MGT603 GDB Solution 30-11-2012
Total Marks20
Starting DateWednesday, November 28,
2012
Closing DateFriday, November 30, 2012
StatusOpen
Question/Description
Topic: External Assessment
Learning
Objectives:
·
To highlight the external factors that can have
an impact on company’s operations
·
To enlighten the impact of External Factors on
company’s strategies
Learning Outcomes:
After
completing this activity, the student will understand:
·
Significance of external assessment of company.
·
How company incorporates change of external
factors in its own strategies?
The
Case
GOURMET
started its operations as a bakery and confectioner shop
in 1987 in Lahore.
With focus on customer’s need and serving quality products,
it has diversified into a versatile food company and
has spread its network all over the city of Lahore. The products include bakery items,
mithai, dairy products, beverages, traditional halwas and premium bakery
items/beverages etc. It has also extended the operations by introducing restaurants and providing catering for all occasion.
It
is the largest Lahore-based food retail chain of Pakistan having competitors like
Shezan, Doce’, Cakes n Bakes and the Premium bakery brands (Kitchen Cuisine,
Masooms, Moods). Shezan restaurant inauguration
prompted Gourmet to come and deal in restaurants as well. Similarly the recent
trend of premium bakery brands resulted in the launching of premium sub-brand
of gourmet bakers i.e. Bon Vivant.
Point
to Ponder
Taking
into consideration the above-stated developments, identify and enlist the major
External Factors which might have contributed in Gourmet’s business diversification.
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SOLUTION IDEA
The term "diversification" is usually associated
with a change in the characteristics of the
company's product line and/or market, in contrast to market penetration, market
development,
and product development, which represent other types of change in
product-market structure.
External factors are those factors which are external to
the environment of the GOURMET.
Now discussion is open for u people.. Everybody can
contribute to this discussion, in the end we can conclude a solution
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Return expectations
in my point of view:
the
external factors may include
·
rivalry challenges
·
competitors
·
customers' demands and
needs
·
related market
environment
baqi
ap log btayen mere zehan main to yhi aye
Why diversification?
Often companies diversify for a host of good reasons. In other cases, it
becomes a survival strategy when single product or service strategy reaches the
limits of revenue generation. To achieve genuine success from planned
diversification firms must reinforce internal development; pursue value-chain
acquisitions, form strategic alliances and joint ventures. Often you will find
that each route has its own set of issues like benefits and limitations.
However,
diversification must be driven by (1) opportunities afforded in the business
environment, (2) in possession of right resources and (3) own the right skills
sets to make structural adjustments to extend the range of goods or services to
your exising customers or new markets. By extending your portfolio of products
or services, you can ensure new regular revenue streams to boost growth
prospects.