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What is it?????????????
ƥ Grand strategies provide basic direction for strategic
actions.
ƥ They are the basis for coordinated and sustained
efforts directed towards achieving long-term business
objectives.
ƥ They indicate a time period over which long-term
objectives are to be achieved.
ƥ Maximize your opportunities, minimize your risks and
achieve performance breakthroughs.
^
 
 
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 u Grand Principles
u. Concentrated growth e.g. e-bay in online auction
2. Market development e.g using sachets for market
penetration
3. Product development e.g. personal care products
from HUL, newer version of books,
4. Innovation
. Horizontal integration
6. Vertical integration
7. Concentric diversification
D. Conglomerate diversification
9. Turnaround
10.Divestiture e.g. Sale of TOMCO by Tata, selling of
cement division by L&T
11.Liquidation
12.Bankruptcy
13.Joint ventures
14.Strategic alliances
1 .Consortia e.g. Mitsubishi, LG
SoƦ. Grand Strategy isƦƦ..
ƥ Step-by-step process for developing a
business strategy with a performance
management and measurement system
for your business
ƥ Equates to a necessary precursor for all
subordinate strategies and systems
whether they be marketing, innovation
or otherwise
Grand strategy falls into 3
categories:

Growth
 Stability
Retrenchment
P|
 can be promoted internally by
investing in expansion or externally by
acquiring additional business divisions

P„ , sometimes called a pause

strategy, means that the organization
wants to remain the same size.

PY 


 means the organization
goes through a period of forced decline by
either shrinking current business units or
selling off or liquidating entire businesses
ƥ 12 steps - Grand Strategy process.
ƥ First 11 steps - best developed as living
document with top management team -
facilitator at an off-site meeting to avoid
distractions
ƥ Twelve - strong top management
commitment, support and involvement
„

 

  






ƥ Where are you going?

ƥ How will you get there?
ƥ How will you know you've arrived?
„
  









 







ƥ Values - family well being, charity and goodwill toward others,

honesty and integrity, and making a difference in the world.

ƥ Beliefs - we provide excellent products and services that please

our customers at a competitive price, we will be a profitable business

ƥ Attitudes - most people tend to be fair if treated fairly

ƥ Capabilities - sales force knowledge, knowledge about

competitors
„





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ƥ Why are you in business?

ƥ What does your business do and how does it
do it?
ƥ Who does your business, who supports it,
who benefits from it and who, if anyone,
suffers from it?
ƥ How many different kinds of resources are
involved in your business, how much do they
costs and how much profit do you expect to
make from them
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ƥ What industry are you in?

ƥ What is the economic situation?
ƥ Who are your competitors and potential
competitors?
ƥ Who are your customers?
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ƥ Strengths
ƥ Weaknesses
ƥ Opportunities
ƥ Threats
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ƥ Customer Intimacy
ƥ Product Leadership
ƥ Operational Excellence
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ƥ Administrative and Operations

ƥ Crisis

ƥ Breakthrough
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ƥ Human Capital

ƥ Structural Capital

ƥ Customer Capital

ƥ Financial Performance
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