Briefly explain the EXPANSION STRATEGY topic.

Type # 2. Expansion Strategy: Jauch and Glueck define expansion strategy 'as a strategy that a firm pursues when- 1. It serves the public in additional product or service sectors or adds markets or functions to its definition. 2. It focuses its strategic decisions on major increases in the pace of activity within its present business definition.' This strategy involves redefining the business either adding to the scope of activity or substantially increasing the efforts of the present business. When expansion strategy is pursued, it could lead to addition of new products or new markets or functions. Even without a change in business definition many firms undertake major increases in the pace of activities. Expansion strategy is often considered as "entrepreneurial" strategy where firms develop and introduce new products and markets or penetrate markets to build share. Expansion is usually thought as the way to improve performance. Strategists need to distinguish between desirable and undesirable expansion.Reasons for Adopting Expansion Strategy: 1. If business environments are volatile, expansion may be a necessary strategy for survival. 2. Many executives may feel more satisfied with the prospects of growth expansion. 3. Chief Executive Officer may feel pride in presiding over organizations perceived to be growth-oriented. SHRINK TO GROW: 4. Some executives believe that DOES YOUR COUNTRY PORTFOLIO expansion is in the benefit of the society. NEED A RETRENCHMENT STRATEGY? 5. Expansion provides more financial MCDONALD'S AND YUM! BRAND'S CHINA EXPERIENCE and other rewards. 6. Expansion enables to reap advantages from the experience curve and scale of operations