Business Mid term

• Capacity Utilisation Formula

  Actual Output/Maximum Possible output x 100
• Uses capacity utilisation


  Indicates resource use efficiency

  Cost management as higher utilization lowers fixed costs per unit

  Informs scaling and investment strategies

  Helps anticipate future capacity needs
• Overutilization


  Can lead to quality issues and employee burnout
• Underutilization


  May signal the need for strategic adjustements
• Succesful corporate strategy 


  Essential for competitive advantage: considers internal and external factors
• Market Penetration


  Increase sales to existing customers

  Fosters brand loyalty and encourages use
• Market Development


  Explores new markets for existing products

  Targets different customer profiles
• Product development


  Introduce new/improved products to existing customers

  Upgrade products and relaunch seasonal items
• Diversification 


  New products for new customers highest risk
• Advantages Ansoffs Matrix

  Provides clear framework for strategic options

  Emphasis on growth oppurtunities

  Easy to understand

  Helps prioritise strategies based on risk
• Disadvantages Ansoffs Matrix

  Oversimplification as reduces complex strategic choices to 4 categories

  Doesn't account for dynamic market changes

  Assumes clear distinctions between products and markets
• When should ansoffs matrix be used

  Alongside other analyses tools such as SWOT/PESTEL to adapt to change
• SWOT analysis strengths

  What the organisation does well

  Unique assets/skills that provide competitive advantage
• SWOT analysis weaknesses


  Areas that need improvement

  Factors that could hinder growth
• SWOT analysis Oppurtunities


  Trends or shifts in the market that can be leveraged

  Potential collaborations that could enhance business/s
• SWOT analysis threats

  Obstacles that could impede progress

  Potential external factors that could impact stability/sucess
• Advantages SWOT

  Easy to understand and implement

  Identifies key areas for growth and improvement

  Provides a holistic view on internal and external factors affecting org
• Disadvantages SWOT

  Analysis can be influenced by personal bias
• Disadvantage SWOT


  It is static as offers a snapshot that may not reflect market changes
• Disadvantages SWOT


  Complex issues can be reduced to broad categories