This document provides a comprehensive guide on strategic analysis and decision making. It covers various models like Porter's Generic Models, Bowman's Strategic Clock, and Ansoff Matrix. The document also includes recommendations for improving strategic planning and decision making.
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Table of Contents INTRODUCTION..........................................................................................................................3 MAIN BODY..................................................................................................................................3 Porters Generic Models..............................................................................................................3 Bowman's Strategic Clock..........................................................................................................4 Ansoff Matrix..............................................................................................................................5 Value chain..................................................................................................................................6 Recommendations:......................................................................................................................7 CONCLUSION..............................................................................................................................8 Books and Journal.......................................................................................................................9
INTRODUCTION Strategicanalysisisaprocedurethatincludeandengageinvestigatecompany surroundings and environment where an company operate. Strategic analysis is much important and required to develop strategic programmes and planing for the smooth working and for the process of decision making of the company. The decision-making procedure of creating choices by distinguishing a decision assemblage information and assessing alternate solutions. By applying step by step procedure help the company to make more intentional and effective decisions by arranging appropriate information(Ingold and Leifeld, 2016). This report is going to consider the companyCRH Plc,it is an Irish multinational group that cater and manufacture a huge variety of goodsfor the company. This report is going to study on the few strategies and concept which is acquired by the organisation to grow faster and perform effectively. MAIN BODY Porters Generic Models This model is much important and essential for the company and help the company to grow effectively and for their development and growth(Xu, Wen and Zhang, 2018). This model is used to improve and develop more challenges and competition level in the industry and also help the company to evaluate and examine the appropriate strategies for the company. According to Michael C. Porter, there are mainly three strategies which is much important and support and facilities the company towards the success and growth. There three generic strategies of Porters which are mentioned below: Cost Leadership Strategy :This strategies is going to help and assist the company CRH Plc to minimise the cost of the production and delivering of products and services. There are few modes where a organisation can accomplish this kind of strategy which is emerging and improving profitability by reducing the cost(Fleming and Daw, 2017). There are generally two major method by which a company accomplish their aims and objectives within a cost leadership strategy: By raising profitability by minimising costs,while charging company-average cost and another one is by raising market share by charging less cost or prices. Differentiation Strategy:This strategy cater a permission to the company to create products and give services that show the unique and effective and easy to understand by the consumers and accept by them and much better than other competitor or company. The company
should use some unique and effective kind of strategy so that they can give typical competition and attract and create more customer base towards the company. Focus Strategy:This strategy is going to concentrate in the industries, marketplace and strategies that give permission to the company to cater low price goods and much unique and effective products in the market. Also, this plan of actions and activities concentrating on the specific pointed and target market which support and assist the company to overcome and minimise the barriers, problems, threats and rivalry(Guo, Zhang and Yang, 2017). As per the given case study, The CRH planning using differentiation strategy because it allows a company to develop products and give services which represent an effective strategy towards the consumers. This strategy makes the company more unique and helps them to get several opportunities and success in the market. Also, it helps them to gain or create more consumer base for the company. Bowman's Strategic Clock Bowman's Strategic Clock is a model or concept that investigate the choices for strategic positioning like how can a good or services can be positioned in a very appropriate manner so that they can cater most effective competitive position in the marketplace. The major concept or purpose of the this model is elaborate that a company will have several of choices to positioned a goods which is relies on two dimensions and that is Price and perceived value. This model consider few positions and which are mentioned below: Low price and Low value added( 1 position):This position is not much effective and cater competitive position for a company. This strategy is a bargain base scheme or plan of action. According to CRH Plc the goods of the company is not distinguish and the consumer understand and perceive much less value, neglect a low value. LowPrice(2position): This strategy is much required to become successful. Cost minimisation help the company to generate high profit and increase their profitability and also generate good margin on each goods. Hybrid (3 position):This strategy include few components of low price and also involve few goods differentiation. This strategy is very effective and better strategy of positioning the goods.
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Differentiation( 4 position): The purpose of this strategy is to cater the highest level of perceived value. In this strategy branding play essential and much effective role as the quality of goods does. Focused differentiation( 5 position): The purpose of this strategy is to set a goods at extreme level of prices, where a consumer purchase the goods due to high or extreme perceived value. This strategy is adopted by CRH Plc and more luxury brands, who purpose is to accomplishsuperiorpricesbyextremelypointedsegmentation,promotionandup gradation(Gürel and Tat, 2017). Risky High Margin (6 position):In this position the chances of risk is very high. This strategy is very high risk positioning strategy. On the basis of this strategy, the organisation sets extreme cost without providing some other benefits in regards of accumulated values. If the quality of the product is amended and the consumer are more comfortable to purchase the goods at this high price, then it increase the profitability of the company. Monopoly Pricing( 7 position): When there is monopoly in the industry or in the marketplace, then there is only one company directing their business and sharing the goods in the market. There is much advantages of monopolist in the market because the customer have no options or choices, they have to purchase it. There are no alternatives for the customer in the market. Loss of Market share ( 8 position):This strategy of position is a formula for any risk or threat in a competitive market. In this position the organisation sets a standard pricing for a goods with less accumulated value is improbable to gain over several customers who have much amended and better choices or can say better options. For example more amount or worth for the same price from the different or other rivalry(Howarth and Monasterolo, 2016). According to the given case study it has been examine that, This strategy help the company to analyse their competitive or uncompetitive position in the market and provide benefits to the company in order to gain more customer base and growin the market (Tajima, Drugowitsch. and Pouget, 2016) . In this strategy the organisation is using focus differentiation because the purpose of this strategy is to decide and set a product at a extreme level of prices where the consumers can buy the products because of extreme perceived value .this strategy is adopted by the CRH PLC company because they want to become more luxury and lavish brand.
Ansoff Matrix Ansoff matrix is much essential supplying tool or model which provide a framework to assist and help the leaders and managers of the company in order to develop and improve their functions and business. This model or concept is used to evaluate and examine the planning of the market and to use amened strategy or plan of action to get more opportunities for the organisation. CRH Plc is international company which cater several variety of the goods and services. This matrix help the CRH Plc to cater a structure or concept to support their managers and leaders for raising their growth and performance in a very effective manner. This matrix is also known as product expansion grid or any equipment which is applied by any organisation to examine their strategies and planning for their effective performance and for their future development(Shanafelt and Noseworthy, 2017). Market Penetration:Market penetration is concentrating on raising the sales of current goods in the existing or current market. CRH Plc is promoting their goods by adopting various methods of promotion. CRH Plc organisation invest extreme money on upgrading and promoting their goods and services. The company motivate their consumers to try some other goods and services. They launched various different variety of their existing products in order to grab and create more customer base(Trianni, Cagno and Farné, 2016). Market Development:Entering into the new industry with the help of their old goods support the company to develop and improve their business in the new market. CRH Plc cater their products on the basis of their requirements and desires, these strategy support the company to create more customer base and opportunities for the company. The CRH Plc company is also focusing on trends and new techniques or innovations in the market in order to adopt new technologies and knowledge of market and also operate on online marketplace. They also giving their contribution and focusing on new area or domain in existing market by adopting and launching new and innovative goods. Product Development:CRH Plc is much reputed or famous organisation for their services and more innovative variety of products. They manufacture their products according to the demand and trends of the market. The main strategy which is applied by the company in order to perform effectively in the market and which is follow the trend in order to create fresh products. This company constantly researching and getting new products. They are working on consumers requirements and needs.
As per the case study, it has been analysed that, In this model the organisation is focusing on product development because the organisation is much reputed for their services and more innovative variety of the goods (Ribeiro, 2018). They manufacture their goods and services according to the requirements of the consumers and according to the Trends so the main strategy that is focused by the organisation is to perform effectively in the market in follow the trends in order to develop fresh and more innovative good. Value chain Value chain model is a organisational framework which explained that what are the strategies and functions required to create effective services and products. The company that make a goods, so this model help them to deliver a products from conception to spreading and many more. In this concept, Porters diversify the function of the company into two ways which is primary and support. Primary :The category of primary conductfew key components which are much essential for making more advantages and values. Very first component is “ Inbound logistic” this involve the operations like marinating and handling the stock. Another is “operations” this include the procedure of converting the raw material into the final goods. “outbound logistics” This process include when the company make their final products and give the consumers according to their needs and demands. This element “Marketing and Sales” include the functions or functions like marketing of their goods for upgrading and create more customer base. Another element is “ Services” This involve the facilities and services which is cater by the organisation to gain more consumers like exchange, discounts, refund and many more. Support activities:This activity is help or support the function of primary in a very effective way. There are few activities or operations of this activity which is “Human resources management” This team of CRH Plc include the procedure of recruiting, selecting, hiring, training and development in order to accomplish their goals and objective. Another element is “ Technological development” this activity is applied by the organisation investigating new technologies for effective production and to meet with the needs and desires of the customer and provide them effective and amended facilities and services in order to make more loyal consumers towards the company(Wang, Duong and Chen, 2016). These models and structure help the company to analyse the competitive advantages for the company and also help the company to set their products in a very appropriate way (Fang,
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Wen and Prybutok, 2016) (Klein,2017). The another model Value chain help the company to maintain the cycle of the products like from manufacturing to sharing with the consumers. So they both are much effective framework. Recommendations: There are few recommendation mentioned in order to modify their way of work and strategies to gain more profitability and growth. It is recommanded to the company that they have to evaluate the environment and themselves also in order to find the best solutions. They have to make a plan for each and every activity which is done by the employees in order to meet the goals and desires. It is also recommanded that the company have to keep their workers in the loop. They have to use some channels and new techniques in order to make brand awareness among the audience. Analyse the impacts and threats and develop effective strategy in order to achieve the goals as soon as possible. Evaluate the procedure of modification and changes. They have to implement a support framework and develop a strategies for effective communication(Wang and Han, 2016). CONCLUSION From the above mentioned report it has been concluded that for directing their business it is very required for the company to make strategies and follow the models and framework. These models and concepts support the company to evaluate the performance and also help the company to analyse the competitive advantages. This report contain few models which help the company to set and positioned their products according to marketplace and area. So these models support the company a lot in order to get more profitability and growth.
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Tajima, S., Drugowitsch, J. and Pouget, A., 2016. Optimal policy for value-based decision- making.Nature communications,7(1), pp.1-12. Ribeiro, J., 2018. Wearable technology spending: a strategic approach to decision-making. InWearable Technologies: Concepts, Methodologies, Tools, and Applications(pp. 517-537). IGI Global. Fang, J., Wen, C., George, B. and Prybutok, V.R., 2016. Consumer heterogeneity, perceived value, and repurchase decision-making in online shopping: The role of gender, age, and shopping motives.Journal of Electronic Commerce Research,17(2), p.116. Klein, G.A., 2017.Sources of power: How people make decisions. MIT press.