• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Does the increasingly global nature or business mean that all organisations need to change their strategies significantly to achieve higher profits?

Extracts from this document...

Introduction

Exam Question June 2011: The business world is becoming increasingly global. As a result of this, many companies, such as Costa Coffee and Dyson, have changed their strategies in relation to the markets they target or where they produce. Does the increasingly global nature or business mean that all organisations need to change their strategies significantly to achieve higher profits? Justify your answer with reference to Costa Coffee, Dyson and/or other organisations that you know. (40 marks) The world is becoming a smaller place due to globalisation. It has helped communication around the world making everyone more connective. Companies all of a sudden have access to different countries and have more potential to grow and expand as developing countries have recently under gone rapid growth and industrialization causing new emerging market businesses can enter. This has put pressure on Weston business to expand into theses new regains because if they don't expand they would not be able to compete with competitors increase in expansion and corporate power. ...read more.

Middle

However, their overall underlying profit rose by 41.8% to �27.8m showing potential for higher profits in the coming year. In addition, due to the whole global nature of the business this means that the four Ps (Product, Price, Place and Promotion) will have to change to help create a more appropriate strategy to help achieve higher profits. Product: Gap has primarily kept their products the same however a new designer called, Patrick Robinson was brought in to help define a more fashionable image for the all American brand. This strategy did not work in America as Gap could not compete with specialist brands Like Abercrombie and Fitch. Nonetheless, other countries found the tradition preppy American style more exciting and different. This show that a business strategies doesn't need to significantly change to be successful. Price: A business like Dyson that uses a skimming pricing strategy to maximise profits from the early-adopters would have to change their strategy in emerging market as these countries would not be able to afford such a luxury. ...read more.

Conclusion

They also use celebratory endorsement to advertise in the country they are best known in. For example, in America Beyonce is the face of L'Oreal however in the UK Cheryl Cole is. These little changes to their strategies can have a huge impact on sale and profit. In conclusion, I believe that the increasingly global nature of business means that some strategies will need to significantly change whereas some could be only slight altered. For example, Gap ansoft matrix strategy only involved marketing their product to a new audience yet they have to significantly change the marketing strategy to make themselves appear as a more fashionable brand. However, I think a business should constantly be changing and reanalysing their strategies anyway as even if a business does not operate globally or plans on expanding as, external factors will always affect a business (e.g. competition, economy and government laws). Companies therefore, needs adapt their strategies accordingly in order not to miss out on any opportunities (e.g. competitor close down) or ignore potential treats (e.g. sudden change in consumer taste). ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Here's what a teacher thought of this essay

5 star(s)

*****
The writer sticks closely to the question and makes the points well. There should be more evaluation and the writer could make more evaluation points during the essay itself rather than only at the end.

Marked by teacher Dennis Salter 15/05/2013

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Zara case study. Zaras Objectives, Strategies and Problems.

    ?Differentiation: Zara has a creative design team who give differentiation. ?Cost leadership (which is also a strategy pursued by the company): Zara manufactures 60% of its own products. By owning its in-house production, Zara is able to be flexible in the variety, amount, and frequency of the new styles they produce.

  2. Tesco Marketing Activities

    Tesco Monaghan introduced training schemes to help staff deal better with the disabled customer. Tesco Monaghan believes that as a result of that survey they are now the best, friendly provider of groceries to the disabled community and gained extra sales from their new genre of customers.

  1. Economies of Scale: Wal-Mart. Economies of scale means declining average cost when volume increases.

    Everyday millions of people will see the advertisement of Wal-Mart. In America, approximately 200million people visit Wal-Mart's stores every week, and almost 95% of households shop there at least once a year. The last source of economies of scale is research and development.

  2. Microsoft Case Study. Objectives, structure and marketing.

    There are many other reasons why Microsoft will be looking to advertise. It could be to gain a bigger customer base which would hopefully boost revenue. Marketing - On the other hand the role of marketing contributes to a business by setting targets for the business.

  1. Marketing plan for Trung Nguyen coffee company.

    GDP Growth rate in 2008: (IMF) 5.0%, estimated GDP growth rate in 2009: 4.1%. The growth rate of GDP suggests that the economy is growing, and therefore there is opportunity for Trung Nguyen to expand business. * Technological: High-technology information system upgrades will improve all aspects of business, especially inventory

  2. P2: Presentation of complex internal business information using three different methods appropriate to the ...

    In the city big screens are put up which show any new courses introduced by any school. It?s big so people look at it while they are walking pass it. Anyone who steps in to the place the first they do is they look at it.

  1. Unit 1 P5 Describe the influence of two contrasting economic environment on business activities ...

    Supply Supply is the amount available at a specific price or the total amount of a specific product such as Tesco plc. asda, etc. Businesses like them supply the products to consumers. The table below explains the how supply is influenced by the factors below.

  2. Different methods of verbal communication used at Tesco with their advantages and disadvantages ...

    An advantage of this written communication method is that Tesco can contact the person whoever they want to contact efficiently knowing that the person they are trying to reach will receive the message. They can also use is as a way to keep in contact with their customers and update

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work