How And What

Advantages and disadvantages of franchising

By: M Rahman | Tags: Strategic Management

Advantages and disadvantages of franchising Before we start talking about advantages and disadvantages of franchising, let us first look into the definitions of franchising. Franchising refers to ‘the granting of the right by a parent company (the franchisor) to another, independent entity (the franchisee) to do business in a prescribed manner’ (Czinkota, et. al 1992, p.278). According to International Franchise Association (n.d.) franchising is simply a method for expanding a business and distributing goods and services through a licensing relationship. Franchisors give franchisees the right to undertake business in a […]

SWOT analysis of Coca-Cola

By: Joe David | Tags: Strategic Management

SWOT analysis of Coca-Cola This detailed SWOT analysis of Coca-Cola aims to provide the readers with a comprehensive insight into Coca-Cola. It aims to identify Coca-Cola’s strengths and weaknesses. The opportunities and the threats facing the company are also discussed in detail. Coca-Cola is the world’s largest beverage company. It is a name which is present virtually everywhere. I am sure you have seen Coke in households, shops, airlines, hotels, restaurants, offices, and many other places. Coca-Cola has its presence in more than 200 countries (Coca-Cola, 2019). This article focuses […]

Organic growth – definition and examples

By: M Rahman | Tags: Strategic Management

Definition of organic growth There are certainly many paths to business growth. Organic growth is one of them. It is the primary method of growth for many organisations for a number of reasons. Organic growth is achieved through the development of internal resources (BPP, 2010). It is a strategy which companies pursue by building on and developing their own capabilities. Many writers call organic growth an internal development. It involves expansion from within a business. Many companies use this method, particularly at the beginning of their business. For some organisations, […]

Diversification-definition and types of diversification

By: M Rahman | Tags: Strategic Management

Ansoff growth matrix is a well-known strategic planning tool. The matrix identifies four potential growth strategies for businesses of any size, and these are market penetration, market development, product development, and diversification. This article focuses on diversification only. However, you will find our article ‘What is Ansoff growth matrix’ very useful to understand the matrix in detail. Definition of diversification Diversification ‘occurs when a company decides to make new products for new markets’ (BPP Learning Media, 2010, p.162). According to Johnson, Whittington & Scholes (2006) it is a strategy which […]

Strategic alliance – definition and types of strategic alliance

By: Joe David | Tags: Strategic Management

Definition of strategic alliance A strategic alliance is a very useful market entry strategy. It can surely help a company expand into a new market and/or develop an advantage over its competitors. According to Johnson, Scholes, & Whittington (2006), a strategic alliance is where two or more organisations share resources and activities to pursue a strategy. According to Hitt, Ireland, & Hoskisson (2008) it is a partnership between firms whereby resources, capabilities, and core competences are combined to pursue mutual interests. Types of strategic alliance Companies can choose from a […]

Porter’s five forces analysis

By: M Rahman | Tags: Strategic Management

Michal Porter’s five forces is an important strategic planning tool. It is a powerful tool that helps strategy analysts understand how competitive their industries are and their potential profitability. Porter has identified five competitive forces that shape every industry. This article explores each of Porter’s five forces. Who is Michael Porter? Michael Porter was born in 1947. He is one of the greatest thinkers on management and competitiveness. He is an American academic and is the author of 19 books and over 130 articles. Porter is the Bishop William […]

Advantages and disadvantages of strategic planning

By: Joe David | Tags: Strategic Management

What is strategic planning? Strategic planning is very important as it charts the direction of an organisation. Organisations often engage in it in order to develop, implement and evaluate their strategies. Strategic planning refers to the decision-making and planning process that guides the long-term direction of an organisation (Plunkett & Attner, 1994). According to Martin (2014) strategic planning has three parts i.e. mission/vision statements, list of initiatives, and the conversion of the initiatives into financials. It is worth noting that, there are some advantages and disadvantages of strategic planning that […]

BCG matrix – definition and how to use BCG Matrix

By: M Rahman | Tags: Strategic Management

What is BCG matrix? BCG matrix is an important strategic planning tool. It was developed by Bruce D. Henderson for the Boston Consulting Group (BCG) in the early 1970’s. BCG Matrix helps companies manage a portfolio of different business units (or major product lines) as they sometimes face challenges to allocate resources among their strategic business units. It should be noted that BCG Matrix is also known as Growth-share matrix, Boston matrix, and Portfolio diagram. How does the BCG growth-share matrix work? The BCG matrix considers two variables i.e. relative […]

Strategic planning process

By: M Rahman | Tags: Strategic Management

Last updated: November 2016 What is strategic planning? Strategic planning is an important topic in strategic management. Organisations engage in strategic planning in order to develop, implement and evaluate their strategies. Strategic planning refers to the decision-making and planning process that guides the long-term direction of an organisation (Plunkett & Attner, 1994). The steps in strategic planning process Different writers have identified different stages in strategic planning. For example, Plunkett & Attner (1994) identified six stages which had subsequently been followed by many writers. The discussion that follows will focus […]

Difference between strategic risk and operational risk

By: M Rahman | Tags: Difference between strategic risk and operational risk

Risk management is a very important topic in both Strategic Management and Operations Management. A business may face different types of risk. Not all risks will have an equal impact on the business. Therefore, it is important for managers to understand different types of risk. Definition of risk A risk usually refers to a situation that could be dangerous or have a bad outcome. It can also be defined as the possibility that something unpleasant will happen (Soanes, 2001). According to Canadian Centre for Occupational Health and Safety (2009), risk […]