Question

Movement restricts imposed by various governments to mitigate the spread of COVID-19 pandemic in the form of social distancing and closure of national and international borders and airports has brought a number of business organisations to a standstill, leading to the decline in growth and market share, especially the hard hit tourism and hospitality industries. Assume that you are the manager of of IDISAM Hotel Ltd, which holds the largest market share in the hospitality industry, but now on the verge of collapsing due to COVID-19 pandemic. Propose corporate of grand strategies that the company can use to deal with the situation at hand.

Answer 1

Corporate grand strategies are significant strategies that corporations use to tackle strategic risks, and uncertain risks. Moreover, the strategies are also used to accomplish the objectives that the organization has set. Grand strategies are long-term plans for saving organizations from strategic disasters.

Corporate of grand strategies that the company can use to deal with the situation at hand are as follows:

• Stability strategy: stability strategy used when an organization prefers to maintain its current situation despite so many external and internal troubles. Corporate organizations can use the strategy to maintain the same customers' groups, same functions, and the corresponding techncal etiquette. Three fundamental principles of the strategy are – making no change, making no profit, and proceed with caution.

• Retrenchment strategy: Retrenchment strategy can be used during the post Covid19 impact. Most of the corporations are now adopting the strategy by reducing many of their business operations. Stopping business operations, cost-cutting, and elimination of exaggerated activities in the organization are the crucial factors in retrenchment strategy.

• Combination strategy: Combination strategy is the combined version of stability strategy, expansion strategy, and retrenchment strategy. The corporations that have a diversified business area can use the combination strategy after the Covid19 impact. However, they can stabilize their core operation, use an acquisition strategy to grab small businesses as an expansion strategy, and retrench their cost if the budget exceeds.