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Grand strategy is the general plan of major action by which a firm intends to achieve its long-term goals. Types of grand strategies:
Growth can be promoted internally by investing in expansion or externally by acquiring additional business divisions. Internal growth can include development of new or changed product. External growth typically involves diversification, which means the acquisition of businesses that are related to current product lines or that take the corporation into new areas. The number of companies choosing to grow through mergers and acquisitions is astounding, as organizations strive to acquire the size and resources to compete on a global scale, to invest in new technology, and to control distribution channels and guarantee access to markets
Stability sometimes called a pause strategy, means that the organization wants to remain the same size or grow slowly and in a controlled fashion.
Retrenchment means that the organization goes through a period of forced decline by either shrinking current business units or selling off or liquidating entire businesses. The organization may have experienced a precipitous drop in demand for its products or services, prompting managers to order across-the-board cuts in personnel and expenditures.
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| List and define the four major activities that must occur in order for management by objectives (MBO) to succeed. | | | Question similar to 26 |