Using the SWOT analysis as a basis, managers develop appropriate strategies to take advantage of its resources.
• Strategies are developed for the corporate, business and functional levels of the firm.
• Most organisations look at GRAND STRATEGY, a model comprising four primary strategies when formulating strategies.
Grand strategy – Growth: the organisation attempts to increase its level of activity; may increase its market share through mergers and acquisitions.
Grand strategy – Stability: organisation chooses to remain as it is without any major change. Concerned in maintaining its market share; a preferred strategy in a stable environment.
Grand strategy – Retrenchment: useful to deal with organisational weaknesses; useful to stabilize its operation, while saving valuable resources.
Grand strategy – combination: organisation adopts two or more of the three strategies.
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