Strategic Analysis of Basingstoke Skip Hire: A Case Study

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Executive summary
This assignment includes a detailed overview of the emerging SME i.e. Basingstoke
Skip Hire & Southern Waste Management Limited located at Thames Valley in the UK.
This assignment includes the key growth options that are taken into consideration by
this organization for ranking among the top 10 SME’s. Also, the fund sources in
Basingstoke enterprise along with their business implications are included in this report.
Furthermore, the plan for a business that is adopted by this enterprise is also elaborated
in a detailed manner along with their existing strategies for their survival in the
competitive market.
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Contents
Executive summary..........................................................................................................1
Introduction...................................................................................................................... 3
Task 1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context...............................................................4
Task 2 Assess the various methods through which organizations access funding and
when to use different types of funding............................................................................16
Task 4: Assess the various ways a small business owner can exit the business and
implications of each option.............................................................................................22
Conclusion:.................................................................................................................... 24
References:....................................................................................................................25
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Introduction
Basingstoke Skip Hire & Southern Waste Management Limited is among the top 100
ranks in the list of SME in the UK. The study involves the strategies and planning of the
organization for managing the waste as their final product. This organization is providing
its service in the market for collecting the waste material and then converting it into
usable products for other organization. Scope of waste management is huge because of
the increasing the demand regularly due to to which waste production increases. This
organization with a small vision of providing the waste management service in the local
market but as the demand for the service increases its growth also increasing and now
this is a top organization in waste management.
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Task 1 Analyse key considerations for evaluating growth opportunities and justify
these considerations within an organizational context.
Competitive advantage:-
Basingstoke is among the best SME’s currently present in the area of Thames Valley.
Now, for maintaining their position among the top enterprises, they must know their
competition for initiating actions in accordance with that. The competitive advantage is a
very effective and helpful aspect for an enterprise to have a leading edge among its
competitors. Hence, for having an advantage among their competition, this enterprise
must focus on adapting to perform Porter’s five force analysis along with a PESTLE
analysis which is described as follows: -
Porter’s five forces: -
With the help of this framework, Basingstoke can measure their competition in a very
measurable way. This analysis includes:-
Threat from the substitutes: - The substitutes in the competition of Basingstoke can
provide better services by adopting new technologies and high tech vehicles for
transporting waste from one place to another. Hence, by measuring the threats from
substitutes, Basingstoke can overcome this problem by implementing new technologies
before their competitors (Bruhn, et. al., 2018).
The threat of new small enterprises: - The small enterprise that arrives newly in a
competition provides their services at a relatively low cost than their competitors for
attracting their customers. Hence by taking measures to deal with the services of new
enterprises, Basingstoke can continue their services without facing any issue or loss in
profit-making.
Power of customers for bargaining: - As the customers are the main source of
income, they have the power to decrease the profit earned by the Basingstoke
enterprise by their demand and negotiation power. This enterprise can resolve this
issue by providing quality services to their customers which can keep them satisfied.
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Power of suppliers for bargaining: - The suppliers that provide materials either raw or
finished to Basingstoke can also affect the profit made. Hence, for solving this issue, the
Basingstoke must give their suppliers a reasonable amount at which they could be
satisfied to keep proving supplies to this enterprise (Prieto‐Sandoval, et. al., 2019).
Competitive rivalry: - For the purpose of dealing with their competition, Basingstoke
enterprise must know their competition very well. Hence, this will let them use the
precautions accordingly so that their profit-making remains the same as before.
Figure 1 Porter's Five Forces for Basingstoke enterprise
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Competitive rivalry of
Basingstoke Skip Hire
& Southern Waste
Management Limited
Threats
from the
substitutes
Threat of
new small
enterprises
Power of
customers
for
bargaining
Power of
suppliers
for
bargaining

PESTLE Analysis: -
The pestle analysis of Basingstoke Skip Hire & Southern Waste Management Limited is
as follows:-
Political: - The political factors that affect the Basingstoke enterprise lays in this section
such as restrictions for trade, laws for labor, policies of tax and tariffs.
Economic: - In this section includes all the factors of the economy like rate of interests,
rate of exchange and rate of inflation to be considered by the Basingstoke enterprise in
their business (Kiss, et. al., 2018).
Socio-cultural: - For the Basingstoke enterprise, it is also necessary to consider all the
aspects of social culture for proper conduction of business.
Technological: - All the technologies used by the Basingstoke enterprise must be
latest to gain a competitive advantage over their competition.
Legal: - This section includes all the laws that must be followed by the Basingstoke
enterprise while doing their business for profit-making.
Environmental factors: - The factors that are either environmental or ecological must
be taken into consideration by the Basingstoke for having their best efficiency in
business and profit-making.
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Figure 2 PESTLE Analysis for Basingstoke enterprise
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PESTLE
analysis for
Basingstoke
enterprise
Political
Economic
Socio-
cultural
Technologi
cal
Legal
Environme
ntal
Factors

New products and services: innovation:
Portfolio strategies:
 Boston consultancy group matrix for Basingstoke Skip Hire & Southern
Waste Management Limited: -
Figure 3 Boston consultancy group matrix
(Source: https://saylordotorg.github.io/text_principles-of-marketing-v2.0/s05-05-
strategic-portfolio-planning-a.html)
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This matrix is also known as the matrix of Growth-share. This matrix helps the
Basingstoke enterprise to analyze their units that are involved in their business.
 Mckinsey matrix for Basingstoke Skip Hire & Southern Waste Management
Limited: -
Figure 4 Mckinsey matrix
(Source: https://www.toolshero.com/strategy/ge-mckinsey-matrix/)
This is a very important matrix that is utilized for an organization or an enterprise for the
purpose of marketing of brand and management of products which helps the enterprise
to gather new opportunities (Kasim, et. al., 2018).
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 Product lifecycle for Basingstoke Skip Hire & Southern Waste Management
Limited: -
Figure 5 Product lifecycle
(Source: https://www.slideshare.net/anandsubramaniam/product-life-cycle-
management)
The Basingstoke is a waste management enterprise in the Thames Valley which
collects all the waste materials for creating different products according to the type of
waste. If the waste is in the wet form then it is used to make fertilizers for farmers, if the
waste is in the form of metal then it is supplied to other enterprises. Hence, this is how
the lifecycle of a product goes on in the Basingstoke enterprise (Wiesner, et. al., 2018).
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 The diffusion of innovation model for Basingstoke Skip Hire & Southern
Waste Management Limited: -
Figure 6 Diffusion innovation model
(Source: https://courses.lumenlearning.com/boundless-marketing/chapter/the-
spread-of-new-products/)
This model can be used by the Basingstoke enterprise for having a detailed and
specified overview at the rate of new strategies and ideas arriving along with the spread
achieved in technology.
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Growth options:
 Ansoff’s growth matrix for Basingstoke Skip Hire & Southern Waste Management
Limited: -
Figure 7 Ansoff's growth matrix
(Source:https://businessjargons.com/ansoff-matrix.html)
This matrix is very helpful for providing better strategies to enhance the future
growth in the Basingstoke enterprise. This tool of planning allows all the marketers,
managers and executives to come up with new and innovative decision-making.
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