APPLICATION OF GRAND STRATEGY AS A STRATEGIC TOOL FOR ORGANISATIONAL POSITIONING
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APPLICATION OF GRAND STRATEGY AS A STRATEGIC TOOL FOR ORGANISATIONAL POSITIONING
Chapter one
1.0INTRODUCTION
1.1 Background Information of the Study
Until recently, achieving organisational positioning in a business industry, defined as an organization’s ability to accomplish desired results with the least amount of time, money, staff, and material
was based on the intuition of business owners or managers. Such intuitions were typically based on the previous experience or “human” of owners or top managers, which could result in a level of organisational positioning.
However, some of these instinctive selections worked for a while. It has been noted that when the organisation grows in size, the business environment begins to change rapidly due to the influence of numerous external forces. As a result, managers’ intuition is just unsuitable for achieving organisational positioning.
As a result, managers and business owners must take a systematic approach to achieving the necessary level of organisational positioning. There is a need to try to fit the organisation’s resources to the continuously changing environment in which it functions. This systematic strategy is referred to as the course of action that an organisation takes to attain its objectives.
The difference between what an organisation intends to accomplish to capitalise on its chances and what it actually does is known as a performance gap. This could be owing to the success of competitors, government laws, or new technical breakthrough ideas.
When a gap is observed, the decision maker investigates the causes and seeks alternate solutions by innovative ideas, brainstorming, or selecting active or passive strategies.
As a result, there is a chance that a strategy modification will be considered in regard to the gap in order to attain the intended outcomes in the future using the two strategies.
Company strategies known as grand strategies include stable growth strategy, growth strategy, retrenchment or turnaround strategy, and combination strategy.
1.2 Statement of Research Problems
This research was prompted by the fact that in today’s dynamic business environment, intuition and guesses have shown to be insufficient for achieving organisational positioning.
A more systematic and predictable method is necessary. Such an approach can only be validated by a study that demonstrates the existence and strength of the relationship between grand strategy and organisational positioning.
1.3 Scope of the Study
This study will look at two broad strategies used by financial institutions in Lagos. These strategies are growth and retrenchment or turnaround strategies. Two banks were chosen for this study.
They are Intercontinental Bank Plc and Platinum Habib Bank Plc (PHB). This assessment will focus on how the chosen strategies assist the selected organisations position themselves in a dynamic business environment.
1.4 Research Questions
The following questions will be answered at the conclusion of this study:
i. Is there a strong correlation between growth strategy and organisational positioning?
ii. Is growth strategy an effective instrument for enhancing profitability?
iii. Does the merger plan improve an organization’s credit and rating position?
iv. Can a merger be used to diversify operations?
v. Can a growth strategy influence market positioning?
vi. Is there a strong correlation between growth strategy and improved product sales?
1.5 RESEARCH HYPOTHESIS.
Hypothesis I
H0: There is a positive and strong association between growth strategy, retrenchment, and organisational posture.
Hypothesis I
H0: There is no substantial association between a growth plan and increased product sales.
Hypothesis III.
H0: The growth strategy is not responsible for market positioning.
1.6 Study Objectives
The general objectives to be achieved in this study:
1. To demonstrate that organisational positioning is achievable in today’s dynamic environment.
2. To demonstrate that growth strategy and retrenchment play a critical role in achieving organisational efficiency.
1.7 Significance of the Study
The study will concentrate on the use of grand strategies, specifically expansion and retrenchment plans, as a tool for organisational positioning.
1. This study is crucial because it will demonstrate empirically the relationship between grand strategy and organisational positioning.
2. It would also show organisations the prospect of increasing organisational efficiency through expansion and retrenchment strategies.
3. It would allow organisations to more effectively match their limited resources to the dynamic environment.
4. Source of information for future research.
5. This study will demonstrate how grand strategy can be used as a standard for achieving high levels of organisational positioning.
1.8 Definition of Key Terms
1. Strategy: A set of organisational actions and managerial practices used to accomplish organisational goals.
2. Grand Strategy: These are strategic options that can help a business address gaps or capitalise on possibilities.
3. Organisational Efficiency: The ability of an organisation or corporation to produce desired results with the least amount of resources.
4. Market Share: This is the percentage of the total target market that the organisation has secured.
5. Profitability: An organisation’s ability to make profits.
6. Environment: Is a combination of internal and external factors that directly influence the organization’s actions.
7. Corporate Strategy: This is the main strategy for the entire organisation.
8. Intuitive plan: A non-systematic plan that relies on the judgement of firm owners or management.
9. Stable Growth Strategy: This is a strategy that requires a company to focus its efforts on areas where it can gain a significant competitive advantage.
10. Growth Strategy: This is a strategy that permits a company to continue conducting its current business in the same manner.
11. Retrenchment: This is a last resort approach because it is the most difficult to implement. It signifies failure, hence it is rarely used.
12. Combination approach: This approach employs multiple grand strategies across various aspects of the business. It implies to adapt diverse tactics to varied environments.
13. Organisational Positioning: This is the practice of adopting continuous improvement competency levels to guarantee corporate objectives are met while also aligning with culture and employer of choice strategies.
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