Page 13 - CIMA MCS Workbook May 2019 - Day 1 Suggested Solutions
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SUGGESTED SOLUTIONS
EXERCISE 1 (continued)
JORD must ensure that it matches its strengths to any opportunities identified when considering
future strategic development options. Failure to do so will leave JORD exposed to unnecessary
risk by attempting to achieve strategic options without the resources or competences in place to
fulfil those options.
In addition, failure to address and remove weaknesses may leave the organisation exposed to
future threats. This is particularly relevant for JORD given its issue with capacity. Increasing
financial, economic, technological, environmental, social and political changes will affect any
decision that the business makes. New proposals by, for example, the UK Government to drive
the adoption of this modular prefabricated approach in 2019 are clear evidence of the vigour with
which this technology is being pursued. Similarly, worldwide austerity measures among JORD’s
client base may have an effect on future revenue. As with any business, ultimately customer
demand governs success and enhances the manufacturer’s brand.
Customers also have increasing choice as to which supplier to purchase from given the growth in
competition. This means that JORD will need a detailed and continuous flow of information on
customer demand, social trends, environmental issues and spending patterns etc. to ensure that
the right goods are available at the right time.
Alternatives available to JORD are:
Market penetration. JORD could opt to maintain or increase its share of existing markets
with existing products but in a fast changing and highly competitive environment, this is
unlikely to succeed. The industry is fragmented and subject to technological, environmental
and social change. JORD will need to maintain its innovative approach to survive e.g. by
responding to environmental, regulatory and socio‐demographic trends and enhancing
products as appropriate.
Product development. JORD could develop strategies based on launching new
products/services or by enhancements to existing products which are offered to its existing
markets e.g. continuing to innovate with hotels or other options such as schools, hospitals
or prisons to match the increased need for speed, flexibility and demand in construction.
Market development. JORD could develop new markets for existing products e.g. expanding
its presence in developing countries such as China or any of the top ten to include Japan,
India and Germany. In addition there is a need to respond to changing aspects of the work
environment by considering investment in software for design, or even robotics in off‐site
manufacturing. Similarly JORD could also develop an ecommerce option and sell furniture
online.
Diversification. JORD could launch new products into new markets e.g. garden design and
landscaping service to complement their quality homes.
Each of the above suggestions would need to be evaluated before implementation, which entails
considering each strategic option in terms of its feasibility and fit with the strengths and core
competences of the business.
KAPLAN PUBLISHING 63
