BGMT Discussion ***Zeek the Geek***

Running head: BGMT DISCUSSION 1

2

Golfam #1

Subway

Concentration Strategy: These strategies involve trying to compete successfully only within a single industry. A firm can use market penetration, market development, and product development as part of its efforts to excel within an industry (Introduction to Strategic Management, 2014). For example, subway can work on market development by offering more than subs. It already offers soups and salad, but it can most definitely work on expanding the items. It will attract more customers resulting an increase in revenue.

 

Diversification strategies: “Firms using diversification strategies enter entirely new industries” (Introduction to Strategic Management, 2014). This strategy will allow Subway to enter a new industry which allows them to reach to a new target market. For example, Subway can acquire or perhaps start a food delivery business like order up. This will allow a new target market to get subway and any other food delivered to them.

 

Unknown (2014).  Introduction to Strategic Management.  Washington, D.C.:  The Saylor Foundation. 

Golfam #2

Learning Activity #2

“Quantitative Strategic Planning Matrix (QSPM) is a high-level strategic management approach for evaluating possible strategies” (Maxi Pedia, 2016). The Quantitative Strategic Planning Matrix or a QSPM approach attempts to objectively select the best strategy using input from other management techniques and some easy computations.

Diversification strategy suggested acquiring OrderUp so customers can enjoy ordering subs and delivering it right to their door step. Higher scores point at a more attractive strategy, considering all the relevant external and internal critical factors that could affect the strategic decision. In this case, diversification strategy earned a higher score and therefore it is the best strategy for Subway.

QSPM
Key Factors	Concentration Strategy: Offering more than subs	Diversification strategy: Acquire OrderUp
	Weight	Attractiveness Score	Total Attractiveness Score	Weight	Attractiveness Score	Total Attractiveness Score
S: Brand Reputation	.15	4	0.6	.15	4	0.6
S: Number of Locations	.10	4	0.4	.15	3	0.45
S: Cost	.20	0	0	.10	0	0
W: Lack of menu diversity	.40	4	0.8	0.5	3	1.5
W: Lack of Service	.5	2	1	.40	4	1.6
W: Employee turnover	.10	2	0.2	.15	2	0.3
O: Busy Population	.15	4	0.6	.40	4	1.6
O: Economy Growth	.40	4	1.6	.30	4	1.2
T: Substitutes	.40	4	1.6	.2	4	0.8
T: Government Regulation	0.5	2	1	.1	2	0.2
			7.8			8.25

Reference Maxi Pedia. (2016). Quantitative Strategic Planning Matrix (QSPM). Retrieved from: http://www.maxi-pedia.com/quantitative+strategic+planning+matrix+qpsm