Strategic Analysis and Decision Making

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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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Individual Strategic
Analysis 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
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INTRODUCTION
Strategic analysis is a procedure that include and engage investigate company
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 company CRH Plc, it is an Irish multinational group that cater and manufacture a
huge variety of goods for 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
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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.
Low Price(2 position): 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
accomplish superior prices by extremely pointed segmentation, promotion and up
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 grow in 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.
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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.
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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 conduct few 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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REFERENCES
Books and Journal
Ingold, K. and Leifeld, P., 2016. Structural and institutional determinants of influence reputation:
A comparison of collaborative and adversarial policy networks in decision making and
implementation. Journal of Public Administration Research and Theory, 26(1), pp.1-18.
Fleming, S.M. and Daw, N.D., 2017. Self-evaluation of decision-making: A general Bayesian
framework for metacognitive computation. Psychological review, 124(1), p.91.
Guo, Zhang, D. and Yang, 2017. Green supplier evaluation and selection in apparel
manufacturing using a fuzzy multi-criteria decision-making
approach. Sustainability, 9(4), p.650.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International Social
Research, 10(51).
Howarth and Monasterolo, 2016. Understanding barriers to decision making in the UK energy-
food-water nexus: The added value of interdisciplinary approaches. Environmental
Science & Policy, 61, pp.53-60.
Shanafelt and Noseworthy, 2017, January. Executive leadership and physician well-being: nine
organizational strategies to promote engagement and reduce burnout. In Mayo Clinic
Proceedings (Vol. 92, No. 1, pp. 129-146). Elsevier.
Trianni, Cagno and Farné, 2016. Barriers, drivers and decision-making process for industrial
energy efficiency: A broad study among manufacturing small and medium-sized
enterprises. Applied Energy, 162, pp.1537-1551.
Wang, Duong and Chen, 2016 Intention to disclose personal information via mobile applications:
A privacy calculus perspective. International journal of information management, 36(4),
pp.531-542.
Wang and Han, 2016. Understanding the effects of trust and risk on individual behavior toward
social media platforms: A meta-analysis of the empirical evidence. Computers in
Human Behavior, 56, pp.34-44.
Xu, Wen and Zhang, 2018. A two-stage consensus method for large-scale multi-attribute group
decision making with an application to earthquake shelter selection. Computers &
Industrial Engineering, 116, pp.113-129.
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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.
In Wearable 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.
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