MKTG6002 Different Aspects Of Situational Analysis Assessment 1 Analysis

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Question :

ASSESSMENT 1 BRIEF
Subject Code and TitleMKTG6002/MKT600 Marketing
AssessmentAssessment 1: Situation Analysis
Individual/GroupIndividual
Length2000 words (+/- 10% excluding cover page, table of contents,
executive summary, references and appendix).
Learning OutcomesThis assessment addresses the following learning outcomes of the subject:
a)Critically evaluate underpinning marketing theories and principles and employ appropriate research process to collect, store and use of data to genrate customer insights;
b)Critically evaluate customer needs to create value for customers by deploying the resources of the organisation in best possible ways;
SubmissionDue 23:59 (AEST/AEDT) Friday by the end of Module 3.1 (Week 5)
Weighting30%
Total Marks30 marks


Objectives:

  • To develop an understanding and appreciation about the influences of micro and macro environmental actors and forces that affect an organisation's ability to serve the needs of the

target market;

To develop critical analytical ability to gather and analyse relaevant data to facilitate decision making;

  • To develop foresights to predict industry trend and tailor the organisation's practices to respond

to the changing situation.

How the assessment fits into the subject/course:

Marketing in the 21st century has evolved profoundly which is a critical element of business administration. The design of marketing plans is integral to business organisation and the assessment of this subject aims to provide students with the opportunity to apply the knowledge to develop effective marketing strategies. This assessment requires the students to analyse overall situation of the business prior to developing a marketing plan. The students will then continue to work on the same organisation to develop a complete marketing plan in their next assessment. A short scenario is given below to help students address the tasks involved in the assessment 1.

MKT600_Assessment 1_Situation AnalysisPage 1 of 6


Linkages between Assessments 1 and 2:

Assessment 1 requires students to undertake the SWOT/TOWS analysis of their chosen organisation from the list of organisations provided. Students are advised to consult the IBISWorld database through Torrens Library to do the preliminary research to gain a comprehensive knowledge about the industry in which their chosen organisation belongs to. The assessments 1 and 2 are interlinked where students need to summarise the situation analysis from their assingment 1 while discussing this section within the assessment 2, the marketing plan.

Instructions:

This assessment task requires you to develop a Marketing Environmental Analysis that comprises both the micro-environment and macro-environment. The micro-environment analysis involves a scrutiny of internal environment that facilitates specifying the strengths and weaknesses, while, the macro-environment analysis requires the scrutiny of demographic, economic, natural,  political, technological and cultural (DENPTC) dimensions which will assist in specifying the oportunities and threats. Changes within the macro environmental forces are outside of an organisation's direct control requiring an organisation's marketing strategies to be adjusted to capture    emerging    opportunities     and     minimise     any     potential     threats. Therefore, in this assessment task you will need to:

  • Articulate your learning about marketing concepts and principles covered from Module 1 to 3.1

to demonstrate your level of understanding to evaluate the organisation's overall situation;

  • Critially analyse the link between marketing theory and practice;
  • Demonstrate research skills to reveal the insights;
  • Apply appropriate business report writing skills;
  • Discuss appropriate strategies with regards to your SWOT analysis.

Scenario: Choose an organisation from the list provided below that intends to expand its businss either through a new product development or a new business/market development.

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Answer :

ASSESSMENT 1: SITUATIONAL ANALYSIS

Introduction:

In this present era, competition is increasing in almost every sector. Therefore, for achieving competitive advantage in this highly competitive market, an organisation must develop a different effective strategy. Before applying these strategies, conducting situational analysis is highly important because the situational analysis is helpful for an organisation in understanding the feasibility of a strategy so that the strategy can be successful. This assignment is intended to describe different aspects of situational analysis. For this purpose, progressive office furniture has been considered. The organisation has the opportunity in expanding its product range for securing more profitability. For this reason, the organisation needs to facilitate situational analysis.

1) Value proposition, buyer behaviour and core brand value of Progressive office furniture:

In marketing, value proposition refers to the innovation, feature or service of an organisation that is intended to create attractiveness for customers. The value proposition of the organisation is customer could get uniquely designed office furniture on time and within budget (Progressive Office, 2020b). Getting office furniture in value for money is the other value proposition of the organisation. Moreover, the licensed trade of the organisation is entirely covered by the contract insurance (Progressive Office, 2020b). Additionally, progressive officer furniture offers a better plan for the design of office furniture to their clients along with a 3D plan for the project (Progressive Office, 2020b). Along with that, the organisation also offers point-to-point services for its customers so that it can satisfy the need of the customers (Progressive Office, 2020b). For offering this service, the organisation works with its partners so that they can design, manufacture, deliver, store as well as install furniture for their networked dealer.

For buying furniture products, customers mainly prefer to buy those products that have a better (durable) lifespan. In that case, customers avoid unsustainable products. There are mainly two different types of consumption for which customers mainly buy furniture that is group consumption and individual consumption (Zwierzyński, 2017). The customers of progressive office furniture mainly buy products for group consumption. Therefore, for satisfying the need of customers, the organisation must satisfy the need. During purchasing office furniture, customers mainly prefer buying unique products so that they can establish a better brand value for their organisation (Oblak et al. 2017). To satisfy the need of their customers, the organisation must offer unique office furniture to its customers. As customers’ buy office furniture for a single time, therefore, they always check the quality of the furniture (Zwierzyński, 2017). For attracting the customers, towards their organisation, progressive office furniture must offer good quality products to their customers. For decorating the office, customers prefer high-quality products in low budgets. Therefore, the organisation must consider this fact for developing a brief customer base.

Core brand value refers to the belief that an organisation stand for. Core brand value serves as the compass that guides an organisation to develop a brand story, behaviour, actions and the process of decision making. The core brand value of progressive office furniture is offering uniquely designed good quality office furniture. Offers services within the pre-assumed time and budget are the other core brand value of the organisation. Offering furniture solutions for every type of organisation (small, medium and big) is another core value of the company (Progressive Office, 2020b). The utilisation of high-quality material and manufacturing of the products is another core value. Moreover, effective onsite consultation and professional installation of the products are the other core brand value of the organisation (Progressive Office, 2020b). The organisation offers a range of material selection index so that customers can select their intended material (sustainable veneers, focus range fabrics and standard laminate) for making their office more effective.

2) Analyse the microenvironment:

For analysing the microenvironment, it is important in analysing the below-mentioned factors:

The company:

Progressive is operating their business for more than 25 years. The organisation manufacture, install and design furniture. The organisation has two different divisions such as dealership solutions and corporate division. Progressive corporate is associated to design and build offices. Their in-house design team offers an aesthetic and balanced solution for every client. The corporate covers fully qualified trades, full layouts and design services for offices, electrical, mechanical, and plumbing, partition construction, and custom-manufactured design and project management (Progressive Office, 2020b). Dealership solution offers manufacture, inventory management, design, storage and receipt, delivery and installation of their products.

‘Suppliers:

The organisation has various suppliers who offer raw materials such as woods and metals along with the tools to manufacture office furniture. 

Intermediaries and Relevant publics:

The relevant public and intermediaries in the organisation are the dealers with whom the organisation has developed an effective network of their business across Australia (Progressive Office, 2020a). Progressive office furniture works with their dealers for designing, storing, manufacturing, installing as well as delivering furniture to the customers.

Customers:

The organisation mainly offers varieties of office furniture such as workstations, office fit-outs, different custom furniture, chair, table, storage, different accessories, reception desks and progressive corporate. Therefore, the customers of organisations are various office organisations. The organisation offers its services to big, medium and small organisations. Therefore, they all are the customers of the organisation

Competitors:

There are several competitors of progressive across Australia. The name of the competitors is Aspen interiors, Advanta, Office line, Fursys, Mn8design and many more. Therefore, it can be said that customers buying power is high in the market for office furniture because they have so many options. among these competitors, Aspen interiors offer office furniture and joinery. Advanta offers office chairs to their customers and office line offers school and office furniture. On the other hand, Fursys offers commercial office and workstation furniture. 

3) Analyse the macro-environment:

For analysing the macro environment of the organisation, conduction PESTLE analysis is highly important. PESTLE analysis is a framework that helps in understanding the external factors that create an impact on an organisation (Rastogi & Trivedi, 2016). PESTLE analysis of progressive office furniture is shown below:

Political factor:

The political condition of Australia is stable that can help the organisation in expanding their business. The present government balance shows a moderate level of deficit that is expected to be zero in the year 2021 (Nordeatrade, 2020). It is expecting that the debt level of government is continually decreasing which will be least in 2020 and 2021 (Nordeatrade, 2020). This lower level of debt can help the citizens in improving their economic condition that can help progressive office furniture in selling their products with more efficiency. This fact not only helps their organisation in developing a big customer base but it also helps them in improving productivity.

Economic factor:

The economy of Australia is the 14th largest economy. Along with that, the economic freedom of the country is 80.9 which can help the organisation in doing business with efficiencies (Austrade, 2020). The economic stability of the country can be helpful for the organisation in securing more profitability. According to the World Bank, Australia has ranked 18th in the global comparative index that means doing business in Australia is easier (Austrade, 2020). Along with that, based on economic freedom, Australia has secured 5th rank which demonstrated the fact that Australia has an effective free-market democracy. This fact can help progressive office furniture in doing business and expanding the product range in Australia.

Socio-economic factor:

The number of households is expected to rise in Australia and become 9160.3 thousand in the year of 2022 from 8196.6 thousand (Prnewswire, 2020). This fact represents 1.8% growth in the number of households. This fact can help progressive office furniture in selling home furniture products to the customers and securing profitability. Growth in the number of luxurious hotels can help the organisation in expanding its product range and selling home furniture. 

Technological factor:

In Australia, the number of social media users is increasing. Presently, 72% of Australians uses social media activity which has increased by 5.9% from 2018 to 2019 (Genroe, 2020). Therefore, for expanding the product range in Australia, the organisation must develop marketing in social media so that they can attract the large number of target customers. 

Environmental factor:

Australians mainly prefer risk-free and environment concerned organisation. Therefore, it is necessary for the organisation in increasing their concern towards the environment. The organisation must use environmentally-degradable materials for office furniture and its packaging so that they can form a better brand image for their organisation. 

Legal factor:

The policymaking in Australia is largely transparent, however, the federal government often compromise it with the minor parties. Transparent policymaking reduces the chances of corruption in Australia. Therefore, a lesser level of corruption is helpful or the organisation in expanding their product ranges.

4) Conduction of SWOT analysis and TOWS matrix:

According to Kapoor & Kaur (2017) SWOT analysis is the framework that helps an organisation in identifying strengths and weaknesses of an organisation along with their opportunities and threats. SWOT analysis of Progressive office furniture is shown below:

Strengths:

  • POF is associated to manufacture, design and install the furniture
  • The organisation have more than 25 years of experiences (Progressive Office, 2020b)
  • The organisation has hired a large team of specialists that helps them in offering a better service
  • The organisation has developed an effective network to design, manufacture and install furniture across Australia (Progressive Office, 2020b).
  • The organisation has efficiencies in delivering their services in offering project on the right time
  • POF offers value for money to the customers

Weaknesses:

  • The organisation only has focuses on the Australian market. They do not have expanded their business in another country
  • They have negligible focuses on digital advertising

Opportunities:

  • The organisation only offers office furniture to its customers; therefore, they have the opportunity to expand their product range. The organisation can expand their product ranges to a home furniture. 
  • The organisation has the opportunity in expanding their business in another country. They can expand their business in other developed countries.
  • They have the opportunity in improving their advertising strategy to attract more number of customers towards their organisation

Threats:

  • The organisation can face stiff competition from their competitors
  • Over-dependence on a single market can create difficulties for the organisation in securing profitability

TOWS matrix:

TOWS matrix is associated to develop the strategic option from the external-internal analysis. TOWS Matrix is a practical tool in the field of marketing and business administration (Gürel & Tat, 2017). TOWS analysis of Progressive office furniture is shown below:

TOWS matrix

Figure 1: TOWS matrix

(Source: Gürel & Tat, 2017)

Strength and opportunities:

  • The organisation has an effective market experience which can be used by them in expanding their market in other countries
  • The organisation has developed an effective and efficient set of the employee base that can help the organisation in expanding its product range. The organisation can utilise the expertise of the employees in designing or manufacturing home furniture to expand the product range.
  • The organisation can utilise their network across Australia to manufacture and sell the home furniture.

Strength and threats:

  • The effective level of experience of the organisation can help them in expanding their business outside Australia and secure more profitability
  • The effective level of market knowledge can help the organisation in developing social media marketing, price-per-pay marketing and affiliated marketing.

Weakness and opportunity:

  • By expanding their business in another country, the organisation can reduce the issues regarding over-dependency on the Australian market
  • Development of a better advertising strategy can resolve the issues regarding digital advertising strategy

Weakness and threats:

  • With the help of a better social media marketing strategy and another digital marketing strategy, the organisation can resolve issues regarding digital marketing
  • The organisation can avoid stiff competition by forming a proper marketing strategy and offering better quality product

Conclusions:

From the above description, it can be said that conduction of situational analysis is important for an organisation during developing and implementing a new strategy to understand its feasibility. From the above description, it can be said that progressive office furniture has favourable micro and macro environment to expand their product range and sell home furniture.