Question

5. How is the GE Model of portfolio analysis different than the Boston Consulting Group Matrix? 6. The Marketing Plan: a. Definition b. What should it do? 7. The Business Mission: a. Definition b. What does it do for the organization? 8. SWOT Analysis: How does using SWOT analysis help the firm? In other words, what does it show the firm? 9. Define Environmental Scanning. What kinds of broad external environments are usually studied in the environmental scanning process? 10. Define the competitive advantage. What is the goal of the competitive advantage. Illustrate with a marketing example.

Answer 1

5) The boston consulting group matrix is an simple and easy model as compared to GE model as in Boston consulting group there are only 4 elements while in GE there are nine elements. The boston consulting group model is the growth shared model which reflects the growth of business and market share of the firm while GE model is multifactor portfolio model which is used in making strategic choices for product or business line. The boston consulting is based on market growth and marrket share while GE is based on Industry and business strenght.

6) Marketing Plan

a) Marketing plan is the documentation of marketing strategies and ideas to increase the demand for the product and understand customer needs.

b)Marketing plan is necessary to understand and develop products that would meet the requirement of the companies traget customers. It helps to understand our product better by telling us the why our product is better than the competitor and what can we do to increase the demand of the product and develop overall profitability.

7) Business Mission : Business mission is the objective of the company which states why the company is existing, what is the purpose and what it wants to achieve.

b) Business mission is important for every organisation. The organisation would than get a direction in which it needs to work. It helps the organisation in taking right steps and develop right products for its customer and improve the efficiency of the company.

8) SWOT analysis is the analysis of Strenght, Weakness Opportunity and strenght of the organisation. With analysing the strenght the company can come to know how the company is better than its competitor, why the company has its customers. By analysing the weakness the company can know where it needs improvement, how can it be more better than the organisation or where the company is lacking. Opporunities helps the company to expand its business and become more better. Threats helps the company to be more alert in its work.

9) Environmental Scanning : Environmental scanning is a process that in which the organisation gathers data from external sources about external world, its competitors to understand the threat and opportunity in the external world.

b) The broad external environments that are studied by the organisation are Economical, Social, technology, legal, ecology. All these helps the organisation to be updated with all the external environment.

10) Competitive advantage refers to the condition where the company is superior position as compared to others which could be either producing products at less cost or selling at lower price.

The Goal of competitive advantage is to make profits that exceed the industry average and be at favourable position tha others in the market.