Grand strategy matrix for an organization of your choice
Create a grand strategy matrix for an organization of your choice, write a summary of whether the organization's strategies are aligned with the matrix, and make recommendations for changes to the organization's strategy based on your observations.
Introduction
A grand strategy matrix can help you formulate your organization's strategy.
The goal of any strategic planning activity is to enhance organization performance. Through involvement in strategic planning, employees achieve a better understanding of the organization's operation. The process allows for proactive decision-making. It is important to anticipate and respond to issues and to understand that sometimes a philosophical change will surface. There are twelve general strategies an organization might follow when implementing change. Adopting one or more of these strategies might mark a new beginning for an organization, especially if the employees understand and support the plan of action. The twelve strategies are:
Forward Integration: Increase control of distributors or retailers.
Backward Integration: Increase control of firms' suppliers.
Horizontal Integration: Increase control of competitors.
Market Penetration: Increase market share for current products in current markets.
Market Development: Introduce current product in new geographic areas.
Product Development: Increase sales through improved or new product.
Concentric Diversification: Add new but related products.
Conglomerate Diversification: Add new unrelated products.
Horizontal Diversification: Add new, unrelated products for current customers.
Retrenchment: Cost reduction to reverse declining profit and sales.
Divestiture: Sale of part of the organization.
Liquidation: Sale of the company's assets.
Strategy formation is an assessment of whether the organization is doing the right things and how it can be more effective. Organizations can become obsolete by following a strategy made out-dated by market changes. Objectives should be consciously developed and coordinated and not just extensions of day-to-day operations.
Sample Solution
Example: McDonald\'s McDonald's grand strategy matrix would include Forward Integration, Market Penetration and Product Development. McDonald's has implemented a successful forward integration strategy by taking control of their distributors and retailers as well as a strong market penetration strategy with the development of new menu items. They have also developed an effective product development strategy by creating new products such as the McFlurry and adding additional variants to existing offerings on the menu.
Summary
McDonald’s strategies are well aligned with their grand strategy matrix. Their forward integration, market penetration, and product development strategies all contribute to their success in maintaining a competitive advantage in the fast food industry. Their focus on customer needs, cost-efficiency, marketing campaigns targeting multiple segments, innovation, and expansion into global markets have successfully set them apart from other competitors.
Recommendations for changes to the organization's strategy based on observations
The following recommendations could help enhance McDonald’s current strategies: 1) Increase focus on sustainability initiatives; 2) Expand offering of healthier options; 3) Improve digital marketing efforts; 4) Invest in research & development initiatives to stay ahead of competitors; 5) Strengthen online presence through eCommerce platforms; 6) Integrate mobile ordering capabilities across outlets; 7) Utilize technology for more efficient delivery services 8 ) Explore opportunities for franchising outside traditional markets 9) Incorporate artificial intelligence (AI), machine learning (ML), and Voice Assistant technologies into services 10). Develop loyalty programs that incentivize repeat customers 11). Pursue further diversification opportunities 12). Launch social media campaigns that increase brand awareness globally