Based on the information given along with the various strategies:

Integration Strategies

Forward Integration

Backward Integration

Horizontal Integration

Intensive Strategies

Market Penetration

Market Development

Product Development

Diversification Strategies

Related Diversification

Unrelated Diversification

Defensive Strategies

Retrenchment

Divestiture

Liquidation

Business Level Strategy

Cost Leadership

Differentiation

Focus Strategy

1. What 3 strategies did Mr. Francois and John Francois Stores used to become successful?

2. What 3 strategies can Mr. Francois use to gain a competitive advantage?
Transcribed Image Text:Strengths: Committed employees and mmagement, Appropriate management stylt, Adequate financial and human resources, Wide variety of products, Broad market coversge, Good financial management, Brand name reputation, Excellent customer service skills, Same expertise in new venture management Clearly, Mr. Francois was an astute businessman who was always thinking of the next move to grow the business. Hejoined the local Chamber of Commerce, continued to read widely about what was happening locally, regionally and intemationally, and made every effort to attend conferences and seminars which he thought would be beneficial. He ws always thinking about growth and expansion. John Francois Stores becameaknown business even to those persons who had never patronized the store In the midst of it all, Mr. Francois underastood his corporate social responsibility and as such was respected highly by other businessmen sand members of the community and country. There were a number of proud moments for Mr. Francois and employees when he was awarded Although Mr. Francois had spread his wings and continued to operate a successful and profitable business, he never stopped pondering his next move. By 2015, the total staffhad grown to one hundred (100) persons which included cashiers, information technology personnel, supervisors, customer service staff, cleaners, drivers and his five (5) children as managers with one at each branch. The children had been educated up to the undergraduate level and had a fairly good understanding of business processes. Mr. Francois was the Chaiman of the organization. Weaknesses: Lack of research and development skills, Lack of understanding of strategic management and planning. Opportunities: Exploit new market segments, Move into new businesses, but how and what type: Expand into foreign markets, Acquire a profitable acquisition. In addition to the stores, Mr. Francois had invested in four (4) beach-front properties which were booked for at lesst 90% of the year. These properties were well kept and maintained. Much of the occupancy was gained via word ofmouth although a website was developed. Regional and intemational tourists as well as local citizens made repeat visits, which demonstrated that the service received was excellent. Mr. Francois was proud ofhis achievements. the Business Man of the Year Award on three (3) occasions as well as several other awards throughout the years of operations. He was recognized for his business acumen. The years flew by quickly. Mr. Francois participated in amumber of short courses in management which belped to build his confidence. By the third yesr of operstions, Mr. Francois got an ides - "I could go to the various parts of CArribar, obsere theneeds of citizens and meet them ar their point of needs, and market my products."He packed his large Toyota panel van and along with his driver, be put his plan into action by going to different areas in Camihar on Saturdays and Sundays. Mr. Francois was successful with this venture and discovered that retirees, housewives and other persons did not leave their homes frequently, bat needed his products. He began to go into more villages and towns at least rwo (2) days per week in addition to Saturdays and Sundays. Within ten (10) years, Mr. Francois had set up branches at strategic locations in the west, north, south and cantral parts ofÇamibar. He achieved this by accessing low-interest loans from an established Credit Union and his bankers. He utilized and invested some of his savings to accomplish his ventures. There were now five (5) stores which were essilyecognizable as Threats: Increase in competition, but where do we look, New forms of competition, Changes in customer preferences, Rising costs of products and labour, Changes in demographic factors, Changes in economic factors and down tum in the economy, Slow growth in the market. Mr. Francois began to think about succession for his business and the future for his children who had been supporting him throughout the years. In the midst of the initiatives undertaken, and contimued success, Mr. Francois was very cognizant that the world of business was wrought with dynamism and uncertainty and that he and his family nesded to understand what and how further strategic moves could be undertaken. He had been reading and trying to keep up to date with what was happening in the world of business. He and his family did not have a full grasp of the theoretical underpinninga to maneuver quickly out of any new challenges, and he understood very well that challenges can surface with expansion. At the start of 2020, Mr. Francois and his family began to follow the news with respect to the deadly COVID-19 virus. Mr. Francois pondered "I wonder howthispandemic will afect our business. We sell mainty needs andsome wants, so we could epect our cusomersto continue to patronize us. However, we canna dismisswkat the ukimate efects may be on the business" The business has been successful, but Mr. Francois and his family bas recognized that things are changing in the environment and could have negative outcomes on the business. At the January 2020 monthly meeting, it was decided that the company should seek the services ofareputable and trusted person who can advise and assist the organization with getting a cdlear underatanding of what strategic managament and planning entails. Other matters discussed which the family sgreed to pursue included embarking on a training initistive which would include staff at all levels as well as to creste n awareness of the environmental factors that can affect the company. Mr. Francois and his family decided to hire you as a trust-worthy relative who he considered as intelligent and with an understanding ofbusiness strategies. The meeting ended with Mr. Francois thinking aloud that they should all read sbout what it mens to be innovative. He indicated that at thenext meeting, they will all come with their ideas of a plan that is different to what they are doing now and which can contribute to continued success. He was not sure what type of plan that would be. He has bean following keenly the possible impact and negative fallout that the company could experience because of the COVID-19 virus. However, as an astute businesamm, Mr. Francois realizad that there are capabilities within his organization which could be utilized and contribute to contimued success. He would have to think a bit more they were painted in the same coloas. Looking to the Future On a Growth Path By 1987, Mr. Francois Mills the staffhad increased and included the following senior members and who occupied offices at the main branch. These persons managed staff, some of whom were dispersed at the various branches as well s trained employees who were on the floor of the Stores. • Personnel Manager - was responsible for ensuring that human resource practices including health and safety procedures were adhered to Accountant - responsible for ensuring that accounting standards are upheld. Also, the member was responsible for the cashiering function. • Procurement Inventory Manager-responsible for ensuring that adequate stock is always available through the efficient and timely management of inventory. • Marketing Manager- works alongside the Procurement/ Inventory Manager to promote the organization, its products and seasonal promotions. Undoubtedly, John Francois Stores has been a successful organization, but something waa nesded to take the organization onto thenext wave. As a family, they looked at the finmcials very closely and recognized that while the company was still ahead of other similar establishments, with an influx of customers at all branches, the profits had been reducing in the three (3) years prior to 2019, though minimally. It was detemined that there were several factors in the extemal environment that were impacting businesses generally. Mr. Francois and his family had their usual monthly meeting in December 2019 and you were invited to get a better understanding of the status of the organization. At the meeting, some points were noted in relation to the present status of the organization, namely a SWOT Analysis. Whist the SWOT Analysis was not fully articulated in tems of what the strengths can and have brought to the Company; how the wealnesses are impacting the Company; the possible about his next move. Mr. Francois stretched his imagination, "We kad better start thinking about starting a brancih in anodrer idand some foreign COunoy, or start to manufacture something thatpeople willneed" Then he pondered to himself, "I do not kave all the knowledge about the invicacies of what I am thinking and the so-called strangies to continue to be a winner" outcomes from taking advantage of available opportunities; and the possible impact of thrests, the brief notes are highlighted below:
Transcribed Image Text:Table #1 below: An Opportunity for You to demonstrate your Knowledge, Skilk, Abilities and Other Characteristics (KSAOCS) Cosmetics and related School itema - copy products for mem and books, pancils, pens Baic food/grocery items - rice, flour, rulers, etc. sugar, peas, salt, sesonings and other condiments women. Mr. John Francois, avery successful businesaman is contemplating his nextmove at the age of seventy (70). As a young man at the age of sixteen (16), he dreamt of becoming a "businesaman" and would go into stores in the city where he lived and observe how persomel operated. In his exploits, he became very friendly with manyof the business owners in the city. As time passed, John Francois obtained four (4) Advanced Level subjects (Mathematics, Geography, English Literature and Spanish). He also enrolled in a Technical Vocational institution and pursued short courses in tiling, plumbing, masony and electrical maintenance for which he gained certification. Through his qualificatians, John was able to secure employment quite essily from the age of seventeen (17) years. Within afive (5) year period, John had worked at alarge hardware store, then a small home branch of a large Bank, and alarge successful insurance Personal hygiene Plumbing and A variety of snacks products electrical material and soft drinks Perfumes/fragrances Small appliances Kitchen ware and Glassware Clothing and footwa Household items - for babies, and boys snd girls A variety of gift items batteries, glue, tacka, company. During that time, John was being very observant and was recognized by each of his employers as an asset. However, John was "hungry" and wanted to achieve his dream of becoming a "big businessman". etc. Ladies and gents Household cleaning Gardening Opportunity Ahead! Unfortunately, John Francois lost bothhis parents bythe age of twenty-three (23), but he was laf with a fortune. By the age of twenty-four (24) John decided to erect a four-story building on a piece of land which he had inherited in the city. He was focused on his goal of starting a business. He began reading autobiographies and other books about successful businesamen across the world. Healso sought advice from the collesgues and mentors whom he had met along the way. He was never afraid to seek advice. In 1977, at the age of twenty-six (26), John Francois had completed the large commercial building at the comer of French Street and John Street, the main street in the city and one of the busiestcomers in the city of Timberland on the esstem part of the island of Çamiher. The building was painted in a bright florescent green and bordered with bright yellow. "My building must be a landmark in Timberland", he thought to himself. The people of Timberland were a diverse population in many ways and the building wa a true reflection of Çamikar. Mr. Francois operated as a sole proprietorshipfor many years selling a variety of almost every item that a household couldwant as shown in the table below: underwear and other products tools/implements and everyday gaments hardware items Gym ahoes and slippers for ladies and Sewing items Avariety of handy man tools gents The Early Years and Thinking Ahead John Francois Stores began withfive (5) employees: a cahier, twostore clerks, one driver and a demer. The store was well sectioned with the variety of items sold. The size of the building allowed Mr. Francois to offer for rental four (4) large offices on the third floor to two (2) lawyers and two (2) accoumting fims. The fourth floor was reserved for rental for fumctions, parties and other activities by the citizens from all over Çamitar. To date, the rentals have been bringing ina hefty monthly income. John Francois Stores Orders are placed with wholesalers who would deliver the products on scheduled daya. Mr. Francois remains a very organized individual. During the first two (2) years of operating in the city of Timberland, Mr. Francois observed that his customers comprised of citizens from all over the island. He began to plan. He thoughtof setting up branches in the west, north, south and central parts of Çamihar, but with the Timberland store remaining as the flagship branch. pies the ground and lst floors of the building.

Question

Based on the information given along with the various strategies:

Integration Strategies

Forward Integration

Backward Integration

Horizontal Integration

Intensive Strategies

Market Penetration

Market Development

Product Development

Diversification Strategies

Related Diversification

Unrelated Diversification

Defensive Strategies

Retrenchment

Divestiture

Liquidation

Business Level Strategy

Cost Leadership

Differentiation

Focus Strategy

1. What 3 strategies did Mr. Francois and John Francois Stores used to become successful?

2. What 3 strategies can Mr. Francois use to gain a competitive advantage?

Transcribed Image Text:Strengths: Committed employees and mmagement, Appropriate management stylt, Adequate financial and human resources, Wide variety of products, Broad market coversge, Good financial management, Brand name reputation, Excellent customer service skills, Same expertise in new venture management Clearly, Mr. Francois was an astute businessman who was always thinking of the next move to grow the business. Hejoined the local Chamber of Commerce, continued to read widely about what was happening locally, regionally and intemationally, and made every effort to attend conferences and seminars which he thought would be beneficial. He ws always thinking about growth and expansion. John Francois Stores becameaknown business even to those persons who had never patronized the store In the midst of it all, Mr. Francois underastood his corporate social responsibility and as such was respected highly by other businessmen sand members of the community and country. There were a number of proud moments for Mr. Francois and employees when he was awarded Although Mr. Francois had spread his wings and continued to operate a successful and profitable business, he never stopped pondering his next move. By 2015, the total staffhad grown to one hundred (100) persons which included cashiers, information technology personnel, supervisors, customer service staff, cleaners, drivers and his five (5) children as managers with one at each branch. The children had been educated up to the undergraduate level and had a fairly good understanding of business processes. Mr. Francois was the Chaiman of the organization. Weaknesses: Lack of research and development skills, Lack of understanding of strategic management and planning. Opportunities: Exploit new market segments, Move into new businesses, but how and what type: Expand into foreign markets, Acquire a profitable acquisition. In addition to the stores, Mr. Francois had invested in four (4) beach-front properties which were booked for at lesst 90% of the year. These properties were well kept and maintained. Much of the occupancy was gained via word ofmouth although a website was developed. Regional and intemational tourists as well as local citizens made repeat visits, which demonstrated that the service received was excellent. Mr. Francois was proud ofhis achievements. the Business Man of the Year Award on three (3) occasions as well as several other awards throughout the years of operations. He was recognized for his business acumen. The years flew by quickly. Mr. Francois participated in amumber of short courses in management which belped to build his confidence. By the third yesr of operstions, Mr. Francois got an ides - "I could go to the various parts of CArribar, obsere theneeds of citizens and meet them ar their point of needs, and market my products."He packed his large Toyota panel van and along with his driver, be put his plan into action by going to different areas in Camihar on Saturdays and Sundays. Mr. Francois was successful with this venture and discovered that retirees, housewives and other persons did not leave their homes frequently, bat needed his products. He began to go into more villages and towns at least rwo (2) days per week in addition to Saturdays and Sundays. Within ten (10) years, Mr. Francois had set up branches at strategic locations in the west, north, south and cantral parts ofÇamibar. He achieved this by accessing low-interest loans from an established Credit Union and his bankers. He utilized and invested some of his savings to accomplish his ventures. There were now five (5) stores which were essilyecognizable as Threats: Increase in competition, but where do we look, New forms of competition, Changes in customer preferences, Rising costs of products and labour, Changes in demographic factors, Changes in economic factors and down tum in the economy, Slow growth in the market. Mr. Francois began to think about succession for his business and the future for his children who had been supporting him throughout the years. In the midst of the initiatives undertaken, and contimued success, Mr. Francois was very cognizant that the world of business was wrought with dynamism and uncertainty and that he and his family nesded to understand what and how further strategic moves could be undertaken. He had been reading and trying to keep up to date with what was happening in the world of business. He and his family did not have a full grasp of the theoretical underpinninga to maneuver quickly out of any new challenges, and he understood very well that challenges can surface with expansion. At the start of 2020, Mr. Francois and his family began to follow the news with respect to the deadly COVID-19 virus. Mr. Francois pondered "I wonder howthispandemic will afect our business. We sell mainty needs andsome wants, so we could epect our cusomersto continue to patronize us. However, we canna dismisswkat the ukimate efects may be on the business" The business has been successful, but Mr. Francois and his family bas recognized that things are changing in the environment and could have negative outcomes on the business. At the January 2020 monthly meeting, it was decided that the company should seek the services ofareputable and trusted person who can advise and assist the organization with getting a cdlear underatanding of what strategic managament and planning entails. Other matters discussed which the family sgreed to pursue included embarking on a training initistive which would include staff at all levels as well as to creste n awareness of the environmental factors that can affect the company. Mr. Francois and his family decided to hire you as a trust-worthy relative who he considered as intelligent and with an understanding ofbusiness strategies. The meeting ended with Mr. Francois thinking aloud that they should all read sbout what it mens to be innovative. He indicated that at thenext meeting, they will all come with their ideas of a plan that is different to what they are doing now and which can contribute to continued success. He was not sure what type of plan that would be. He has bean following keenly the possible impact and negative fallout that the company could experience because of the COVID-19 virus. However, as an astute businesamm, Mr. Francois realizad that there are capabilities within his organization which could be utilized and contribute to contimued success. He would have to think a bit more they were painted in the same coloas. Looking to the Future On a Growth Path By 1987, Mr. Francois Mills the staffhad increased and included the following senior members and who occupied offices at the main branch. These persons managed staff, some of whom were dispersed at the various branches as well s trained employees who were on the floor of the Stores. • Personnel Manager - was responsible for ensuring that human resource practices including health and safety procedures were adhered to Accountant - responsible for ensuring that accounting standards are upheld. Also, the member was responsible for the cashiering function. • Procurement Inventory Manager-responsible for ensuring that adequate stock is always available through the efficient and timely management of inventory. • Marketing Manager- works alongside the Procurement/ Inventory Manager to promote the organization, its products and seasonal promotions. Undoubtedly, John Francois Stores has been a successful organization, but something waa nesded to take the organization onto thenext wave. As a family, they looked at the finmcials very closely and recognized that while the company was still ahead of other similar establishments, with an influx of customers at all branches, the profits had been reducing in the three (3) years prior to 2019, though minimally. It was detemined that there were several factors in the extemal environment that were impacting businesses generally. Mr. Francois and his family had their usual monthly meeting in December 2019 and you were invited to get a better understanding of the status of the organization. At the meeting, some points were noted in relation to the present status of the organization, namely a SWOT Analysis. Whist the SWOT Analysis was not fully articulated in tems of what the strengths can and have brought to the Company; how the wealnesses are impacting the Company; the possible about his next move. Mr. Francois stretched his imagination, "We kad better start thinking about starting a brancih in anodrer idand some foreign COunoy, or start to manufacture something thatpeople willneed" Then he pondered to himself, "I do not kave all the knowledge about the invicacies of what I am thinking and the so-called strangies to continue to be a winner" outcomes from taking advantage of available opportunities; and the possible impact of thrests, the brief notes are highlighted below:

Table #1 below:
An Opportunity for You to demonstrate your Knowledge, Skilk, Abilities and Other
Characteristics (KSAOCS)
Cosmetics and related School itema - copy
products for mem and books, pancils, pens
Baic food/grocery
items - rice, flour,
rulers, etc.
sugar, peas, salt,
sesonings and other
condiments
women.
Mr. John Francois, avery successful businesaman is contemplating his nextmove at the age of
seventy (70). As a young man at the age of sixteen (16), he dreamt of becoming a "businesaman"
and would go into stores in the city where he lived and observe how persomel operated. In his
exploits, he became very friendly with manyof the business owners in the city. As time passed,
John Francois obtained four (4) Advanced Level subjects (Mathematics, Geography, English
Literature and Spanish). He also enrolled in a Technical Vocational institution and pursued short
courses in tiling, plumbing, masony and electrical maintenance for which he gained
certification. Through his qualificatians, John was able to secure employment quite essily from
the age of seventeen (17) years. Within afive (5) year period, John had worked at alarge
hardware store, then a small home branch of a large Bank, and alarge successful insurance
Personal hygiene
Plumbing and
A variety of snacks
products
electrical material
and soft drinks
Perfumes/fragrances
Small appliances
Kitchen ware and
Glassware
Clothing and footwa Household items -
for babies, and boys
snd girls
A variety of gift items
batteries, glue, tacka,
company. During that time, John was being very observant and was recognized by each of his
employers as an asset. However, John was "hungry" and wanted to achieve his dream of
becoming a "big businessman".
etc.
Ladies and gents
Household cleaning
Gardening
Opportunity Ahead!
Unfortunately, John Francois lost bothhis parents bythe age of twenty-three (23), but he was laf
with a fortune. By the age of twenty-four (24) John decided to erect a four-story building on a
piece of land which he had inherited in the city. He was focused on his goal of starting a
business. He began reading autobiographies and other books about successful businesamen
across the world. Healso sought advice from the collesgues and mentors whom he had met
along the way. He was never afraid to seek advice. In 1977, at the age of twenty-six (26), John
Francois had completed the large commercial building at the comer of French Street and John
Street, the main street in the city and one of the busiestcomers in the city of Timberland on the
esstem part of the island of Çamiher. The building was painted in a bright florescent green and
bordered with bright yellow. "My building must be a landmark in Timberland", he thought to
himself. The people of Timberland were a diverse population in many ways and the building wa
a true reflection of Çamikar. Mr. Francois operated as a sole proprietorshipfor many years
selling a variety of almost every item that a household couldwant as shown in the table below:
underwear and other
products
tools/implements and
everyday gaments
hardware items
Gym ahoes and
slippers for ladies and
Sewing items
Avariety of handy
man tools
gents
The Early Years and Thinking Ahead
John Francois Stores began withfive (5) employees: a cahier, twostore clerks, one driver and a
demer. The store was well sectioned with the variety of items sold. The size of the building
allowed Mr. Francois to offer for rental four (4) large offices on the third floor to two (2) lawyers
and two (2) accoumting fims. The fourth floor was reserved for rental for fumctions, parties and
other activities by the citizens from all over Çamitar. To date, the rentals have been bringing ina
hefty monthly income. John Francois Stores
Orders are placed with wholesalers who would deliver the products on scheduled daya. Mr.
Francois remains a very organized individual. During the first two (2) years of operating in the
city of Timberland, Mr. Francois observed that his customers comprised of citizens from all over
the island. He began to plan. He thoughtof setting up branches in the west, north, south and
central parts of Çamihar, but with the Timberland store remaining as the flagship branch.
pies the ground and lst floors of the building.

Accepted Answer

Marketing strategies encompass a company's overall plan for reaching consumers and turning them into…