1.

Identify firms in the business community nearest to your college or

university that you believe are using each of the 15 grand strategies
discussed in this chapter?

Ans. Grand strategies, often called master or business strategies, provide basic direction
for strategic actions. They are the basis of coordinated and sustained efforts directed
toward achieving long-term business objectives.
The 15 principal grand strategies are concentrated growth, market development, product
development, innovation, horizontal integration, vertical integration, concentric
diversification, conglomerate diversification, turnaround, divestiture, liquidation,
bankruptcy, joint ventures, strategic alliances, and consortia. Any one of these strategies
could serve as the basis for achieving the major long-term objectives of a single firm. But
a firm involved with multiple industries, businesses, product lines, or customer groups
as many firms areusually combines several grand strategies.

In my nearest community PRAN-RFL Group follow the above 15 grand strategies. They
are mainly focus on growth, market development, product development, innovation,
horizontal integration, vertical integration, concentric diversification, conglomerate
diversification, turnaround etc.

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2. Identify firms in your business community that appear to rely

principally on 1 of the15 grand strategies. What kind of information
did you use to classify the firms?

Ans. Grand strategies, often called master or business strategies, provide basic direction
for strategic actions. They are the basis of coordinated and sustained efforts directed
toward achieving long-term business objectives.
The 15 principal grand strategies are concentrated growth, market development, product
development, innovation, horizontal integration, vertical integration, concentric
diversification, conglomerate diversification, turnaround, divestiture, liquidation,
bankruptcy, joint ventures, strategic alliances, and consortia. Any one of these strategies
could serve as the basis for achieving the major long-term objectives of a single firm. But
a firm involved with multiple industries, businesses, product lines, or customer groups
as many firms areusually combines several grand strategies.
Grameenphone using the 6 of the 15 grand strategies - growth, market development,
product development, innovation, joint ventures, strategic alliances.
Growth Strategies: Grameenphone substantially broadens the scope of one or
more of its business in terms of their respective customer group, customer
functions and alternative technologies to improve its overall performance.

Market development: Grameenphone targets non-buying customers in currently

targeted segments. Grameenphone also targets new customers in new segments.

Product development: Grameenphone always bring new product in current

market.

Innovation: Innovative new product is the key variable of Grameenphone.

Strategic alliances: Grameenphone strategic alliances is Grameen Telecom

Corporation

Joint ventures: Grameenphone is a joint venture enterprise between Telenor and

Grameen Telecom Corporation.

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3. Write a long-term objective for your school of business that exhibits

the seven qualities of long-term objectives described in this chapter?

Ans. Seven long-term objectives are:

1. Acceptable: Managers are most likely to pursue objectives that are consistent
with their preferences.

2. Flexible: Objectives should be adaptable to unforeseen or extraordinary changes

in the firms competitive or environmental forecasts.

3. Measurable: Objectives must clearly and concretely state what will be achieved
and when it will be achieved.

4.
Motivating: Studies have shown that people are most productive when
objectives are set at a motivating levelone high enough to challenge but not so high as
to frustrate or so low to be easily attained.

5. Suitable: Objectives must be suited to the broad aims of the firm, which are
expressed in its mission statement.

6. Understandable: Strategic managers at all levels must understand what is to be

achieved.

7. Achievable: Finally, objectives must be possible to achieve.

ASAUB is an institution of higher education absolutely dedicated to quality education at

affordable cost. It is a relatively new university and prides itself on its focus on career
planning and employability of its graduates. ASAUB stands for academic and
professional excellence.
ASAUB began teaching with a batch of academics who, enriched by professionalism,
technology and research opportunities, provide strong support to the students who are
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committed to explore their academic potential in a fascinating learning environment. The

academics are devoted to enrich classroom learning through real-world activities such as
internships, fieldwork, and lab works and to ensure students career success after the
completion of their study. As our students are taught by academics of national and
international reputation for their research and pragmatic teaching techniques, the students
learn in an environment that is affluent in inventiveness and new ideas. Therefore,
studying at ASAUB means that the students acquire the essential transferable skills along
with practical experience in relevant employment fields which they need for developing
successful career in this complex and fast changing world.

ASAUB campus, there is a rich library in which the collection of books reflects the
courses taught here as well as the study areas and provide access to computing resources.
ASAUB follows the North American system of trimesters, credit hours, letter grades, and
one examiner. The curricula of each program, when first introduced, were proposed by
ASAUB, and reviewed by the experts of UGC and then duly approved by UGC. The
curricula are regularly reviewed and updated to include latest developments in each area
of study and adapted to the current requirements and local needs. ASAUB open a
program only after due approval by UGC.

ASAUB long term objectives:

ASAUB works within laws to provide education, research and training, to confer degrees,
diplomas and certificates in different branches of knowledge, and to disseminate
knowledge in different fields of science and technology, humanities and business, social
sciences and law. The level of education includes undergraduate and graduate programs
and may extend to research degrees like M.Phil and Ph.D

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4. Distinguish between the following pairs of grand strategies?

Ans.
A. Horizontal and vertical integration
Vertical integration is the process in which several steps in the production and/or
distribution of a product or service are controlled by a single company or entity, in order
to increase that companys or entitys power in the marketplace.
On the other hand, Horizontal integration (also known as lateral integration) simply
means a strategy to increase your market share by taking over a similar company. This
take over / merger / buyout can be done in the same geography or probably in other
countries to increase your reach.

B. Conglomerate and concentric diversification

In business, a conglomerate is a company involved in multiple lines of business that have
little relationship to one another.
On the other hand, concentric diversification involves adding new products or services
that are related to your current offerings -- either because they appeal to the same market
or because they can be offered without much investment in new resources (or both.).

C. Product development and innovation

Product development is the complete process of bringing a new product to market. New
product development is described in the literature as the transformation of a market
opportunity into a product available for sale and it can be tangible (that is, something
physical you can touch) or intangible (like a service, experience, or belief).
On the other hand, Innovation is a new idea, device or process. Innovation can be viewed
as the application of better solutions that meet new requirements, inarticulate needs, or
existing market needs. This is accomplished through more effective products, processes,
services, technologies, or ideas that are readily available to markets, governments and
society. The term innovation can be defined as something original and, as a consequence,
new, that "breaks into" the market or society

D. Joint venture and strategic alliance

When two companies invest funds into creating a third, jointly owned company, that new
subsidiary is called a joint venture. Because the joint venture can access assets,
knowledge and funds from both of its partners it can combine the best features of those
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companies without altering the parent companies. The new company is an ongoing entity
that will be in business for itself, but profits are owned by the parents.
On the other hand, when companies want to quickly gain a new area of expertise or
access to new technology or markets, they usually have two options: buy a smaller
company with those assets or form a strategic alliance with another company that would
benefit equally from the partnership. These agreements often have a limited scope and
function, such as trading access to a strong brand for access to an emerging technology.

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5. Rank each of the 15 grand strategy options discussed in this chapter

on the following three scales:
High ---------------------------------------Low
Cost
High ---------------------------------------Low
Risk of failure
High----------------------------------------Low
Potential for exceptional growth

Ans.

Concentrated growth: low on cost, risk of failure & potential for exceptional
growth.
Market development: moderately high on low on cost, risk of failure & potential for
exceptional growth.
Product development: moderately high on cost and growth potential, low on risk
Innovation: high on low on cost, risk of failure & potential for exceptional growth.
Horizontal integration: high on cost and growth potential, moderate on risk.
Vertical integration: high on cost and growth potential, moderate on risk.
Concentric diversification: high on low on cost, risk of failure & potential for
exceptional growth.
Conglomerate diversification: high on low on cost, risk of failure & potential for
exceptional growth.
Turnaround: moderate on cost and risk, low on growth.
Divestiture: low on low on cost, risk of failure & potential for exceptional growth.
Liquidation: low on low on cost, risk of failure & potential for exceptional growth.
Bankruptcy: low on low on cost, risk of failure & potential for exceptional growth.
Joint ventures: high on low on cost, risk of failure & potential for exceptional growth.
Strategic alliances: low on cost, moderate on risk and high on growth potential.
Consortia, Keiretsus, and Chaebols: low on cost and risk and high on growth.

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6. Identify firms that use one of the eight specific options shown in
Exhibit 7.7 under the grand strategies of concentration, market
development, and product development?

Ans.
Concentration
Increasing present customers rate of use: Grameenphone Call Drop service.
Attracting competitors customers: Grameenphone Network coverage.
Attracting nonusers to buy product: Grameenphone 3G.

Market development
Opening additional geographic markets: Philips expansion to China
Attracting other market segments: Philips light to health care.

Product development
Developing new product features: Philips OLED the future of lighting today.
Developing quality variations:

Different types of light.

Developing additional models and sizes: LED light bulbs, energy-saving light bulbs
(CFL), Halogen light bulbs etc.

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END

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