MEANING OF GRAND STRATEGY

Grand strategies are the decisions or choices of long term

plans from available alternatives.
They involve Expansion, Quality Improvement, Market
Development, Innovation, Liquidation, etc.
It is based on analysis of internal and external environment.
Usually they are selected by top level managers such as
directors, executives etc.
Stricklands tool to overcome weakness, build on existing
strengths, avert future threats and seize future opportunities.
Used in strategic business planning.
CLASSIFICATION OF GRAND
STRATEGY
 STABILITY STRATEGY

A strategy is stability strategy when a firm attempts to maintain

its status-quo with existing levels of efforts and it is satisfied with
only incremental growth/improvement by marginally changing
the business and concentrates its resources where it has or can
develop rapidly a meaningful competitive advantages in the
narrowest possible product market scope.
Steel Authority of India has adopted stability strategybecause of
overcapacity in steel sector. Instead it has concentrated on
increasing operational efficiency of its various plants ratherthan
going for expansion. Others industries are heavy commercial
vehicle and coal industry.
 EXPANSION / GROWTH STRATEGY

Growth Strategies are means by which an

organization plans to achieve the increased level
of objectivethat is much higher than its past
achievement level.
Eg. Nirma ltd. or Reliance Industry Ltd., in fact, in
the life of any organization, growth strategy is
necessary at some point of time.
James has identified those four stages-emergence,
growth, maturity and decline.
 RETRENCHMENT STRATEGY

It is a defensive strategy in which a firm having declining

performance decides to improve its performance through
contraction in its activities i.e. reducing the scope of its business
by total or partial withdrawal from present business.
Eg. A pharmaceutical firm pulls out from retail selling to
concentrate on institutional selling in order to reduce the size of
its sales force and increase marketing efficiency.
Eg. A corporate hospital decides to focus only on specialty
treatment and realize higher revenues by reducing its
commitment to general cases which are typically less profitable
to deal with.
 COMBINATION STRATEGY

Combination strategy is not an independent classification

but it is a combination of different strategies stability,
growth, retrenchment in various forms.
The Tube Investments of India (TI), a Murugappa group
company, has created strategic alliances in its three
majorbusinesses: tubes, cycles, and strips.
In cycles, it has entered into regional outsourcing
arrangements with the UP-based Avon and Hamilton
Cycles in the western region. In steel strips, TI has
entered into a manufacturing contract with Steel Tubes of
GRAND STRATEGY MATRIX
 Presented By:-
Arpita
Rakhi Shailesh
Bhavna