Business Strategy

SUMMARY: Objectives are a vital prerequisite to successful operation of an organization. Objectives are the concrete, specific aims that management seeks to achieve for the organization, often within a stated time period. Objectives provide direction, and serve as standards and motivators. Objectives state end results and overall objectives need to be supported by sub-objectives. Thus, objectives form a hierarchy.

A grand strategy is a strategy that provides the basic strategic direction at the corporate level. The two major classifications of grand strategies are growth strategies and retrenchment (defensive) strategies. The major growth strategies are: market penetration, market development, product development, forward integration, backward integration, horizontal integration, concentric diversification, conglomerate diversification, and horizontal diversification. Retrenchment strategies are adopted when the firm’s survival is at stake.