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:
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- Forward Integration: Increase control of distributors or retailers.
- Backward Integration: Increase control of firms’ suppliers.
- Horizontal Integration: Increase control of competitors.
- Market Penetration: Increase market share for current products in current markets.
- Market Development: Introduce current product in new geographic areas.
- Product Development: Increase sales through improved or new product.
- Concentric Diversification: Add new but related products.
- Conglomerate Diversification: Add new unrelated products.
- Horizontal Diversification: Add new, unrelated products for current customers.
- Retrenchment: Cost reduction to reverse declining profit and sales.
- Divestiture: Sale of part of the organization.
- 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.
Morden, T. (2007). Principles of strategic management. Abingdon, Oxon, GBR: Ashgate Publishing Group.
David, F. R. (2014). Strategic management: A competitive advantage approach, concepts & cases (15th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Create a grand strategy matrix for an organization of your choice. Ideally, the company you choose will be a familiar one and one to which you have easy access, such as your place of employment or a company close to where you live. You may use the same organization for other assessments in this course.
You may wish to review the suggested readings listed in the Resources as well as do your own research into completing a grand strategy matrix to prepare for this assessment.
Complete the following:
- Answer the following questions:
- Is your chosen organization in a weak or strong competitive position?
- Is the market growth rapid or slow?
- Complete a grand strategy matrix for your chosen organization using the Grand Strategy Matrix Template linked in the Resources under the Required Resources headings.
- Compare whether the organization’s strategies are aligned with the relevant quadrant strategies, and write a half-page summary on the differences and changes you identify. Make recommendations for changes to the organization’s strategy based on your observations.
- Written communication: Written communication is free of errors that detract from the overall message.
- APA formatting: If you use sources, ensure that resources and citations are formatted according to APA (6th edition) style and formatting.
- Font and font size: Times New Roman, 12 point.