American Express Matrix Analysis free essay sample

An organization should conduct a SWOT analysis strategy with an aim of ensuring that it meets all its set goals. More so they will be at a position of identifying their competitors with whom they operate same businesses so as to ensure they remain competitive in the market. When evaluating the strength of an organization, organizations such as American Express should ensure that all the strengths of that organization are listed and more so it should ensure that all the profitable projects are well funded so as to ensure the set goals are achieved which will ensure profitability of the organization (Sharp, 2007). The organization should ensure all the strengths are well managed to ensure that other organizations do not get information on the management of the organization in a, way that they may get to manufacture same products that may confuse their customers for the original product. On the other hand, American Express should identify its weaknesses to ensure they solve their weaknesses in time before competitors realize it. We will write a custom essay sample on American Express Matrix Analysis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This will ensure that the competitors do not get to take advantage of the weaknesses of the company to take their customers. The information of the organization should remain private and confidential to only the management of the organization to ensure there is no disclosure of information to other competitors. The management should also ensure the weaknesses are identified in time before the organization starts making losses in its sales. Organizations such as American Express should also ensure they identify all the opportunities that that they may venture in, to ensure expansion of the business. For instance, it may seek to establish new business in different part of the world where they may reach a large market share which will to increased profitability of the business. The organization may also, chose to enlarge the mother company other than establishing subsidiary braches in different countries. This will also ensure there are improved products as well as services offered to the customers which will make the organization attract a large market share. For progress in the business, organizations should also ensure that all the threats are identified to ensure the management is at a position of identifying other business organizations that are a threat and may remain to be competitive in the market. Through identification of the organizations that are a threat, an organization will be at a position of ensuring they improve their products and services so as to compete with them. 2. Advantages of SWOT Matrix SWOT Matrix is an important tool in every organization since it is used to evaluate all factors that ensure productivity of the organization towards the attainment of the set goals. It has an advantage of ensuring that there is increase in the profitability of the business as a result of identifying the opportunities that the organization may venture in. another advantage of the SWOT matrix is that the management team will be at a position of building opportunities as well as focusing on the strengths of the organization. Third advantage is that the organization will be at a position of forecasting future threats to the organization and be at a position of taking caution in all that they do. Lastly it is a flexible activity whereby employees may be allowed to make contributions towards the achievement of the set goals. Disadvantages of SWOT Matrix There are also some disadvantages associated with SWOT Matrix. For instance, it needs to be conducted regularly for it to be effective. Second advantage is that the process may lack structured information to have all the activities handled effectively. 3. Recommendations for the firm to follow for the next three years For the American Express to remain competitive in the market and attract a large market share, it should ensure that all its travel activities are well managed so as to ensure there are no dissatisfaction of the customers. There are many recommendations that it has to consider for the next three years. For instance, it has to reduce its cost to the customers. This will facilitate in ensuring satisfaction of customers as a result of affordable prices. Second it should establish other travel branches in different parts of the world the organization may use $3000 for the expansion. This will facilitate in attraction of a large market share which will result to increased profit. The organization should also ensure that it advertise all its services through various media services that will meet many customers with an aim of convincing them to prefer their services as compared to those if other organizations. 4. Comparison of the my recommendation with those of the organization American Express has plans to establish some more companies in other parts of the world which compares with the recommendations offered for the next three years, since it is recommended that the organization should establish other branches in different areas with an aim of attracting a large market share. The recommendation of advertising also compare with that of American Express since they have a plan to identify online services to attract many customers. American Express also considers partnership with other organizations which will enable it to be more productive in the travel industry. 5. How to Implement the Recommendations American Express should ensure that it will have the best media that will offer correct information of all the services offered by the organization. This will ensure publicity of the organization which will increase customer satisfaction. This should be done thrice in a year to minimize the cost and increasing profit. When establishing new branches, American Express should survey an area to ensure it has the right target group. This will increase the number of customers served as well as the places in which the organization operates. The organization should ensure that its expansion is done after every two years. 6. How to evaluate the recommendations offered For the American Express to ensure that the recommendations offered will be achieved, the organization first needs to establish a, specific team that will lead the organization towards the achievement of the set recommendations. For instance, the sales manager should ensure that all sort of advertisement are made with an aim of reaching a large market share as well as ensuring all services offered by the organization are known to the customers. The team should ensure that all the set goals of the organization are achieved to ensure progress of the organization. Grand Strategy Matrix 1. Grand strategy matrix is an instrument used by the organization in ensuring that there are developed strategies that the organization will follow so as to ensure there is achievement of the set goals which will result to increased profitability. The matrix has four quadrants that the management should consider while setting strategies for the business operations. American Express should exercise all the four quadrants of the Grand Strategy Matrix so as to ensure they remain competitive in the market. This quadrant allows an organization to concentrate on the existing market so as to ensure they attract more customers with an aim of earning more profit (Fred, 2011). In this case American Express need to only settle in one range of business that is, travel business with an aim of prospering in all parts of the world. In the second quadrant, American Express is required to evaluate its businesses with an aim of identifying their position in the business. The organization should evaluate its competitive advantage and use it to compete with other competitors who are in the same line of business. In the third quadrant, American Express should ensure that they evaluate their weaknesses and their slow productivity in the market so as to ensure they sustain continuity in the business. The organization should consider the opinion offered by the management that will enable them increase their productivity rate. . Advantages of Grand Strategy Matrix The matrix has an added advantage to the organization. For instance it helps the organization to identify activities that needs to be incorporated in t6he business operations that will have it productivity increased. The second advantage is that the matrix is effective in the business operations and the knowledge is instilled in the management of the organizati on which facilitates them in achieving the set goals as well as making the travel business effective to its customers. The only disadvantage is that the matrix to some extent they may be expensive to accomplish all the process of ensuring quality of services of the organization is achieved. 3. Recommendation of the strategies of the firm that need to be followed for the next three years The firm should ensure there are set strategies that will be used in ensuring increase in productivity in terms of travel services. For instance the organization should ensure all the services are f quality that will facilitate in attraction of many customers in all parts of the world. Advertisement should be ensured through reliable media. The cost of the advertisement should be $100 within a year so as to ensure the advertisement cost will not exceed the output. American Express should also ensure recruitment of qualified staff that will be hand working and remain courteous to the customers with an aim of attracting them to prefer their services. The estimated cost for the recruitment process will be $50 in a year for the next three years. . Comparison of the actual recommendation with the ones provided The recommendations offered is that the organization should employ qualified personnel to ensure there is quality services offered to the customers. The organization also has recommendations for having quality staff that will be retain by the organization. The company is also recommended to improve their services offered to their customers so as to retain them and remain competitive in the organization. The company also recommends that there should be quality services to the organization which will facilitate increase in the market share. 5. How recommendations will be achieved For an organization to achieve all the recommendations, it has to work towards the achievement of the set goals. For instance the process of recruitment of new staff should be conducted without discrimination. For instance the process of recruitment should be done for one month and three months given notice to the potential, candidates to apply for the job. The advertisement process should also be made through media that is accessed by many customers. It should be done three times in a month for the next three years so as to make their services known to the customers. 6. Evaluation of the set Strategies For the American Express to ensure there is achievement of the established recommendations there must be an established group of the management of the organization that will be dealing with the evaluation of the activities that are being carried on towards the achievement of the set strategies. On the other hand there must be set funds that will be used in ensuring there are quality services to achieve the strategies.