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  1. “Gul-Ahmad” has primarily been in the business of designing, developing, and selling trendy footwear, clothing, equipment and accessories. It’s a well-managed company in a striking industry, the company has a strong brand image, and they are successfully capturing the value created from their investment. Gul-ahmad is using high technology to move ahead of their competitors and produce according to the customers need and want. They recently added kid’s clothing and men’s shirts in order to reach more customers and to achieve business synergy. They are very famous in designing summer lawn, but to increase market share they decided to invest money in winter clothing just to sell new products with their brand name in a mature industry. As to combat in a mature market and to sustain its strong competitive position Gul-ahmad can also stretches its business by mutual agreement with “Asian furniture pvt Ltd” by offering home décor services in order to access to the new market and cost and risk reduction with new partner.

 

  1. Nishat group of companies is a leading business house of Pakistan. The group has presence in all major sectors and one of the success stories of Nishat group is the Nishat Textiles that caters to spinning, weaving, home textiles, garments and Nishat linen to name a few. The company has the most modern and well-equipped manufacturing units related to textiles and its relevant operations. Over the years and as a result of careful management policies, consolidation of operations and an effective marketing strategy, the growth trend has risen in its various business units too. It is closely conforming to its mission of providing quality products to customers and discovering new markets to uphold and develop sales of the company so as to achieve best possible prices of products of the company for maintaining growth and prosperity of the company. In 2005, it acquired the assets of Umar Fabrics Limited as well. However, due to better opportunities elsewhere the company faces shortage of skilled spinners and weavers, due to which it may decide to pay attention to its garments and home textile units only and stop its own spinning and weaving operations.

According to the above scenarios discussed, you are required to study the various quadrants of the ‘Grand Strategy matrix’ and determine which strategy is being adopted by Gul-Ahmad and Nishat group respectively?

NOTE:

You must only specify the strategy being used and the quadrant in which each company lies. Also, provide 2 relevant reasons to justify your answer.

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Replies to This Discussion

 

Setting up Quadrants

You will have four quadrants for your grand strategy matrix. The first represents strategies for maintaining rapid growth when you have a strong competitive position. The second offers rapid - growth strategies when you have a weak competitive position. The third provides strategies that relate to a weak competitive position and slow growth. The final quadrant lists strategies appropriate to strong competitive attributes with slow market growth.

RAPID MARKET GROWTH

Quardrant-1

Market development                          Market penetration                             Product development

Forward integration                             Backward integration                         Horizontal integration        \

Concentric diversification

Quardrant-2

Market development                          Market penetration                             Product development

Horizontal integration                        Divestiture                                             Liquidation

Quardrant-3

Retrenchment                                      Concentric diversification                  Horizontal diversification

Conglomerate diversification            Liquidation

Quardrant-4

Concentric diversification                  Horizontal diversification                  Conglomerate diversification

Joint ventures

Dear's i have a situation that my ID have been block for unpaid fee reason, while i have paid my fee by money transfer since NOVEMBER. NOw i have even email the university and they have not responded yet...WHAT SHOULD I DO AS I M MISSING MY QUIZ AND GBD TODAY

in my point of view nishat in first quadrant and Gul in 4th.Gul 4th ki sare strategies adopt karta hai :) baki Allah maliq hai waisay sab ka result kaisa raha alhamdulillah mera boht acha :)

Rubeena, I agree for Gul Ahmad, but for Nishat the problem is:

"it may decide to stop its own spinning & weaving operations"

Don't you think that it indicates a divestiture? If it is such a leading company, why does it have to stop its operations?

deaer nishat is in second

Namrah, there is another problem. If Nishat is in second quadrant i.e. with weak competitive position, how can it still be "leading" company, and still acquire other businesses? Because only a company with strong competitive position can acquire others.

yes amjad mai b yahe keh rae hun i posted my ans n Nishat pakistan ki leading textile company hai so weak k rankmai ate nae n is liy instructor ne b 2 reasons ka he kaha hai warna ye b hota k pora quadrant ho

Btw congrats on good result Rubeena. I also passed in all, but got surprisingly low marks in Business Communication (only 60%), although my paper went very well. What's the highest you got, and in which subject?

reasons 2 pochay hain but strategies jtni b foloow karty woh sab pochi hain, it fallls in 2nd quadrant

liquidate kab kia nishat nay?????? for it to be in second, it has to liquidate

Shoaib, I think it is not necessary that each and every strategy is followed in a given quadrant.

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