PACE 3: Topic 2

Questions September 18, 2022

PACE 3: Business Elective 3 BSBA 2-Y1-2

Topic 2 Questions

Q.2.1 What is the importance of confirming the organization’s customer base,

business values and current business direction?
The existing customer base, key operations, and business values of a corporation drive and
support this corporate strategy. The kind and quality of its primary business determines its
market positioning and competitiveness. Identifying and validating an organization's core
business allows management to focus and assess how effectively a business is doing
toward its goals. The core business/activities of a company are the functions, processes,
and capabilities that generate value. The majority of a company's resources and creative
energy will be directed into its primary business activity. These businesses must continue
because they provide the most cash. They serve as the organization's client base and are
the driving force behind current customer support.
Organizations that seek to enter a new direction or enter a new market but have not
established adequate means to support their core business and provide a customer base,
which is their main source of income, can alienate customers. They risk a catastrophic
company failure if they opt to overlook their present consumer base in order to chase new
prospects. It is vital to devise methods for expanding into new markets while retaining a
valued and viable customer base and core activities. They can then continue with these
operations while thinking about how to capitalize on fresh foreign business prospects.
The company's values, vision, and purpose are critical in establishing how the company
should be operated and where it should go. Values, vision and purpose have an impact on
the core business, customer base and potential expansion - entering new markets or
creating new products and services for existing and possibly new markets.

Q.2.2a Explain market positioning.

Market positioning refers to the process through which a corporation displays its
product/service offering to customers or consumers. Its purpose is to instill brand, product,
and service qualities in customers in a way that motivates them to buy. To oppose any rival
brands or goods, the objective is to bring the suitable brand/product/service to the forefront
of the consumer's consciousness. Market positioning creates an image or identity for a
brand or product so that people perceive it in a certain manner. It refers to characteristics of
a product or service, such as luxury, durability, high quality, premium, cheap cost/low cost,
inventiveness, and so on. It might be based on price/cost leadership or distinctiveness.
Q.2.2b What things can be considered when identifying and analyzing current
international marketing performance and the effectiveness of past
international marketing or positioning?
Considerations when identifying and analyzing current international marketing performance
and the effectiveness of past international marketing or positioning can include:

 How any changes in sales volume compare with changes to the sales of
competitors.
 Whether planned and predicted sales volume (revenue/inputs) was achieved.
 How effective different positioning, pricing and marketing strategies have been.
 Whether there are differences between past and current performance.

Q.2.3a What tools are available to review performance data and identify
strengths, weaknesses and critical success factors relevant to international
business activity?
SWOT, PEST, STEEP (or similar) analysis tools can be used to examine performance data
and identify strengths, weaknesses and critical success factors associated with international
business activities. These techniques may be use to investigate marketing and performance
strengths and shortcomings, as well as the function and feasibility of a
brand/product/service. Strategy maps, shareholder value analysis, and event planning maps
are more examples.
Others include:
 Data Visualization Tools
 Pricing Optimization
 Regression Analysis
 Predictive analytics and A/B testing tools
 Scenario analysis data mining for large business etc.

Q.2.3b What opportunities might be identified as a result of reviewing

performance data from all areas of the business and identifying strengths,
weaknesses and critical success factors relevant to international business
activity?
Opportunities that might be identified as a result of reviewing performance data from all
areas of the business and identifying strengths, weaknesses and critical success factors
relevant to international business activity are:

 Greater penetration of existing markets with existing products or services.

 Viable repositioning
 New products or services for existing markets.
 Strategic alliances
 Marketing new products or services in new markets.
 Joint and co-operative ventures
 Extending, expanding or otherwise changing an existing business
 Franchising and exports to new countries/expanding the international market.
Q.2.4 Explain the purpose of a capability assessment.
Capability Assessment will allow an evaluation of the organization's strengths and
shortcomings, as well as its capacity to obtain and deploy the resources it requires.
Capability assessment adds to an association's speculation arranging and focusing on. It is
a demonstrative tool intended to permit representatives across your association to rank the
organization's exhibition (against industry execution) in an assortment of industry-explicit
abilities and depict how basically every one of these capacities is to your organization's
prosperity.

Q.2.5 Why is it necessary to identify products or services that are not

performing well in the market?
Any products or services that are underperforming in the market must be thoroughly investigated in
order to decide the best course of action. Persisting with products and services that are working
satisfactorily implies that the firm will lose money as well as reputation and market share.

Q.2.6.a How is it possible to confirm the strength and current competitive

position of the business within international markets?
Organizations should consistently collect and examine information from different sources to
confirm the strength and current competitive position of the business within international
markets.
To confirm the strength and current competitive position of the business within international
markets they must:

 Market share at a local, state, national or international level.

 Market penetration. Percentage reach with regard to target markets. Identification
of targets that are not being reached.
 Market coverage, Product/service viability, accessibility, methods of displaying
and selling, Distribution channels.
 Sales. The sales figures over given periods of time and correlations between
expected and actual sales.
They also need to:

 Know exactly who they will be competing against.

 Develop a good understanding of the business environment in the relevant
countries.
 Judge the fit between strategies and situations.
 Analyze their own strength and weaknesses and those of international
competitors.
 Make cross-cultural comparisons.
 Regularly conduct appropriate competitor analysis to determine how strong the
competition is.
 Consider:
 Market share
 Price/strategy
 Product/service features and benefits
Q.2.6.b Why is this necessary?
Organizations need to know who their immediate and deviant competitors are – who they
are going to oppose, how they are performing, and how solid the opposition is. This assists
them with recognizing their assets and fostering procedures for situating themselves well.
Without data about their rivals, they can't figure out where they stand and where they need
to remain in the global market to be productive, effective, and advance their place of
distinction - the manners by which their contribution is separated from those of contenders.
Affirming their cutthroat position will empower associations to make the most of new open
doors and enter any appropriate holes they can find.