Tuesday, July 26, 2011

Choosing Your Business Directional (Grand) Strategy – GEC Business Review

by Kelvin Wong

Every corporation must decide its intention and orientation towards growth by asking three fundamental questions:

1. Should we expand, cut back, or continue our businesses unchanged?
2. Should we concentrate our activities within our industry boundaries or should we diversify into other lines of business?
3. If we want to grow and expand nationally or internationally, should we do so via self-development or through external acquisition, mergers, or strategic alliances?

Wheelen and Hunger (2004) pointed out that executives at the corporate level normally choose a directional strategy from three general directional orientations, often called grand strategies:

• Growth strategies expand the corporation’s activities
• Stability strategies make no change to the existing activities
• Retrenchment strategies reduce the corporation’s level of activities.


Having chosen the general directional orientation of the corporation (growth, for example), strategic managers can then consider one or more specific sub-strategies such as concentration or diversification. They might decide to concentrate their efforts on one product line or one industry, or diversify into other market segments or even different industries. Such decisions should be based on a high degree of objectivity rather than subjectivity. Jackson (2008) noted that a successful growth strategy requires careful preparation to identify attractive markets/industries and new sources of competitive advantage. Porter (2008) pointed out that it is a common mistake to assume that fast-growing industries are always attractive.

Growth sometimes tends to mute rivalry because an expanding pie offers opportunities for all competitors. A high growth rate with low entry barriers will draw in new entrants. Even without new entrants, a high growth rate will not guarantee profitability if customers are powerful or substitutes are attractive. Porter (2008) stressed that a narrow focus on growth is one of the major causes of bad strategic decisions.



9 comments:

Anonymous said...

This is a topic that is near to my heart...
Thank you! Where are your contact details though?


Look into my web page - augmenter vues youtube logiciel
My page > comment avoir plus de vues youtube

Anonymous said...

Hey I know this is off topic but I was wondering if you knew of any widgets I
could add to my blog that automatically tweet my newest twitter updates.
I've been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this. Please let me know if you run into anything. I truly enjoy reading your blog and I look forward to your new updates.

Review my website Continued

Anonymous said...

With havin so much written content do you ever run into any issues of plagorism or copyright infringement?

My blog has a lot of unique content I've either authored myself or outsourced but it seems a lot of it is popping it up all over the web without my agreement. Do you know any solutions to help reduce content from being stolen? I'd definitely appreciate it.


my homepage; Achat Retweet pas cher
My web site :: acheter des followers

Anonymous said...

We used 3 M painters tape, we have sex cam to commend the final score indicated.
But a funny comment we encourage both, which has
resulted inThere are two USB ports and the media, like how I knew
only that. Well, he said the award, the company is putting up front about them, but that
doesn't let you indicate a turning direction.

Anonymous said...

I tried other flours, but you have to get rid fleshlight of yeast infection
using yogurt? 6 scPatternPatternRnd 2: Work 2 sc in next
sc repeat around. A new Web site, or the CD s can be left around public
areas of your company. Don t pay more for new Cambelts Brentwood and Essex.

Anonymous said...

Hello! Thіѕ is the seсond time visiting now and I
personally just wanted to saу I truley fancy looking at your weblog.
I'νe Ԁecided to bookmark it at digg.com with your title: Blogger: GE Consult
: We Help SME Fly and your Website adԁress: https://www.blogger.com/comment.g?postID=5635298074283149643&blogID=7024893434528971227. I hope this is fine with you, I'm attempting to give youг great bloɡ a bit more сoverage.
Be back shortly.

Have a look at mʏ web ѕite 2012 camaro Zl1

chenlina said...

chenlina20160319michael kors outlet
cheap air jordans
gucci outlet
replica watches
burberry handbags
michael kors outlet
michael kors outlet
abercrombie clothing
designer handbags
michael kors outlet
coach outlet
michael kors outlet online
oakley outlet
cheap air max
rolex watches
louis vuitton outlet
coach outlet store online
michael kors handbags
louis vuitton outlet stores
toms wedges
coach outlet store online
coach factory outlet online
coach outlet store online
toms shoes
louis vuitton handbags
coach outlet
jordan 3s
ray ban sunglasses
nike running shoes for women
coach factory outlet
celine handbags
michael kors bags
pandora charms
ugg sale
louis vuitton outlet stores
ray bans
nfl jerseys
nfl jerseys wholesale
coach outlet
longchamp handbags
as

John said...

coach factory outlet online
pandora charms sale
coach factory outlet online
chaussures louboutin
cheap rolex watches
mont blanc pen
jordan femmes pas cher
louis vuitton handbags
coach outlet online
cheap jordan shoes
20170517yuanyuan

Anonymous said...

My name is Daisy and I am studying Educational Studies and Architecture at Kitchener / Australia.

Related Posts Plugin for WordPress, Blogger...