A grand strategy is an overall corporate strategy for growth, stability, or turnaround. Each grand strategy aligns with different objectives. Let’s discuss each separately. With a growth strategy, the company makes aggressive attempts to increase its size through increased sales.

With a stability strategy, the company attempts to hold and maintain its present size or to grow slowly. Many smaller companies are satisfied with the status quo, but large MNCs are expected to keep growing. A turnaround strategy is an attempt to reverse a declining business as quickly as possible.A retrenchment strategy is the divestiture or liquidation of assets. These strategies are listed together because most turnarounds include retrenchment.

Turnaround strategies generally attempt to improve cash flow by increasing revenues, decreasing costs, reducing assets, or combining these strategies to realign the firm with its external environment. A spinoff is a form of retrenchment in which a corporation sets up one or more of its business units as a separate company rather than selling it. Corporations may pursue different strategy for different lines of business or areas of operations.