Strategic Management: An Analysis of Ansoff Growth, Bowman Strategy Clock, McKinsey 7S Model, Porter’s Generic and BCG Matrix

This report analyzes the different strategic models such as Ansoff growth, Bowman strategy clock, McKinsey 7S model, Porter’s generic and BCG matrix that can be used by Study Active to attain competitive advantages in the fitness industry.

Strategic
Management
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EXECUTIVE SUMMARY
Strategic management is needed at every place as it formulated by management for the
purpose of developing the business and maintaining higher performance. To operate a business
and bring changes management plays important role that support to accomplish the business
goals. The present report is based on different model such as Ansoff growth, Bowman strategy
clock, Mckinesy 7S model, porter’s generic and BCG matrix that used to attain the competitive
advantages.
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION..............................................................................................................................12
REFERENCE................................................................................................................................13
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INTRODUCTION
Strategic management termed to management involves goal setting, procedure, and
objectives which are used to making right decision and attaining competitive advantages.
Similarly, Strategy management is the firm’s resources which are available to achieve the
business goals. For each organization needs to have effective strategy and plan in which each
task could be done and helps to maintain higher productivity (Aguilar, Santana, Larrañeta, and
Cuevas, 2020). The project 1 was based on study active that falls under PT Academy, fitness
qualification. This report will help to analysis the internal and external performance of Study
Active which is done in last project. Study Active is one of the UK’s leading provider of Gym
instructor & Personal training qualification. The present report discusses about possible
strategies at the corporate level, critical evaluation of scenarios by using strategic models, and
recommendations that support the study.
MAIN BODY
Strategic management is the planned uses of business resources for the purpose of
managing functions and activities. This is important for each individual to develop their
knowledge and abilities in different areas which supports to grow the business and maintain
higher performance. This can help industries to reach out their goals by using step by step plan.
Ansoff Matrix
This refers to product/market expansion grid, is a tool uses by organization to analyse and
plan their strategies for growth. Whenever organization launches new products and services then
it is important to use matrix which can help to grow the business and functions. Study Active is
the leading provider of Gym instructor and Personal training qualification that guides people
how to keep healthy and fit (Kulkarni, Mutkekar, and Ingalagi, 2020). This could help to
maintain the higher performance and productivity. The application of model is explained below:
Market penetration – The strategy relates to increasing sales of existing products in an
existing market. This is used by companies to run their business and developing the performance.
Whenever, people decided to grow their activities and functions then such strategy could be used
by them which can help to improve the activities. This can be used by Study Active for the
purpose of increasing awareness and keeping the healthy to individuals. This also helps to bring
the changes in education and maintaining each task and function. By applying this strategy,
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chosen organization could increase its sales and performance in changing environment and
maintain higher performance.
Product development – This strategy is related to providing different kind of products
and services which could influence the number of customers and increase sales. Product
development is the main strategy, uses by companies to introduce something different and
unique which is not available in market and supports to increase the activities. In relation to
Study Active that is leading provider of Gym instructor and personal training introduces the new
services or product in market which could attracts the number of individuals and maintaining
sales (Dzwigol, Shcherbak, Semikina, Vinichenko, and Vasiuta, 2019).
Market development – This strategy relating to entrance in new market with existing
products to attracts new as well as old customers, helps to grow the business. If organization
entered in to new location and fill the people demand, then it became an opportunity to grow
their business activities as well and customer base. Study Active situated in UK that can be used
market development strategy by entering in to new market and location which can help to grow
the organizational activities and performance. This can be attractive strategy for chosen brand as
it has to select the best location where it could expand its business by increasing customer base
and provide them proper guidance that can help to operate a business regularly.
Diversification – This relation of diversification strategy showcase entering in new
market with introducing new products and services, that can help to develop the business
performance. Similarly, diversification strategy is uses by companies and business concern to
compete with other businesses by providing new products at new location. If Study Active UK
use this strategy, then it has to choose new market and new services which could help to grow
business and maintain higher performance (Drobyazko, and et.al., 2019).
Critical evaluation / Justification
From the Ansoff growth model it has evaluated that Diversification strategy is applying
by Study Active in which it introduces new gym service at new location. This can help to grow
the business in changing environment and maintain the higher performance effectively. By
analysing the performance of PT education, HFE, and fitness qualification who is competitor of
Study Active uses strategy to attain the competitive advantages by entering in new market along
with new products and services. This would help to keep healthy people and develop the
business performance (Khajezadeh, and et.al., 2019).
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Bowman's Strategy Clock
Bowman's Strategy Clock is a model which can be used so that the proper and
appropriate analysis of the different types of positions can be made which will therefore be quite
useful in ensuring that the right and proper decisions can be taken so that the attainment of the
goals and objectives can be done (Barbosa, Castañeda-Ayarza and Ferreira, 2020). There are
different types of positions which can be analysed. An explanation of these positions can be
made in the following manner-
 Position 1 (Low Price/Low Value)- Here, the product is priced low and offers a low
value to the customers. Therefore, it can be stated that for an organization like Study
Active this position means that it offers products at low price and low value for the
customers.
 Position 2 (Low Price)- Here, the product is offered at a low price to the customers and
therefore this is done to attract their attention. Study Active can use it to offer its products
at a lower price (Alyamani, 2020).
 Position 3 (Hybrid)- Here, the product if offered at a lower price and is different from
the product of the competitors. Study Active can make the use of this position.
 Position 4 (Differentiation)- Here, the differentiation of the products from each other is
done (Dzwigol, 2020). This position can be used by Study Active.
 Position 5 (Focused Differentiation)- Here, the products are priced higher and should
have a higher value. This position can also be used by Study Active.
 Position 6 (Increased Price/Standard Product)- Here, the organizations increase price
for the standard product which they are providing to the customers in the market. Study
Active can use this position.
 Position 7 (High Price/Low Value)- Here, the organizations offer their products at a
high price and low value. Therefore, it can be stated that Study Active can make sure to
make the use of this particular position.
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 Position 8 (Low Value/Standard Price)- Here, the products are offered at a low value
and standard price. Thus, in this way it can be stated that Study Active will be able to
make sure that it uses this particular position.
Thus, it is quite important for Study Active to make sure that it analyses these positions so that
the right decision can be taken by it for the purpose of making a proper progress in the market.
Therefore, it can be stated that the management has to take decisions after doing critical analysis
of the situation.
Justification- Study Active needs to make the use of Hybrid Strategy because through
the use of this strategy it can place its products in the market in a proper manner and therefore
this will help in ensuring that the attainment of the goals and objectives in the future can be
carried out. In this way, the company will be able to take the different types of decisions in a
right way and thus will be able to secure a strategic and competitive edge over the different types
of competitors in the market. Thus, in this way the right level of progress can be made by the
company quite effectively and efficiently. The company thus needs to make sure that it attains its
goals and objectives in quite a proper way in the future in a right manner (Akash, 2020).
McKinsey’s 7 S framework
This is a framework which is used by companies for the purpose of running their
business and maintaining higher performance. This is a useful framework uses for reviewing
company’s market abilities from different viewpoints. The management is playing the important
role who conduct the environment analysis and introduce the products according which can help
to develop the organizational productivity and profitability. Study Active is using the McKinsey
Model to develop operate its business by considering various aspects such as:
Style – This refers to culture, values and leadership which is adopted by organization for
the purpose of running their business and managing good performance. Similarly, style
showcasing the way, where top level of manager is managed, interacts with each other, and
actions which are taking by individual for running business. Study Active is leading provider of
gym instructor that follows participative leadership or style which influence the number of
people and getting the work done properly. This can help chosen brand to operate and regulate
their business regularly and manage the higher performance.
Skills – This refers to skills requires to deliver cost, managing each function and reaching
the decided goals which support to regulate a business and manage the good performance. If
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employees are not skilled and talented then it will be challenging for organization to operate its
business. In other words, it showing the actual skills and competencies of individuals, are
working in the organization and contributing in each task. In relation to Study Active, employees
possess writing, communication, marketing, and teaching and other skills which most effectively
and bring the changes at the workplaces which supports to develop the business performance and
productivity (Nunes, and et.al., 2021).
System – Different functions and activities are needed to be done in day to day activities
which can help to managing the good performance. In other words, system involve activities,
procedure, and processes that used to engaging people in doing their work and reporting
properly. MIS system is being used by Study Active’s management for managing their day by
day functions and involving employees which can help to develop the organizational
productivity and profitability. MIS system is using through a software which helps to recording
day to day activities and attaining the higher performance.
Structure – This is the outline of an organization, describing how company is organized
their day to day activities and follows procedure where staff gets the job done. This is important
for organization to follow the proper structure by managing all functions and task. In business
environment different types of structures are followed by organization for the purpose of
maintaining flow of information. Study Active is following hierarchy structure wherein, roles
and responsibilities of employees are delegated that can help to managing the good performance.
The structure also helps people to understand and make them accountable for specific task and
results (Helmold, 2020).
Staff – The individuals and other people who is involves in business organization and
performing all functions accurately that can help to develop the organizational performance. The
people belongs to different culture and language that shows their ability to work and managing
higher performance. In relation to Study Active, employees have inherent talent and competency
to work which used to optimise the organizational capability and productivity. This can help
chosen organization to grow their business by getting work done from employees.
Strategy – This means planning and procedure, formulated by management by analysing
the position of their business sand bringing the changes for the purpose of growing their business
and attaining higher productivity. Without formulation of strategy it became challenging for
organization to operate its business and managing the all activities. In relation to Study Active,
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product development and market development strategy is adopted by management which can
help to reach the targeted customers and developing the performance in changing environment.
The management is having specific place in company who decide goals and formulate the
strategies for the purpose of running their business and managing higher performance.
Shared values – This refers to core values of company, reflecting general work and
ethics. For organization it is important to have good understanding about shared values where
goals are decided by management and bring the changes accordingly. In relation to Study Active,
management followed shared values wherein task is divided between employees and supports to
managing the good performance. This can help to accomplish the business goals and productivity
at the workplace (Straková, and Talíř, 2020).
Critical evaluation / Justification - From the above it can be Justified that Study Active
is using Mckinsey 7’S model for the purpose of running their business and managing each
function properly. The management of chosen organization focuses over strategy, structure,
style, skills, system, staff and shared values which are used to analysing the current situation of
business and bringing changes accordingly. This can help to develop the organizational
performance by bringing all department and process closely. This facilitates by management to
take systematic application of policies and regulations that are regulated by top management and
supports to complete the work. The superiors of company also analyse the effects in corporate
changing culture and technology over the organization that helps to correlate the functions and
activities with each other. This framework is difficult to use as lots of function are needed to
perform systematically and needs skilled or talented people. The management of Study Active
deal with every situation that occurs at the workplace and managing the higher performance
effectively (Katende, 2020).
Porter’s Generic Strategy
This model proposed by Michael Porter, showcasing three basic strategic options
available to organization for the purpose of gaining competitive advantages. For each business
industry it is needed to have proper strategy and planning which used to operate the business and
developing profitability. In relation to Study Active, different strategies followed by
management that are explained below:
Cost Leadership – In this, an industry sets out to become low cost producer in their
competitive market that varies and depends on structure of industry. This is important for
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organization to understand what happening in changing environment and how products or
services are sales out. This mainly focuses on cost factor, influences number of customers and
increase the organizational sales. To run a business and becoming cost producer Study Active
could follow this strategy where it needs to become provider of gym instructor at lower cost than
others. This strategy will help to influence the number of customers and people in changing
environment that increases sales and profitability (Karingithi, Aosa, Ogollah, and Njihia, 2020).
Differentiation – In this strategy, industry seek to be unique in its industry by providing
the different design of products and services. To run a business and increasing sales it is needed
for company to offer the products with specific characteristics which could satisfied the
customers and supports to increase the organizational sales. If superiors of Study Active follow
differentiation strategy, then it needs to introduce unique services which are not providing by
others and satisfy the people to feel good. This could help selected organization to increase the
sales and profitability in competitive environment and maintain higher productivity at the
workplace (WIWATREUNGDECH, 2021).
Focus strategy – The generic strategy of focus is the combination of cost focus and
differentiation where firm seeks towards cost and uniqueness of products as well as services
which can help to attracts the customers and develop the organizational productivity. In relation
to Study Active, management can adopt such strategy by reducing the prices and providing best
quality of products or services which influences the number of customers and develop the
organizational productivity at the workplace. This might be challenging situation for company to
operate their business and maintain higher performance.
Critical evaluation – From the above it is critically evaluated that Focus strategy is
selected by Study Active that can help to influence the number of people and make buying
decisions. This also helps to develop the organizational performance and productivity. This
strategy is valuable for chosen company as it by offering better design and cost of services
chosen organization would operate its business and bring out changes that can help to manage
the higher performance and profitability (Vieira, and Ferreira, 2020).
Justification – Cost is the main factor for organization as well as customers where
buying decision are taken accordingly. If Study Active is adopting focus strategy, then it would
be good opportunity for organization as it influences the number of people and encourage to
make buying decisions. This supports to bring the changes at their workplace and accomplish
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business goals in changing environment (Lee, Hoehn‐Weiss,. and Karim, 2021) (Ali, and Anwar,
2021) (Maha, Cahyandito, and Purnomo, 2020)) (Kader, and Hossain, 2020) (Kim, Putyatina,
Russkikh, and Shkurupy,., 2021).
BCG matrix
BCG Matrix is designed to help management with long term strategic planning, growth
opportunities, and managing product portfolio. The business concern uses this matrix to decide
where to invest, make decision and develop the products in business environment. This can help
to increase the business performance and maintaining productivity. The management of Study
Active follows 4 Quadrants that can help to analysis the market growth and relative share market
is explained below:
Dogs – This strategy is related to low growth and low share market that is not buying by
customers. The management is requiring to make efforts to remove any dogs from their product
portfolio as it drain on resources. In relation to Study Active, management should be reducing
the irregular activities and other services that not suits their customers (Lee, Hoehn‐Weiss,. and
Karim, 2021).
Question Marks – This strategy is related to product in high growth markets with low
growth market with low market share. To establish a business there is need to make high
investment that push organization in to star quadrant. In relation to Study Active, management
offers less skilled and trained gym instructor that facilitates high growth and low market share as
no customers are added to the organization which affects organizational productivity.
Stars – This refers strategy based on high growth market share with high market share
that can help to operate a business and develop the organizational productivity. Study Active is
maintaining Star product portfolio as its offers best gym instructor in the changing environment
which can help to influence the number of people and provide right suggestions to increase the
sales as well as profitability (Ali, and Anwar, 2021).
Cash Cows – This strategy is related to product in low growth market with high market
share that needs to bring the improvements and attaining business goals. This follow a rule
“Milk these products as much possible without killing the cow” This can be use by Study Active
by offering different services at higher cost which create the challenges for organization to
operate business regularly.
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Critical evaluation / Justification – Stars product portfolio is maintaining by Study
Active wherein it provides well trainer or instructor to people at affordable prices which can help
to regulate and manage the business appropriately. The management conduct the market analysis
and make decision to offer kind of products that can help to influence the number of people and
increase the organizational sales effectively (Maha, Cahyandito, and Purnomo, 2020).
Safe Model – This model is based on workflow patterns for the purpose of implementing
organizational practices. This can help to bring the change and maintaining higher performance.
 Alignment – The leaders of Study active used this alignment for encouraging the
individuals and team to reach highest level.
 Built in quality – This stage is used to describing skills and following business principles
which is required to produce high performing team.
 Transparency – Study Active is maintaining the transparency and dictating behaviour
while working that can help to managing good performance as well as productivity.
 Execution – This stage is used by management of Study Active to execute their planning
and strategies which can help to complete task and attaining business goals.
Recommendation Route forward
Study Active is recommended to follow the different model and theories of strategic
management for the purpose of analysing the market and providing better quality of products as
well as services. The management requires to understand what is happening in market, and what
are customer expectations? This can help management to regulate and operate the business in
changing environment and maintain higher performance.
 It is suggested to Study Active to use Differentiation strategy under Ansoff Growth
Matrix by providing unique gym services which can help to compete with PT academy,
Fitness and others are operating their business in market. This would help to influence
people and create the awareness regarding health that supports to increase organizational
sales.
 Hybrid Strategy under Bowman strategy clock should be use by Study Active as it would
help to maintain higher position in market and provide competitive edge by maintaining
liquidity (Kader, and Hossain, 2020).
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 To use McKinsey 7S model, Study Active will manage each function and activities that
arises in different department and support to reach at the positive outcomes (Kim,
Putyatina, Russkikh, and Shkurupy,., 2021).
 Focus strategy under Porter’s generic strategy recommended to Study Active by offering
better design of gym services at lower cost after comparing with competitors that can
help to maintain the higher sales and profitability. This means overall performance of
organization being improves.
 Start product portfolio should be maintaining by Study Active through introducing new
products and services to customers timely. This encourages customers and make buying
decision. Thus, organization can attain the competitive advantages in changing
environment or market.
CONCLUSION
From the report it can be concluded that personal trainer is defined as individual who
earned a certification by showcasing they have achieved a level of competency for creating and
delivering safety. To become a personal trainer there is need to have fitness qualification and
experience of instructor that can help to guide the people and keep them healthy. In business
environment different models are Bowman strategy clock, Ansoff growth matric, BGG matrix,
porter’s generic, and McKinsey 7S model should be used by management which can help to
analysis the market and develop understanding about strategies which can be use by organization
to attain the competitive advantages. This also helps to increase the organizational sales and
profitability in changing environment and maintain higher productivity at the workplace.
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(Dzwigol, Shcherbak, Semikina, Vinichenko, and Vasiuta, 2019) (Drobyazko, and et.al., 2019)
(Khajezadeh, and et.al., 2019) (Alyamani, 2020) (Akash, 2020) (Nunes, and et.al., 2021)
(Helmold, 2020) (Straková, and Talíř, 2020) (Katende, 2020) (Karingithi, Aosa, Ogollah, and
Njihia, 2020) (WIWATREUNGDECH, 2021) (Vieira, and Ferreira, 2020) (Lee, Hoehn‐Weiss,.
and Karim, 2021) (Ali, and Anwar, 2021) (Maha, Cahyandito, and Purnomo, 2020)) (Kader, and
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