A corporation’s directional strategy is composed of three general orientations (sometimes
called grand strategies):
Growth strategies expand the company’s activities.
Stability strategies make no change to the company’s current activities.
Retrenchment strategies reduce the company’s level of activities.
Having chosen the general orientation (such as growth), a company’s managers can select
from several more specific corporate strategies such as concentration within one product
line/industry or diversification into other products/industries. (See Figure 7–1.) These strategies
are useful both to corporations operating in only one industry with one product line and
to those operating in many industries with many product lines.