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,
• Strickland’s tool to overcome weakness, build on existing strengths,
avert future threats and seize future opportunities.
• Used in strategic business planning.
• 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.
• 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 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