Unit 32. Business Strategy Assignment

Unit 32
Business Strategy

Table of Contents
Introduction......................................................................................................................................3
Company overview..........................................................................................................................3
LO1..................................................................................................................................................4
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on an organization and its strategies.......................................................................4
M1 Critically analysing the macro environment to determine and inform strategic management
decisions......................................................................................................................................8
LO2................................................................................................................................................10
P2 Analysing the internal environment and capabilities of a given organisation using
appropriate frameworks.............................................................................................................10
M2 Critically evaluating the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set........................................................13
LO3................................................................................................................................................15
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organization..........................................................................................................15
M3 Devising appropriate strategies to improve competitive edge and market position...........17
LO4................................................................................................................................................18
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
...................................................................................................................................................18
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives...................................................................................................................................20
D1 Producing a set of valid strategic directions, objectives and tactical actions......................21
Conclusion.....................................................................................................................................23
References......................................................................................................................................24

Introduction
For the expansion of business, the organization takes different techniques to be in a competitive
advantage. Hence different projects get introduced like being international, developing a new
product, marching on new market and so on. These projects are well managed by the proper
executing of business activities. This report will be based on the activities of Boots UK, which is
a UK-based company. Various business activities of Boots UK are giving birth to different
challenges which can bring the positive result into the system if they are well managed. Hence
these challenges should be considered as the business objectives to get them attained within a
specific time. The business activities can get the increase by the proper management of the
specific issues. However, different strategies are also implemented for the management of it.
Company overview
Boots UK is a British health and beauty retailer which has almost more than 200 stores around
the UK. On the other hand, the Pharmacy chain of Boots UK is also available in the context. It
has such a big chain of management which assures that £10B revenue in an annual basis. It has
more than 60,000 employees working under the organization. It mostly serves in the areas of UK
and Ireland. Hence, the organization is working on the skin care and beauty treatments along
with the Pharmacy business.

LO1
P1 Applying appropriate frameworks analyse the impact and influence of the
macro environment on an organization and its strategies
The external environment plays an essential role in the development as well as misleading
decisions in the business organization. That is why it is very important to analyze the external
environment properly. In this case, some strategies need to be applied in the phase and for that
the mission, vision and objectives are needed to be very clear (Bryson, 2011). The mission,
vision and objectives of Boots UK are stated in the following table.
Missions The mission of Boots UK is to create a strong base of customers and grab the
leading position in the market. That is why;another mission is to provide better
customer service to the customers.
Visions The vision is to become one of the leading companies in the world and a
responsible citizen which is admired by the customers. Hence maintaining
corporate social responsibility is very essential for the company.
Objectives The prime objective of Boots UK is to become one of leading business
organizations in the world. Hence, the biggest objective is to make space for
attaining business goals through providing better service to customers.
Figure: Significance of implementing strategy (Bult-Spiering and Dewulf, 2018)
Strategy and role of strategy

Business organizations have different objectives to attain and without the proper implementation
of business strategies it will not work in the long term achievements. Hence, strategy is a plan
that is used for the management of long term goals in order to attain the business objectives.
Boots UK have different business goals which are needed to be managed using different business
strategies (Cihlar, 2014). The business strategies will be suggesting different ways of sorting out
the issues which will be helpful for running a business. The strategies are effective in terms of
organizing the operations of the business and implementing in the performance.
The marketing plans are also managed with the help of strategies. It will also increase the growth
of the organization. The strategies will assist to get the control over the organization and it will
assist to get the strategic alliance for efficient improvement. The external environment will bring
different organizational changes which can also be tackled with the help of implementation of
strategies (Davies and Crane, 2013). Hence, it can be said that, strategies can be very effective
for the Boots UK Company.
Stakeholder analysis
Stakeholders are the customers, employees, investors, suppliers and so on. The stakeholder play
imperative role in the management of the business. Through the stakeholder’s analysis Boots UK
will be able to drag a conclusion. Hence, Boots UK have to place a stakeholder’s mapping which
is also considered as the stakeholder’s Matrix. In the stakeholder’s mapping there are basically
four concepts on which the entire thing relies on (Deresky, 2010). The factor of satisfaction
relies on the government and law enforcing parties which have the highest power.
Figure: Stakeholders’ mapping (Ghemawat, 2013)
The employees have the minimal power so in order to control the employees the organization has
to put minimal effort. The factor of managing closely is maintained proper in terms of managing

the users, customers, raw materials. On the other hand, the investors have to manage by the last
factor of mapping which is keeping the informed. Hence the investors need to be managed by the
preference of the keeping them informed about the strategic activities because they have the high
power (Kaplan and Norton, 2011). Hence, stakeholders mapping is very essential for Boots UK
in order to bring out better outcome.
PESTLE analysis
Political:Brexit is a very strong issue for Boots UK and it will be shaping the expansion
procedure of the organization beyond national boundary. In UK, political stability has been
present and this kind of stability is supporting the organization to bring effective performance on
the organizational performance. As the result of it, organization is being influenced in several
simultaneous manner. On the other side, no significant change on the government of UK has
been seen. As the result of it, a very strong condition on the politicalaspect will be assured. It
shows that Boots UK will be having positive impact from the political condition.
Economic: In several cases, Boots UK is also being influenced by the economic condition. Here,
because of having unstable exchange rate, Boots UK is facing a lot of obstacles. These obstacles
will be hindering the process of international expansion of Boots UK. Following all these, the
interest rate of UK is getting changed on several manner (Davis and Kruse, 2017). In the similar
way, because of unstable interest rate, organization ability of making better investment has got
reduced.Boots UK is alsoworking for dealing with the capital investment issues. It can be said
that Boots UK is facing dangerous impact from the side of economic condition.
Social: In the same way, Boots UK will also have to focus on the social condition. Here, the
product of Boots UK are supporting for customersto get their actual requirements. As the result
of it, the social application is actually making positive impact on the performance and activities.
Customers of Boots UK are recently happy with all the products that are being provided.
However, there have been several changes on the taste of the customers over time. This is why,
an organization like Boots UK is getting highly influenced by the daily operations and activities
of the society.
Technology: Technology is a very key matter for an organization because it is used to make the
process even better. With the help of technology, Boots UK is being able to ease their

operational performance. It is also supportive for bringing effectiveness and efficiency. With the
digital transition, Boots UK is being able to sell their products through the digital platform (Artte
and Wikström, 2015). In this process, it will be used to improve the technology related condition
of Boots UK. Following this, there are a lot of new disruptive technology appearing on the
market. As the result of it, Boots UK will need to make some significant changes on their daily
operations and activities.
Legal:In UK, a lot of operations are needed to be improvised based on the legal regulations.
There have been some significant but visible changes on the aspect such as customer rights,
employment, and so on. All of these factors are making direct and influential impact on the
regular operations of the organization. It will be able to map the whole organizational process by
bringing some several regulations. Thus, Boots UK has been facing a lot of legal changes and
these changes are causing problems on the operational conditions.
Environment: In Boots UK, it has been found that environment related issues are very much
manipulative. In an environment, there are various NGO’s and all of these NGO’s will be
successful at controlling and managing various activities regarding ecological condition. Boots
UK is doing a lot of activities that are related with CSR (Gibb, 2013). All of these CSR related
activities will be able to make impact on the performance of Boots UK. This is how, Boots UK is
being influenced by the factors of macro environment.
SWOT analysis
Strengths:Boots UK is having a very strong supply chain and production line. Because of
having the simultaneous and effective supply chain condition, Boots UK will be capable of
bringing various effective way of producing new products. In the similar way, the skill of the
employees of Boots UK are also very simultaneous. Because of having the employeeswith
proper skill, Boots UK is being able to make positive impact on the performance (Dwyer and
Boyd, 2013). Customer base of Boots UK is also very much supportive and it will be making
positive impact as a form of strength.
Weaknesses:The marketing and distribution channel of Boots UK is very much complex.
Because of having this complex line of distribution, Boots UK is getting influenced negatively.
In the similar process, Boots UK is also not being able to handle and manage the

employees’skills effectively. They are not being able to train their employees and because of
poor workforce planning, the while is getting on the negative side of Boots UK. So, these are
themain weaknesses that are aligned and associated with the purpose of the organization. In this
way, the total operation is being supported and managed.
Opportunities:On the other side, Boots UK can also face a lot of chances and opportunities. In
the future days, Boots UK can be able to expand their operations in the international condition.
Boots UK will also be able to expand their product line by dealing with the production related
aspects. So, these are the main issues that will be bringing opportunities for the activities of
Boots UK (Frame, 2012). Boots UK will also be able to invest wider amount on money on
various other ventures. This is how, these are the main opportunities that are associated with the
processes of Boots UK effectively.
Threats:On the other side, Boots UK can also face a lot of threats that are related with the
condition. InBoots UK, the external business environment might bring a handful of threats on the
organizational condition. In order to do that, Boots UK will be facing threats from the side of
competitors. There are a lot of competitors associated with theprocess and these competitors will
be holding the process of activities on several manner. However, the changes on external
environment can also cause a lot of threats on the performance of Boots UK. In this way, it can
make various bad impact.
M1 Critically analysing the macro environment to determine and inform
strategic management decisions
Strategy is a plan that is used for the management of long term goals in order to attain the
business objectives. The business strategies will be suggesting different ways of sorting out the
issues which will be helpful for running a business. The strategies will assist to get the control
over the organization and it will assist to get the strategic alliance for efficient improvement.
Through the stakeholder’s analysis Boots UK will be able to drag a conclusion. The factor of
managing closely is maintained proper in terms of managing the users, customers, raw materials.
Hence the investors need to be managed by the preference of the keeping them informed about
the strategic activities because they have the high power (Goldratt, 2017).

As the result of it, organization is being influenced in several simultaneous manner. Following
all these, the interest rate of UK is getting changed on several manner. As the result of it, the
social application is actually making positive impact on the performance and activities. In this
process, it will be used to improve the technology related condition of Boots UK. It will be able
to map the whole organizational process by bringing some several regulations. In the similar
way, the skill of the employees of Boots UK are also very simultaneous.

LO2
P2 Analysing the internal environment and capabilities of a given
organisation using appropriate frameworks
Strategic capabilities
In Boots UK, there are various strategic abilities and all of these strategic abilities are used for
strategic performance. In different condition, an organization like Boots UK will be able to
understand various strategic position and situation of the organization. There are various
strategic capabilities of Boots UK available such as employees’ skills, organizational strategies,
and so on. All of these strategies are needed to be covered carefully by the strategies of
organization in different conditions (Quinlan et al., 2019). By the support of these strategic
capabilities, Boots UK will be able to identify various appropriate situation. This is how, the
strategic capabilities can cause changes on the general operations of Boots UK.
McKinsey’s 7S model
7s model is very important tool for an organization to formulate the effective kind of strategies.
In Boots UK, there are a lot of factors that are connected with each other and it makes the
process even more competitive and influential. After this, Boots UK will need to focus on the
strategy at first. They have various strategies and all of these strategies are usually designed on
facing the flexible condition. Following this, Boots UK is also using the top skills to support
their strategies (Gordijn and Akkermans, 2011). There are different important skills that are
possessed by employees of Boots UK and these skills are also very important to cover the
organizational activities.

Figure: 7s’ model (Gordijn and Akkermans, 2011)
In this phase, Boots UK has been creating the styles and staffs according to that role. By the help
of that, they have ben been able to consider a lot of new things to formulate a proper system that
will accelerate the whole condition. While bringing all of these aspects, Boots UK is also
training all of their staffs in a better manner. By the support of dealing with the staff, Boots UK
will be able to control the skills in effective ways (Jankowicz, 2015). As the result of it, Boots
UK will be capable of considering the wider aspects of the new business environment. Boots UK
is connecting all of these factors with shared values. This is how,Boots UK can be able to
arrange different strategic arrangement.
VRIO/VRIN framework
An organization like Boots UK has a lot of capabilities and all of these capabilities can be
classified under various sides and considerations. So, the VRIO/VRIN framework is given on the
following section:
Valuable: Boots UK has several valuable resources and they have a lot of strong financial
abilities. As Boots UK has a lot of opportunities for expansion, they are being able to use the
financial abilities on significant manner. After that, Boots UK is also possessing a very
simultaneous and perfect production system. With the support of required production ability,
Boots UK is being able to achieve competitive advantage. Technology is a very key ability for
Boots UK because it is being used to ease the entire operationalability. So, it is another valuable
resource and capability for Boots UK (Malhotra and Temponi, 2010).
Rare:There are some effective abilities of Boots UK which can be considered as rare abilities. It
has been found that Boots UK has effective financial and investment planning. Because of
having the best operational condition, Boots UK can actually reduce their cost and make the
investment planning on different manner. On the other side, they are also being able to handle
and manage all of their information in a better manner. It is also making positive impact on their
marketing related abilities as well. Boots UK has a lot of strong market plans and these
marketing plans are supportive for arranging rare resources.
Imitable: There are various imitable resources but Boots UK also has several resources which
actually can not be imitated. In this phase, Boots UK is required to have different budgetary

aspects and budgetary performances of Boots UK can not be followed and imitated by others
easily. In the same manner, it will also include the aspects from the employees’ skills and
abilities. The abilities of the employees of Boots UK are very much skilled and all of these skills
can not be imitated by others actually.
Organized:There are also different organized resources that can bring Boots UK the sustainable
competitive advantage. This sustainable financial ability will be supporting Boots UK to make
decisions about the organizationalperformance on different manner (Moss and Atre, 2013).
Boots UK also has a very scalable production ability and this kind of ability will be supporting
them to produce even better products. As the result of it, the wholeoperations will gain positive
momentum. Boots UK is also enjoying effective employees’ performances. All of these effective
performances are bringing organized resources and abilities of Boots UK.
Value chain analysis
For a large organization like Boots UK, value chain analysis is a very key factor because it is
highly concerned about the organizational strategies. In the role of value chain analysis, Boots
UK is using two types of logistics and all of these logistics are supporting to work on their
production system. After managing the production system, Boots UK will need to deal with
thesteps and issues like technology, procurement, and so on. In this way, Boots UK is being able
to make their whole process successful (Malhotra and Temponi, 2010). Following these
supporting activities, Boots UK is also required to carry a lot of customer support. So, by
providing with after sales customer support, Boots UK is being able to control the overall
operations.
Figure: Value chain analysis (Malhotra and Temponi, 2010)

Benchmarking
In the process of benchmarking,Boots UK will be working to follow the market strategies that
have been followed by others. Benchmarking is very important tool for an organization like
Boots UK for the purpose of surviving. In this matter, the benchmarking procedure will be very
much effective for Boots UK. It will also be important for an organization to deal with the
organizational survival roles. In this place, Boots UK will be successful at surviving on
organizational process. Here, Boots UK has been able to deal with benchmarkingfor getting
better output.
Cost-benefit analysis
There are various issues available with the cost benefit analysis. In Boots UK, there are various
costs and each of these costs are successful at managing the benefits condition. All of these costs
are associated with the benefits in several manner (Jankowicz, 2015). By the support of cost
benefit analysis, Boots UK will be successful at assuring the understanding about the successful
of an organization on several manner. As the result of it, cost-benefit analysis can be applied on
the operations of Boots UK simultaneously.
So, these are the mainstrategic capabilities that are associated with Boots UK simultaneously.
M2 Critically evaluating the internal environment to assess strengths and
weaknesses of an organisation’s internal capabilities, structure and skill set
There are various strategic capabilities of Boots UK available such as employees’ skills,
organizational strategies, and so on.After this, Boots UK will need to focus on the strategy at
first. While bringing all of these aspects, Boots UK is also training all of their staffs in a better
manner. With the support of required production ability, Boots UK is being able to achieve
competitive advantage.Because of having the best operational condition, Boots UK can actually
reduce their cost and make the investment planning on different manner. (Lundberg, 2019)In this
phase, Boots UK is required to have different budgetary aspects and budgetary performances of
Boots UK can not be followed and imitated by others easily.This sustainable financial ability
will be supporting Boots UK to make decisions about the organizational performance on
different manner.In the role of value chain analysis, Boots UK is using two types of logistics and
all of these logistics are supporting to work on their production system (Jankowicz, 2015). It will

also be important for an organization to deal with the organizational survival roles.By the
support of cost benefit analysis, Boots UK will be successful at assuring the understanding about
the successful of an organization on several manner.

LO3
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a
given market sector for an organization
Five forces model
Threats of buyers: There are a lot of market players and the switching cost of the product is also
lower. As a result of it, threats of buyers are very much higher in this place (Stokes et al., 2010).
The threat of buyers is high in this case because the new market will have different market
competitors. The buyers will be attracted to the existing companies rather than Boots UK, which
will increase the risk (Gibb, 2013).
Threats of competitors: There are a significant amount of market players who are providing the
same kind of Boots UK and they are also conducting activities on the international arena.In the
new market, the rate of the competition will be very high and the competitors will not let the new
entrance to take place in the market. There are the market players which provide the same kind
of products like Boots UK, which can be a great threat for Boots UK.
Threats of suppliers: The number of suppliers is higher and Boots UKis producing the raw
materials by themselves which is reducing the supply chain steps worldwide. Overall, the threats
of suppliers are low. The suppliers’ rate around the world is very high but in case of Boots UK, it
is less needed because Boots UK produces their raw materials for the products that they make.
Hence the risk for suppliers is low for Boots UK (Highsmith and Cockburn, 2011).

Figure: Five forces analysis (Bryson, 2011)
Threats of substitutions: The threats of substitution is low because the service of Boots UK is
unique which is not actually provided by any other companies into the world. So, the substitution
threats are not that higher.The threats for substitute products is high in the system because in the
market different market competitors are producing the substitute products which can be a great
threat for the organization (Gibb, 2013).
Threats of new entrants: The industry in which Boots UK is conducting does not actually
require a wide range of investment. The required is low and it is increasing the threats of new
entrants (Cihlar, 2014). Threats for new entrance is also high because the industry that Boots UK
is working does not require a high investment and money for starting a business that is why it
can be great advantage for the different new entrance.
Any company like Boots UK will need to handle all of these five threats within the market
condition across the borders. For many companies, all the factors are in favour where Boots UK
is not having that kind of advantages from the external environment.
Balanced Scorecard
In the Boots UK, balanced scorecard is a very important tool for dealing with the vision and
strategy which are related with the financial perspectives, buyers, internal processes, and
learning and growth. In this phase, Boots UK will be able to deal with the financial perspectives
and roles on similar manner (Jankowicz, 2015). Boots UK has also been working to bring the
financials on several manner. On the other side, Boots UK will be able to understand the internal
processes to assure the learning, and buyers. So, these are the main issues that are related with
the factors of Boots UK effectively.

Figure: Balanced scorecard (Jankowicz, 2015)
Ansoff matrix
From the application of Ansoff’ matrix, it has been seen that an organization like Boots UK can
make a lot of decisions effectively. Here, Boots UK has been considering the product
development for the purpose of expansion. In this way, Boots UK is being able to cover the new
products (Gibb, 2013). They are bringing new products on the existing market. In this way,
Boots UK is being able to work on the procedure of the expansion. As the result of it,Boots UK
will be able to consider the expansion related activities. So, it can also be able to cover the
strategic capabilities on various aspects.
This is how, the competitive forces can be applicable on the Boots UK and so on.
M3 Devising appropriate strategies to improve competitive edge and market
position
However, they can also do market penetration by producing a new type in an existing product.
For example, they can introduce new models, colours and features so that it can act in a little
better way. The performance will be developed significantly but the market will be competitive
too. It will not cost Boots UK Plc too much and also can be able to get a bigger customer base
with a higher range of possibilities and probabilities. In this way, market penetration can be
useful for Boots UK Plc. At last, they can develop a new type of product which serves the same
purpose in the same market. In the previous day, Boots UK Plchas applied the sea plastic on their
sportswear which has made the product development. It has shown that plasticcould be used in
apparel production too (Sherman, 2014). This type of production is useful when the market needs
a breakthrough. It takes a lot of effort but the success in the field can cause a very strong and
effective result within the field properly. So, it will be better for Boots UK Plc if they tend to
apply diversification, market penetration and product development as their strategy making
scheme.

LO4
P4 Applying a range of theories, concepts and models, interpret and devise
strategic planning
In order to make the strategic planning, an organization like Boots UK is required to deal with
various kind of strategies. All of these strategies will be supporting for an organization like Boots
UK to make various decisions. As the result of it, Boots UK will require to focus on the strategic
planning and policies. So, the application of these strategic plans are given on the following:
Cost leadership strategy: Boots UK will have to focus on the cost leadership strategy is applied
to sell and produce the products at the lower cost (Gibb, 2013). Here, they will be able to sell and
deal with the market in effective manner. On the other side, the strategic planning of Boots UK
will be able to bring ideas about the cost leadership system. In this way, Boots UK can use the
cost leadership strategy effectively.
Differentiation strategy:Here,Boots UK will need to deal with the differentiation where they
will be adding extra value to the products. By adding extra value to the product, Boots UK will
be able to make impact on the differentiation strategy and process in effective ways. On the other
side, the differentiation strategy can be applied to ensure the successful administration of
organizational strategies and goals simultaneously.
Bowman’s strategy clock: In the role of the Bowman’s strategy clock, a lot of strategies can be
applied. Here, Boots UK is required to focus on the differentiation process. Here, differentiation
method is applied to consider the process for market expansion and other roles (Sherman, 2014).
In this phase, Boots UK will have to consider the strategies like differentiation, hybrid, and so
on. So, this is how, it can bring successful output in the operations.

Figure: Strategy clock (Reynolds, 2017).
From the previous portion, it has been seen that Boots UK Plc can be able to enhance their
business activities with the help of a range of activities. As found from the Bowman's Strategy
Clock, it is a model used in marketing to analyse the competitive position of a company in
comparison to the offerings of competitors.
Situation analysis
Figure 4: Bowman's Strategy Clock (Davies and Crane, 2013)
The price of Boots UK Plc is low along with the high value perceived to the customers. As a
result of it, their marketing strategy is consisting of a hybrid system. They are capable of
providing the product at a very low price because the cost of raw materials of them are often
lower. This is why, they are becoming able to produce the product at a low cost resulting in a
low price. They are also serving the value at the top level because they are meeting the needs of a

specific range of customers (Benninga, 2010). Overall, it is reducing the scope of their regular
business activities compared to other big companies in the same field.
Expansion strategy
Considering the present business situation, the market expansion is widely needed and it can be
able to provide with a lot of tools which will be assisting the organisational abilities. Boots UK
Plc is already working on a market which is wide in size. Because of becoming wide in size, a lot
of factors are required to be applied within it.
Figure 5: Ansoff’s growth matrix (Slack et al., 2010)
In the case of market development, Boots UK Plc can create a new market by showing a new
application of the existing product. For example, they can show that their sports boot can be
applied for tracking on the hills too. It will be arranging a new market with some new
possibilities. But it has some problem with product reengineering which may cost them a lot of
resources along with valuable time.
But diversification will help Boots UK Plc to conduct activities in a monopolistic way where the
company will bring a new product in a brand new market. For example, if Boots UK brings a
sports watch which can show the heartbeat, it will be an example of diversification. Overall, it
can be said that diversification is costly and time consuming but can bring a very strong result

(Kotler and Armstrong, 2010). So, the RandD department of Boots UK Plc may consider this
kind of ideas to implement in the long run.
M4 Produce a strategic management plan that has tangible and tactical
strategic priorities and objectives
The business activities can get increase by the proper management of the specific issues.
However, different strategies are also implemented for the management of it. This can be better
explained by implicating Bowman’s Strategy Clock. This strategy is used as a model in the
marketing investigation to determine the competitive stages compared to the other market
players. According to the analysis it has been seen that the price of Boots UK is low along with
having great value to the buyers. This is because of the performances that have been showed by
the organization which is resulting in a great management of marketing techniques considering
the hybrid system (Babin, 2019). Adidas produce their raw materials which decrease the cost of
materials and at the end the overall cost of the product gets decreased. That is why they can sell
products at a low cost which is also the concern of the buyers. The company well serves the
needs of the customers and it is also creating the possibility to be in the competitive advantage.
Hence, it is decreasing the scopes for constant activities differentiating with other market
players.
D1 Producing a set of valid strategic directions, objectives and tactical actions
The expansion strategy will assist in expanding market to increase the range, profit and ability of
the organization, Boots UK is following some techniques for market expansion because of the
increasing needs of the company (Moss, 2013). Although the market in which Boots UK is
marching on is very wide and big, which has several factors that are needed to be taken under
concern. Hence different tools are well managed for the proper management of business
activities.
The market expansion is important, which can be managed by applying the Ansoff’s growth
matrix. The first is the market development which can be made by the proper management of
different and exceptional products like Boots UK can create a new market by showing a new
implementation of boots which can help in case of tracking on the hills (Goldratt, 2017). It will

also create new market scopes and arrange different benefits for the organization. It has a
competence that it might require new and valuable resources along with redesigning the product.
The diversification of the product decreases the risk and maximizes profit. Boots UK should
follow the diversification of product by producing a different type of product at a different price
range. For instance, if Adidas can bring sports watch which can show the pulse along with
having smart technologies can also bring diversification to the product (Highsmith, 2011). Hence
the research and development department has to work for the development of such
diversification. It can be expensive and also can take a long time, which can show different ways
in this case. It will assist in the work and as well as in the market diversification.
Market penetration is also making a different impact on the system. The market penetration is
done by producing new techniques or redesigning the existing product. This can also attract the
customers to buy the product because people are attracted to new and trendy things which will
work in the system. For instance, new colour, new application or features will enlighten the
process. The products will be developed significantly but the market will also be playing a very
good role in the system. This will increase the probability and also will give birth to different
scopes. If Adidas bring changes in design or footwear, then it can make different changes
(Malhotra, 2010).
Lastly the product development will be done and it is the last step of growth matrix. The product
can be developed in a new way which will serve the same purpose but will do different acts
according to the needs of the customers. If the product be trendy and user f friendly then the
demand for it will automatically go high. In 2016, Boots UK did a product development by
introducing new footwear made by sea plastic (Atre, 2013). . This type of innovation in the
existing product brings diversification in the system. This is who the management of the system
can be developed and the customer contentment can be managed.
This is how the Ansoff’s growth matric can work for the expansion strategy for Boots UK and it
will make different impact on the system.

Conclusion
Every company has some kind of business objectives where the challenges can be able to hinder
the way of development within it. This is why, it is important for any business organisation to
dodge this kind of challenges to work in the external business environment. So, Boots UK can
apply diversification, market penetration and product development as their strategy making
scheme. On the other side, they will also need to maintain a proper influence on the positive
social impact to become a responsible business organisation. For many companies, all the factors
of the external environment are in favour where Boots UK is not having that kind of advantages
from the external environment.

References
Bryson, J.M., (2011). Strategic planning for public and nonprofit organisations: A guide to
strengthening and sustaining organisational achievement (Vol. 1). John Wiley and Sons.
Bult-Spiering, M. and Dewulf, G., (2018). Strategic issues in public-private partnerships: An
international perspective. John Wiley and Sons.
Cihlar, C., (2014). The state of knowledge surrounding employee volunteering in the United
States. Washington, DC: Points of Light Foundation.
Davies, I.A. and Crane, A., (2013). Ethical decision making in fair trade companies. Journal of
Business Ethics, 45(1-2), pp.79-92.
Deresky, H., (2010). International management: Managing across borders and cultures. Pearson
Education India.
Kaplan, R.S. and Norton, D.P., (2011). The strategy-focused organisation: How balanced
scorecard companies thrive in the new business environment. Harvard Business Press.
Artto, K. A., and Wikström, K. (2015). What is project business?. International Journal of
Project Management, 23(5), 343-353.
Davis, K. E., and Kruse, M. B. (2017). Taking the measure of law: the case of the Doing
Business project. Law and Social Inquiry, 32(4), 1095-1119.
Dwyer, J., and Boyd, A. (2013). The business communication handbook. Prentice Hall.
Frame, J. D. (2012). The new project management: tools for an age of rapid change, complexity,
and other business realities. John Wiley and Sons.
Gibb, A. A. (2013). Enterprise culture and education: understanding enterprise education and its
links with small business, entrepreneurship and wider educational goals. International small
business journal, 11(3), 11-34.
Goldratt, E. M. (2017). Critical chain: A business novel. Routledge.

Gordijn, J., and Akkermans, H. (2011). Designing and evaluating e-business models. IEEE
intelligent Systems, (4), 11-17.
Highsmith, J., and Cockburn, A. (2011). Agile software development: The business of
innovation. Computer, 34(9), 120-127.
Jankowicz, A. D. (2015). Business research projects. Cengage Learning EMEA.
Lundberg, D. E. (2019). The tourist business. CBI Publishing Inc..
Malhotra, R., and Temponi, C. (2010). Critical decisions for ERP integration: Small business
issues. International Journal of Information Management, 30(1), 28-37.
Moss, L. T., and Atre, S. (2013). Business intelligence roadmap: the complete project lifecycle
for decision-support applications. Addison-Wesley Professional.
Quinlan, C., Babin, B., Carr, J., and Griffin, M. (2019). Business research methods. South
Western Cengage.
Saunders, M. N., and Lewis, P. (2012). Doing research in business and management: An
essential guide to planning your project. Pearson.
Shields, M. G. (2014). E-business and ERP: Rapid implementation and project planning. John
Wiley and Sons.
Stobaugh, R., and Yergin, D. (2013). Energy future: Report of the energy project at the Harvard
Business School.
Von Halle, B. (2011). Business rules applied: building better systems using the business rules
approach. Wiley Publishing.
Wikström, K., Artto, K., Kujala, J., and Söderlund, J. (2010). Business models in project
business. International Journal of Project Management, 28(8), 832-841.
Wilson, J. (2014). Essentials of business research: A guide to doing your research project. Sage.