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December4,2010

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16Comments

Grand

Strategy

Matrix is very useful

instrument

for

creatingdifferentand
alternative strategies
for an organization.
Grand matrix has
four quadrants each
quadrant
different

contains
sets

of

strategies and the

entire firms along
with their respective
divisions must fall in one of the quadrant. This matrix has two
dimensions (competitive position and market growth). Suitable set of

Subscribeinareader

strategiesforeachquadrantaregivenbelow:

QuadrantI

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Companies positioned in this quadrant have very strong strategic

OK

position.Thesefirmsfocusontheirestablishedcompetitiveadvantage
(CA) and take advantage of it as long as it allows them. These
companies must concentrate on the existing market by adopting the
set of product development, market development and market
penetrationstrategies.Organizationsthatfallinquadrant1havefocus
on a single product and can go for related diversification strategy to

Categories

minimizetheriskrelatedtolimitedproductline.Iftheseorganizations
have higher resources they can go for horizontal, backward and
forward set of strategies. These firms can take risks being an
aggressive and can afford to obtain advantage of opportunities in
numerousways.

Accounting
PrinciplesofAccounting
AdvanceResearchMethods

Economics

QuadrantII

MacroEconomics

Firmslayinginthisquadranthavetherapidgrowingindustrybutcan
not fight competently. They must evaluate their existing approach in

Finance
IntroductiontoFinance
Management

themarketplace,needtoknowwhytheyareineffectiveinthemarket
andmustcomeupwithastrategytoimprovetheirstrategicposition.

PrinciplesofManagement

Duetothegrowthoftheindustry,firmsinthisquadrantuseintensive
strategy as a first strategic option. If companies do not have

StrategicManagement

competitive advantage, horizontal integration is more advantageous

option. Last but not the least strategic option is the liquidation which
provides fund needed for other Strategic Business Unit (SBU) or to
acquireotherbusinesses.

Marketing
ConsumerBehavior
PrinciplesofMarketing
SWOTAnalysis

QuadrantIII

Allthosefirmswhichfallinthisquadranthaveslowgrowthmarketand
have relatively weak position. Firms have to make noticeable
modifications to sustain their position. Retrenchment strategy has
priorityinthisquadrantfollowedbydiversificationtotransferresource
to another growing business. Last strategic option available for the

Others
Psychology
Sociology
Statistics
Descriptivestatistics

firms positioned in this quadrant is liquidation or divestiture of the

business.
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Bethefirstofyourfriendstolikethis

QuadrantIV

Companiescompetinginthisquadranthaveslowgrowthindustrybut

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have a strong competitive position. These firms can diversify into

different untapped businesses by utilizing their existing resource.
These firms face restricted internal growth and have high cash flow
intensity which allows them to practice related and unrelated
diversificationseffectively.Finallythesefirmscangoforjointventures
tofulfilltheirinternalgrowthneeds.
GrandStrategyMatrixExample

ClassificationofMotives
BenefitSegmentation
UseRelatedSegmentation
MotivesIdentifiedByHenry
Murrays
MotiveIdentifiedbyMcGuire

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In this figure each quadrant shows the different strategic options

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16responsestoGrandStrategyMatrix

rizwan says:

June10,2011at7:12am

veryveryverygood

preeti says:

October6,2011at9:53pm

itisusefulforme.itprovideeasywaytounderstandtheconcept.thanx

mine says:

December2,2011at4:38am

iwantaskforurhelpactuallyimdoingpresentationonGrand
strategicmatrix..otherthanitsfunctionwhatcanipresentabout
thistopic???
http://mbalectures.com/management/strategicmanagement/1129/grandstrategymatrix.html

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Paul says:

GrandStrategyMatrix

December4,2011at8:17am

HowtodothisgrandstrategyMatrix?HowwouldIknowwhich
quadrantthecompanywouldfall?

anshulsrivastava says:

March12,2012at4:51pm

tanxitisreallyuseful4mebutitshouldrequiredsomekey
words

Usman says:

April14,2012at7:33pm

ItisgoogbuthowitisusefulforaFirm.PleaseclearifyGrandstrategy
MatrixWithpracticalexample

stanley says:

September22,2012at9:16am

goodmaterials

tranquangnam says:

October31,2012at3:36pm

icanknowtohowisarapidorslowmarketgrowth?

ChipoMalingaGora says:

April15,2013at7:28pm

IhavetomakeapresentationonGrandStrategyMatrix.Pleaseassist
meonhowtogoaboutit.HowdoIknowwheremyorganiztionfits
intowhichmatrix

sabit says:

April22,2013at3:02am

http://mbalectures.com/management/strategicmanagement/1129/grandstrategymatrix.html

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IreadmanytopicsbutIcouldnotfindthemhelpful.Howtoformulate
thematrics?wherearethenumberse.g.yaxizfrom6to6andthe
sameforxaxis.howtoreachtothevalueof5,7forexampleand
whereshouldIdrawthevector.

saad says:

May5,2013at9:20pm

Nycstuff.

P.Gautham says:

January8,2014at5:21pm

verygoodveryusefullandaccurateindetailinformationprovided

SharifullahDanesh says:

January19,2014at7:54pm

TheQuadrantsareexplainedclearly,butcouldsomebodyprovideus
withanumericalexample?
Thankyouguys,

nomorhoki says:

April21,2014at12:14pm

Nice.veryveryhelpfull.Great!!!

villaclodia says:

October11,2014at9:51am

Everythingisveryopenwithareallycleardescriptionofthe
challenges.
Itwasreallyinformative.Yourwebsiteisveryuseful.Thanksfor
sharing!

Ncheke says:

April18,2016at10:09am

http://mbalectures.com/management/strategicmanagement/1129/grandstrategymatrix.html

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ihavetomakeapresentationonGrandStrategyMatrix,pleaseassist
meonhowtogoaboutit.

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