Understanding Ansoff matrix – an example of Coca-Cola

By: | Tags:

What is Ansoff matrix? Organisations often need to decide on the best strategy for growth. Although a number of options are available, not all strategies are suitable for every organisation. Factors such as market demand, capabilities of organisations and their willingness to take or avoid risks impact on the choice of strategies. Ansoff matrix guides organisations in their pursuit of strategies. Harry Igor Ansoff, a Russian American mathematician, developed the Matrix in 1957. The matrix outlines four possible growth strategies available for an organisation. These strategies are market penetration, market […]

READ MORE

Business functions

By: | Tags:

What is a business function? While a business (also known as enterprise or firm) is an organization engaged in the trade of goods, services, or both to consumers (Sheffrin, 2003), a business function is a description of work which is carried out routinely in order to achieve the aims and objectives of a business unit. There are a number of business functions an organisation carries out e.g. Human Resource Management, Marketing, IT, Research and Development, Operations, Finance and Accounting etc. This article focuses on some of the typical business functions […]

READ MORE

PESTEL analysis of ASDA

By: | Tags:

Last updated: January 2017 What is PESTEL analysis? PESTEL analysis is a very important framework for strategic planning. It is used by strategic planners to analyse the macro-environmental factors that affect a business. PESTEL stands for Political, Economic, Social, Technological, Environment, and Legal. The article ‘PESTEL analysis and its application’ provides more information on how to apply PESTEL analysis in a given context. PESTEL analysis of ASDA The following is a PESTEL analysis of ASDA in the context of the UK: Political National, international and EU regulations and directives affecting […]

READ MORE

What is Ansoff growth matrix?

By: | Tags:

Last updated: January 2017 What is Ansoff growth matrix? Ansoff growth matrix is an important planning tool that helps organisations determine their growth strategies. There are a number of growth strategies an organisation may pursue and Ansoff has outlined four of them. They are called market penetration, market development, product development and diversification. Who is Ansoff? Harry Igor Ansoff was born in 1918 and passed away in 2002. He was a Russian American mathematician. He is one of the greatest thinkers in strategic management. Many would argue that he is […]

READ MORE

SWOT analysis of SUBWAY

By: | Tags:

SWOT analysis is one of the tools which many strategic planners find very useful to analyse business environment. SWOT stands for strengths, weaknesses, opportunities, and threats. While, strengths and weaknesses are internal factors, opportunities and threats are external factors (Needham et al, 1995). The discussion that follows includes a SWOT analysis of SUBWAY. SWOT analysis of SUBWAY SUBWAY is an American fast food restaurant. The business has adopted franchising as its growth model. It sells submarine sandwiches (subs) and salads. Tea, coffee, and a variety of soft drinks are also […]

READ MORE

SWOT analysis of ASDA

By: | Tags:

Organisations use a variety of analytical tools to determine their business strategies (Hitt et.al., 2007). One of the most popular such tools is SWOT. SWOT stands for strengths, weaknesses, opportunities and threats. It helps an organisation contrast its ‘strengths’ and ‘weaknesses’ with the ‘opportunities’ and ‘threats’ in the market or external environment. SWOT deals with both external and internal environments of a business. Success and sustainability of an organisation depends on its ability to audit external environment where it operates (Kotler and Armstrong, 2009).  External environment also indicates the opportunities […]

READ MORE

What is mission? Mission statement

By: | Tags: ,

There is no doubt that each business organisation has a mission to achieve regardless of whether the mission is written or not. Most companies develop their mission statements which actually guide their aims and objectives. This article will focus on mission and some relevant issues. What is mission? The mission of an organisation is the explicit expression of its central and common purpose, its reason for existing (Plunkett & Attner, 1994). It in fact talks about why an organisation exists. Definition of a mission statement When organisations ‘formalize their ideas […]

READ MORE

Stakeholder mapping – stakeholder analysis

By: | Tags:

It goes without saying that it is important for organisations to understand the expectations of their stakeholders. According to Johnson, Scholes, and Whittington (2006), stakeholders refer to individuals or groups who depend on an organisation to fulfill their own goals and on whom, in turn, the organisation depends. Types of stakeholders Stakeholders can be divided into different groups. According to BPP Learning Media (2010), there are three broad types of stakeholders in an organisation as follows: Internal stakeholders Connected stakeholders External stakeholders Examples of internal stakeholders are employees and management. […]

READ MORE

What is business environment?

By: | Tags:

  Understanding business environment is important for any business organisations. Environment can play a very significant role in the ups and downs of a business. However, understanding it may sometimes be difficult due to the interconnections of a number of separate issues within it. Business environment can be divided into two groups: macro environment and micro environment. The micro environment refers to the forces which are very close to the company, whereas the macro environment includes wider societal forces which can impact on the micro environment. The micro environment includes […]

READ MORE

What is strategy? Definition and types of strategy

By: | Tags: ,

No doubt that there has been an extensive research on the meaning and nature of strategy. Certainly, organisations need strategies for a variety of reasons. Without strategies, organisations lack  future direction.  The discussion which follows focuses on the definition and nature of strategy from a business point of view. Definition of strategy ‘Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations’ […]

READ MORE