Strategic Analysis of Porcini Pronto: A Case Study

This case study examines Porcini Pronto, an Italian restaurant facing challenges such as low growth and market saturation, particularly in its international expansion plans. The analysis employs various business models, including the Ansoff Matrix, Greiner's Growth Model, Porter's Five Forces, and McKinsey 7S model to evaluate its strategic positioning, marketing strategies, and human resource management. The study highlights the importance of market penetration, product development, and the application of core competencies. It also addresses the competitive landscape, the bargaining power of buyers and suppliers, and the threat of substitutes and new entrants. The case study proposes solutions and recommendations to improve Porcini Pronto's performance, emphasizing the importance of adapting to market dynamics, leveraging technology, and focusing on customer needs to achieve sustainable growth. The study concludes with a discussion of the company's background, SWOT analysis, PESTLE analysis, and the application of Curry's pyramid and Belbin team roles.

Case Study (PORCINI PRONTO)

Table of Contents
CHAPTER 4: ANALYSIS AND FINDINGS.................................................................................1
4.1 Introduction............................................................................................................................1
International business..................................................................................................................1
Marketing model..........................................................................................................................3
HRM model.................................................................................................................................5
Strategic management model.......................................................................................................5
CHAPTER 5: PROPOSED SOLUTION TO PROBLEM..............................................................8
5.1 Integrated assessment of analysis..........................................................................................8
5.2 Recommendations..................................................................................................................9
5.3 Proposed plan of action.......................................................................................................10
5.4 Limitations of the study.......................................................................................................12
CHAPTER 6: APPLICATION OF LEARNING..........................................................................13
Background of the company......................................................................................................13
SWOT........................................................................................................................................14
PESTLE analysis.......................................................................................................................15
Curry’s pyramid.........................................................................................................................17
Belbin team role.........................................................................................................................19
REFERENCES..............................................................................................................................21

CHAPTER 4: ANALYSIS AND FINDINGS
4.1 Introduction
The present study being conducted is based on restaurant named porcini Inc where
company offers different type of Italian food to the target market. Further, at present
management is dealing with the issue of low growth rate along with market saturation. At present
business is planning to expand its shares in the market for which different models have been
applied in order to know how overall operations can be carried out in effective manner (Baker,
2007). The main issue being faced by firm while operating at international level is limited access
to capital. Moreover, another issue bin faced by business is brand recognition as compared with
other restaurants in the market and due to this reason its brand presence in the entire market is
low. In order to deal with the major challenges organization has undertaken new concept named
Porcini pronto.
International business
Ansoff matrix
This matrix takes into consideration large number of growth strategies which business
can easily undertake for its overall growth and development. Ranges of strategies are market
penetration, product development, market development and diversification. For expansion at
international level it is required for porcini ltd to select appropriate strategy through which it is
possible to operate efficiently at global level.
 Market penetration: In order to operate efficiently at global level the new restaurant
named Porcini pronto has adopted the strategy of market penetration (Hansen, 2011).
Further, all the range of services will be offered to customers at low price and this will
support in attracting large number of competitors. Apart from this, competition level is
quite high due to which offering services at low cost will be beneficial for business in
every possible manner.
 Market development: At present company is planning to expand its operations in the new
market as domestic market for full service chain restaurant is reaching at saturation stage
at both in city and shopping mall locations. Therefore, due to this reason firm has planned
to enter into new market at global level where new concept of pronto has been
introduced. So, the concept of market development can be fruitful for business and can
assist to accomplish long term goals along with objectives.
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 Product development: Procini Ltd has not undertaken the strategy of product
development. In the new market at international level almost same type of products will
be offered to customers as in Boston. Further, prices along with other type of attributes in
product range will be modified and this will support business to operate in the market for
longer period of time (Jarzabkowski, 2008).
 Diversification: This strategy is associated with diversifying overall operations of the
firm. Procini Ltd has not employed this strategy where company will operate in the same
sector in the new market also at international level also.
Greiner growth model
This model supports in knowing the series of stages which business enterprise go through
at the time when they grow and develop.
Phase 1 (Growth through creativity): It is the first stage where organization applies effort in
developing products. Further, it is the starting stage where employees are not present and
information communication works well. Moreover, as production expands need for formal
communication arises. This phase ends with leadership crisis (Huan and et.al., 2008). Procini Ltd
does not lies in this stage as compared is already well established and is creative enough in
carrying out overall operations in the market.
Phase 2 (Growth through direction): it is the second stage where products along with services
of business become numerous and it is not possible for business to manage all. So, business
focuses on marketing and production activities. Procini Ltd has designed effective marketing
strategies and overall production is carried out need and expectations of target market. This
phase ends with autonomy crisis where new structure on the basis of delegation is being
developed.
Phase 3 (Growth through delegation): As company begins to expand top management tries to
deal with the major issues. In company like Procini Ltd responsibilities along with duties are
shared with each other so that each and every individual can perform better (Leonidou and et.al.,
2010). This phase ends with control crisis where main stress is on controlling each and every
business activity.
Phase 4 (growth through coordination and monitoring): in this phase all the key activities are
coordinated and monitored so that Procini Ltd can perform better. Further, it ends with red tape
crisis where there is need to introduce new structure along with culture.
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Phase 5 (growth through collaboration): In this phase formal control of phases 2 and 4 are
replaced by professional good sense as employees tries to regroup flexibly in teams with the
motive to deliver project in matrix structure. This phase ends with internal growth and is
regarded as most important for Procini Ltd.
Phase 6 (growth through extra organizational solutions): This phase highlights that growth
can continuously take place with the help of merger, other solution, networking etc (Li and et.al.,
2013). Procini Ltd is expanding its operations in the international market due to which
development with the help of different methods is taking place such as franchising etc.
Marketing model
Porter five forces
Bargaining power of buyer (high): Procini Ltd carries out its operations in the market where
competition level is quite high due to which buyers possess the power to dominate the market
and in turn large numbers of options are present with them due to which customers can purchase
products of any restaurant.
Bargaining power of supplier (Low): it is low in case of Procini Ltd as large numbers of
suppliers are present in the market due to which it is possible for company to purchase raw
materials required in any producing food items from any supplier in the market (Reid, 2008).
Threat of substitute (high): For Procini Ltd it is high as substitute of food items are easily
present and many other restaurants are present in the market who are offering Italian food item.
Therefore, Procini Ltd strongly focuses on quality of its food item and it is kept high so that large
number of customers can be easily attracted and this in turn acts as development tool for the
business.
Competitive rivalry (high): Market where Procini Ltd operates is full of competition and many
other restaurants are present in the markets who are offering same type of food. Therefore, it is
necessarily required for business to focus on its key strategies for its overall growth and
development (Ariss and et. al., 2012).
Threat of new entrants (high): Restaurant market has no legal restrictions and due to this
reason any company can carry out operations in this sector. For Procini Ltd threat of new entrant
is high where new business can easily establish restaurant.
Marketing mix
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Product: The range of products offered by Procini Ltd are antipasti, soup, salad, pizza, hs entrée,
pasta entrée, seafood, meat and chicken, side dishes, desserts, wines and coffees. All these
products offered by procini Ltd are of high quality and through this it has become possible for
firm to sustain in the market for longer period of time.
Price: Generally the price set by Procini Ltd for range of its product is high and this directly
represents the high level quality of the commodity (Hjort and et. al. 2013). Further, for the new
venture named pronto company will set low prices comparatively so as to deal with the issue of
competition in the market.
Place: The place of distribution for business is its own physical restaurant with the help of which
entire range of products are offered to the target market. This allows restaurant to operate
efficiently and has positive impact on overall performance of the business.
Promotion: For enhancing sales of the product range company has undertaken promotional tool
where its services are promoted with the help of social media, advertisements and other type of
tools. Further, it supports in sharing information regarding product of the company.
Mckinsey 7s model
This model highlights the seven interdependent factors which are divided into hard and
soft elements. Hard elements are strategy, system and structure of firm whereas soft one involves
shared values, skills, style and staff members. The strategy designed by Procini Ltd to operate
efficiently in the market is effective through which it is possible for firm to operate efficiently in
the market and it assist in accomplishment of desired goals and objectives. The structure of firm
is flexible where major changes in the operations is possible any time and this in turn allows staff
members to take initiative for the welfare and growth of business (Fojt, 2000). Further, the
system of organization is well managed through which Italian food is offered to target market
keeping in view their taste along with requirement. Shared value of company takes into
consideration culture of the firm which is appropriate as it is full of motivation. Leadership style
adopted by company is democratic one where contribution of each and every individual is
important. Employees play most crucial role within the workplace and they are delivered training
so that they can offer high quality food to the target market. Further, last element is skill where
every employee uses own skill and knowledge so as to contribute in growth and development of
firm.
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HRM model
Core competency model
This model takes into consideration large number of factors and they are linked with
growth and development of the firm. Customer focus is one of the main core competencies of
Procini Ltd where company strongly focuses on need and requirement of its target market. By
complying with the need of customers firm is able to perform better in the market. Planning and
use of resource is also major competency where all the resources present with firm such as
financial, human, technological etc are utilized in appropriate manner so that business can easily
accomplish its long term goals along with objectives (Altman, 2009). Further, leadership is also
main core competency of business where leaders appointed by company are efficient enough to
manage workforce of the firm. Appropriate communicate is also main core competency of
business where all the individuals present within the workplace shares information in proper
manner and no such gap is present. Therefore, these are some of the main core competencies of
Procini Ltd which allows business to focus on actual need and requirement of its target market
and assisting to survive in the competitive market for long period of time.
Strategic management model
Henderson and venkatraman
This model focuses on the key areas of the business which are business strategy, IT
strategy, business infrastructure and IT infrastructure. Business strategy is associated with plan
developed by Procini ltd for carrying out overall operations in the market. Further, the strategy
undertaken allows business to understand about the actual requirement of the customer and in
turn they can be offered Italian food on the basis of same. IT strategy is linked with the new
technology being employed by business for conducting overall operations in the market.
Through introducing advanced technology it is possible for enterprise to carry out overall
operations in effective manner and large number of customers can be served easily (Huan and
et.al., 2008).
Business infrastructure is also one of the key elements of this model which takes into
consideration skills, processes and structure of the business. Overall structure of the company
along with skills of staff members allows business to operate efficiently and in turn it is
beneficial for organization especially at the time when operations are carried out at global level.
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This is directly supported by IT infrastructure where modern technology reduces efforts of
employees and they can easily operate efficiently.
Therefore, in this way model of Henderson and Venkatraman is effective in every
possible manner and all the elements present are effective which can be easily undertaken for the
growth of the business in the market (Reid, 2008). Apart from this, market is full of challenges
and to deal with the same overall skills of staff members along with the structure of business
needs to be considered so that business can easily operate in the market by accomplishing
desired goals along with objectives. On the other hand, through effective IT strategy it is possible
for firm to perform better and best services can be offered to target market which is above their
expectation level.
Findings
After applying different models it has been found that Procini Ltd has to consider large
number of factors so that its overall performance can be enhanced easily at international level.
Market entry strategy
This model has supported in knowing that strategy such as market penetration and
development are appropriate for Procini ltd which business has undertaken. Through all these
strategies it is possible for business to operate efficiently in the market. Further, it is suggested to
firm to undertake product development as a strategy also so that loyal customers can be retained
for longer period of time through this.
Greiner growth model
Applicability of this model has supported in knowing that phases such as growth through
delegation, monitoring, coordination etc are effective for business. Further, main stress of Procini
ltd is on enhancing quality of its food which is being served to target market. Therefore, growth
by undertaking monitoring along with coordination is beneficial for business as through this it is
possible for enterprise to focus on all the range of activities which are crucial for business (Ariss
and et. al., 2012).
Porter five forces model
Applicability of porter five forces model has supported in knowing that market where
Procini Ltd operates is full of challenges and company has to take corrective actions well in
advance. Buyers have power to dominate the market due to which business enterprise strongly
focuses on quality of its products so that overall satisfaction level of target market can be
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enhanced easily (Meyer, 2012). Further, competition as challenge is affecting overall business
performance for which effective strategies are required to be developed for the welfare of
company.
Marketing mix
All the elements present in the marketing mix of firm are necessarily considered by
business where all the Italian items are offered as per taste and requirement of target market.
Price strategy is appropriate and promotional tools are adopted so that customers can gain
information regarding the product range of enterprise (Meyer, 2012).
Mckinsey 7s model
By applying this model it has been found that the range of elements such as hard and soft
have to be considered by business while operate internationally. Structure, system, skills etc of
Procini ltd are appropriate through which it is possible for business to operate efficiently at
global level.
Core competency model
Through this model it has been found that main core competencies of Procini Ltd are
leadership, quality, customer focus, planning and use of resources are effective through which
overall performance of firm has been enhanced easily (Cole, 2000).
Henderson and venkatraman
Applicability of this model has supported in knowing that business along with IT strategy
is crucial for business. Further, Procini Ltd has developed effective strategy and new IT systems
have been adopted such as wireless order taking device and credit/ debit card payment system.
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CHAPTER 5: PROPOSED SOLUTION TO PROBLEM
5.1 Integrated assessment of analysis
For conducting study in appropriate manner various models were applied considering the
issues being faced by Procini Ltd. Company wants to expand its operations at international level
due to presence of challenges such as market saturation and low growth rate. Further, it is well
known fact that at global level business requires large amount of capital and business is dealing
with the issue of access to capital (Hansen, 2011). Applying different models in the present
scenario has supported to carry out overall study in effective manner. Further, models of
international business has been undertaken which are Ansoff matrix, market entry strategy etc. It
has supported in knowing what the range of strategies which are most appropriate for Procini
Ltd. Further, advanced tools will be employed by business for monitoring quality of its products.
Each pronto restaurant will be equipped with 10*14 inch flat screen monitor and will be
associated with central processing unit of the firm. Moreover, the monitor will display slideshow
of the sun drench Italian countryside along with its vineyards and farms.
Further, issues linked with human resource are also present which are adversely affecting
business performance. Absenteeism is one of the major issue in the entire restaurant industry due
to which it affects performance of business. Pronto has developed effective structure for its
workforce where job applicants of the firm have to pass several screen. Further, the range of
personal qualities required by firm in an individual involves good communication skills,
reliability, integrity and overall positive attitude towards performance. Apart from this
competition is one of the biggest challenge affecting performance of business in the market.
Different type of full service Italian restaurant chains are operating in the northeast region which
are Uno Chicago, Bertucci, Olive garden, Carraba etc. Firm has to face direct challenge from
Olive garden which was Porcini direct competitor in terms of food quality and ambiance.
Further, the decision linked with setting up of new restaurant named pronto is feasible
where the location decided for the business is close to highway, near gas station, economy level
lodging, large office building etc. Apart from preferences of customers involve dinner in the $9
to $17 range, Lunches in the $ 6 to $ 12 range and clean, spacious bathrooms. The concept of
pronto is totally unique and through this it became possible for company to deal with the issue of
rise in competition in the market (Leonidou and et.al., 2010). Main stress is on industry,
competition and customer trend so that concept of pronto can be successful for the company and
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this can assist in enhancing profitability level. On the other hand different growth options are
present which business can easily consider for its survival in the market. Franchising is one of
the best option for Procini Ltd where it is a kind of business relationship where an individual pay
fees to the franchisor and in return has use of a trade name. At global level this type of option is
regarded to be most appropriate and company can easily open large number of branches at
international level with the aim to serve different customers. It was estimated that Porcini will
invest amount of $1 million in legal along with staff resources with the aim to develop
franchising agreement. Through this option it is beneficial for firm to enhance its presence at
global level and it will have positive impact on the brand image also.
5.2 Recommendations
On the basis of overall analysis there are some recommendations to Porcini Ltd so that
organization can easily operate at global level by dealing with the range o challenges present in
the market.
 In order to deal with the issue of rise in competition level firm must focus on quality and
must differentiate its Italian food from those of competitors in the market. Further, time
to time product range must be modified as per customer trend so that sale of restaurant
may not decline rapidly. This in turn can boost business performance in the competitive
market.
 At international level market research must be carried out on continuous basis so that
business can know the range of factors affecting its overall performance. Further, at
global level factors such as political, social, technological etc has direct impact on
operations of the company and effective strategies must be designed so as to deal with
them.
 Main stress must be on marketing strategies so that large number of customers can be
easily attracted through this. At global level firm must focus on promotional tools where
discount and other type of schemes can be introduced. This will enhance sales volume of
firm as compared with other companies who are also operating in the same sector.
 Time to time new technology must be introduced for conducting key operations in the
market. This will support employees to serve customers in appropriate manner and can
save time along with overall cost.
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 Prices of Italian food must be decided keeping in view the overall purchasing power of
the target market and price of every item must be kept moderate so that customers can be
easily attracted towards the range of food items.
 For effective management of human resource motivational tools must be undertaken
where firm must enhance motivation level of staff members by providing them monetary
benefits and through this they will prefer to meet with the overall expectations of the
target market.
 Company can take feedback from its customers on continuous basis and this will have
positive impact on brand image also.
 In order to deal with financial challenge business can consider different source which can
satisfy its financial needs. Further, obtaining loan from bank with the objective to expand
can be beneficial for business and in turn overall aims along with objectives of company
can be accomplished easily.
 Procini Ltd must analyze its competitor’s strategy on continuous basis and through this it
can be known what are the appropriate ways with the help of which presence at global
level can be enhanced easily and the main targets set can be accomplished easily.
 In order to manage staff members in effective manner leadership style such as democratic
one must be considered through which each and every individual within the workplace
can be considered in the key operations of the firm and in turn it will become easy for
business to retain them for longer period of time.
 New branches of restaurants can be opened in the areas where customers can easily
approach such as on highways etc. The concept of pronto is beneficial for the company
and by offering right kind of food in terms of quality it is possible for Procini ltd to
enhance its presence at global level.
5.3 Proposed plan of action
Activities Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Week
9
Week
10
Week
11
Evaluating the entire
case provided for
knowing research
problem
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Determining problems
in the study and
solution of the same
Adopting research
methodology
techniques
Undertaking different
model
Analysis of each
model
Evaluating
effectiveness of
applying model
Discussion of the
analysis and findings
Recommendation and
proposed plan of
actions
Finding out limitation
Testing
recommendation on
the chosen company
So the above shown is the proposed plan of analysis which is appropriate for the present study.
Further, it is required to carry out each and every activity as per the plan developed so that main
issue linked with the study such as expansion at international level can be resolved easily and in
turn it is beneficial for the entire research. Moreover, in starting the evaluation of the entire case
takes place so as to know the range of issues being faced in the present study. Next stage is
associated with determination of problems in the research along with its solution. Therefore, this
stage is also crucial. In this stage it has been identified that Procini Ltd is dealing with the issue
of international expansion and has limited access to capital. Apart from this, company wants to
introduce new concept named pronto for which large number of resources have to be managed in
appropriate manner. Adopting research methodological tool is the next stage where different
tools are selected for undertaking research and with the help of this study can be carried out in
appropriate manner. Undertaking different model is another stage which is applied on firm with
the aim to find out best possible solution to the problem faced. In the present research different
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models were undertaken such as Ansoff matrix, market entry strategy, porter five forces,
marketing mix, core competency model and Henderson and Venkatraman model. In next stage
analysis of each model takes place followed by evaluating effectiveness of each model. Further,
findings are discussed and recommendations are provided on the basis of same.
5.4 Limitations of the study
The present study being carried out has many limitations which has directly influenced
the entire study. One of the major limitation of the present study is that it is only restricted to
restaurant industry where it is not possible to undertake other sectors for conducting the research.
Further, information has been obtained from the case study and no other sources have been
considered which is also one of the main limitations of the present study. Moreover, only market
of Boston has been selected for conducting study and no other specific markets have been chosen
and this also acts as limitation. Apart from this, time and cost are also main limitations of the
study as for collecting information through case study provided researcher has to invest time in it
and same has lead to rise in overall cost. So these are some of the main limitations associated
with the present study.
Further, the scope of study is wide where study can be carried out for other restaurants in
near future and overall findings are applicable on different restaurants. Moreover, it is applicable
in case of other companies who are planning to enter into the new market for accomplishing
overall aims along with objectives. Therefore, in this way the scope of the entire research is wide
and is fruitful for the study.
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CHAPTER 6: APPLICATION OF LEARNING
The learning obtained after conducting the present study can be easily applied to other
organizations and it is possible to obtain expected outcomes. In this chapter the chosen
organization is Argos which operates in retail sector in UK. Firm sells large number of products
and known for its quality products being offered to the target market. The learning obtained by
conducting the present study linked with Procini Ltd can be applied in case of Argos and is
beneficial for company especially when business wants to expand at global level. Different
models were applied in the present research which directly enhanced the efficiency of the present
study and it supported in accomplishment of aims and objectives being set for research. Models
applied have provided learning and they are SWOT, PESTLE, curry’s pyramid, Belbin team role
etc.
Background of the company
Argos is a British catalogue retailer operating in the market of United Kingdom where
business operates with the help of physical stores and online also. Further, business has
employed around 51,000 staff members who are capable enough of carrying out operations in the
market. Company operates in different sectors such as Argos compare, TV, Credit card etc
(About us., 2016). Company is well known in the entire market where it operates and is planning
to enhance its worldwide presence. At present overall presence of firm is less felt in the market
and this is preventing business from performing better in the market. Argos as a brand provides
confidence to target market and they prefer to buy products as it provides customers remarkable
experience in the field of retail.
Research aim: The main aim of the study is to determine the effective ways through which
Argos can enhance its presence at global level.
Research objectives:
Following are the key objectives set for the present study which are:
 To identify the strategies of entering into global market
 To determine the benefits along with challenges of operating at global level
 To assess the key options present with Argos to operate in other market
Problem statement
The main problem associated with the present study is to identify the effective ways
through which Argos company can easily operate at global level. Further, at present in
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international market presence of firm is less felt and this is having adverse impact on business.
Therefore, to find best possible solution to the problem being faced by company this study has
been undertaken. This will allow company to operate efficiently at global level where large
number of opportunities can be grabbed easily and same can be grabbed easily through
developed of effective strategies by considering market conditions.
SWOT
Model of SWOT analysis is quite effective as through this internal analysis of business
can be carried out in effective manner (Reid, 2008). Further, this model supports in knowing the
overall strength along with weakness of the business and this directly influences business
productivity. Apart from this, it is possible for company to know the range of opportunities along
with threats present in the external environment due to which business has to carry out
operations in effective manner.
Strengths
Main strengths of Argos are as follows:
 Provides online platform to customers for shopping
 Largest retailer in UK with 800 stores and high brand presence in the market
 Huge workforce and more than 51,000 staff members are employed
 Owns well reputed brand in the market such as Bush, Alba etc.
Weaknesses
 Weak presence at global level
 Low market share due to various challenges present in the market
 Absence of skilled workforce
Opportunities
 Rise in level of online sales where around 25% of sales are obtained by offering products
online
 Company is expanding its operations in the market where economy is growing
Threats
 Rise in competition level in the market
 Change in government laws along with regulations
 Price war with other retail chains in the market
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So, the applicability of SWOT analysis has supported in knowing what are the real
strengths of business on the basis of which overall operations can be carried out easily. Further,
there are some weaknesses of the company which may prevent enterprise from accomplishing
the overall aims along with objectives (Rodrik and Subramanian, 2009). Apart from this,
opportunities are present in the market which company can grab and this can provide long term
benefits to the business. On the other hand, threats such as high level of competition are major
one which firm has to deal so that business can easily sustain in the market for longer period of
time. Therefore, applicability of SWOT analysis as a model is fruitful for business and it has
provided learning in relation with the internal analysis so that efficiency of the company can be
known easily at the time of conducting operations in the market.
PESTLE analysis
This tool supports business in analyzing its external environment where company can
know about the range of factors which can influence overall productivity (McAusland and
Millimet, 2013). Further, it is well known fact that factors such as political, social, technological,
legal, environmental etc have direct impact on business performance and by dealing with them it
is possible for enterprise to operate efficiently and it can act as development tool. PESTLE
analysis of Argos is as follows:
 Political: This factor is associated with laws and regulations being introduced by
government due to which firm has to modify its operations accordingly. Further, to
operate efficiently in the market it is required for business to conduct every operation as
per requirement of government. At present government of UK is planning to alter
analogue terrestrial TV signal to a digital signal between the year 2008 and 2012. This
will have direct impact on business operation.
 Economical: At present economy is adversely affected due to unfavorable condition such
as inflation in the market and it has influenced purchasing power of the target market.
Therefore, Argos has to set prices of its commodities accordingly so that each and every
consumer can afford to purchase the products offered by Argos. At present inflation rate
in the country is 5.2%. Apart from this unemployment is also one of the major issue and
it is also affecting business operations ((Marrewijk, 2004)). Financial growth in the
market is overall slow and this is affecting operations carried out Argos in the market.
But on the other hand, buying power of people living in the society has become strong
15

due to which they are able to purchase luxury items and their needs are being satisfied by
company in most effective manner. Therefore, economic factor is somehow in favor of
the business and is having positive impact on the business.
 Social: This factor has direct impact on business performance as it is associated with
change in taste and preference of target market. Further, it is well known fact that need of
customers changes rapidly due to which it is necessary for business to modify its product
range accordingly so that better services can be delivered to target market. Internet
shopping is getting popular at faster pace and at the time of purchasing any specific
product customers gather information regarding the price and quality of commodity. In
short, online shopping has provided base to customers and they can easily take purchase
decisions (Öner and Larsson, 2014).
 Technology: Market where Argos carries out its operations has become highly advanced
and due to this reason it is required for business to employ advanced tools so that overall
operations can be carried out in effective manner and it is favorable for business.
Introduction of online shopping requires advanced tools so that more convenience along
with comfort can be provided to target market. Therefore, Argos uses advanced tools and
this provides base to business while serving its target market. In short it has improved
overall performance of company in the market where opportunities can be grabbed easily.
 Legal: This factor is associated with legal laws and regulations being introduced by
government which business has to comply with necessarily. Further, Argos has to comply
with laws such as payment of duty and other type of taxes. This supports enterprise in
satisfying need of government and in turn it has favorable impact on the overall image of
company in the market (Powers and Loyka, 2007).
 Environmental: It is also regarded as one of the major factor which affects business
performance. Argos carries out operations in the market where environmental issues are
present and to deal with the same government has issued various guidelines so that
companies can reduce their environmental burden. Therefore, Argos has taken corrective
measures with the motive to reduce environmental burden where recycling techniques
have been employed along with development of eco friendly products. This is supporting
company to attract large number of customers and is leading to rise in customer base of
the business.
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Therefore, applicability of PESTLE analysis has supported in knowing that large number
of factors are present in the external environment which are affecting business performance.
Further, business has taken corrective actions so that each and every factor may have positive
impact on overall performance of company (KHO, Stulz and Warnock, 2009). Apart from this,
PESTLE analysis has provided learning where it is beneficial to know about the range of factors
which influences business performance and what are the appropriate ways through which
company can deal with them. In short by dealing with each and every factor firm can easily
become leader in the market. Further, economic factor is having positive impact on performance
of Argos where rise in income level of consumers is allowing them to purchase costly products
of company and this has enhanced profit margin of business in the market.
Curry’s pyramid
This model supports in understanding about the way through which customers can be
segregated on the basis of which they create turnover for business. Further, by dividing the entire
market it is possible to develop a specific pyramid. Generally customers are divided into three
segments which are as follows:
 Top customers where 1% of the customers are good for 50% of the turnover
 Large customers where 4% of the customers are good for 30% of turnover
 Average customers where 15% of the customers are good for 20% of turnover
Apart from this remaining 80% of the target market are segregated into
 Minor customers (Less than 1%)
 Inactive customers
 Prospects
 Suspects
This model is quite beneficial for company like Argos where business enterprise can
easily identify the range of customers which are profitable for business. Further, it is well known
fact that need and overall requirement of every target market differs from one another and this
affects the loyalty level (Berg and Pietersma, 2014). Generally customers who are highly brand
loyal may prefer to consume products of Argos on continuous basis and this can contribute
maximum in enhancing turnover of the business. Further, in case if 1% of the customers of firm
are loyal then it can contribute in raising turnover up to 50%. In short top customers can allow
business to increase profitability along with sales volume and products can be sold easily. Apart
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from this another category of customer is large customers where 4% of the target market is good
for 30% of turnover. Therefore, they can also support business in raising the sales volume but it
is regarded to be less profitable. In last category average customers lies where 15% of the target
market are good for around 20% of the turnover. Overall sales volume is less in this stage and
firm has to take initiative so that sales volume can be enhanced easily. Therefore, in this way this
model supports in knowing business the percentage of customers who can support business in
enhancing sales volume.
Figure 1: Curry's Pyramid
(Source: Boyett and Boyett, 2003)
In short, it can act as development tool for the company can assist n grabbing the range of
opportunities being present in the market. On the other hand, Argos can divide its remaining
80% of customers into different stages which involves inactive, prospects, minor and suspect.
Minor may be less than 1%, inactive are those who does not purchase products of Argos on
regular basis, prospects include customers who have asked for proposal but they are not
customers yet and at last suspect involve individuals who have not even heard about the
company (Curry and Curry, 2002). Therefore, in this way 80% of the customers have been sub
divided which is beneficial for business. In short, this model supports in knowing about the
nature of the customers and their purchase habit which is necessarily required at the time of
targeting them. Further, it is beneficial for business especially at global level where company can
divide its target market on the basis of their response.
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Belbin team role
This model supports in knowing the different type of roles people play in a team and it is
required for Argos to understand each and every role so that it can be assigned to employees who
are present within the workplace (Belbin, 2012). Such roles are as follows:
Action oriented roles
Shaper: Employees working in Argos can play role of shaper who can challenge team to
improve. Further, such types of people are generally extroverted who enjoy questioning norms,
stimulating others etc. Moreover, they support other individuals in solving problem which is
beneficial for entire team (Furnham, 2012).
Implementer: People playing role of implementer turns team idea into action and plan. Further,
they are the one who gets thing done and perform efficiently for the benefit of team.
Completer: They are the person who ensures that project is completed and all the crucial tasks
have been carried out. Further, it is ensured that no such omissions along with errors are present
which is advantageous for entire team within Argos.
People oriented roles
Coordinator: they are the one who take on traditional team role and holds responsibility to guide
each and every team member. Further, they are considered as excellent listeners and recognize
the overall value which each team member can bring to the entire team (Walker, 2011).
Team worker: Individual who plays role of team worker provide support to each and every
member and this enhances overall performance of team within the organization where operations
are being carried out.
Resource investigator: They are the one who develop contact and negotiate for key resources on
behalf of entire team. Therefore, this supports in satisfying need of each and every party
associated with Argos and acts as development tool for the business in the market.
Thought oriented roles
Plant: They are the innovator who come with new idea and prefer to work apart from the team.
Therefore, individuals who are playing role of plant are provided importance (Redman and
Wilkinson, 2002).
Monitor evaluator: They analyze and evaluate ideas that individuals in team come up.
Therefore, this can enhance overall strength of team within Argos.
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Specialist: They have specialized knowledge and same is applied in conducting business
operations (Furnham, 2012).
Therefore, these are some of the roles which staff members working in Argos can play
and this can provide opportunity to business to operate efficiently at global level and overall
performance can be improved easily.
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About us., 2016. [Online]. Accessed through < https://www.homeretailgroup.com/our-
businesses/argos/>. [Accessed on 16th Jan 2016].
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