strikland grand strategy
TRANSCRIPT
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Fig. 8-4: Grand Strategy Selection Matrix
Overcome Weakness
Maximize Strengths
Vertical integration
Conglomerate
diversification
Horizontal integration
Concentric diversificationJoint venture
Turnaround or
retrenchment
DivestureLiquidation
Concentrated growth
Market developmentProduct development
Innovation
Internal(redirected
resources
within the
firm)
External(acquisition or
merger for
resource
capability)
I
IV III
II
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Fig. 8-5: Model of Grand Strategy Clusters
Rapid Market Growth
Slow Market Growth
Reformulation of concentrated
growth
Horizontal integration
Divestiture
Liquidation
Turnaround or retrenchment
Concentric diversification
Conglomerate diversification
Divestiture
Liquidation
Concentrated growth
Vertical integration
Concentric diversification
Concentric diversification
Conglomerate diversification
Joint ventures
Strong
Competitive
Forces
Weak
Competitive
Forces
I II
IIIIV
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Fig. 9-1: The BCG Growth-Share Matrix
Cash Generation (market share)
High Low
High
Low
Cash
Use
(growth
rate)
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Fig. 8-5: BDCs Growth/Share Matrix
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Fig. 9-1: The BCG Growth-Share Matrix
Market Share
Sales relative to those of
other competitors in the
market (dividing point is
usually selected to have
only the two-three largest
competitors in any marketfall into the high market
share region)
Growth Rate
Industry growth rate in
constant dollars (dividing
point is typically the
GNPs growth rate)
Description of Dimensions
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Fig. 9-3: Industry Attractiveness-Business
Strength Matrix
IndustryAttractiveness
High LowMedium
High
Medium
LowBus
inessStrengt h
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Fig. 9-3: Industry Attractiveness-Business
Strength Matrix
Industry Attractiveness
Subjective assessmentbased on broadest
possible range of external
opportunities & threats
beyond the strict controlof management
Business Strength
Subjective assessmentof how strong a
competitive advantage is
created by a broad range
of the firms internalstrengths & weaknesses
Description of Dimensions
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Fig. 9-4: The Market Life-Cycle Competitive
Strength Matrix
Stage of Market Life Cycle
Introduction Growth Maturity Decline
Low
M
oderat e
High
Compe titiveStrength
Push:
Inves
t
Aggre
ssivel
y
Cautio
n:Inv
est
Sele
ctively
Dang
er:Harve
st
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Fig. 9-4: The Market Life Cycle - Competitive
Strength Matrix
Stage of Market Life Cycle
See page 197
Competitive Strength
Overall subjective rating,based on a wide range
of factors regarding the
likelihood of gaining &
maintaining a competitiveadvantage
Description of Dimensions
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The business unit competitive position
Strong Average WeakFig. 8-10: The Life-
Cycle Portfolio Matrix
Development
Growth
Competitive
shakeout
Maturity
Decline
Saturation
TheIndust
rysstageintheevolutionarylife
cycle
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Fig. 8-7: The GE Nine-Cell
Planning Grid
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