Analysis Of Grand Strategy Matrix. The Grand Strategy Matrix

1443 WordsMar 30, 20176 Pages
Analysis of Grand Strategy Matrix The Grand Strategy Matrix is a newer tool used for formulating alternative strategies (David & David, 2017). Similar to the BCG matrix, the Grand Strategy Matrix is places the business or the business divisions into one of four quadrants based on two evaluation dimension 1) competitive position on the x-axis and 2) market growth on the y-axis (David & David, 2017). The franchise segment would be located in Quadrant II, which would indicate this segment should focus on market development, market penetration, product development, horizontal integration, divestiture, and liquidation. The other two segments would fall in Quadrant III, which is a much grimmer outlook and their strategies should focus on…show more content…
In this case, the more attractive strategy is strategy 1. Analysis of Income Statement and Balance Sheet Performing an analysis of the company’s financial performance is beneficial to gauge performance, financial health, and future prospects of an organization. The income statement, balance sheet, and certain ratios are analyzed that give a variety of stakeholders valuable information to make decisions for or about the company or organization. There are certain financial ratios that give credit and equity investors, the government, the public, and management valuable information that will help make investment or strategic decisions for the company. Some of the key ratios are: liquidity ratio, profitability ratios, activity ratios, and leverage ratios. Based on the information provided, there are multiple concerns with the financial condition of Krispy Kreme Donuts. As reported on their 2015 consolidated statement of cash flow, they reported revenues of $383,984 for the year. After all expenses, they have reported a loss of $4,061 for the year. Their working capital amount (current assets – current liabilities) is only $39,190 and the debt-to-equity ratio (total liabilities/shareholder equity) is 2.375, which is quite concerning. The

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