1. Grand Strategies

2. Grand strategies Grand strategies are major, overarching strategies that shape the course of a business. Unlike tactics, they are focused on the long- term goals of the business. Running your own business means pondering grand strategies involving everything from product development to liquidation. Different strategies will, of course, fit different situations, so it is best to be familiar with a few different approaches.

3. often called master or business strategies, provide basic direction for strategic actions Indicate the time period over which long- range objectives are to be achieved Firms involved with multiple industries, businesses, product lines, or customer groups usually combine several grand strategies Any one of these strategies could serve as the basis for achieving the major long-term objectives of a single firm

4. Forward Integration It enables an organization to obtain increased control over its distributors or retailers. It can be implemented: When the distribution of an organization is costly, distributors are unreliable. When an organization is earning high profit because of stable production. When an organization is not able to avail the advantage of competition due to lack of quality distribution.

5. Divestiture Divestiture is the selling of a division or a part of an organization to raise capital for future strategic investments. It can be implemented: When an organization failed to accomplish necessary improvements through retrenchment strategy. When a division needs more resources to be competitive than an organization can provide. When a single division is responsible for poor performance of the organization. When division is a misfit with the rest of an organization. This can result from different markets, customers, managers. Employees, values etc.

6. Liquidation involves closing down of an organization and selling of its assets. It can be implemented: When an organization has pursued both retrenchment and divestiture strategy and neither has been successful. Liquidation is the grand strategy of last resort. When a firm cannot successfully turn itself around and there are no interested buyers, there is no choice but to liquidate the firm. Liquidating the firm involves selling off all its assets, including physical assets such as factories and merchandise, as well as intellectual assets, like brands and patents. The goal of a liquidation strategy is to recoup as much money for the ownership as possible, before shuttering the business.

7. Conglomerate Diversification In this new products or services that are related are added. It can be implemented: When basic industry of an organization is facing a downfall in annual sales and profit. When an organization has the opportunity to purchase an unrelated business that looks like an attractive investment. When there is a financial synergy between acquired and acquiring organization. When existing markets are saturated by the organization’s present products.

8. Market Growth Market growth is a low-risk strategy compared to other, more encompassing, strategies. Instead of investing in research and development to create new product offerings, the market-growth strategy focuses on growing the market for a current product. An example of this is an electronics company that develops markets for an existing stereo system instead of developing a new system. To develop new markets it may be necessary to sell stereos in other markets as time passes, such as in foreign countries that are less technologically developed.

9. Product Development Product development is essentially the opposite of market development. While market development focuses on exploitation, product development focuses on exploration. This involves investing heavily in research and development in order to create new and innovative product offerings. For example, a food manufacturer may invest heavily in research into healthier foods that can be marketed to the general public, or a car manufacture may develop safer or more fuel-efficient cars through investments in research. These advances give firms an advantage over the competition.

10. Turnaround The turnaround strategy is used when a firm is experiencing profit stagnation, decline or other serious problems. It is an attempt to change the firm's strategy in the hopes of reversing its fortunes. In order to turn a firm around, managers will often change the direction of the firm. For example, a print newspaper might make the switch to online publication in order to adapt to the changing market.