Ansoff Matrix Worksheet
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Caffè Nero and Asda have similar goals of sales growth and profitability but different business strategies. Caffè Nero is pursuing market development by planning to open 100 branches in Turkey, exploring other European countries and China. Asda is focusing on market penetration and product development in the UK by opening more food stores to gain market share from Tesco and expanding their home goods store Asda Living. Different businesses in different markets may pursue different strategies even with similar overall objectives.
Ansoff Matrix Worksheet
- 1. UNIDAD EDUCATIVA BILINGUE NUEVO MUNDO WORKSHEET FOR ING 01 VER 15 04 11 Teacher: Alex Arancibia Name: …………………………… Course: Section:………………………… Subject: Business & Management Date: ……………………………. Activity: Read the case study below and then answer the questions that follow. Caffè Nero and Asda – contrasting growth strategies Although both companies have similar objectives – sales growth, leading to profitability – Asda and Caffè Nero present an interesting contrast in business strategy. The coffee bar operator is going for market development. Gerry Ford, Caffè Nero’s chairman who led the management buy-out of the business in 2007, has set a target of 100 branches to be opened in Turkey. He said that he was ‘also looking around Europe and scouting out China’. He is confident of success in Turkey. He has appointed Isik Asur, a Harvard Business School graduate, who used to run the Starbucks operation in the country. He knows all about the changing consumer tastes in the country as well as the political, social and economic environment there. 80 Asda – number two supermarket chain in the UK – has decided on the strategies of market penetration and product development to build sales growth. New food stores will be opened in the next few years in an attempt to gain ground on Tesco. It aims to be the lowest-price supermarket to increase food sales further. In addition, it is expanding rapidly into non-food retailing. It plans to open ten new Asda Living stores, selling a huge range of items for the home, but not food. Different businesses in different markets will often decide on different strategies for the future – even though overall objectives may be similar. 1 Suggest five facts about the Turkish consumer market and economy that Caffè Nero would have found useful before taking this strategic decision. Briefly explain why each one is important. 2 Using Ansoff’s matrix, compare and contrast the different strategies being adopted by these two companies and comment on possible reasons why these were decided upon. Approved by: ________________________ Date: 31jul2012 # of copies: ____ Pages: 1/__