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General Motors<br />SIMER<br />Grand strategy for GM<br />Presented by-<br />Reenadewangan<br />Shiladityasengupta<br />Rashminidhisahu<br />PrahladSahu<br />ShashiBhagat<br />Pratikshadewangan<br />
Introduction<br />Grand strategies , often called master or business strategies, is an extension of the existing BCG matrix which helps determine the strategies which can be adopted for a particular set of situations and provide basic direction for strategic actions<br />Indicate the time period over which long-range objectives are to be achieved<br />Firms involved with multiple industries, businesses, product lines, or customer groups usually combine several grand strategies<br />Any one of these strategies could serve as the basis for achieving the major long-term objectives of a single firm<br />
Four Alternatives<br />Stability<br />To remain in the same size or<br />To grow slowly and in a controlled fashion<br />Growth<br />Internal growth: can include development of new or changed products<br />External growth: typically involves diversification – businesses related to current product lines or into new areas<br />Combination -It involves deliberate use of different strategies for different units or divisions at the same time or chronological use of different strategies over the period of time.<br />Retrenchment -The organization goes through a period of forced decline by either shrinking current business units or selling off or liquidating entire businesses.<br />
MARKET PENETRATIONThe main task here is to increase sales by encouraging wider usage of existing products by existing customers --for example, this could be achieved in the market for sunglasses by promoting the product as a fashion accessory, or by formulating an extra-mild shampoo with the directive to consumers to wash their hair every day.<br />MARKET DEVELOPMENTThe entering of new markets could involve expansion into new geographic areas, both local and foreign, a shift from consumer to industrial markets or, possibly, marketing the product or service to new segments or demographic groups.<br /> Ex: Hallmark cards, who regard themselves as being in the "social greetings business". A casual glance at their product range demonstrates a large variety of circumstances in which a card could be purchased, e.g. secretaries' day, pets' day, and congratulations on your divorce! <br />
PRODUCT DEVELOPMENTThis is sometimes referred to as a continuous innovation strategy, the intention of which is to protect or develop market share by the use of product modifications and enhancement.<br /> Ex: Sony Corporation who market dozens of models of the Walkman, ranging from "My First Walkman" for children which is a brightly coloured, easy-to-use, fun model, to the "Professional Walkman", which sports numerous features that reflect the technical wizardry of the manufacturer.<br />
DIVERSIFICATION<br />Diversification has the primary objective of reducing risk by moving into new areas that afford good growth opportunities, better profit prospects and greater levels of certainty. Such a strategy is commonly adopted in a "cash cow" situation when there is reason to believe that the golden days of profitability are gone for good.<br />
PRODUCT/ CONCENTRIC DIVERSIFICATIONProduct diversification may sometimes be referred to as concentric diversification. This requires a firm to develop, or acquire, new products which have market or technological synergies with current products. These products may, or may not, be intended for sale to the company's present markets. <br />HORIZONTAL DIVERSIFICATIONThe firm adds new products that could appeal to existing clients, e.g. a producer of sunglasses distributing tanning lotion<br />CONGLOMERATE DIVERSIFICATIONThe adding of products or businesses that have no relation to current technologies, products or markets. The Mitsubishi Corporation manufactures an immense range of products, ranging from disposable ballpoint pens to bulk carriers. <br />
INTEGRATION<br />Commonly confused with diversification, integration relates more precisely to the vertical aspects of manufacturing and distribution logistics.<br />BACKWARD INTEGRATIONIf a company were to undertake a strategy of backward integration, investment would result in the acquisition of vendors--for example, 7-Up purchasing their flavour supplier.<br />FORWARD INTEGRATIONThis strategy usually involves the movement into logistical, distributive, or retailing activities.<br />HORIZONTAL INTEGRATIONA pure form of growth, horizontal integration encourages ownership or control of other firms in the industry<br /> Ex: Ford's acquisition of Jaguar, and Fiat's acquisition of Ferrari.<br />
RETRENCHMENT<br />Retrenchment is a common strategic response in markers that are subject to adverse economic pressures, uncertainty, or cheap foreign competition. Retrenchment can be differentiated from divestment, in that the former is a reaction to temporary hardships whereas divestment has the element of permanency about it.<br />
Cars<br />Trucks<br />SUVs<br />Hummer<br />BCG Matrix<br />Hybrid vehicles such as the 2006 Chevy truck, and smaller SUVs and crossover vehicles such as the current Pontiac Vibe.<br />foreign brands such as Holden, Vauxhall, and Opel, and full-size trucks and SUVs due to their large consumption of expensive fuel. <br />Star<br />Question Mark<br />Dog<br />Cash Cow<br />
3 pillars to create high impact and recognition for brands:<br /><ul><li>1. Integrations and Innovations