Industrial Scope The organisation n

Industrial Scope
The organisation needs to be clear about the scope of business ventured.
Based on the example given of TransCity, if a company defines its business
as public land transportation, it will own buses, taxis and passengers train.


(b) Product and Use Scope
Based on the products and their usage. For example, the Nestle Company
offers a variety of nutritious food products to the whole world.
(c) Skill Scope
Based on the skill and advantages of competition of an organisation and its
members. For example, Telekom Malaysia will focus its development effort in the telecommunication industry.

(d) Market Segmentation Scope
Focuses on specific market segment continuously. For example, Zaiton Industries Bhd emphasises on the production of a variety of product for the use of Muslim consumers.

(e) Vertical Scope
Pays attention to all the business stages that exist in the marketing process
of a new product, beginning from the raw material until the distribution of the goods to the consumers. For example, Proton Berhad dominates several car components supplier and distribution companies in Malaysia as well as a few other countries that import Proton cars

(f) Geographical Scope
Focuses on business according to location such as Malaysia, Peninsular
Malaysia, ASEAN countries, Asia Pacific and others



4.2.2 Market Environment Analysis

This step is the organisation effort to better identify the environment that will be
faced by the organisation

The market environment analysis measure can be classified into two main scopes:
• Internal environment analysis; and
• External environment analysis.

Internal Enviroment Analysis Internal Environment Analysis
Staff
Procedures
Financial situation
Production technology
Workplace condition
Macro environment
Consumers and competitors Economy, technology, social,cultural,
political, legal, natural environment


4.2.3 Business Portfolio Analysis


Business unit Strategic Business Unit
Business unit refers to a product line or subsidiaries (allied companies) that can
be differentiated, particularly in terms of consumer and competitors. SBU is a business unit that will be the main contributing factor to the overall corporate revenue acquisition of the marketer.





There are three analysis methods that are most popular to analyse market
environment and the methods:
• BCG Share-Growth Matrix (BCG);
• GE Market Attraction Matrix (GE); and
• Ansoff Growth Grid.