Assignment on Selling and Sales Management

University of Central Punjab
Selling and Sales Management
Submitted to:
Prof. Nabiha Jamshed
Submitted by:
Syyed Sultan haider (S2F18BBAM0007)
Date of submission 29th December 2021
Assignment no. 3
Program:
BBA-7
Session:
F-18

Question
Explain purpose and all components of “grand strategy matrix”?
Explanation:-
It is good for companies to know which strategies they should or should not develop.
There are multiple ways of finding out. Among other things, a kind of SWOT analysis
that looks at the business's internal strengths and weaknesses as well as the external
opportunities and threats may be of help.
The Grand Strategy Matrix is a handy tool as well, when it comes to formulating feasible
strategies. Grand Strategy Matrix has grown into a powerful tool for coming up with
alternative strategies.
The model is based on two dimensions plotted along a vertical and a horizontal axis; the
vertical axis represents market growth, varying from slow to fast growth. The horizontal
axis represents the organization’s competitive position, which may range from weak to
very strong.
These data combine to create four quadrants, in which organizations can be positioned so
that selecting suitable strategies can be easily researched.
Both a company's current growth and its competitive status count as important factors.
The model also allows businesses that are split into multiple divisions to formulate a best
strategy for each of those divisions (product groups).

 Market Penetration: This focuses on increasing sales of existing products to an
existing market.
 Product Development: Focuses on introducing new products to an existing market.
 Market Development: This strategy focuses on entering a new market using existing
products.
 Diversification: Focuses on entering a new market with the introduction of new
products.
 Related diversification
It is one in which the two involved businesses have meaningful commonalties, which
provide the potential to generate economies of scale or synergies based upon the
exchange of skills or resources. In a related diversification the resulting combined
business should be able to achieve improved ROI because of increased revenues,
decreased costs, or reduced investment, which are attributable to the commonalties.
 Unrelated diversification:
Unrelated diversification lacks commonality in markets, distribution channels, production
technology, and R&D thrust to provide the opportunity for synergy through the exchange
or sharing of assets or skills. Reliance entered into retailing by allocating Rs25, 000 crore
in a phased manner is a typical example.
 Divestiture
Selling a division or part of an organization is called divestiture. Divestiture often is
used to raise capital for further strategic acquisitions or investments. Divestiture can
be part of an overall retrenchment strategy to rid an organization of businesses that are
unprofitable, that require too much capital, or that do not fit well with the firm's other
activities.
 Retrenchment
The Retrenchment Strategy is adopted when an organization aims at reducing its one or
more business operations with the view to cut expenses and reach to a more stable
financial position.
 Joint venture
At its most basic, a joint venture is when two or more businesses agree to work together.
It’s effectively a commercial agreement between two or more participants, usually
entered into in order to achieve specific business goals such as launching a new type of
business or selling products into a new market. Each company maintains their separate