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Module 3 – Home LED560
THE ACTION COMPASS
Modular Learning Outcomes
Upon successful completion of this module, the student will be able to satisfy the following outcomes:
Case
Turn the organization’s vision and mission into action, by applying the Grand Strategy Matrix and the BCG Matrix as tools to determine the “grand strategy” of an organization.
SLP
Using the Grand Strategy Matrix, decide on the chief strategy that should be followed by your selected organization.
Discussion
Using the Grand Strategy Selection Matrix, defend your choice of grand strategy (or grand strategies) for a Fortune 500 company of choice.
Module Overview
In Module 3, we visit the Action Compass – in which the overall purpose, vision, and mission of the organization are translated into concrete strategic decisions. Within the context of the organization’s internal strengths and weaknesses and the multiple threats and opportunities that exist within the environment external to the organization, it is a key and central responsibility of top leadership to choose a strategy (or set of strategies) that will best ensure fulfillment of the organization’s stated purpose. In this module, we will review some helpful conceptual tools that top leadership may use when deciding upon the strategic direction of the organization.
Module 3 – Background Assignment References and must watch
THE ACTION COMPASS
Required Resources
· Watch the following video, which describes 15 grand strategies. These include, among others, Concentrated Growth, Product Development, Horizontal Integration, Vertical Integration, and Diversification:
Strategic Management: 15 Grand Strategies. (2012, March 1). Cal Miramar University. Podcast retrieved on April 29, 2014, from
The following is an excellent overview of the Grand Strategy Matrix. Note that organizations choose grand strategies using two key criteria: Market Growth and Competitive Position:
· Grand Strategy Matrix. (2010). MBA Tutorials. Retrieved on April 29, 2014, from
http://www.mba-tutorials.com/strategy/1145-grand-strategy-matrix.html
· The following video shows how the Grand Strategy Matrix might be applied to a real-world organization – in this case, Pepsico:
· Grand Strategy Matrix and Pepsico. (2011, April 24). Podcast retrieved on April 29, 2014, from
· In the previous video, mention was made of the BCG Matrix. Review the following two sources as they relate to use of the BCG Matrix:
· Holzer, J. (01/01/2013). Encyclopedia of management theory: BCG growth-share matrix Sage Publications pgs. 64-66.
· How the BCG Matrix Works. (2013, March 17). Alanis Business Academy. Podcast retrieved on April 29, 2014, from http://www.youtube.com/watch?v=lc36fK38pLA
· Optional Resources
Ireland, R., & Hitt, M. A. (2005). Achieving and maintaining strategic competitiveness in the 21st century: The role of strategic leadership. Academy Of Management Executive, 19(4), 63-77. Retrieved from EBSCO.
Pasmore, W. (2013). Developing a leadership strategy. Retrieved on April 29, 2014, from
http://www.ccl.org/leadership/pdf/research/LeadershipStrategy
Rhodes, M. (2010). Five essentials of an effective strategy. Free Management Library. Retrieved on April 29, 2014, from
http://managementhelp.org/blogs/strategic-planning/2010/06/07/five-essentials-of-an-effective-strategy/
Module 3 – Case Assignment
THE ACTION COMPASS
Assignment Overview
In the Module 3 Case, we will be using tools that were discussed in the Background materials section to determine the best grand strategy for a well-known company. To begin the Module 3 Case, read the following article concerning Barnes & Noble’s strategic direction:
Hall, W., & Gupta, A. (2010). Barnes & Noble, Inc.: Maintaining a competitive edge in an ever-changing industry. Journal of Business Case Studies, 6(4), 9-22. Retrieved from ProQuest.
Case Assignment
Using the article above and the readings provided on the Background page of Module 3, write a 6- to 7-page paper in which you do the following:
Apply the BCG Matrix and the Grand Strategy Matrix to decide the optimal grand strategy – or grand strategies – that Barnes and Noble should follow.
Keys to the Assignment
The key aspects of this assignment that are to be covered in your 6- to 7-page paper include the following:
· After completing research in the library, apply the Grand Strategy Matrix to determine what you believe should be the optimal grand strategy (or blend of grand strategies) that should be pursued by Barnes and Noble.
· Discuss the assumptions you have made in applying the Grand Strategy Matrix (i.e., rapid vs. slow growth; strong vs. weak competitive position).
· Next, apply the BCG Matrix to Barnes and Noble’s core strategic choices (i.e., the company’s use of brick-and-mortar stores versus Internet business).
· the results from the BCG Matrix and the Grand Strategy Matrix: Does your use of the BCG Matrix support or refute your choice of grand strategy (or strategies) as selected by the Grand Strategy Matrix? Discuss.
Which grand strategy should Barnes and Noble follow? Why? Defend your answer.
Be sure to use a minimum of three library sources in support of your answers.
Module 3 – SLP Assignment
THE ACTION COMPASS
Assignment Overview
In the Module 3 SLP, you will evaluate the efficacy of your chosen organization’s strategy or strategies.
In a 3- to 4-page paper, determine the grand strategy or strategies currently pursued by the organization you have selected. After you have applied the Grand Strategy Matrix to an organization, determine whether the strategy your company now follows is the most optimal one.
Keys to the Assignment
The key aspects of this assignment that should be covered in your 3- to 4-page paper include the following:
Visit your chosen organization’s website, and using the company’s Annual Report and/or other additional research, determine the organization’s strategy or strategies. For example, is the company presently pursuing a Concentration strategy? An Innovation strategy? Is the company in Retrenchment?
Applying the Grand Strategy Matrix (GSM) to your organization, discuss the assumptions you are using to determine the optimal strategy your organization should pursue.
Decide whether the organization is pursuing the best strategy (or strategies). If not, what grand strategy or strategies should the organization pursue at present? Defend your answer
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