IB Business Management 6.1 Business management tools

The UWP Mission to Loyka was sent to prevent further violence and its aim was to maintain order, peace and security. General Ron Meiri was replaced in late 2011 by General Diane Pierce, whose situational leadership style and social-marketing experience were intended to reduce problems. She had two objectives: a strategic objective to improve the image of the Olive Hats and public relations, reducing conflicts and improving troop safety; and an operational objective to remotivate her troops. Salaries were set by the UWP, so she had to use non-financial motivation. She planned a hospital or university as a non-profit social-infrastructure project. A hospital could improve access to medical care, especially for poorer people, but there was a shortage of doctors and concern about foreign male doctors treating local women. A university could train engineers, teachers and nurses, but could become a symbol of foreign intervention and a less secure target. The local governor preferred the university. The UWP asked for a survey and focus groups as part of additional primary research. Kos was a sole trader dependent on his car, one large customer and his own labour; his established UWP contacts and just-in-time stock control were strengths, while limited capital and lack of economies of scale were weaknesses.

Martin and Susan were internal stakeholders with a conflict over Martin’s appointment, Susan’s resentment, her task-oriented and increasingly autocratic management, and Martin’s laissez-faire style, empowerment and delegation. The Imperial’s fixed costs could include the salaries of hotel staff, fixed electricity or internet charges, local property taxes and contracted promotional costs; under Option 2, fixed costs and variable cleaning and maintenance costs would be lower because apartments would be serviced weekly rather than rooms daily. Martin considered three Ansoff choices: Option 1 would renovate and relaunch the existing hotel for similar customers, Option 2 would transform rooms into apartments for business travellers, and Option 3 would form a strategic alliance with KenSafar to reach package-tour customers. Empowerment could give employees authority, responsibility and autonomy, increasing job satisfaction and motivation and encouraging better productivity. Susan was efficient, hard-working and committed but bureaucratic, formal, cold and autocratic; Martin was warm, friendly and laissez-faire, allowing supervisors to resolve problems. Martin’s leadership could support empowerment, while Susan’s task focus could protect housekeeping standards but damage morale.

Explain the value of the Ansoff matrix as a decision-making tool for Martin Kimathi to choose between Options 1, 2 and 3.