Topic 2 - Business Scope and Environment

Question 1

What are insights?

Answer 1

Insights are
- Apprehending the true nature of something
- Seeing the inner characteristics or underlying truth

Research is not insights
Information is not insights

Question 2

What are the keys to a good insight? And recall an example of an insight applied in marketing.

Answer 2

1. Not obvious or evident
2. Connecting multiple findings
3. Requires leap of interpretations
4. Requires creative thinking

Example
- Ariel Detergent in India (Gender Inequality Campaign)
- Ariel finds a higher purpose and challenges gender roles in use of their products in household chores

Question 3

List the 3 components of situational analysis and how they help organisations.

Answer 3

1. Strategic Style - Determine right fit in industry before planning process
2. Mission and Vision - Ensuring the org’s core values and purpose recognised for planning process
3. Business Scope - Defining the operating boundaries

Question 4

Describe how Strategic Style helps organisations conduct a situational analysis.

Answer 4

Strategic Style - Determine right fit in industry before planning process

Draw Industry Predictability and Malleability Matrix
(Low M Low P - Adaptive)
(Low M High P - Classical)
(High M Low P - Shaping)
(High M High P - Visionary)

Question 5

Describe how Mission and Vision helps organisations conduct a situational analysis.

Answer 5

Mission and Vision - Ensuring the org’s core values and purpose recognised for planning process
Mission Statement: fundamental unique purpose of organisation
Vision Statement: management’s view of futuristic world and how to compete in it

Question 6

Describe how Business Scope helps organisations conduct a situational analysis.

Answer 6

Business Scope - Helps define the business and market it operates in

What to include
- Mission and vision
- Market Definition
- Product definition
- Competitors
- Consumer Segments
- Time and Space

Take Note
- Too Narrow (Hinders identification if trends and opp)
- Too Broad (Sacrifice Depth)

Question 7

Define and describe Abell’s business definition and boundaries

Answer 7

Abell introduced the model “Three dimensional Business Definition” The model is to help businesses clearly define their markets and avoid marketing myopia (Focusing on micro aspects instead of macro picture)

The framework was 3 dimensions
1. Customer Groups (Who is buying?): Identifying the specific segments or groups of people that the business serves. This is not just about broad demographic details, but rather understanding specific segments or niches that are being targeted.

2. Customer Functions (What are their needs?): Understanding the specific needs or problems that the business’s product or service addresses for its customers. This pertains to the functions or benefits the product/service provides to the customer group.
3. Technologies or Alternatives (How are they fulfilling their needs?): Highlighting the methods or technologies employed by the business to deliver the above functions. This is about how the business delivers the value or benefit to the chosen customer groups.

Question 8

What does the PESTLE analysis consist off and what are some best practices when applying it?

Answer 8

Political - Regulations that impact the industry
Economical - Impact of economy on busines s
Social - Demo / Social / Cultural
Technology - Industry advancement of Materials / Distributions / Manufacturing
Legal - Consumer Protection / Patents / Health and Safety / Copyrights
Environmental Weather / Climate / Pollution / NGO Pressure

Best Practices
1. Only include macro factors that are affecting the industry
2. Identify then state implications