myz-vgb.ru A Business Encyclopedia

Combination Strategy

Definition: The Combination Strategy means making the use of other grand strategies (stability, expansion or retrenchment) simultaneously. Simply, the combination of any grand strategy used by an organization in different businesses at the same time or in the same business at different times with an aim to improve its efficiency is called as a combination strategy.

Such strategy is followed when an organization is large and complex and consists of several businesses that lie in different industries, serving different purposes. Go through the following example to have a better understanding of the combination strategy:

* A baby diaper manufacturing company augments its offering of diapers for the babies to have a wide range of its products (Stability) and at the same time, it also manufactures the diapers for old age people, thereby covering the other market segment (Expansion). In order to focus more on the diapers division, the company plans to shut down its baby wipes division and allocate its resources to the most profitable division (Retrenchment).

In the above example, the company is following all the three grand strategies with the objective of improving its performance. The strategist has to be very careful while selecting the combination strategy because it includes the scrutiny of the environment and the challenges each business operation faces. The Combination strategy can be followed either simultaneously or in the sequence.

Leave a Reply

Your email address will not be published. Required fields are marked *

Shares

Related pages


restruction meaningdefine breakeven pointtravellers chequespearman's correlationfayol principlescamel ratingmonetarist theory of moneydefine ethical egoismresonance pyramidselection process steps in hrmcontrollable factors of marketing environmentconcepts of collective bargainingexamples of forward integrationconglomerate integration definitionwhat is multistage cluster samplingwho is intrapreneurexamples of oligopoly marketcommunity indifference curvestaggered board definitioncheck truncation systemmeaning of demand functionjoseph a schumpeterdeontological ethical theory definitionlaw of diminishing marginal utility economicsmonopolistic competition market structure definitiondebentures investopediaethnocentricism definitiontrait theorywhat is the meaning of transfer pricingmonetarist inflationdeontological theoryexample of teleological ethicsexample of unitary elastic demandmeaning of regression in hindidefinition positsexamples of informal groupssurveyed synonymkanban stock controlmeaning of asset turnoverporters competition modeldeficit financing meaninghow to calculate spearmans rankvroom theory of expectancydefinition chitdefine contractionary monetary policydefine profitability indexconsumer behavior and utility maximizationdefinition of cyclical unemploymentsales forecasting meaningbusiness ethic theoriesdefinition of scatter diagramwhat are convertible debenturesexamples of quota samplingoperant approachconsumer utility theorydisadvantages of job rotationdefinition of subordinatesneft batchesscientific aptitude meaningadministrative theory of henri fayolmeaning and definition of entrepreneurhire purchase business definitionguerrilla meansprofit margin ratio formula accountingblack scholes option calculatordecoding in communication processdeclining marginal utilitydefine resonantfixed asset turnover ratio definitionassumptions of diminishing marginal utilityschumpeterian economicsfactors influencing consumer behaviour pdfinvested capital turnover ratio