Ansoff Matrix and Business Expansion Strategies

This assignment focuses on the Ansoff growth strategy matrix and its application in helping companies expand their businesses. It specifically highlights the 'market development' strategy, which enables companies to reach new geographical markets.

Strategic Development
within an organisation
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
1.1 Vision.....................................................................................................................................3
1.2 Growth strategies...................................................................................................................3
2 CRITICISM OF BUSINSS PRACTCIES PURSUED BY Woodside PERTOLEUM................4
3. GENREAL ENVIRONMENT.....................................................................................................5
2.1 Political and legal .................................................................................................................5
3.2 Economical ...........................................................................................................................5
3.3 Social .....................................................................................................................................5
3.4 Technological ........................................................................................................................5
3.5 Natural....................................................................................................................................7
4 specific environment.....................................................................................................................8
4.1 Customers..............................................................................................................................8
4.2 Partners..................................................................................................................................8
4.3 Industry..................................................................................................................................8
4.4 Union......................................................................................................................................8
4.5 competitor .............................................................................................................................8
4.6 supplier...................................................................................................................................9
5 Swot..............................................................................................................................................9
5.1 Strengthen ............................................................................................................................9
5.2 Weakness...............................................................................................................................9
5.3 Opportunity............................................................................................................................9
5.4 Threat.....................................................................................................................................9
6. Woodside petroleum culture and leader..................................................................................10
conclusion.....................................................................................................................................10
References......................................................................................................................................11
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INTRODUCTION
Strategic development is a change which is unavoidable and will occur whether planned
to change or not. Firm resource which need to managed so that goal and objective is achieved is
known as strategic management. The present report is based on Woodside petroleum limited
which is an Australian petroleum exploration and production company. It operates oil and gas
production in Australia and it is also the largest independent dedicated oil and gas company. The
present report covers, Criticism of business practices pursued by Woodside petroleum. Along
with this, macro factor which impact the business environment is discussed.
1.1 Vision
Vision is an ability to think or plan future with imagination. Further, Vision of a company
is to become one of the independent exploration, development and production oil company in all
over the world.
1.2 Growth strategies
Woodside Petroleum can use Ansoff matrix for expanding its business.
Ansoff growth matrix is another marketing planning tool which is used by a business for
their growth (Tajuddin, Manan and Adil, 2016.). Under this strategy, there are four strategy
which petroleum company can used for expanding its business.
Market penetration; Market penetration is a less risky strategy which can be used by
Woodside Petroleum Company. It also leverages many of the firm;s existing resources and
capabilities. By using this strategy, company can increase the demand of petroleum and gas in
the same market (Hesping and Schiele, 2015.). Further, company can develop new marketing
strategy for encouraging more people to choose their firm products.
Market development: It is a strategy in which Woodside Company can target a new
market for expanding its business. Company can increase demand of oil and gas in a different
geographical area in a home country or in other nation (Roscoe, Segedy and Biswas, 2013.).
Further, the organization can use different way for selling its product such as online or direct
sale. Company can also promote its product in newspaper or online which he;p increasing a
awareness of product among a the customer
Product development: It is strategy which the company can use for selling its different
product to the same people (Røyne, Berlin and Ringström, 2015.). By using this strategy,
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company can produce new product or repack its old product so that sale of its goods and service
can be increase
Diversification: This strategy of growth is risky because in this company it sells its new
products in a new market. But this strategy is very useful in expanding business in the new
geographical market (O'Brien and Meadows, 2013.). It has the great opportunity to expand
business but the main advantage of diversification is that if one business suffers from some
circumstance but another firm may not be affected by a diversification
Merger and acquisition strategy
Merger and acquisition growth strategy is extremely important in
order to derive maximum benefit. Company can use this strategy for expanding it business. In
this strategy which are considering making a changes to their in its corporate structure by
joining forces with another firm (Hooshangi, Arasti and Sahebzamani, 2013). There are some
strategic reason for companies to acquire a business of other. Through acquire a business of other
company can easily expand its business. Further company can also use a new innovative
products for its customer by using another company resources.
This both strategy can be adopted by a Woodside company so that it can easily expand it
business and easily gain market share
2 CRITICISM OF BUSINSS PRACTCIES PURSUED BY WOODSIDE
PERTOLEUM
There are some Criticism of business practice pursued by a Woodside company that is as follow
the Measurement,nt system of petroleum company uses to measure a intangible assess such as
faulty or reputation that can be hazy and it become challenge to link change so that activities can
be separated (Rycroft-Malone and Strunin, 2013). The company use measurement system a
company use to measure a intangible assets that are loyalty or reputation. Further company
promise to a deliver a high quality product but they are delivering a bad quality product On the
hand coal produce about twice as much carbon dioxide when gas is burnt. This industry is
struggling from a slum in commodity prices that is threading the viability of some operation.
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3. GENREAL ENVIRONMENT
2.1 Political and legal
Political and legal factor also affects the Woodside petroleum company because they
need labour to work and on that company is required to pay taxes over it (Bamberger, Bironand
Meshoulam, 2014). Further, the firm need to follow taxation policy and political instability
affect the oil and gas company. On the other hand, there are some legal factors which influence
exploitation and exploration and also the commercialization of oil products. This petroleum
industry need to face some legal position like work regulation social protection etc, further they
also need to pay the taxes for fuel and subsidies.
3.2 Economical
Economic factor also influence the supply and demand of oil prices with a different
resources and the exchange rate of money in market (Ignacio, Lopez and Liaw, 2016). The
price of oil and gas are the primary factor in deciding that the reserve is economically feasible or
not. The price of oil and gas are the primary factor in deciding that reserve is economically
possible or not. Company need to pay high tax which affect company profitability.
This petroleum industry must concern with some of economic factor that can affect the global
economy. This economic factor is as follows:
 Global economic crisis
 the bankruptcy of the large commercial banks
3.3 Social
There are some factors such as income, migration, culture, religion etc which has become
a great issue for Woodside Company. There are social trend and belief which affect the
petroleum company and that are as follows:
 People are now more aware of friendly fuels and decrease a use of dirty fossil fuels.
 Natural gas is now considered as a cleanest fuel in all the fossil fuels.
3.4 Technological
There are some barriers faced by a Woodside petroleum Company in bringing a new
technology or innovation in a market. Some factors are as follows
 Shortage of skill
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 Company not have enough fund
 uncertainty in oil and gas price
 Development cost
There are some of the high potential technologies which can affect the oil and gas
company in the upcoming year (Roscoe, Segedy and Biswas, 2013). Further Woodside company
can adopt a new and advanced technology so that it can use those technology in implementing a
new project. its competitor are also using a using a new technology which impact the sale of
Woodside company
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
3.5 Natural
There are some of the natural factors which have a great impact on a Woodside
petroleum company. If there is scarcity of natural resources then it will directly impact the
organization. Further, crude oil is available in a large quantity which aids the company in
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Illustration 1: Technological factor

expanding it business. There are some natural gas which company can use for making a product
this all help company in expanding its business.
4 SPECIFIC ENVIRONMENT
4.1 Customers
Customers are important for Woodside Petroleum Company that is if price of oil and
petrol increase then demand of this oil and petrol may decrease among the consumer (Tajuddin,
Manan and Adil, 2016. ). On the other hand, if company decrease the price of fuel then its
demand among the customer will also increase Customer are play a significant role in
increasing the demand of company product. So petroleum company need to make those product
for its customer which are environment friendly and not harm the environment
4.2 Partners
Woodside petroleum and partners including Royal dutch shell are making plan to develop
the new project that is Browse liquefied natural gas project off Australia west coast. Further, they
are using Shell's FLNG technology and Woodside offshore development expertise for
developing a field which host up to 13.4 trillion cubic feet of gas
4.3 Industry
Australia oil and gas industry is a major contributor to its economy as in this country
coal and gas sector plays an important part. Further, liquefied natural gas is major exporter of
Australia and its further development is based on resources of natural gas.
4.4 Union
Union of petroleum and natural gas industry is trade union of organization. The union
also work to secure the lobar who are working in a petroleum company (Hesping and Schiele,
2015). The union is also involved in a establishing a relation ship between a workers and owner.
Further it also settle the dispute between workers and mainly focus on welfare of worker.
4.5 competitor
Woodside main competitors are BHP Billiton Limited, Santos limited and Apache
Corporation. These all companies give tough competition to the Woodside petroleum company.
They all sell the same product which affects the profit of Woodside Petroleum Company.
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Petroleum company can make a new innovative product so that it can give tough competition to
its customer.
4.6 supplier
Woodside company have a less suppler and it purchase raw material on order terms and
condition and corporate policy of supplier. further, this company also made good relation with
its suppler so that it can get easily earn.
5 SWOT
5.1 Strengthen
More then 3000 employees. This company is one of the largest oil and gas company in Australia.
It have a high quality of oil assets with a extensive portfolio (Rycroft-Malone and Strunin, 2013).
Along with this it make a strong relation with a government and ventures.
5.2 Weakness
Woodside company bad image is created among the public and its two of the project was
highly protested by a public. Further there is failure of oil mist detector also affects employee
relation.
5.3 Opportunity
Woodside have opportunity to expand it business into other market and globally. Further it
innovate safe project will strengthen its brand. It have opportunity to expand its business by
using new technologies (Ward and Peppard, 2016). This company also have a opportunity to
expand it business by promoting its product online so that people came to know about its
product.
5.4 Threat
There are some threat of Woodside petroleum company that is if natural disaster occur
then it can cause a immense losses. Further it have a high competition with a global players.
There are also some legal factor which affecting a petroleum company. Firm not have highly
skilled employee which create a problem in launching a new project
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6. WOODSIDE PETROLEUM CULTURE AND LEADER
Woodside company have a strong health and safety culture. This company try to keep a
each other safe initiative. Further it build the position and diverse group of people work together
so that innovate product can be made. There are different culture people work together and bring
their unique skills and talent in a company (Ignacio, Lopez and Liaw, 2016). Further there is no
discrimination done at the time of recruiting a candidate and selection is done on the basis of
ability and skill. Further Woodside company also focus on working as a team so that project can
be accomplished on time. Company have a democratic leader who always involve team worker
in decision making process. Company environment is friendly's all people work together and
leader always motivates its employee by giving them some monetary and non monetary
incentive. Leader always force and encourage a employee to work hard and get success.
CONCLUSION
From the above report it can be concluded that there are different macro factor which
affects company in a different manner. Competitor of Woodside company also give a tough
competition by launching new project. There are some of the technological factor which is
affecting a company. Further it can be concluded that Ansoff growth strategy help company in
expanding its business. Their is market development strategy which help company in expanding
its business in a different geographical area
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REFERENCES
Books and journals
Bamberger, P. A., Biron, M. and Meshoulam, I., 2014. Human resource strategy: Formulation,
implementation, and impact. Routledge.
Hesping, F. H. and Schiele, H., 2015. Purchasing strategy development: A multi-level review.
Journal of purchasing and supply management. 21(2). pp.138-150.
Hooshangi, S., Arasti, M. R., Hounshell, D.A. and Sahebzamani, S., 2013. Evolutionary learning
methodology: A case study of R&D strategy development. Technological Forecasting and
Social Change, 80(5), pp.956-976.
Ignacio, J., Dolmans, D., Scherpbier, A., Rethans, J.J., Lopez, V. and Liaw, S.Y., 2016.
Development, implementation, and evaluation of a mental rehearsal strategy to improve
clinical performance and reduce stress: A mixed methods study. Nurse education today. 37.
pp.27-32.
O'Brien, F. A. and Meadows, M., 2013. Scenario orientation and use to support strategy
development. Technological Forecasting and Social Change. 80(4). pp.643-656.
Roscoe, R. D., Segedy, J. R., Sulcer, B., Jeong, H. and Biswas, G., 2013. Shallow strategy
development in a teachable agent environment designed to support self-regulated learning.
Computers & Education, 62, pp.286-297.
Røyne, F., Berlin, J. and Ringström, E., 2015. Life cycle perspective in environmental strategy
development on the industry cluster level: A case study of five chemical companies.
Journal of Cleaner Production, 86, pp.125-131.
Rycroft-Malone, J., Seers, K., Chandler, J., Hawkes, C.A., Crichton, N., Allen, C., Bullock, I.
and Strunin, L., 2013. The role of evidence, context, and facilitation in an implementation
trial: implications for the development of the PARIHS framework. Implementation Science.
8(1). p.1.
Tajuddin, M., Manan, A. and Adil, A., 2016. Studi Kasus Model Strategi Pemasaran Terintegrasi
Berbasis Teknologi Informasi Di Nusa Tenggara Barat. Kursor. 6(2).
Ward, J. and Peppard, J., 2016. The Strategic Management of Information Systems: Building a
Digital Strategy. John Wiley & Sons.
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