Strategic Analysis of Business House Group: Opportunities and Threats

This report provides a comprehensive analysis of the Business House Group, focusing on its strategic position within the online education market, particularly for SMEs in the construction sector. The report employs the VRIO framework to assess the value, rarity, imitability, and organizational capabilities of the group's resources. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats, highlighting its longevity and low-cost offerings as strengths, and the lack of creativity and replication of courses as weaknesses. Opportunities lie in providing unique courses and developing online business education programs, while threats include competition from IBIS and the replicability of courses. The report also includes a cost-benefit analysis and a benefit-effort analysis, demonstrating the importance of investment in online marketing. A needs analysis examines the company's requirements for growth and customer satisfaction. The report concludes by emphasizing the need for the Business House Group to differentiate its offerings and capitalize on its opportunities in the competitive market.

Running head: MANAGEMENT
Management
Name of Student
Name of University
Author Note

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Table of Contents
How to access opportunity VRIO..............................................................................................2
SWOT analysis...........................................................................................................................3
Cost benefit or benefit effort......................................................................................................5
Needs analysis............................................................................................................................6
Bibliography...............................................................................................................................8

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How to access opportunity VRIO
According to Knott (2015), the VRIO analysis is done to identify a large strategic
scheme of an organisation. It has been stated that the basic process that undergoes in a firm
starts with a vision statement. In the case of Business House Groups, the aim of the
organisation is to ensure that an online business educational program for SME focused in the
field of construction is developed. Therefore, the value that is provided by the organisation is
that it can provide opportunities for growth in the economy so that any external threat can be
restricted. The gap in the market can be solved by providing expertise based on degrees that
are required by the people.
One of the advantages that can be gained by Business House Group is the fact that the
courses offered are rare. The main competition that may arise is from IBIS and the other
universities may take a longer time in the completion of the course. Hence, it can be said that
with a strategy which implies low cost and high effective programme the Business House
Group can excel in the market by providing opportunities for growth of new types of courses.
With the rise of online courses all over the country and the world, the courses provided by
Business House Group can be imitable.
The case study points to the fact that the barriers, which exist in the industry are
medium. This is because the cost of establishing and delivering the product is high. This can
help in the growth of Business House Group, as competitors may not be able to gain
effectiveness in the market as quickly as it expects. Despite the increasing number of
competitors, several factors need to be kept in mind such as the price of the courses, brand
name, reputation it hold in the market and the service provided by the courses (Moore &
Dutton, 2018). Hence, the aim of the organisation of providing unique learning experience

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can be gained by focusing on the contents of the courses as well as the opportunities provided
via the software and technical side of the projects.
Resource
Is
valuabl
e
Is
rare
Is difficult
to imitate
Is organisation
organised
around
Result
Online business
eductaion
programme Yes
Competitive
advantage
Development of
new business Yes Yes Parity
Investment in
online marketing No No No
Temporary
Competitive
advantage
Development of
SME No No No No
Unused
Competitive
advantage
Provide new
courses No Yes Yes Yes
Long-term
Competitive
advantage
Figure 1: VRIO analysis
(Source: Created by author)
SWOT analysis
Strength
Longevity of the organisation
Provide higher studies at a low cost
Weakness
No such creativity
Require healthy small business which is rare
Opportunity
Providing courses that are unique
No major competitors hence more
development
Threat
Major competitor is IBIS
Courses can be replicated
Table 1: SWOT analysis
(Source: Created by author)

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From the SWOT analysis, it can be seen that the major strength of the Business House
Group is that it has been in effect for 12 years. Therefore, the longevity of the organisation
can be considered as an additional factor that can help it to grow and develop in the
Australian market. It also means that the trust of the people can be gained and a proper
evaluation of the courses can be made. At the same time, the organisation provides higher
studies at a low cost. This signifies that students need to spend less in order to gain a proper
education. Hence, attracting the customers can be done based on the prices offered for the
courses.
At the same time, the weakness of the organisation is that no creativity exists in the
organisation. The courses offered focus more on the courses already offered at the
Universities. Therefore, the new courses or unique courses need to be developed so that the
students can be attracted to continue with the course. At the same time, the focus of the
organisation is to focus on the development of small business in Australia. However, the case
study shows that the small businesses in Australia are rare and it can be difficult to gain small
business that require improvement and can pay quality fees for the courses.
However, the opportunities that are present in the Business House Group are that it
can provide unique courses. The fact that the organisation replicates courses offered in
Universities can be a weakness but the manner in which it can develop the same courses more
on a practical form can be considered as an opportunity. The development of online business
education programme can be considered as an opportunity for development. At the same
time, the case study provides evidence that the Business House Group does not have
competitors. Therefore, opportunities for development can be made in the business.
The major threat of the Business House Group is from IBIS world, which is reputed
and is in the market for a longer time. Hence, a deeper study requires to be conducted that can

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help in the development of the organisation and remain at par with the opportunities provided
by the IBIS World. Hence, the threat can be considered as medium in the market. The
analysis also show that the courses offered can be replicated as seen from the case that the
Business House Group also replicates the courses offered by the Universities. Hence, this can
be considered as a major threat for the development of unique courses in the market.
Cost benefit or benefit effort
Mishan (2015) are of the opinion that the cost benefit is an approach that estimates
that strengths and weakness of a business in terms of its financial feasibility and the benefit it
can receive. In the case of the Business House Group, the cost benefit of the company can be
related to the manner in which it can help and continue with its development. The revenue
analysis of the company since 2006 can be calculated in order to understand the cost benefit
that is received by the company. The case study analysis shows that during 2012-2013
sessions the Business House Group had seen the maximum growth at 38.4%.
The analysis provides evidence that with a growth of revenue, the benefits of the
company can increase. At the same time, it can be said that in the years that followed the
success, increase of revenue did not aid in the growth of the company. Hence, a benefit effort
plan can be created in order to understand the growth of the business keeping in mind the
effort that has been provided. The benefit effort analysis can help in identifying the
opportunities that can be received while continuing to grow in the market.
Number Initiative Benefits Effort
1 Development of online business education program 8 8
2 Interest on new business or future prospects 5 3
3 Make investment at the online market 6 5
Table 2: Benefit effort analysis

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(Source: Created by author)
The analysis of the table shows that the major initiatives taken by the Business House
Group can have a significant benefit for its development. The effort put in for the
development can be considered as a means of identifying the opportunities it can receive in
the market. It can be seen that the effort required for convincing the new business or future
prospects is the least as to set up a successful business, these organisations may enter into a
business deal with the Business House Group. Therefore, the benefit is also less as
uncertainty over the partnership may exist. At the same time, it has been seen that the benefit
and effort for the set up of online education is equal.
Figure 1: VRIO analysis
(Source: Created by author)
Needs analysis
The needs analysis can be described as a formal business process that focuses on the
qualities of a product and the manner in which it can address the needs and demands of the
customers (Serafini, Lake & Long, 2015). In the case of the Business House Group, needs

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analysis of the organisation can focus on the development of online education for the benefit
of its customers. The analysis of the case study has showed that the projected revenue of the
company 20118-2019 is about $5,302.4. On the other hand, the growth of the company is
estimated at a 3.6%. Therefore, it can be said that the need of the company is to ensure that it
manages to grow its business. To achieve this it is necessary that the Business House Group
develop courses that are unique and can have significance within a market.
At the same time, the need of the company is to analyse the finances required for
setting up the project. This can be done by analysing its budget and the revenue it incurs. The
case study shows that despite the growth of revenue over the 12 years in business, the growth
rate has been stunted. Hence, it can be said that in order to meet the needs of the customers,
the growth of the company needs to be taken into consideration. The customers and the small
business organisations would require uniqueness in the market so that a competitive
advantage can be gained. Therefore, the needs of the customers are focused more on the
development of alternative strategy for providing education rather than spending a lengthy
time at the Universities.

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