Johannesson, J. and Palona, I. (2009) Eight growth vectors for strategy formulation in a tough economy. Paper presented to: Academy of International Business - SouthEast (AIB-SE) 2009 Annual Meeting, Jacksonville, Florida, 28-30 October 2009. (Unpublished)
In a global recession, executives face new challenges and opportunities in strategy formulation and the first alternative to come to mind are cost reduction and restructuring but, these will result in poor performance and place the firm at a disadvantage in the coming economic recovery. Executive need to focus on the growth opportunities and many executive may use the Ansoff matrix to analyze their strategies. This paper addresses some of the concerns and ambiguity imbedded in the Ansoff matrix, clarifies them, and proposes an extended Ansoff matrix giving eight growth vector strategy alternatives that are easier to use for executives dealing with the complexities of strategic choice in a global recession. In addition to a conceptual development some examples of the eight strategies used by firms are provided for clarification.