Edexcel Business A Level Revision

Ansoff Matrix - The Ansoff matrix is a famous strategic marketing planning tool that helps a business determine its product and market growth strategy. It suggests that a business's attempts to grow depends on whether it markets new or existing products in new or existing markets. MARKET PENETRATION A business might wish to pursue a strategy of market penetration targeting the same customer base in its current global markets.  To do this it will look at its EPG (Ethnocentric, Polycentric and Geocentric) marketing approach and decide where and how to invest. This will be dependent on the forecast return on investment from each market that it already operates in. It will look to see if it should continue its current approach e.g. ethnocentric or adapt it to meet the changing requirements of the marker e.g. to one of geocentricity.  MARKET DEVELOPMENT Global businesses will always be looking to pursue a strategy of new market development. As markets grow and disposable...

Ansoff Matrix - The Ansoff is a famous strategic maketing planning tool that helps a business determine its product and market growth strategy. The matrix identifies four alternative growth strategies to product and market strategy based around whether a business chooses to focus on existing/new products and existing/new markets and the relationship between risk and reward. MARKET PENETRATION   This is a growth strategy where a business aims to sell EXISTING products to EXISTING markets. Key Points: Trying to sell more of an existing product/service to the same target audience LIMITED RISK = limited potential reward also. Getting existing customers to buy more Widen the range of existing products Gain market share from competitors through competitive pricing or advertising Changes to the marketing mix e.g. loyalty scheme to increase repeat customers Extension strategies Evaluating market penetration: Business focuses on markets and products it knows well Can...

Tall structure - An organisational structure that has many levels of hierarchy. Flat structure - A hierarchy with few levels between staff and executives. Matrix structure - Where teams are put together from different functional areas to work on specific projects together. KEY FEATURES OF FLAT STRUCTURE Few layers of hierarchy Wide spans of control Less direct control More delegation Fewer opportunities for promotion  Greater responsibility Vertical communication is improved Fewer layers = less staff = lower costs KEY FEATURES OF TALL STRUCTURE Many layers of hierarchy    Narrow spans of control Less delegation More opportunities for promotion Takes longer for communication to pass through the layers More layers = more staff = higher costs MATRIX STRUCTURE In a matrix structure, individuals are assigned to teams according to their specialism, and work on a particular project.  This can generally encourage teamwork, empowerment and creat...