Subject: Business Strategy Note: Please dont write from internet there are answe
ID: 409856 • Letter: S
Question
Subject: Business Strategy
Note: Please dont write from internet there are answer in chegg but that is incorrect this is my 10 time i published this question.
3.1- Plan at least two alternative strategies, based on the strategic options available with Ansoff’s matrix e.g. for product development their strategy could be to introduce a new range of flavoured hot drinks or for market development their strategy could be to open a Starbucks coffee shop in an area of the UAE where the brand is not present at the moment, which are in line with Starbucks mission and objectives. You then need to review whether the growth strategies you have come with against whether they are feasible, suitable and acceptable to the business.
3.2 – Justify the selection of a strategy by stating which of your strategic growth options is the best for the business and will give the greatest return by stating, based on your above review, which is the best growth strategy for the business.
Explanation / Answer
Answer:
Starbuck is an American coffee company. This company serves the worldwide market and is a well known company in the world. This company starts around 1972 and the age of the company is around 45 years.
As per Ansoff’s matrix, the strategies for business growth are mainly in two directions, as below
We need plan two alternative strategies for the Starbucks business which are feasible, suitable and acceptable to the business.
Strategy 1- Enter the Starbuck business into the prioritized developing countries: Since the Starbuck is a global company and surviving in most of the developed countries. Now the further development growth available is the developing countries in the world. The Starbuck to define the criteria for developing countries and make a prioritized list of countries, where they can initiate the business with least input cost or where the existing resources can be explored for business growth. Thus this will be the new market development approach for the Starbuck coffee business.
This strategy will be feasible, suitable and acceptable, as below
Feasibility: This will be the feasible option as developing countries have high population and more attraction towards US /Europe products.
Acceptability: This strategy will be acceptable as it will expand the market for the business with appropriate earning opportunities.
Suitability: This strategy will be suitable as Starbuck is already has expanded its business in various parts of the world. It will be just addition of another set-up with existing processes in the developing countries.
2 Strategy II - Develop additional product options for the existing business set ups - This strategy will help to add additional coffee product in the existing business set ups, so that sales can be increased at the existing set ups. This strategy will help for increase in revenue or profit for the existing set ups.
This strategy will be feasible, suitable and acceptable, as below
Feasibility: Starbuck can easily develop additional suitable coffee products options which can be sale in the existing market.
Acceptability: It will be acceptable as selling additional product options from the same business set-up will not add much cost to the business and will be acceptable to the management.
Suitability: This strategy will be suitable as it is just addition of product options in the existing set ups.
Best Strategy: Selection of best strategy can be done based a below selection criteria as below
Selection Criteria
Strategy-I (Developing Countries)
Strategy-II (Product Options)
Business Growth (High (9), Low (1), Medium(6)
High (9)
Medium (6)
Expenses (High (1) , Low (9), medium (6)
High (1)
Medium (3)
Resources Engagement (High (1) , Low (9), medium (6)
Medium (6)
Low (9)
Profit
High (9)
Low (1)
Feasibility (High (9), Low (1), Medium(6)
High (9)
Low (1)
Total
34
20
So based on the above selection criteria matrix, the strategy-I is better option for the business growth. This looks to be better option, as the developing countries are a large/huge market for the business. If the Starbuck makes the good entry in this segment, then they can get the approach for capturing the world market for their business.
Selection Criteria
Strategy-I (Developing Countries)
Strategy-II (Product Options)
Business Growth (High (9), Low (1), Medium(6)
High (9)
Medium (6)
Expenses (High (1) , Low (9), medium (6)
High (1)
Medium (3)
Resources Engagement (High (1) , Low (9), medium (6)
Medium (6)
Low (9)
Profit
High (9)
Low (1)
Feasibility (High (9), Low (1), Medium(6)
High (9)
Low (1)
Total
34
20