Advantages and disadvantages of a private limited company

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What is a private limited company? An important factor to consider when you decide to open a business is the legal structure of your business. As you may know that setting up a private limited company is a very popular way to start running a business in the UK. A private limited company is often a small business. Private limited companies have limited liabilities. Advantages and disadvantages of a private limited company There are a number of advantages and disadvantages of a private limited company as follows: Advantages a private […]

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How to do a SWOT analysis

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What is SWOT analysis? A SWOT analysis is a very useful technique to analyse and understand both internal and external factors affecting a business. According to Johnson, Scholes, and Whittington (2006, p.102) ‘a SWOT analysis summarises the key issues from the business environment and the strategic capability of an organisation that are most likely to impact on strategy development’. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors (Needham et al, 1995). This article is on how to do […]

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PEST analysis

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A PEST analysis is a very useful framework which helps organisations identify and understand external factors. These factors (also called macro-environmental factors) impact on organisations significantly; therefore, understanding them is very important for strategic managers. A PEST analysis helps managers explore potential risks specific to their industry and organisation, and in fact, they can the tool in a number of situations. History of PEST analysis PEST model has been developed over the years and has a number of variations e.g. STEP, PESTEL, STEEPLE etc. However, Francis Aguilar (a Harvard professor) […]

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Understanding Ansoff matrix – an example of Coca-Cola

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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 […]

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Business functions

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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 […]

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PESTEL analysis of ASDA

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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 employment, legislation, consumer rights, […]

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Ansoff growth matrix

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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 i.e. 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 the father of strategic management. Ansoff […]

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SWOT analysis of SUBWAY

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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 […]

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SWOT analysis of ASDA

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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 […]

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What is mission? Mission statement

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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 […]

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