Grand Strategy

Gaurav kumar (SEC. A) Grand Strategies Strategy Formulation is a strategic planning or long range-planning. This process is primarily analytical, not action oriented. This process involves scanning external and internal environmental factors, analysis of the strategic factors and generation, evaluation and selection of the best alternative strategy appropriate to the analysis. Identification of various alternative strategies is an important aspect of strategic management as it provides the alternatives which can be considered and selected for implementation in order to arrive at certain result. At this stage, the managers are able to complete their environmental analysis and appraisal of their strengths and they are in a position to identify what alternatives strategies are available for them in the light of their organizational mission. In this there are four main strategies: 1) Stability strategy 2) Growth/Expansion Strategy 3) Retrenchment strategy 4) Combination strategy 1. Stability strategy The basic approach is ‘maintain present course: steady as it goes.’ In an effective stability strategy, companies will concentrate their resources where the company presently has or can rapidly develop a meaningful competitive advantage in the narrowest possible product-market scope consistent with the firm’s resources and market requirement 's. Reasons for adopting Stability Strategies: Managers of small business desire a satisfactory level of profits rather than increased profits. Maintenance of status quo involves less risk than a more growth strategy. Change may upset the smooth operations and result in poor performance especially, if the firm considers itself successful with the present level of operations. Changing operations to pursue a more aggressive growth strategy usually requires an increased investment and managerial support. Firms, which cannot provide resources, may continue with the stability strategy. Some executives maintain with the stability strategy