Boston Box Essay

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Assess, using suitable criteria, the three strategic options and determine the most appropriate one for the company to follow include some suggestion of implementation and timescales. 1. Ashbridge model Ashbridge model is used to assess the level of similarity between the parents skill and the opportunity to add value (Jenkin, 2011). Fit with Parents Skill High Low High Opportunity to add value Fit with Parents Skill High Low High Opportunity to add value Diagram 7 Assessment of Options using Ashbridge Model Analysis: Options | Fit with parents skill | Opportunity to add value | 1. Maintaining Present | High: Food Retailing industry | High: Consolidation of firm strategies add value to the firm | 2. S-O Strategy | High: Food Retailing industry | High: Exploited opportunity adds value to the firm | 3. Diversification Strategy | Low: There is no similarity with parent company | High: R&D institutes adds value to the firm | Table 22 Analysis of Options using Ashbridge Model Assessment: Option 1 and 2 provides a favourable option as both are highly fitted to the parents skill (i.e. food retailing industry). Option 1 has opportunity to add value to the firm as shown by the current value adding activities (Value Chain Analysis, Section 5.1, Question 1). Option 2 has also opportunity to add value as expansion into emerging market increases the market share of Tesco (SWOT Analysis, Section 9, Question 1). Option 3 is a “Value Trap” as there is no match with parent skills i.e. expanding into technology R&D. However, there is opportunity to add value to the firm as analysed earlier in Value Chain Analysis (Section 5.1, Question 1). 2. Boston box Boston box shows the relationship between the market growth and the relative market share that is taken by the company. StarsOption 2 (SO Strategy) | Question Marks | Cash

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