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Strategic Management – Macksons Holdings


Strategic Management – Macksons Holdings

Word Counts 3344


Growing a business through various growth strategies

There are companies, which grow by producing and marketing one or closely related products. Some examples are Toyota (Land Vehicles), and Star Bucks (Coffee). There are also companies that grow through highly diversified products. Examples are Virgin Group, Hayleys, and John Keels. Companies, which produce one product, enjoy strategic capabilities in a well-defined domain and keeps on developing capabilities.  The inherent advantages for such companies are focus on focused strategic capabilities (both skills and resources), and developing a single brand. However, there are advantages of diversifying too: Reaching varied market segments, and strategic alliance. 

The inherent challenges of extensive diversification are acquiring varied strategic skills, brand development, specially choosing between a single brand and multi-branding strategy, and the design and management of differing competitive advantages. Another serious question is; can “A dog” in the BCG matrix go for diversification profitably?


  1. Illustrate the growth path of a company, which begins with a single product, innovate due to demand a new version of the same product, and then diversify with a related product, and an unrelated product. You must illustrate the path in the Ansoff’s opportunity matrix. Provide explanation to justify your illustration. Make logical assumptions if needed.
  2. How do the concepts of Corporate, Business Level, and Operational strategies may differ in the two categories? 
  3. Critically review the issue of “The risk of investment” in the two categories and suggest key measure to manage risks 
  4. Do you advise a “Dog” in the BCG matrix to diversify, explain

Assessment criteria

The following criteria will be used when marking your Assignment:

  1. Clearly identified the growth paths of the two types and provided an acceptable explanation (20%)
  2. Provided a comparative explanation of how Corporate, Business Level, and Operational strategies may differ in the two categories (30%)
  3. Excellent presentation of investment risks in unitary business and diversified businesses, and explained measures to minimize risks (25%) 
  4. Logical explanation for a “Dog” in the BCG matrix to diversify (10%)
  5. Extent and relevance of references and conformity to Harvard systems of citations (15%)

Additional information

Table of Contents

Executive summary 1
Ansoff’s Matrix: growth path of Macksons Holdings
Product / service focus vs Diversification: How the concepts of corporate, business and operational strategies affect these growth strategies.
Risk of Investment in product development Vs Diversification
The diversified Dog


Executive summary
This report evaluates the growth strategies used by “Macksons Holdings”, as group of companies in sri lanka that holds a number of business interests in the fields of construction and hardware, and the application of product extension and diversification-based growth strategies in driving growth within the organization. The growth path of the company is evaluated based on the Ansoff Matrix and the different focuses of resource-based views and the market based views are identified in following a growth strategy. The report also explores the concepts of corporate, business and operational strategies in implementing the same and identifies that overall synergy within the group strategies is crucial to the success of any one strategy. Risks of each diversification strategy and product extension strategies are explored, following a discussion on how diversification can assist a “Dog” as per the BCG matrix, move on from its dog stage.


“Strategy” can be defined as the path taken by an organization to achieve its overall corporate, business and operational goals (Johnson et al, 2008). This defines the decision-making process, competition and responses to market changes, and guides and directs the overall decisions made within the company. It must be noted that these competitive, growth and stakeholder strategies are interdependent and compliments each other and thus, strategic planning of each needs to take these interdependencies into consideration (Zollo et al, 2016).
Corporates embrace growth strategies when the conditions of growing market share and a growing industry are fulfilled. Within an industry that grows, corporates have the option of offering a number of product extensions as a growth strategy, in order to grow the market share of the firm. In addition, corporates can also offer related / similar products to a completely new market in order to increase on market coverage (Johnson et al, 2008). These strategies help organizations make full use of the existing resources and competitive advantages. Another strategy that is available for organizations, that are specially in stagnant industries, is to diversify in to a new market with a new product. This enables the organization to enjoy the perks of a completely new market with a novel brand, and strips it of potential disadvantages caused by existing brand perceptions.
This report will evaluate the growth strategies embraced by Macksons Holdings, a growing group of companies that has interests in a multitude of industries. The group consists of a number of brands that have focused on product / market development and a number of brands that have completely moved away from the existing industry of the organization and tapped on to completely new industries. Thus, this organization has used both the growth strategies of product / market development using existing advantages and overall diversification.
With the vision of “Adding color to your lifestyle and making your environment beautiful”, Macksons Holdings is a conglomerate that has been in business since 1970. With subsidiaries that focus on manufacturing, imports, exports and trading in the building materials sector, Macksons can be considered to be a truly sri lankan organization that started off as a home based business (Macksons, 2018).
The report will critically evaluate the journey of Macksons from related growth to diversification and discuss the same using the Ansoff’s matrix as an analytical tool. Following which, the differences in corporate, business and operational strategy will be discussed in relation to these growth strategies. The report will also explore the topic of risk of investment in these specific growth strategies and will conclude by exploring the interesting conundrum of if a dog, as per the BCG matrix, can explore diversification to get back to be a star or a cash cow.