Grand Met case, on horizontal integration Essay

Grand Met case, on horizontal integration - Essay ExampleSo it is becoming more important for the business managers to redefine the strategies based on the situations in the market and direct the union to win great success. GrandMet integrated horizontally and withal diversified their business by merging with several companies that atomic number 18 either related or not related to the business. That was done in order to acquire the strategic resources that were important for the smooth operation of GrandMet. In this study the strategic choices of scoop shovel Joseph and his team would be analysed from the p arntage of GrandMet, so that the approaches applied for making the strategic decisions can be understood. Apart from this the reasons for choosing the strategies would also be evaluated and scrutinised so that the feasibility of the strategies can be discussed and decisions can be taken regarding the capabilities of Max Joseph and his decision making abilities. immaterial Environment and Internal Strategic Capabilities In order to make strategic choices in the increasingly militant environment, the firms have analysed the threats and opportunities according to the strategic management process. An analysis of the economic environment which includes the direction and the characteristics of the economy in which the firm is operating or competing has to be analysed. As far as the macro environmental prospects are concerned, GrandMet engaged themselves into the business of fast moving consumer durables (FMCG), which customers required everyday and the rate of repurchase in such cases are also high. So it can be said the choosing the FMCG market was due to the massive potential in this sector (Hitt, Ireland, and Hoskisson, 2012, p. 13-15). However, the fact remains that the FMCG market is dominated by few major players, who are considered to the best brands and they have also got well established distribution channels or add chain, corporate system, ar e financially stable and have a sustainable position both economically and strategically. These features of the major players, such as Pepsi Co., or Bread Inc., in the FMCG industry were a major threat for GrandMet. Moreover, the FMCG market is extremely competitive and the customers have various choices, substitute products, and complementary products, which also gives the customers high talk terms power. This also leads to the increase in competitiveness and reduction of the profit margin of the companies or marketers. Customers are also afraid or reluctant to change or try out new products, which are an aspect of psychology or consumer behaviour, so it is also difficult to make the customers switch to a different brand. that when the company can make sure, as to how the preferences or the taste of the customers changes and how it can be changed, the objective of crack new products or services would be successful (Bamford, and West, 2010, p. XVI). The market share of GrandMet w as high and the sales figures of the company were higher among the global operations in the industry. In the year 1991, the sales of the company were around $14.771 billion, speckle the asset value was $17.648 billion. There were around 13.8 million employees in the company. On the basis of the sales discover of 1991, GrandMet was in the 5th position among the British companies and 78th among the large corporations in the world. Apart from this, the CEO of the company Max Joseph