CASE FACTS:
As given in the case a 35 years old AKH Group has various businesses spread across IT, Consumer Products, BPO and Telecom. For the development of the company in various sectors the founder of the company follows an austere way of working. The business expansion has been organic as well as inorganic. The IT business was fostered through organic form and the BPO was an acquisition. Similarly, the Consumer Product business was a mix of organic and inorganic (through foreign acquisitions). The founder of this business conglomerate has recently announced a sum of Rs. 10,000 Crore to be spent on nation building. Areas chalked out are Skill Development and Primary Health.
Detail Road Map For the Purpose Of Achieving the Goals Of Community Development along with Strategic options, Cultural aspects, Economy and Outsourcing Options
For an existing company growth strategies can be of three types.
1. Growth by sub segmenting customers
2. Growing the core business
3. Growing adjacent opportunities.
If we take the help of the Ansoff’s matrix which states that the growth must be determined with the help of situational analysis comparison to standard business growth models, and comparison to historical growth strategies of successful organizations in similar industries or business environments, the growth strategy should be a guiding force behind other business plan components such as sales strategy and marketing plan.
Fig: Ansoff’s matrix
The Ansoff’s matrix demonstrates four types of growth strategies. Among these the company can concentrate on market penetration as well as market development while helping in building overall nation.
The market penetration strategy will help it to refine sales process, under cut competition etc. ...
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...s where the villagers can easily opt for weather forecast, the proper ratio of fertilizers etc. which are beneficial to their crops. They must also be trained how to use it properly.
Every person in this world has some or the other skills, they just have to be developed and enhanced. People living in the rural areas should also be given chance to showcase their skills, by providing them an environment to work in. For example:
Women can be encouraged to take care of the handlooms
Men can be encouraged to participate in pottery
If somebody likes to weave baskets, the company must provide them suitable environment
The products manufactured by the villagers under this scheme must be sold in the urban areas where the price is much higher. Thus they will receive higher profits.
This will not only help to develop their skills, but would also provide them employment.
Every company has internal and external forces that effect how they operate within the community in which they are located and also within their own walls. These internal and external forces play a strong impact on the company’s profitability and success. These forces have an effect on what consumers they attract or ignore and how they are perceived by those who have the buying power. A mistake any analyzing and implementing measures to assist with these factors could greatly affects a company’s bottom line and success. This is why any company wanting to grow and be successful will need to take all of these forces; sociocultural, technological, economic, environmental and political-legal into consideration in creating their strategic plan.
The BCG matrix is also a matrix that is used for the purpose of strategy formulation of a firm, but it is a four cell matrix. It is used to measure the position of a firm in relation to its relative market share as well as its market growth. In case of these two being high a firm is classified as a star. In case of these being low they are classified as dogs. In case of only a high market growth it is rated as a cash cow and in case of only a high market share it is rated as a question mark. Based on this t...
The Boston matrix can be tailored to Benetton to demonstrate how Market share can be gained by investment in marketing, Market share gains will always generate cash surpluses in the company, Cash surpluses will be generated when the product is in the maturity stage of the life cycle, The best opportunity to build a dominant market position is during the growth phase. The 4 categorise can could help Benetton be more successful in creating a better market share and growth.
Moreover, Ansoff suggested some main direction that companies should follow to develop market and product conditions. The market development and differentiation strategies suggest that in order to increase sales, WRSX have to offer their services in new developing markets such as China or India. The strategy for market development gives the opportunity to expand their service in order to attract competitors' clients and to expand in unreached markets (Barry, Witcher and Chau, 2010). Potential solution could be acquisition of UK agency competitor to assist WRSX to enter new market quicker and smoother go through the barriers of entry such as government regulations and different culture.
On the Ansoff matrix below is shown what growth strategies for new and existing products and markets can be used from the company.
Implementation of organizational growth falls to the responsibility of upper management and they develop the strategic plan for the company to flourish in the projected economic market. Oversight of this senior team can hinder the organizational projected strategy into a viable organizational process that today’s global market places high demands that make it very difficult to attain these goals or plans and bring all effort to no avail of achieving projected growth and strategy of the organization. Essential that key employees do not lack the skill to delegate responsibility as well as expect results that promote organizational growth and adherence to the strategy set by senior
As you can see on the table there are 4 potential outcomes when using the Ansoff’s Matrix which include ‘Existing Product’ and ‘Existing Markets’, which are not risky at all, or there is the option of joining a ‘New Market’ and creating a ‘New Product’, which are high risk high reward methods usually for companies that can’t be effected if these methods do not work.
A marketer doesn’t just have a plan. Marketers now open up to a wider strategic plan and it’s based on steps that balance out what the market is offering consumers. These marketers must analyze their production with these steps, then make a portfolio of the growth and even their down falls therefore this keeps these marketers to continuously innovate and create even a greater amount of value for their customers. Marketing management functions are discussed along with the marketing mix and strategy.
So, for the future, she must implement his strategies to continue and improve his efficacy and efficiency. To propose achievable strategies, we will use Ansoff matrix. This tool allows to classify and explain the different growth strategies for a company. Ansoff 's Matrix is also known as the market options matrix (Lynch, 2009, p.313) and is designed to identify “the product and market options available to the organization, including the possibility of withdrawal and movement into unrelated markets”. It is represented diagrammatically as follows.
They point out that awareness and understanding of these causes assist companies in avoiding the growth stalls. In addition, the article demonstrates few practices that some companies use to predict and prevent the problem.
Growth strategies and the stability strategy are implemented by companies when they are in satisfactory competitive positions. But when they are not doing very well then the companies will adopt a retrenchment strategy. Retrenchment generally takes up one of the following forms-
...t too expensive for the farmers. The second step is that broader awareness is required. According to Sarah Alexander, “different farmers trust different sources, such as vendors, crop consultants, and university extension services.” Farmers are going to need to be open minded to new things, in order to feed the human race. The last step is farmers need the right incentives. Farmers want to know about the good that they are doing. Farmer’s want to know how they are saving the environment, and how they are producing more food, and feeding more people than they were before.
But still there is a vast skill gap that causes a mismatch between industry needs and institutional output. India being a nation with a high percentage of youth nearly 35% are between the age group of 15 to 21 who after completing their graduation are in a position to enter into a job market. But due to the lack of skills that are required for an industry many people out of that lot fail to enter the job market (Murugaia S. 2014) Employers recognize that “soft” skill development is essential for their employees. These skills are difficult to teach to employees once they are on the job. Therefore, they should be learned through development opportunities such as higher education (Arensdorf,Jill
This strategy is very much about the business which is carried out as usual. In this strategy the marketer is focusing on both the product and the market opportunity.
A growth strategy is a long term success plan and managing competitors. If the plan is without a vision and mission, it might not work in some cases. For a business to maintain a growth for a long term, we must first verify and validate on what is that one thing that sets us apart from our competitors. We must first understand the very basis oh why a customer decides