Slide 1

Pause/Proceed with Caution Strategy

 Test the ground before moving ahead with a full-fledged corporate strategy
 Purpose is to let the strategic changes seep down the organizational levels, let structural
changes take place and systems to adopt to the new strategies
 Essential when intervening of consolidation is necessary
 Temporary strategy

Slide 2

Example:

In the Indian shoe market dominated by the Bata and Liberty,

not many of them might be aware that Hindustan Levers, better
known for soaps and detergents, produces substantial quantities
of shoes and shoe uppers for the export markets. In late 2000, it
started selling a few thousand pairs in the cities unobtrusively to
gauge market reaction. This could possibly be a proceed-with-
caution strategy before it goes full stream into another FMCG
sector that has a lot of potential.

Slide 3

No Change Strategy

 Conscious decision to do nothing new

 When faced with the predictable and certain external environment a stable organizational
environment, a firm decides to continue with its present strategy.
 Taking no decision is sometimes a decision too!!!
 Used by several small and medium sized organizations operating in a familiar market- more
often in a niche market that is limited in scope and offer products and services through a time-
tested technology