Grand Strategy Matrix

Create a grand strategy matrix for an organization of your choice, write a summary of whether the organization’s strategies are aligned with the matrix, and make recommendations for changes to the organization’s strategy based on your observations.

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A grand strategy matrix can help you formulate your organization’s strategy.

The goal of any strategic planning activity is to enhance organization performance. Through involvement in strategic planning, employees achieve a better understanding of the organization’s operation. The process allows for proactive decision-making. It is important to anticipate and respond to issues and to understand that sometimes a philosophical change will surface. There are twelve general strategies an organization might follow when implementing change. Adopting one or more of these strategies might mark a new beginning for an organization, especially if the employees understand and support the plan of action. The twelve strategies are:

  1. Forward Integration: Increase control of distributors or retailers.
  2. Backward Integration: Increase control of firms’ suppliers.
  3. Horizontal Integration: Increase control of competitors.
  4. Market Penetration: Increase market share for current products in current markets.
  5. Market Development: Introduce current product in new geographic areas.
  6. Product Development: Increase sales through improved or new product.
  7. Concentric Diversification: Add new but related products.
  8. Conglomerate Diversification: Add new unrelated products.
  9. Horizontal Diversification: Add new, unrelated products for current customers.
  10. Retrenchment: Cost reduction to reverse declining profit and sales.
  11. Divestiture: Sale of part of the organization.
  12. Liquidation: Sale of the company’s assets.

Strategy formation is an assessment of whether the organization is doing the right things and how it can be more effective. Organizations can become obsolete by following a strategy made out-dated by market changes. Objectives should be consciously developed and coordinated and not just extensions of day-to-day operations.

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