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Grand or Business Strategies

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Strategy Analysis and Choice is a process that reconciles strategic actions, market opportunities, corporate strengths and resources, values of managers, and legal requirements and social responsibilities to select a "best" mission, strategic thrust, and set of strategic actions.

 “Grand strategies,often called master or business strategies provide basic direction for strategic actions. They are the basis of coordinated and sustained efforts directed toward achieving long-term business objectives. Grand strategies indicate the time period over which long-range objectives are to be achieved. Thus, a grand strategy can be defined as a comprehensive general approach that guides a firm’s major actions. Business managers can use tools and techniques such as Grand Strategy Selection Matrix or Grand Strategy Cluster or Matched-pair Analysis to design means that will be used to achieve long-term objectives.

The Model for Grand Strategy Cluster is shown in Figure 1. The technique is based on the idea that the situation of a business is defined in terms of the growth rate of the general market and the firm’s competitive position in that market. When these factors are considered simultaneously, a business can be broadly categorized in one of four quadrants: (I) strong competitive position in a rapidly growing market, (II) weak position in a rapidly growing market, (III) weak position in a slow-growth market, or (IV) strong position in a slow-growth market. Each of these quadrants suggests a set of promising possibilities for the selection of a grand strategy.

Figure 1

The Model for Grand Strategy Selection Matrix is shown in Figure 2. The basic idea underlying the matrix is that two variables are of central concern in the selection process: (1) the principal purpose of the grand strategy and (2) the choice of an internal or external emphasis for growth or profitability.

Figure 2

 

The principal Grand Strategies are:

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Example:

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9.  A liquidation involves selling parts of a firm or the entire firm at auction or to a private buyer for its tangible asset value. The intent is not to operate an ongoing business. Contrast this strategic action with divestiture.

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Example:

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Reference:

Pearce-Robinson. (2004). Strategic Management. The McGraw−Hill Companies.

Cite this as:

YouSigma. (2008). "Grand or Business Strategies." From http://www.yousigma.com.

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