Grand Strategies
Grand Strategies
Grand strategies are also called strategic thrusts. They provide basic direction for specific strategic actions and functional tactics. Some grand strategies are used together and reinforce each other and some are usually employed singly.
Grand Strategy
General plan of major action to achieve longterm goals Falls into three general categories 1. Growth 2. Stability A separate grand strategy can be 3. Retrenchment defined for global operations
Grand Strategy: Growth
Growth can be promoted internally by investing in expansion or externally by acquiring additional business divisions
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Internal growth = can include development of new or changed products External growth = typically involves diversification – businesses related to current product lines or into new areas
Grand Strategy: Stability
Stability, sometimes called a pause strategy, means that the organization wants
to remain the same size or to grow slowly and in a controlled fashion
Grand Strategy: Retrenchment
Retrenchment = the organization goes through a period of forced decline by either shrinking current business units or selling off or liquidating entire businesses Liquidation = selling off a business nit for the cash value of the assets, thus terminating its existence Divestiture = involves selling off of businesses that no longer seem central to the corporation
Corporate-Level Strategy: What business are we in? Business-Level Strategy: How do we compete?
Three Levels of Strategy in Organizations
Corporation
Textiles Unit
Chemicals Unit
Auto Parts Unit
Functional-Level Strategy: How do we support the business-level strategy?
Finance R&D Manufacturing Marketing
Global Corporate High Strategies
Need for Global Integration
• Treats world as a single global market • Standardizes global products/advertising strategies
Globalization Strategy
Transnational Strategy
• Seeks to
Grand strategies are also called strategic thrusts. They provide basic direction for specific strategic actions and functional tactics. Some grand strategies are used together and reinforce each other and some are usually employed singly.
Grand Strategy
General plan of major action to achieve longterm goals Falls into three general categories 1. Growth 2. Stability A separate grand strategy can be 3. Retrenchment defined for global operations
Grand Strategy: Growth
Growth can be promoted internally by investing in expansion or externally by acquiring additional business divisions
-
-
Internal growth = can include development of new or changed products External growth = typically involves diversification – businesses related to current product lines or into new areas
Grand Strategy: Stability
Stability, sometimes called a pause strategy, means that the organization wants
to remain the same size or to grow slowly and in a controlled fashion
Grand Strategy: Retrenchment
Retrenchment = the organization goes through a period of forced decline by either shrinking current business units or selling off or liquidating entire businesses Liquidation = selling off a business nit for the cash value of the assets, thus terminating its existence Divestiture = involves selling off of businesses that no longer seem central to the corporation
Corporate-Level Strategy: What business are we in? Business-Level Strategy: How do we compete?
Three Levels of Strategy in Organizations
Corporation
Textiles Unit
Chemicals Unit
Auto Parts Unit
Functional-Level Strategy: How do we support the business-level strategy?
Finance R&D Manufacturing Marketing
Global Corporate High Strategies
Need for Global Integration
• Treats world as a single global market • Standardizes global products/advertising strategies
Globalization Strategy
Transnational Strategy
• Seeks to