BUSINESS POLICY

&
STRATEGIC MANAGEMENT
[ MEMBERS OF GROUP 3 ]
PRESENTATION BY :
PRANSHU
ABHISHEK
TWINKLE
ANKITA RAJ

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 STRATEGIC CHOICE
MODULE 4

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 TOPICS TO BE DISCUSSED
1. What is Strategic Choices and its Properties .

2. Strategic alternatives at corporate level

i. Expansion , Stability , Retrenchment & Combination .

3. Strategic choice models for dominant single business companies

i. Stricklands Grand Strategy Selection Matrix .

ii. Model Of Grand Strategy Clusters .

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 WHAT IS STRATEGIC CHOICE
choosing one action among several actions selected by the firm to
respond to the changes in the environment , in order to benefit
from opportunities or to avoid unhealthy effects from threats.

The main intention is to achieve the strategic fit between the

organization and its environment in order to accomplish the firms
objectives by using its strengths to overcome its weakness.

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FACTORS TO BE CONSIDERED BEFORE
MAKING A STRATEGIC CHOICE
1. Stake Holders Expectations .

2. The Values & Preferences Of management Decision Makers .

3. The realities of the Organizational Climate .

Management Style

Culture

Structure
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 CONT . . .
4. An analysis by the Environmental Analysts .
SWOT Analysis
PEST Analysis
Market Analysis

5. An analysis of the Companies Resources .

6. Portfolio Analysis .

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 Mission to look after statement of the
organizations purpose for existing, often identifying its
customers, markets, products, technology, and values.
Goals or Objectives
Profit Customer Satisfaction
Sales Employee Welfare
Market Share Social Responsibility

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Quality Saturday, September 30, 2017
 ORGANIZATIONS LEVELS OF
STRATEGY
Corporate Level-create value for stockholders
Business Unit Level- plan direction for each SBU
Functional Level execute plan on daily basis
Department-specialized functions of daily operation
FIG. : 01

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 FIG. : 01

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 CORPORATE STRATEGIES
DEFINeTION
Cooperative Strategy is a strategy in which firms work
together to achieve a shared objective

CHARACTERSTICS
The
overall managerial game plan.
How management plans to achieve mission and objectives.

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 OTHER CHARACTERSTICS OF
STRATIGY
Creates value for a customer

Exceeds the cost of constructing customer value in other ways

Establishes a favorable position relative to competitors

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 The Strategy Formulation Analytical
Framework
Stage 1: The Input Stage
a. External Analysis b. Internal Analysis c. SWOT Analysis
Stage 2: The Matching Stage
Re-visit Mission and Set Long Term Objectives
Generate feasible alternative Corporate Strategies
Stage 3: The Decision Stage
Evaluate and Choose Corporate Strategies
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 STRATEGIC CHOICE MODEL FOR
DOMINANT SINGLE BUSINESS
COMPANIES
i. Stricklands Grand Strategy Selection Matrix .

ii. Model Of Grand Strategy Clusters .

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 STRICkLANdS GRANd
Strategy Selection Matrix
The Grand Strategy Matrix has become a popular tool for formulating
feasible strategies, along with the SWOT, SPACE, BCG, and IE Matrix.
All companies and divisions can be positioned in one of the Grand
Strategy Matrixs four strategy quadrants. The Grand Strategy matrix
is based on two dimensions: competitive position and market growth.

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 FIG. : 02

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 THE PRICIPALS OF GRAND STRATEGY

1. A Concentrated Growth Strategy .

2. Market Development Strategy .
3. Product Development Strategy .
4. A vertical Integration Strategy .
5. A Concentric Diversification Strategy .
6. A Conglomerate Diversification Strategy .
7. A Horizontal Integration Strategy .

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8. A Divestiture Strategy . Saturday, September 30, 2017
 MODEL OF Grand Strategy
CLUSTER
The model Of Grand Strategy Cluster is the technique which is based
upon the idea that the situation of a business is defined in terms of the
growth rate of the general market and the competitive position in the
market . When these factors are considered simultaneously , a business
can be broadly categorized in one of the four quadrants , which are

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 CONT . . .
1. Strong competitive position in a rapidly growing market .
2. Weak position in a rapidly growing market .
3. Weak position in a slow growth market .
4. Strong position in a slow growth market .

Each of these quadrants suggests a set of promising possibilities for the

selection of a grand strategy .
FIG. : 03
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