.
Another example is that when a product is released. It is done so over several markets to
hedge risk of failure.
In Stability, when a company is seeking slow growth or stagnation, management usually
seeks strategies geared towards stability. There are 3 elements to which stability is used to
strategize.

Pause if the internal resources are already stretched thin, organizations will often scale
down a bit and focus on control.
Proceeding with caution if there are problems in the macro environment, the
company may opt for a strategy that goes for a formidable growth..
Profit if the company has loyal customers, solid base, the strategy is to go for research
and development.
Retrenchment this strategy revolves around cutting sales. It is also a strategy that seeks to
reduce size or diversity of an organizations operations. Expenditures are also cut off or
minimize to become financially stable. Manpower headcount is also affected when there is
retrenchment. As the size of manpower is lowered to meet viable financial stability.