The paper "Expanding Business of Coffee Shops" is a perfect example of a business case study. In the life cycle of businesses, the growth stage is characterized by an increase in revenue and the number of customers that a business receives. Also referred to as the survival stage, this phase requires strategic thinking, creativity and proper decision making on the part of the business stakeholders involved in the organization. The advantages of business growth are attractive to any organization with a vision to develop strategies and gain considerable power in the business industry (Rorthaermel, 2015).
Businesses seek expansion to make their brand recognized in the market, build business value for all the stakeholders involved and offer a wider and selective range of products and services for its customers (Czinkota, and Ronkainen, 2013). The success of businesses is continuously being demonstrated in their capacity to adapt to the rapid changes taking place globally. It is currently mandatory for organizations to be naturally flexible in order to show this capability. Among the strategic options that managers could use to successfully launch themselves of expansion is the Ansoff Matrix which is a technique for business analysis that enables managers to identify the opportunities for growth (Jenkins and Williamson, 2015).
The Ansoff matrix shows four different business strategies and the risks involved in every strategy. The strategies are based on the industrial market and the products and services of organizations (Thijsen et al, 2014). The differences henceforth that are observed in the successes of various organizations are primarily based on their ability to find innovative ways that enable them to adapt to change. Studies have shown that most successful companies and those seeking to be successful have launched into introducing novel products in fresh markets and additionally establishing new goods in markets that exist (Hill, Jones and Schilling, 2014).
This is otherwise referred to as diversification. This retro respect paper, therefore, seeks to discuss diversification as a strategy, basing its reference on a pharmaceutical company seeking to expand into the business of coffee shops.
Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning
GlaxoSmithKline plc., 2016. What we do. [Online] Retrieved from: http://www.gsk.com/about-us/what-we-do.html
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Hallbäck, J. and Gabrielsson, P., 2013. Entrepreneurial marketing strategies during the growth of
international new ventures originating in small and open economies. International
Business Review, 22(6), pp.1008-1020.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.
Kotler, P., Keller, K.L., Manceau, D. and Hémonnet-Goujot, A., 2015. Marketing management
(Vol. 14). Englewood Cliffs, NJ: Prentice Hall.
Lam, J., 2014. Enterprise risk management: from incentives to controls. John Wiley & Sons.
Miemietz, M. (2013). The Pharmaceutical Industry. CFA Institute Industry Guides, 2013(2), 1-
Morden, T., 2016. Principles of strategic management. Routledge.
Rosenblum, A. (2015). Specialty coffee expansion in traditional retail: lessons from non-
traditional retailers (Doctoral dissertation, Kansas State University).
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill.
Thijsen, T., Tong, T. and van Leer, J., 2014. Ansoff Model. Marketing.