Strategic Analysis and Options for Business Growth

This assignment is designed to assess students' understanding of strategic management concepts and their application in various business contexts. It includes references from books and journals that cover topics such as Ansoff's Matrix, corporate diversification, options, futures, and other derivatives, trading down, unemployment, inequality, and the Trans-Pacific Partnership agreement, growth opportunities, and market performance. The assignment requires students to identify suitable strategies for potential entrepreneurs, product market strategies and innovation types, and methods of strategic analysis and proposal. It also touches on city-systems in advanced economies, past growth, present processes, and future development options.

Business Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Applicability of Ansoff Matrix...................................................................................................1
Critical evaluation of various options for growth.......................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategy can be defined as an action plan and formulation of various considerations
which enable a business corporation to grow and accomplish their targets (Alstete, 2014).
Business strategy is the management of crafting, formulating and defining action objectives
which are needed to be performed by the managers of a company in their future aspect by
working on each and every blueprint. This project is based on River Island which is one of the
finest retail sector companies of United Kingdom that usually deals in fashion clothing industry
for every age group of individuals. They want to expand their business operations in some other
parts of the world as well. For this aspect, management will be going to organise Ansoff Matrix
vector for evaluating the growth and development options.
TASK
Applicability of Ansoff Matrix
Strategies are the core part of business which are required at each and every level of an
association. It is really important to evaluate and craft appropriate and suitable action plan which
assists to maximise the appropriateness of working and supports to manage growth and
development (Basu, 2014). Whenever any business wants to maximise or diversify their
activities, initially, suitable and effective strategies have to get formulated. It enables them to
work properly as well as accomplishment of targets become possible in nature as well. There are
vast range of approaches and models could be assessed by the management of a company which
enable them to formulate effective strategies and come through with suitable frame.
River Island is one of the famous clothing companies that operated in UK with each and
every kind of fashion in trend. It was found in the year 1948 and after 1993, they commence
operations in several others parts of the world like Russia, Poland, etc. They have more than 300
stores around the globe with 6 online shopping platforms that generally ship their products in
more than 100 countries. Although, now management wants to start operating in new areas as
well which termed as Indian emerging economic country in the world. For this aspect, business
managers of a company organise Ansoff Matrix vector which enable them to understand and
manage various aspects properly throughout which better outcomes could be drawn. Several
major competitors are ZARA, John Lewis and Peter England. Thus, management is required to
settle down such framework which assists them to manage diverse range of activities and gain
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suitable growth aspect as well. For organising Ansoff Matrix, several consideration need to
assess by managers of a company which articulated.
 Strength and weakness of Ansoff Matrix: It is one of the strategic planning tools which
provides framework to help and execute senior management for managing future growth
in order to accomplish targets in a better manner (Bocken, Fil and Prabhu, 2016). It is
usually defined as the market growth framework which assists management to grow
business whether in the new market area or in existing market world. It enables in
determining the possible growth aspects for a business so that better results could be
gained. Hence, River Island needs to assess the possible strengths and weaknesses by
using Ansoff Matrix so that better options could be drawn (Ansoff's Matrix, 2018).
Strengths Weaknesses
Supports in laying down possible growth
options for an organisation so that better
associated returns could be gained.
Many business managers depict it as a
theoretical model and chances of applicability
in current context are usually low.
Enables in evaluating possible risks and
problems so that better associated growth and
options could be assessed.
Create conflicts between various stakeholders
of a company so that chances of appropriate
outcomes will be less.
Suppose to craft a risk aware culture so that
better associated return and profit could be
manage and evaluate
It is completely based on predictions where
difficult to evaluate things in advance not
possible. Hence, this articulate is another major
limitation of this approach.
Promote to frame better aim and objectives so
that effective work will get promoted.
Every day running business not able to modify
things on regular basis which are generally
typical in frame.
Signify the things in a better manner so that
stakeholders could evaluate various
dimensions in a better associated frame which
underpins effective outcomes.
It never involves the activities or strategies
which are supposed to be framed by
competitors which restrict them to manage
diverse range of operations in a better suited
frame.
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River Island need to evaluate such aspects in a better and appropriate manner so that
better associated working get done. It enable them to overlook on limited criteria of this
approach which further support to make things effective. Thus, for further expansion into
numerous country, management need to evaluate the Ansoff Matrix vector properly so that
suitable and effective gain could be underpin. Hence, in this relation, below is a specified detail
in this consideration which enable in better suited working as well as target accomplishment
become possible in nature for managing various risk and problems at the time of expansion
(Ansoff Matrix, 2018).
Market penetration: This growth strategy evaluates when an association seek to sale out their
products and services into existing market area with current product and services. This get done
with a single aim or target which is to enhance overall market share of a business (Oh, Cho and
Kim, 2015). Market penetration needs huge fund involvement on advertisement and product
development with personal selling so that better suited growth could be assess in a suitable
manner. All such section get done by business only when they are going to enhance sales on
define potential users or by discovering new service users. Although, a major task which need to
perform by business managers is to evaluate the demand properly by conducting innovative
promotional campaign as well as utilising appropriate pricing strategy. This aspect will lead to
promote and support in order to attract diverse range of customers either existing one or new one
or both. River Island is supposed to consider penetration technique but it require huge fund
investment so that more and more number of users of existing market area could be targeted for
maximising sales and revenue in order to sustain at keen competitive world.
Market development: Whenever an association wants to enhance or increase their number of
operations, there is a need to assess second quadrant of Ansoff Matrix (Proctor, 2014). In this
consideration, management could evaluate new market area where they are supposed to increase
number of activities. This strategy work in such section where business starts to selling
itsexisting product with doing some modification in new market area. For this context,
management underpin such market region which is emerging in market and reflect positive gains
towards objectives accomplishment. Hence, market development provide platform for generating
more profit but it is more riskier than market penetration because managers do not have
knowledge and idea about such network. River Island could be develop itsmarket area by
targeting such network which have potential to generate more profit and revenue for an
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organisation. Hence, management could done this factor by merging business with other
association of such define area which promote and protect management to manage risk of
knowledge. Although, River Island could operate their business in emerging economies like
India, China where chances of better suited results are high in frame. Target new market area
will going to maximise their efficacy in better and appropriate frame of growth.
Product development:The third quadrant of business signifies product development in which
management can introduce new product into existing market area or in new world. Product
development always support management to grow by increase their number of offerings so that
better suited return could be manage and maintain (Rudnicki and Vagner, 2014). This section is
most beneficial aspects for a firm where chances of attracting target market usually high. Growth
and expansion only get underpin by introducing new product and services to market or to new
customers. It need to identify by managers before launching that new product have potential to
made their users satisfies. New product will contribute in increase of sales by which
sustainability at keen competitive world become possible in nature (Zeschky, Winterhalter and
Gassmann, 2014). It is really essential for research and development department to modify or
invent something new at market world so that better accomplishment of targets become possible
in nature. River Island could develop their product in UK etc. where chances of gaining positive
responses is high in nature. It is really important to understand this section by managers of a
company in order to gain better and appropriate outcomes so that proper and appropriate
feasibility could be maintained in order to gain better results.
Diversification: Whenever an association maximise their number of operations, it completely
define as diversification (Shaw and Goodrich, 2014). Diversification signify as a process of
variation in business context when an enterprise enter into new market world with a new concept
rather than earlier similar operations. There are mainly two kinds of diversification get identify
which are related to diversification and unrelated diversification. It considers as one of a riskiest
factor for every association because neither it based on product and corporation success nor its
position in market. In short, operations start commencing for such objectives where management
neither has experience nor any kind of knowledge. But for maintaining competitive position in
keen market area, business entity should go with this option. River Island has more than 300
clothing retail stores and they can diversify their business in some other industries as well. This
might support them to maximise their current competitive position in the market area. But this
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needs to be done at such area where they have good command over user’s satisfaction.
Henceforth, probability of success for an organisation could evaluate only at such market area
only (Spender, 2014). All the diversification related risk and elements need to assess by
managers of a company in a better suited manner.
All these functions and strategies need to determine by River Island properly so that each
and every element could assess it in an appropriate manner. It is important to evaluate every
section in a defined and suitable manner so that better appropriateness of working could be
manage and underpin (Tassabehji and Isherwood, 2014). Market penetration and product
development both are determine as good optional strategy for River Island so that better
associated results can be gain in order to manage sufficient working abilities and capabilities. By
applying such consideration, options to gain competitive advantage tend to rises for better suited
working and operations.
Critical evaluation of various options for growth
Options for growth are such aspects and elements which promote management and
organisation to grow and maximise their effectiveness of working. There are various kind of
options are underpin by business managers of River Island so that better supported working get
done and beneficial aspects could be estimated for managing various aspects and considerations.
According to Bocken, Fil and Prabhu, 2016 options for growth are such aspect which always
enable an association to manage and maximise effective and efficient working and activity so
that better concentrated outcome could be assess. Henceforth, various options for growth for
River Island are articulated as follow in order to generate more and more profit and revenue by
evaluating Ansoff Matrix Vector (ASSESS YOUR OPTIONS FOR GROWTH, 2018): Increase in market share: The very first option for growth and development is increase
in market share. To increase market share of a company, a major aspect is to take
customers of competitors or by attracting new range of users from determine area. As per
the view point of Hull and Basu (2016), acquiring of market share get done by
understanding of customers and business rivalries activities. This will support them to
better understand about appropriate aspects so that maximum returns could be gained.
For maximising market share of a company proper assessment of users is must whether at
existing market and a proper evaluation about fulfilment of their demand and wants.
River Island needs to work on this option properly so that better sufficient results could
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be drawn in order to maximise efficacy of working as well better suitable operational
activities (Pred, 2017). Along with this, another aspect which need to understand by
River Island is their pricing strategy. They need to understand the requirement of alter
pricing strategy so that better associated results and outcome could be gain and manage.
 Diversification: As per the opinion of Pred (2017), many small or large business could
look upon on option of diversification by expanding number of options for better suited
growth and development. Diversification of business lead to carried down several number
of aspects which are:
◦ New or related products and services to existing customers
◦ New or existing market for their products with high modifications
Business can gain success and growth by diversifying their number of products and
services so that better associated results could be drawn in order to maximise appropriateness of
working. A diversified business has high risk but relatively, it is much able to sustain in the
market world (de Andrés, de la Fuente and Velasco, 2014). This will support to maximise
effective working as well as number of options for gaining better results . For making
diversification, appropriate and suitable research needs to be done and take too much time. A
quick diversification without investigation restricts in gaining advantages as well as negative
returns could be effectually gained. Thus, if River Island will be going to choose diversification
option for growth then they have to organise appropriate study which enable them to gain better
associated results for managing various risks and unnecessary elements.
 Partnership, Joint venture or other technique: Options for growth also includes
partnership, joint venture and acquisition aspect. It supports to be appropriate and suitable
in nature by determining only such network or organisation that has command over a new
market world (Capaldo, Izurieta and Sundaram, 2016). This option needs to underpin
only at the time when firm will be going to target a new region for their working. This
option for growth also require appropriate study so that better and effective working will
get done. Partnership, joint venture and acquisition enable in dividing the risks and
limitations of a business so that better growth options will be evaluated. River Island can
go with this option as well but at such point of course when targeted area is new in frame.
This will get done by adopting market development strategy of Ansoff Matrix (Bouali
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and Latrech, 2015). This will assist them to evaluate various options for the growth and
development and related management as well.
All these options have to be undertaken by the business managers of River Island so that
better and effective working will get done. All these three options need appropriate and suitable
consideration for maximising business revenue and profit in order to maintain effectiveness and
efficiency in each and every option properly.
CONCLUSION
It can be concluded from the above report that business needs to expand their number of
activities in other market world as well so that better and appropriate number of things could be
done. For determining the growth and development options, Ansoff Matrix framework is
supposed to utilise to identify all relevant area for growth and development. Along with this,
there is the need to underpin all relevant options for growth and expansion so that better and
suitable results lead to get drawn in order to maximise profit. Hence, whenever any firm wants to
expand their operations, appropriate and suitable strategies are needed to be framed.
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REFERENCES
Books and Journals
Alstete, J. W., 2014. Strategy choices of potential entrepreneurs. Journal of Education for
Business. 89(2). pp.77-83.
Basu, S., 2014. Product market strategies and innovation types: finding the fit!. Strategic
Direction. 30(3). pp.28-31.
Bocken, N. M., Fil, A. and Prabhu, J., 2016. Scaling up social businesses in developing markets.
Journal of cleaner production. 139. pp.295-308.
Bouali, H. and Latrech, H., 2015. Achondroplasia: Current Options and Future Perspective.
Pediatric endocrinology reviews: PER. 12(4). pp.388-395.
Capaldo, J., Izurieta, A. and Sundaram, J. K., 2016. Trading down: unemployment, inequality
and other risks of the Trans-Pacific Partnership agreement (No. 16-01). GDAE, Tufts
University.
De Andrés, P., de la Fuente, G. and Velasco, P., 2014. Growth opportunities and the effect of
corporate diversification on value. The Spanish Review of Financial Economics. 12(2).
pp.72-81.
Hull, J. C. and Basu, S., 2016. Options, futures, and other derivatives. Pearson Education India.
Oh, C., Cho, Y. and Kim, W., 2015. The effect of a firm's strategic innovation decisions on its
market performance. Technology Analysis & Strategic Management. 27(1). pp.39-53.
Pred, A., 2017. City-systems in advanced economies: past growth, present processes and future
development options. Routledge.
Proctor, T., 2014. Strategic marketing: an introduction. Routledge.
Rudnicki, W. and Vagner, I., 2014. Methods of strategic analysis and proposal method of
measuring productivity of a company. Zeszyty Naukowe Małopolskiej Wyższej Szkoły
Ekonomicznej w Tarnowie. (2 (25)). pp.175-184.
Shaw, E. H. and Goodrich, K., 2014. Development of a Conceptual Framework. Journal of Child
Psychotherapy. 40(1). pp.73-89.
Spender, J. C., 2014. Business strategy: Managing uncertainty, opportunity, and enterprise.
OUP Oxford.
Tassabehji, R. and Isherwood, A., 2014. Management use of strategic tools for innovating during
turbulent times. Strategic Change. 23(1‐2). pp.63-80.
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Zeschky, M. B., Winterhalter, S. and Gassmann, O., 2014. From cost to frugal and reverse
innovation: Mapping the field and implications for global competitiveness. Research-
Technology Management. 57(4). pp.20-27.
Online
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matrix.html>.
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<https://getrevising.co.uk/grids/ansoffs_matrix>.
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