1.

Velvet Sky’s board has assured chief operating officer Gary Webb that flights will resume
on Friday (EDWARD WEST, Published: 24/02/2021 While expressing hope it would
resume flights today, low-cost airline Velvet Sky stopped flights yesterday due to a
"contractual dispute" with a service provider, barely a year after taking to the sky, chief
operating officer Gary Webb said yesterday. The cessation of flights for the
Durban-based airline followed delays in its flights between Cape Town, Durban,
Johannesburg and Port Elizabeth on Wednesday. The airline started flying last March.
Velvet Sky’s majority shareholder is Excalibur Aerospace, an aviation industry service
provider owned by Excalibur Private Equity, which claims to be black-owned. Excalibur
Aerospace acquired its 74% stake in Velvet Sky from founding company, the steel group
Macdonald Holdings, for an undisclosed sum, within just three months of the airline’s
launch. Mr Webb said a deal to "switch service providers is pretty much done", and
Velvet Sky’s board had assured him that the flights would resume today. Wednesday’s
delayed flights were blamed on not having paid South African Airways Technical and
other service providers, according to the Velvet Sky website. Velvet Sky also cancelled
its flights to Polokwane last month. "We felt the route, which was the least profitable and
sometimes loss-making, was not worth the damage to our brand," Velvet Sky chairman
Stephen Nthite said at the time. This month Velvet Sky also purchased two DC9 aircraft
for R4,6m, one of which had belonged to businessman Tokyo Sexwale’s family. The aim
was to establish a luxury VIP charter division. Low-cost airlines have had a checkered
history in SA, with some proving successful, such as Mango Airlines and kulula.com,
while others, such Sbmf-Aug/Sept2023Ex-SM(MBA) Strategic Management (MGMT
5310) Page 3 of 5 as Flitestar, Nationwide and Phoenix Air, have failed. Last September,
Excalibur said it was buying a controlling stake in rival low-cost airline 1time, but the deal
lapsed last month due to the "failure to fulfil certain suspensive conditions timeously".
Excalibur had wanted to grow its stake in 1time to expand into other African markets.
The Mail & Guardian reported last year that a director, Thulani Ngubane, and advisers of
mining company Aurora Empowerment Systems, Suleman and Faizel Bhana, Yaseen
Theba and Tony Chammas, were involved in the "day-to-day running" of Velvet Sky,
ostensibly as "business consultants". Aurora’s board members at that time included
President Jacob Zuma ’s nephew Khulubuse Zuma and Nelson Mandela’s grandson
Zondwa Mandela, the Mail & Guardian reported.
a. Critically analyse the impact of financial problems and grounding of flights on the
Velvet Sky brand.
The financial problems and grounding of flights at Velvet Sky have likely had a
significant impact on the airline's brand. Here's a critical analysis of the potential
effects:

​ - Reputation Damage: The grounding of flights and financial problems can -

damage Velvet Sky's reputation. Customers may perceive the airline as unreliable
or financially unstable, which could lead to a loss of trust and loyalty.
​ - Customer Confidence: The grounding of flights may erode customer confidence
in Velvet Sky's ability to provide reliable and safe services. This could lead to a
 decline in bookings and revenue, as customers may choose to fly with other
airlines instead.
​ - Competitive Disadvantage: Velvet Sky's financial problems and grounding of
flights could put it at a competitive disadvantage compared to other airlines.
Competitors may use these issues to their advantage in marketing and
advertising, highlighting their own reliability and stability.
​ - Employee Morale: The financial problems and grounding of flights could also
impact employee morale. Employees may feel uncertain about the future of the
airline and their job security, which could affect their performance and
productivity.
​ - Investor Confidence: The financial problems at Velvet Sky could also impact
investor confidence. Investors may be hesitant to invest in the airline or may
demand higher returns to compensate for the increased risk.
​ - Regulatory Scrutiny: The grounding of flights and financial problems could also
attract regulatory scrutiny. Regulators may investigate the airline's financial
practices and operations, which could further damage its reputation and lead to
fines or other penalties.

Overall, the financial problems and grounding of flights at Velvet Sky have likely had a
negative impact on the airline's brand. It will be important for the airline to address
these issues quickly and effectively in order to rebuild trust and confidence among
customers, employees, and investors.

b. Provide an assessment on how social media aggravated the crisis from a

marketing perspective.
Social media can significantly amplify the impact of a crisis, especially in the case of

Velvet Sky's financial problems and grounding of flights. Here's an assessment of how

social media may have aggravated the crisis from a marketing perspective:

​ - Rapid Spread of Information: Social media platforms allow information to

spread rapidly, often without verification. This means that news of Velvet Sky's
financial problems and grounding of flights could have reached a wide audience
quickly, potentially causing panic among customers and stakeholders.
​ - Negative Publicity: Social media can amplify negative publicity, as users share
and comment on news stories and posts related to the crisis. This can create a
snowball effect, with negative sentiment growing and spreading across social
media platforms.
 ​ - Customer Complaints and Feedback: Social media provides a platform for
customers to voice their complaints and feedback publicly. This can further
damage Velvet Sky's reputation, as customers share their negative experiences
and frustrations with the airline.
​ - Viral Content: Social media can turn a crisis into a viral sensation, with memes,
videos, and other content spreading rapidly. This can further damage Velvet Sky's
brand, as the crisis becomes a topic of conversation and ridicule online.
​ - Crisis Mismanagement: If Velvet Sky does not respond to the crisis effectively
on social media, it can exacerbate the situation. For example, if the airline does
not provide timely updates or address customer concerns, it can fuel negative
sentiment and further damage its reputation.
​ - Competitive Disadvantage: Competitors may use social media to their
advantage, capitalizing on Velvet Sky's crisis to promote their own services and
highlight their reliability and stability.

Overall, social media can significantly aggravate a crisis from a marketing perspective,

amplifying negative publicity, spreading misinformation, and damaging a brand's

reputation. It is essential for Velvet Sky to manage its crisis effectively on social media,

providing timely updates, addressing customer concerns, and actively managing its

online reputation.

c. Explain how other low-cost airlines (competitors) are likely to react to the
situation in which Velvet Sky finds itself.
Other low-cost airlines (competitors) are likely to react to the situation in which Velvet

Sky finds itself in several ways:

​ - Capitalizing on Velvet Sky's Misfortune: Competitors may use Velvet Sky's

situation to their advantage, highlighting their own reliability and stability in
comparison. They may emphasize their track record of on-time flights, financial
stability, and customer satisfaction to attract customers who may be hesitant to
fly with Velvet Sky.
​ - Promotional Offers: Competitors may launch promotional offers or discounts to
attract customers who may have been affected by Velvet Sky's grounding of
flights. These offers could include discounted fares, bonus miles, or other
incentives to encourage customers to switch airlines.
 ​ - Marketing Campaigns: Competitors may launch marketing campaigns that
directly target Velvet Sky's customers. These campaigns could highlight the
benefits of flying with the competitor, such as better customer service, more
comfortable seating, or a wider range of destinations.
​ - Public Relations: Competitors may use public relations to their advantage,
positioning themselves as the more reliable and trustworthy option in
comparison to Velvet Sky. They may issue press releases, conduct media
interviews, or engage with customers on social media to reinforce their brand
image.
​ - Strategic Alliances: Competitors may form strategic alliances or partnerships to
strengthen their position in the market. For example, they may collaborate with
other airlines to offer joint services or share resources to improve efficiency and
reduce costs.
​ - Monitoring Velvet Sky's Recovery: Competitors will likely closely monitor Velvet
Sky's recovery efforts to assess the impact on their own operations. They may
adjust their strategies and tactics based on how Velvet Sky responds to the
crisis.

Overall, competitors are likely to react to Velvet Sky's situation by capitalizing on the

opportunity to attract customers, launching promotional offers, conducting marketing

campaigns, leveraging public relations, forming strategic alliances, and closely

monitoring Velvet Sky's recovery efforts.

d. As a marketing consultant, recommend strategies to Velvet Sky that could be

used to restore brand equity and rebuild customer confidence. You are required
to present your recommendations in a report format.

[Your Name]
[Your Position]
[Your Contact Information]
[Date]

[Recipient's Name]
[Recipient's Position]
[Velvet Sky Airlines]
[Recipient's Contact Information]

Subject: Recommendations to Restore Brand Equity and Rebuild Customer Confidence

Dear [Recipient's Name],

I am writing to provide recommendations to Velvet Sky Airlines on strategies that could

be used to restore brand equity and rebuild customer confidence in light of recent

challenges faced by the airline. As a marketing consultant, I have carefully analyzed the

situation and identified several key areas where improvements can be made.

​ - Transparency and Communication: Velvet Sky should prioritize transparent and

proactive communication with its customers. This includes providing regular
updates on the status of flights, addressing customer concerns promptly, and
being honest about the challenges faced by the airline.
​ - Customer Service Excellence: Velvet Sky should focus on delivering exceptional
customer service to rebuild trust and loyalty among its customers. This includes
training staff to handle customer inquiries and complaints effectively, providing
timely and accurate information, and going above and beyond to meet customer
needs.
​ - Rebuilding Trust: Velvet Sky should take concrete steps to rebuild trust with its
customers. This could include offering compensation or refunds to customers
affected by flight cancellations or delays, implementing a customer satisfaction
guarantee, and demonstrating a commitment to improving operations.
​ - Brand Reputation Management: Velvet Sky should actively manage its brand
reputation by monitoring social media and online reviews, addressing negative
feedback, and promoting positive customer experiences. This includes leveraging
social media platforms to engage with customers, share updates, and respond to
inquiries.
​ - Strategic Marketing Initiatives: Velvet Sky should develop and implement
strategic marketing initiatives to rebuild customer confidence and attract new
customers. This could include targeted advertising campaigns, promotions, and
partnerships with other companies or organizations.
​ - Operational Improvements: Velvet Sky should focus on improving its operational
efficiency and reliability. This includes addressing any underlying issues that led
 to flight cancellations or delays, investing in technology and infrastructure, and
implementing best practices in airline operations.

In conclusion, Velvet Sky Airlines has an opportunity to restore brand equity and rebuild

customer confidence by prioritizing transparency and communication, delivering

exceptional customer service, rebuilding trust, actively managing its brand reputation,

implementing strategic marketing initiatives, and improving operational efficiency. I am

confident that with the right strategies and initiatives in place, Velvet Sky can overcome

its challenges and emerge as a stronger and more resilient airline.

Thank you for considering my recommendations. Please do not hesitate to contact me

if you have any questions or would like to discuss these recommendations further.

Sincerely,

[Your Name]

2. A. What is generally understood by the term ‘Strategy’?

o Strategy is deliberate – not accidental (e.g. a strategy for Rogers to diversify

into Business Process Outsourcing is carefully planned and does not happen by
chance)
o It is forward looking – you cannot manage the past (e.g. Air Mauritius may
admit having made a lost in the past year but will undertake to reverse the trend in
the coming year/s)
o It is about stakeholder satisfaction (e.g. every year Air Mauritius or Mauritius
Telecom will try their best to declare huge profits if they are not to be subject to
criticism from stakeholders)
o It is all embracing (e.g. The objective for Barclays to become the number 2
Bank in Mauritius is accompanied by action on all fronts – marketing – more
relaxed loan processing, recruitment of quality human resources, internal re-
organization to become more customer-responsive, recruitment of salesmen to
reach clients personally, more use of technology to reduce cost etc.)
o A strategy deals with the ‘organization as a whole’ not the ‘whole
organization’ (e.g. Rogers Group adopting a strategy of Diversification may
involve Rogers entering new business lines and these will not necessarily impact
other existing businesses which may remain unaffected. Rogers may grow as a
whole without any impact on the whole organization and its different business
units which already exist).
o It is the articulation of the vision, in so far as it is possible, in a way that can be
understood (e.g. The vision could be to become the number 1 bank in
Mauritius – MCB for long time had a motto which reflected its vision as being
the ‘best bank’ in Mauritius)
o It sets goals that can be measured (e.g. United Breweries Ltd. Had set itself the
goal of tapping 50% of the Mauritian Beer market).

B Your CEO has requested you to make a presentation on the importance of a mission
statement and what normally would be the components of a good mission statement.
Elaborate on the importance of a mission statement and its essential components to an
audience eager to learn about the concept.

Certainly! Here's a structured response to the question:

Introduction:

A mission statement is a concise statement that communicates the purpose and values
of an organization. It serves as a guide for decision-making and helps to align the
actions of employees with the overall goals of the organization.

Importance of a Mission Statement:

​ - Clarity of Purpose: A mission statement helps to clarify the purpose of the

organization and what it aims to achieve. This can help to focus the efforts of
employees and ensure that everyone is working towards the same goals.
​ - Alignment of Goals: A mission statement helps to align the goals of the
organization with the values and beliefs of its employees. This can help to create
a sense of purpose and motivation among employees, which can lead to
increased productivity and job satisfaction.
​ - Guidance for Decision-Making: A mission statement can serve as a guide for
decision-making, helping employees to make choices that are in line with the
overall goals and values of the organization.
 ​ - Communication: A mission statement can be used to communicate the purpose
and values of the organization to stakeholders, including customers, investors,
and the general public. This can help to build trust and credibility with these
groups.
​ - Differentiation: A mission statement can help to differentiate the organization
from its competitors by highlighting its unique values and goals.

Components of a Good Mission Statement:

​ Clear and Concise: A mission statement should be clear and concise, so that it is
easy to understand and remember.
​ Specific: A mission statement should be specific about the goals and values of
the organization, so that it provides a clear direction for employees.
​ Inspiring: A mission statement should be inspiring, so that it motivates
employees to work towards the goals of the organization.
​ Realistic: A mission statement should be realistic, so that it is achievable and can
be used to guide decision-making.
​ Time-bound: A mission statement should be time-bound, so that it provides a
sense of urgency and helps to prioritize actions.

Conclusion:

By incorporating these components into a mission statement, an organization can

create a powerful tool that helps to guide its actions and achieve its goals.

Presentation Tips:

● Use visuals such as charts or graphs to illustrate key points.

● Engage the audience by asking questions or encouraging participation.
● Provide examples of mission statements from well-known companies to
demonstrate the importance and impact of a mission statement.
● Use storytelling techniques to make the presentation more memorable and
engaging.

3. You have recently been appointed as a member of the “Strategic Team” at MoSugar
Co. Ltd., a company involved in the Sugar, Hotel, Textile and Financial Services sectors
in Mauritius. Your responsibility is to identify the external factors confronting the
company in one of the sectors and discuss the key strategic initiatives that the
company could take to create value for its shareholders.
As a member of the Strategic Team at MoSugar Co. Ltd., I would focus on the Sugar

Industry and conduct a PESTEL analysis to identify the external factors confronting the

company. Here's a breakdown of the analysis:

​ Political Factors:
● Government Policies: The sugar industry in Mauritius is heavily regulated
by the government, with policies that affect pricing, export quotas, and
subsidies.
● Trade Agreements: Mauritius is a member of various trade agreements,
such as the African Continental Free Trade Area (AfCFTA) and the
European Union's Everything But Arms (EBA) initiative, which impact the
sugar industry's access to markets and tariffs.
​ Economic Factors:
● Global Sugar Prices: The sugar industry is highly sensitive to global sugar
prices, which can impact the company's revenue and profitability.
● Exchange Rates: Fluctuations in exchange rates can affect the company's
export earnings and cost of imported inputs.
​ Social Factors:
● Consumer Preferences: Changing consumer preferences for healthier
alternatives to sugar could impact demand for the company's products.
● Labor Market: Availability of skilled labor and labor costs can impact the
company's production costs.
​ Technological Factors:
● Technological Advancements: Advances in technology, such as precision
agriculture and biotechnology, can improve productivity and reduce costs
in the sugar industry.
● Automation: Automation of production processes can improve efficiency
and reduce labor costs.
​ Environmental Factors:
● Climate Change: Climate change can impact sugar yields and production,
leading to fluctuations in supply and prices.
● Sustainability: Increasing focus on sustainability and environmental
responsibility can impact the company's operations and reputation.
​ Legal Factors:
 ● Regulations: Compliance with environmental regulations, labor laws, and
health and safety standards can impact the company's operations and
costs.
● Intellectual Property: Protection of intellectual property rights can impact
the company's ability to innovate and compete.

Based on this PESTEL analysis, here are some key strategic initiatives that MoSugar Co.

Ltd. could take to create value for its shareholders in the Sugar Industry:

​ - Diversification: Explore diversification into higher-value products such as

specialty sugars, biofuels, or sugar-based by-products to reduce reliance on
traditional sugar products.
​ - Sustainability: Invest in sustainable practices such as reducing water and
energy consumption, implementing recycling programs, and using renewable
energy sources to improve the company's environmental footprint.
​ - Market Expansion: Explore new markets and export opportunities, leveraging
trade agreements and partnerships to increase market access and reduce tariffs.
​ - Technology Adoption: Invest in technology and automation to improve
productivity, reduce costs, and enhance product quality.
​ - Brand Building: Focus on building the company's brand reputation by
emphasizing its commitment to quality, sustainability, and innovation.
​ - Strategic Alliances: Form strategic alliances or partnerships with other
companies or organizations to strengthen the company's position in the market
and leverage resources and expertise.

By implementing these strategic initiatives, MoSugar Co. Ltd. can create value for its

shareholders in the Sugar Industry and improve its competitive position in the market.

4. With the use of a company of your choice, explain how the latter can use Michael
Porter’s five forces model to ensure its long term survival in the face of competition in
the industry the company is operating

Let's take the example of Apple Inc., a company that operates in the technology industry,
to explain how it can use Michael Porter's Five Forces model to ensure its long-term
survival in the face of competition:
 ​ - Threat of New Entrants: Apple can use this force to assess the barriers to entry
in the technology industry. For example, the high costs of research and
development, strong brand loyalty, and economies of scale can act as barriers to
entry. Apple can focus on maintaining its technological edge, investing in
innovation, and building strong brand loyalty to deter new entrants.
​ - Bargaining Power of Suppliers: Apple can assess the bargaining power of its
suppliers, such as semiconductor manufacturers and component suppliers. If
suppliers have strong bargaining power, Apple can explore alternative suppliers,
invest in vertical integration, or negotiate long-term contracts to secure favorable
terms.
​ - Bargaining Power of Buyers: Apple can assess the bargaining power of its
customers, such as individual consumers and businesses. If customers have
strong bargaining power, Apple can focus on building strong brand loyalty,
offering unique and differentiated products, and providing exceptional customer
service to retain customers and reduce their bargaining power.
​ - Threat of Substitute Products or Services: Apple can assess the threat of
substitute products or services, such as Android smartphones or Windows
laptops. If there are many substitutes available, Apple can focus on
differentiating its products, investing in research and development, and building
strong brand loyalty to reduce the threat of substitutes.
​ - Intensity of Competitive Rivalry: Apple can assess the intensity of competition in
the technology industry, such as from competitors like Samsung, Google, and
Microsoft. If competition is intense, Apple can focus on building strong brand
loyalty, investing in innovation, and offering unique and differentiated products to
maintain its competitive edge.

By using Michael Porter's Five Forces model, Apple can assess the competitive
dynamics of the technology industry and develop strategies to ensure its long-term
survival in the face of competition.

5. A. Discuss the factors that may lead to a change in Strategy of a firm.

A triggering event is something that stimulates a change in strategy. Possible

triggering events include the following:

- New CEO – by asking a series of embarrassing questions, the new CEO cuts

through the veil of complacency and forces people to question the very
reason for the corporation’s existence

- External intervention – the firm’s bank suddenly refuses to agree to a new

loan or suddenly calls for payment in full on an old one

- Threat of a change in ownership – another firm may initiate a takeover by

buying the company’s common stock

- Performance gap – a performance gap exists when performance does not

meet expectations. Sales and profits either are no longer increasing or may

even be falling

- Strategic inflection point – this term represents what happens to a business

when a major change takes place due to the introduction of new

technologies, a different regulatory environment, a change in customers’

values, or a change in what customers prefer.

B. ) In what circumstances should a firm adopt integration strategies. Illustrate through

examples which support your arguments.

Integration strategies involve combining different parts of a business to create a more

cohesive and efficient operation. There are several circumstances in which a firm should
consider adopting integration strategies:

​ - Vertical Integration: This involves integrating different stages of the production

process, from raw materials to finished products. A firm may adopt vertical
integration to gain greater control over its supply chain, reduce costs, and
improve efficiency. For example, a car manufacturer may acquire a tire
 manufacturer to ensure a steady supply of tires and reduce dependency on
external suppliers.
​ - Horizontal Integration: This involves integrating businesses that operate in the
same industry or market. A firm may adopt horizontal integration to gain market
share, increase economies of scale, and reduce competition. For example, a
supermarket chain may acquire a rival chain to expand its market presence and
increase its bargaining power with suppliers.
​ - Conglomerate Integration: This involves integrating businesses that operate in
different industries or markets. A firm may adopt conglomerate integration to
diversify its revenue streams, reduce risk, and take advantage of synergies
between different businesses. For example, a technology company may acquire a
food and beverage company to diversify its portfolio and reduce its dependence
on the technology sector.
​ - Backward Integration: This involves integrating businesses that supply inputs to
the firm's main operations. A firm may adopt backward integration to gain greater
control over its supply chain, reduce costs, and improve efficiency. For example, a
clothing retailer may acquire a textile manufacturer to ensure a steady supply of
fabrics and reduce dependency on external suppliers.
​ - Forward Integration: This involves integrating businesses that distribute or sell
the firm's products or services. A firm may adopt forward integration to gain
greater control over its distribution channels, reduce costs, and improve
efficiency. For example, a food manufacturer may acquire a chain of restaurants
to ensure a steady outlet for its products and reduce dependency on external
distributors.

Overall, integration strategies can be beneficial for firms in certain circumstances, such
as when they want to gain greater control over their supply chain, reduce costs, increase
market share, diversify revenue streams, or take advantage of synergies between
different businesses. However, integration strategies also come with risks, such as
increased complexity, higher costs, and potential conflicts of interest. It is important for
firms to carefully consider the potential benefits and risks of integration strategies
before adopting them.

6. A. Explain how the Boston Consulting Group Matrix can be used to generate survival
and growth strategies for a firm dealing in multiple product lines.

The Boston Consulting Group (BCG) Matrix is a strategic management tool that helps
firms analyze their product portfolio and make decisions about which products to invest
in, which to divest, and which to maintain. The BCG Matrix categorizes products into
four quadrants based on their market growth rate and relative market share:

​ - Stars: High-growth, high-market-share products that generate significant

revenue and profit. These products have the potential to become cash cows in
the future.
​ - Cash Cows: Low-growth, high-market-share products that generate significant
revenue and profit. These products are mature and stable, and they provide a
steady stream of cash flow to the firm.
​ - Question Marks (or Problem Children): High-growth, low-market-share products
that have the potential to become stars or cash cows in the future. These
products require significant investment to grow their market share and become
profitable.
​ - Dogs: Low-growth, low-market-share products that generate minimal revenue
and profit. These products are typically in decline and may not be worth investing
in.

The BCG Matrix can be used to generate survival and growth strategies for a firm
dealing in multiple product lines in the following ways:

​ - Invest in Stars: Firms should invest in stars to maintain their high growth rate
and market share. This may involve increasing marketing and advertising efforts,
improving product quality, or expanding distribution channels.
​ - Maintain Cash Cows: Firms should maintain cash cows to continue generating
steady revenue and profit. This may involve reducing costs, improving operational
efficiency, or extending the product's life cycle.
​ - Grow Question Marks: Firms should invest in question marks to grow their
market share and turn them into stars or cash cows. This may involve launching
new products, entering new markets, or acquiring competitors.
​ - Divest Dogs: Firms should divest dogs to free up resources and focus on more
profitable products. This may involve selling off the product line, discontinuing
the product, or finding alternative uses for the product.

Overall, the BCG Matrix can help firms make strategic decisions about their product
portfolio and allocate resources effectively to maximize profitability and growth.

B. How can the Igor-Ansoff matrix guide management of an organization in generating

appropriate strategies for growth?
The Igor Ansoff Matrix, also known as the Product-Market Growth Matrix, is a strategic

planning tool that helps organizations identify growth strategies by analyzing their

current products and markets. It consists of four growth strategies:

​ - Market Penetration: This strategy involves selling more of the organization's

existing products to its current customers. It focuses on increasing market share
and revenue within the same market segment. Management can use this
strategy to generate appropriate strategies for growth by identifying
opportunities to increase sales to existing customers, such as through marketing
campaigns, promotions, or improving customer service.
​ - Market Development: This strategy involves selling existing products to new
markets or market segments. It focuses on expanding the organization's reach
and finding new customers. Management can use this strategy to generate
appropriate strategies for growth by identifying new markets or market segments
that are similar to the organization's current customers, such as by targeting
different geographic regions or demographic groups.
​ - Product Development: This strategy involves developing new products for
existing markets or market segments. It focuses on innovation and creating new
products that meet the needs of the organization's current customers.
 Management can use this strategy to generate appropriate strategies for growth
by identifying opportunities to develop new products that complement the
organization's existing product line, such as by adding new features or
functionalities.
​ - Diversification: This strategy involves developing new products for new markets
or market segments. It focuses on expanding the organization's reach and finding
new customers in entirely different markets. Management can use this strategy
to generate appropriate strategies for growth by identifying new markets or
market segments that are unrelated to the organization's current customers, such
as by entering new industries or geographic regions.

Overall, the Igor Ansoff Matrix can guide management of an organization in generating

appropriate strategies for growth by providing a framework for analyzing the

organization's current products and markets and identifying opportunities for

expansion. By considering each of the four growth strategies, management can develop

a comprehensive growth strategy that aligns with the organization's goals and

objectives.

7. Discuss the value of Strategy Evaluation and Control in the Strategic Management
Process. Use appropriate examples to illustrate your answer.

Strategy evaluation and control are critical components of the strategic management

process. They help organizations assess the effectiveness of their strategies, identify

areas for improvement, and ensure that strategic goals are being achieved. Here are

some key reasons why strategy evaluation and control are valuable:

​ - Assessing Performance: Strategy evaluation and control help organizations

assess the performance of their strategies. By comparing actual results to
expected results, organizations can determine whether their strategies are
working as intended and make adjustments as needed. For example, if a
company's strategy is to increase market share, strategy evaluation and control
can help determine whether the company is achieving its goal and what factors
are contributing to its success or failure.
 ​ - Identifying Areas for Improvement: Strategy evaluation and control help
organizations identify areas for improvement in their strategies. By analyzing the
strengths and weaknesses of their strategies, organizations can identify
opportunities to improve their performance and make changes to their strategies
as needed. For example, if a company's strategy is to reduce costs, strategy
evaluation and control can help identify areas where costs can be reduced and
where additional investments may be needed.
​ - Ensuring Alignment with Goals: Strategy evaluation and control help ensure that
strategies are aligned with organizational goals and objectives. By regularly
reviewing and evaluating strategies, organizations can ensure that their
strategies are consistent with their overall goals and objectives and make
adjustments as needed. For example, if a company's goal is to increase
profitability, strategy evaluation and control can help ensure that the company's
strategies are focused on achieving this goal.
​ - Improving Decision-Making: Strategy evaluation and control help improve
decision-making by providing organizations with the information they need to
make informed decisions. By analyzing the results of their strategies,
organizations can identify trends and patterns that can help inform future
decisions. For example, if a company's strategy is to expand into new markets,
strategy evaluation and control can help identify which markets are most
promising and which strategies are most effective.
​ - Enhancing Accountability: Strategy evaluation and control help enhance
accountability by holding individuals and teams responsible for the success or
failure of their strategies. By regularly reviewing and evaluating strategies,
organizations can ensure that individuals and teams are held accountable for
their performance and make adjustments as needed. For example, if a company's
strategy is to increase sales, strategy evaluation and control can help ensure that
sales teams are held accountable for their performance and that their strategies
are aligned with the company's overall goals and objectives.

Overall, strategy evaluation and control are valuable components of the strategic

management process. They help organizations assess the effectiveness of their

strategies, identify areas for improvement, ensure alignment with goals, improve

decision-making, and enhance accountability. By regularly reviewing and evaluating

strategies, organizations can ensure that their strategies are effective and that they are

achieving their goals and objectives.