Situation analysis becomes increasing important for a marketing plan development. This essay aims to explain why it is so important and what factors it focus on and finally, a guild list is present and justify for the construction of an effective situation analysis for a Marketing Plan of J Boag & Son Brewery.
Analyzing situation prior a strategic decision is critical for generating or sustaining competitive advantages, especially when facing the dynamic environmental trend which can affect corporations’ performance positively or negatively. The main task for a situation analysis is to explore the external factors (that can imply what opportunities a firm should seize and what threats it has to pay caution to) and internal factors (that can tell what a firm can do to develop its strengths and to avoid its weaknesses). And as Sally, Lyndon & John (1996: 3) defined, the terminal object of a marketing plan is to achieve particular marketing strategy. And a marketing strategy, which expressed clearly by Subash (2004: 26), requires a corporation using its relative corporate strengths to better satisfy customer needs and finally achieve maximum positive differentiation over its competitors in a numbers of internal and external variables. While Malcolm (2006: 376) concluded that the main concern of a strategic marketing plan is to establish, defend and maintain competitive advantage. However, the market environment today is changing quickly, followed by the increasing keen competition. To maintain a certain competitive advantage is impossible in such situation and the only way to earn above-average return is to react rapidly with updated information from environmental scanning. Thus, no matter what the purpose of a marketing plan is, situation analysis is crucial to provide an overall understanding of existing competitive position, organizational capabilities and market trends which is ever-changing.
For example, soused from Malcolm (1989: 75), a company found itself competing unsuccessfully and unprofitably in motor components market in Europe. Its strategy is to compete against a European giant on price, which had been implemented for a while without analyzing its market situation previously. The fact in such market is that only can a firm focus on investing certain equipments thrive. That is, when there was a strong competitor who dominated major market shares with a strategy of cost leadership, it is not wise to beat it on price. And if this company could firstly conduct a situation analysis, it would found that there were many opportunities for motor-products manufactured to very high technical specifications where technical reputation, rather than price, was the major concern.
Kerin, Roger A., and Robert A. Peterson. Strategic marketing problems: cases and comments. 12th ed. Upper Saddle River, N.J.: Prentice Hall, 2010. Print.
Strategic planning is crucial for the success of all business endeavors. Analyzing currents trends in technology, consumer markets, competition, and the workforce can play a pivotal part in whether or not the organization can survive. Overtime, strategic planning strategies must be modified in order to compensate for changes in the industry. Goals and strategic planning often necessitate change to ensure that the organization is performing at peak level, while offering the most beneficial and quality services to consumers.
Spokane Industries has contracted Franklin Electronics for an 18 month product development contract. Franklin Electronics is new to using project management methodologies and has not been exposed to earned value management methodologies. Even though Franklin and Spokane have worked together in the past, they have mainly used fixed-price contracts with little to no stipulations. For this project, Spokane Industries is requiring Franklin Electronics to use formalized project management methodologies, earned value cost schedules, and schedules for reports and meetings. Since Franklin Electronics had no experience with earned value management, the cost accounting group was trained in the methodology in order to bid for the project.
Another similar example would be the airline industry. For the last fifteen years or so, CEOs of many major international airlines openly said how difficult it was to make savings in revenues and profits. Except one airline, whose operation has proven profitable since they start business activities in 1973 - Southwest Airlines of the US. This is more because Southwest is not very conventional in their approach or running an Airline business, Southwest Airlines have a distinctive strategy, Some of their more significant strategies would be using a single aircraft instead of multiple aircraft and forgoing having a reservation system like most major airlines. However even though Southwest’s Strategy is to be as plain and simple without all the frills other major airlines are offering, they are still the major leaders in the Airline Industry This proves that in business; if you are not the leader, never play the game according to the rules that the leader has set.
The purpose of this case analysis is to provide a framework for making strategic marketing decisions by: 1) documenting the internal and external environment, 2) understanding the strengths, weaknesses, opportunities and threats, 3) identifying the opportunity, 4) developing and evaluating alternatives, and 5) make a recommendation based on organizational strengths.
Dynamic strategic management encompasses the approaches, tools and activities organizations utilize to determine direction, increasing the likelihood of organizational goal attainment. It is an approach that suggests organizations operating in uncertain environments require a flexible plan to minimize risk and take advantage of opportunity As a tool developed to analyze a firm’s position within its operating environment, a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis provides insight into how internal and external factors are inhibiting or facilitating advancement toward reaching organizational objectives within a dynamic environment. This paper aims to understand how a SWOT analysis assisted the Calgary International Airport Authority create a competitive business plan for their future in an uncertain environment.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40.
In a world of free trade, growing competition and accessibility to foreign markets, the need for methodical market analysis and assumptions is steadily rising in today’s business environment. It is just a normal way of thinking to primarily intent to eliminate the financial before entering a new and foreign market. This suggests that enterprises have to develop an overall strategy for their business in order to gain competitive advantage and consequently market share. With the words of Michael E. Porter, professor at Harvard University and leading authority on competitive strategy, this desirable market success is indirectly linked to the individual structure of a market. The unique structure of a single market influences the strategic behaviour and the development of a competitive strategy within a firm. The competitive strategy finally decides whether a company performs successfully on the market or not. Referring to this interpretation of business success, M. E. Porter established his five forces framework that enables directives to gather useful information about the business environment and the competitive forces in industries.
Porter, M. E., 1999. The Five Forces that Shape Competitive Strategy. Harvard business review, p. 80.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 25-40.
Jerry Y. Wind has argued that “Market opportunity analysis is key to the survival and growth of any firm including national and international companies , particularly in the competitive marketplace.” ( The Lauder Professor and professor of Marketing, The Wharton School, Trustee, The Philadelphia Museum of Art) .
Pearce, J. A., & Robinson, R. B. (2013). Strategic management: planning for domestic & global competition (13th ed.). New York: McGraw-Hill/Irwin.
This is a crucial part of a strategic analysis because ‘…organisations do not exist in a vacuum, they are part of a complex world’ (Bowman 1987:61) and many factors can influence operations, beneficially and unfavourably. However, these can be difficult to comprehend due to their complexity, diversity and fast changing nature. Necessarily a number of techniques have been developed to facilitate the process and to ‘…contribute to answering the key managerial question…’of what ‘…opportunities and threats might arise in the future’ (Johnson & Scholes 2002:99).
For a marketing orientated business, the findings from any research will be put to use primarily to aid the business in satisfying the needs and wants of its customers; this type of business has become more popular since 1970, where prior to this business’ were production orientated (until the 1950’s) where the business was concerned with improving its distribution methods, and product orientated (until the 1960’s) where the business’ main concern was the product rather than the satisfaction of the customer. The idea of a marketing orientated business has been explored by Fahy and Jobber (2012) who concurred that a market orientated business is one that considers its customers and the external environment to be an intricate part of the business; This type of business will explore the different aspects of the external environment, and take from its observations ways in which it can continue to trade in an effective, profitable way. A marketing orientated business will also use its findings to help it take advantage of any opportunities in a market and to lessen any threats that could arise.... ... middle of paper ... ... 4th Ed. -.
Strategic management is the way of implementing different business strategies and plans to attain certain specific aims and objectives. It involves collection of decisions and different rules and policies that tend to define the results that are generated in the form of better business performance. For undertaking these activities, management should possess an in depth understanding and be able to assess the general and competitive external and internal business environment to take proper business decisions (Cornelis, 2010). McDonalds is an organization that offers a range of products and services in a very effective manner that makes it a market leader in providing fast food services all over the world. By enforcing suitable strategies, McDonalds can increase its level of sales and will also help in upgrading as well as sustaining the market by acquiring competitive advantage (Schoenberg, Collier and Bowman, 2013).