GRAND STRATEGY MATRIX

Submitted
by
G.KARTHIK-19L31E0087.

Department of management studies.

VIIT(A).
 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.
• Strickland’s tool to overcome weakness, build on existing
strengths, avert future threats and seize future opportunities.
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 strategy because
of overcapacity in steel sector. Instead it has concentrated on
increasing operational efficiency of its various plants rather
than 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 objective that 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
major businesses: 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 India, Steel Authority of India, and the Jindals.
GRAND STRATEGY MATRIX
THANK YOU