3.1- Analyse the appropriateness of alternative strategies relating to market en
ID: 385281 • Letter: 3
Question
3.1-Analyse the appropriateness of alternative strategies relating to market entry, substantive growth, limited growth or retrenchment for an organisation. Plan at least two alternative strategies, based on the strategic options available with Ansoff’s matrix, which are in line with Starbucks mission and objectives. You then need to apply techniques of strategy evaluation and selection to select an appropriate future strategy for the chosen organisation. Justify your choice. There are 3 different methods used to select an appropriate strategy. You can either test for suitability, feasibility and acceptability (recommend using this one) or use the ranking and scoring method. To secure a pass you need to appropriately apply at least one of them.
Explanation / Answer
Market entry strategy: It is a planned strategy to enter the market by introducing quality goods and services by distributing it all over. It also works globally by expanding the business across globally with all types of import and export services.
Substantive growth: Strategies are the important aspect of business and to expand the business, the competitor's strategies are well necessary to be furnished. Substantive is the growth strategies which targets the market share at a low expense of earnings. It basically helps the business to get the market shares from the most potential companies who are next to the competitors.
Limited growth strategies: It basically avoids the company to take a large number of debts to make the company grow faster in a very short span of time. The company owner tries to grow faster in the market but due to fewer sums of revenues, it becomes difficult to grow quickly.
Retrenchment strategy: It is the organizations plan to reduce certain services to cut the expenses in the operations to lead the business financially more stable.
Ansoff’s matrix is relating to the market entry strategies below diagram will represent the whole process:
Existing
Markets
New Markets
Existing Products
New Products
Market Penetration
Product Development
Market Development
Diversification
Starbucks mission and objectives are as follows:
1. It basically check the transparency of the supply chain process
2. It agrees with the supplier’s terms and conditions of business by a proper screening of the development process.
3. It also needs to keep a deep attention on the business process and supply chain performance.
Existing
Markets
New Markets
Existing Products
New Products
Market Penetration
Product Development
Market Development
Diversification
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