P1: Analysing Growth Opportunities for McGoff Construction: Strategies

This report analyzes key considerations for evaluating growth opportunities for McGoff Construction, focusing on achieving competitive advantage. It explores Porter's Generic Strategies, including Cost Leadership, Differentiation, and Cost Focus, to gain a competitive edge. The report also examines the GE/McKinsey Matrix as a systematic approach for evaluating the business portfolio and prioritizing investments, with detailed explanations of each box within the matrix. The analysis provides insights into how McGoff Construction can leverage these strategies to improve its market position, attract customers, and achieve its organizational goals effectively and efficiently. The report highlights the importance of adopting a Cost-Leadership strategy, as well as the benefits of using the GE/McKinsey Matrix for brand marketing and product management.

P1. Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context
Competitive advantage are the factors which specifies companies uniqueness and high
speciality as compared to other existing companies available in market. McGoff Construction
can acquire competitive advantage through following models of Porter's generic strategies,
PESTLE analysis, Boston consultancy group matrix and GE/ Mckinsey matrix, some of these are
described as under:-
Porter's Generic Strategies:- It was introduced by Michael Porter in 1985 for gaining
competitive advantage in an organisation. This model is described as strength and opportunities
for broad and narrow scope of business. McGoff Construction can apply it as competitive
advantage to defeat its rivalries through low cost and differentiation focus. The Porter's generic
strategies are further classified as -
Cost Leadership strategy:- It is the strategy of producing low cost product at described
level of quality, to capture broad market. McGoff Construction can use cost leadership strategy
to increase specialisation by improving quality to sustain in competitive market.
Differentiation Strategy:- It is the strategy which focus on the uniqueness of product by
making it more attractive from competitors. McGoff Construction can use this strategy for
providing special features, function, durability,high quality, etc., to attract customers through
good research, development and innovation.
Cost Focus:- This strategy is referred as a main purpose to provide lower-cost advantage
for target market segment. McGoff Construction can use it to focus on narrow segment and
attempt to provide cost advantage and differentiated products. It also creates high degree of
customer loyalty as compared to others.
Differentiated Focus:- It is referred as the strategy of broad market with unique needs of
customers. It tends to serve target market by specialised product with low-cost to attract the
needs of consumers. McGoff Construction can use this strategy to identify and determine the
needs of customers with unique features at cost leadership to compete from rivals. It also helps
in achieving organisation goal effectively and efficiently.
From above studied concept of Porter's generic strategic model, McGoff Construction
must adopt the Cost- Leadership strategy. This strategy helps to maintain low-cost with
described good quality products by attracting customers for achievement of organisation goal.
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GE/ Mckinsey Matrix:- It is a strategy of systematic approach that evaluates business
portfolio for further strategic implications. It helps to prioritize investment among its business
units. This is the nine box matrix used for brand marketing and product management. McGoff
Construction can implement this strategy to identify that which product is to be added in product
portfolio with the opportunity to receive investments. It is two-dimensional portfolio matrix with
nine attractive measures of industry. These nine box models are further described as:-
Protect position:- The organisation invest to protect the market position for its rapid
growth. McGoff Construction can apply this to maintain its sustainability from its rivals.
Invest to Build:- Investment leads to strengthen the market position by managing the
areas of vulnerability. McGoff Construction can use this concept as internal strength of
organisation to achieve its target.
Build Selectively:- It is referred as the organisation for investing selectively to enhance
the ability to combat competition. McGoff Construction can imply this for best selection of
investment with competitive advantage for sustainable growth.
Manage for earnings:- The firms should invest where there is less risk and earnings are
good. McGoff Construction can use this to upgrade most profitable products by occupying less
risk.
Expand or Harvest:- It refers to expand the firm with minimum investment possible
otherwise harvest the investment through streamlining operations. McGoff Construction may
imply this as the firm is expanded with little investment for more capital generation.
Protect position and refocus:- It focus on determining the entity to refocus and
protecting the position by moving its strength to new market segment. McGoff Construction can
use this for applying its strength on different target markets to achieve its goal with effectiveness
and efficiency.
Divest:- This leads to reduce cost and avoid further investment. McGoff Construction
can use this as the ability to low-cost for realising profit for business, instead of investing for
capital generation.
From the above specified GE/ Mckinsey Matrix, McGoff Construction is benefited by
brand marketing and product management with nine-box matrix. It helps the organisation to
prioritize investment among business units for its stability in competitive market.
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