Select the tool that fits the decision, construct or calculate it accurately and combine its result with qualitative case evidence before reaching a recommendation.
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.
| Selected financial information ($ per month) | Option 1 | Option 2 |
|---|---|---|
| Sales revenue | 400 | 4000 |
| Cost of goods sold | 200 | 1800 |
| Gross profit | 200 | 2200 |
| Gas and vehicle maintenance | 50 | 400 |
| Rent of storage facility | 0 | 200 |
| Interest | 0 | 100 |
| Net profit after interest and before tax | 150 | 1500 |
Appendix 5a: Current produce distribution business
Prepare a SWOT analysis of Kos Palouk's current produce distribution business (with no changes) showing only the strengths and weaknesses.
Explain two social factors that could influence General Diane Pierce's decision regarding the construction project.
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.
Anigam
Anigam is one of the biggest multinational companies operating in the animal drugs industry. In many countries, Anigam is well known for its promotional campaigns. It uses both above the line and below the line promotion.
Anigam has a portfolio of animal drugs at different stages of their product life cycle:
- Anitox is the first animal drug that Anigam developed and sold. It is a business-to-business (B2B) product used in veterinary clinics worldwide. Anitox has a high 25 % share of the global market. That figure has been stable for the last 10 years. Anitox is a well-established product in a market that is saturated and growing very slowly.
- A range of animal drugs was launched four years ago. One of them, Anisan, helps prevent heart attacks in aging animals; it already has a high 15\% share of a rapidly growing market. Some other animal drugs, however, are not performing as well: for example, Aniplus, which is designed to strengthen animals' immune systems against the flu and other contagious diseases. The market for products such as Aniplus is growing rapidly, but it is very competitive.
- Last year, Anigam launched a new drug called Anislim which helps to reduce obesity in domestic animals. Thanks to significant introductory marketing efforts and an appropriate promotional mix, the first sales results were good. It is, however, too early to forecast whether present sales for Anislim will be maintained.
Analyse Anigam's portfolio of animal drugs by applying the Boston consulting group (BCG) matrix.
