The WRSX Company has gone a long way since its establishment in the target market. By choosing the route of resourcing growth and using the Silverfish Media as the investment target, the entrepreneurship created the foundation for its further development. The opportunities for increasing the market share and reallocating resources, therefore, are the primary positive aspects of the resourcing growth strategy.
The current performance of the company shows that resourcing growth helps design a more elaborate strategy of using resources. As a result, a significant increase in revenues ensues. Moreover, the tools for maintaining these rates high can be created (Jones, Macpherson, & Jayawarna 2013).
According to the financial indicators displayed in the Board Meetings 5 and 6, the WRSX organization has gone a long way from being a startup company to becoming a successful business. For example, the share price rose from £5.10 (as indicated in Board Meeting 5) to £6.96 (as shown in Board Meeting 6) (by £1.86 or 36.5%) (Phase 3: Board Meeting 6 1-2).
Furthermore, growth can be indicted in the profit for the period. At the end of Period 5, it was £37,000,000, whereas Period 6 ended at £48,800,000. I. e., an increase by £11,800,000 or 31.9%, was witnessed. The fact that the organization managed to gain that great a revenue shows that the strategy was chosen correctly and that the concept of resourcing growth has paid off for WRSX.
Likewise, the Price per Earnings (P/E) ratio shifted from 20.7 (Period 5) to 21.5 (Period 6). Further calculations show that the company witnessed a 3.86% rise (£0.8). In light of rather tough competition rates in the target market, the change was spectacular.
Similarly, the non-financial indicators point to a positive trend in the company’s development. The client attraction has also risen greatly, peaking at 81.6 after the 75.4 rating in Period 5 (6.2 points or 8.22%). Likewise, the procurement and supply management-related processes have improved by 5 points or 9% (from 55 to 60) since Period 5. One could make a slim argument that the risk management strategy slipped a few notches down as the current index is slightly lower than the one in period 5 (from 50.3 to 48.0, i.e., -4.57% or -2.3 points). However, the rest of the non-financial indices show that the organization has been developing successfully. Specifically, the Procurement and Supplier Management data needs to be noted. The switch from 55.0 to 60.0 (5 points, i.e., 10%) is also worth reviewing as a piece of evidence of the company’s growth.
The reasons for WRSX to increase its profitability so fast are rather simple. By investing in the Silverfish Media Company, the firm received a plethora of opportunities for enhancing its digital tools. As a result, WRSX updated its tools for reaching the customers, e.g., processing their feedback, promoting its new products, etc.
Therefore, the financial ratios as displayed in the performance records have increased significantly over the designated time (i.e., from Period 5 to Period 6). The information provided above allows making a strong assumption concerning the choice made in the course of the project. The choice of resourcing growth as the tool that WRSX could gain more credibility in the target market with has clearly become the pivotal point in the development of the entrepreneurship. As a result, the firm has gained a better position in the market, increasing its share. The concept of resourcing growth, therefore, should be considered as an efficient policy for a company entering a new economic environment and trying to gain a competitive advantage in it.
Boston Matrix
In the case in point, the application of the Boston Matrix Theory (Bendell 2014) was the pivotal point of the project as it showed the further course of evolution for the firm. Specifically, the Matrix helped place the maturing businesses in the “cash cow” area. The above detail led to the assumption that the maturing businesses should be viewed as the opportunity for the development of the entrepreneurship. Thus, the sources for investing in the Silverfish Media development were located.
Moreover, the theory prevented the project from failing by pointing to the “dogs” area. Particularly, the declining businesses were placed in the “dog” category under the Boston Matrix framework, which led to avoiding declining businesses. The choice between maturing and declining companies as the source of investment could be deemed as obvious; however, there was a threat that a growing company could be used as the target partner. The Boston Matrix, in its turn, helped show the way that the investments should be streamed (Holland & Lam 2014). The Matrix allowed understanding the significance of the maturing businesses for the Silverfish media as an essential part of the WRSX Company’s current strategy. Among other characteristics of the maturing businesses, the Boston Matrix framework identified the latter as strategically promising (Proctor 2014).
To sum up, the Boston Matrix became the foundation for the decision-making process. By splitting the entrepreneurship types of the target market into four key categories (dogs, cash cows, question marks, and stars), one gained an opportunity to identify the threats and the opportunities that WRSX faced. As the entrepreneurship was standing at the crossroads, the Boston matrix prompted the solution that it needed. The switch from investing into mature and declining businesses into Silverfish media (Board Meeting 6) was the step that the company needed to make to start resourcing growth, and the Boston Matrix was the tool that helped identify the only right solution.
Reference List
Bendell, T 2014, Building anti-fragile organisations: risk, opportunity and governance in a turbulent world, Ashgate Publishing, Ltd., Burlington, VT.
Bravura, J (Board Meeting 6), Resourcing Growth.
Bravura, J (Phase 3: Board Meeting 6), Agenda Item One – Resourcing Growth.
Holland, R, & Lam, B 2014, Managing strategic design, Palgrave Macmillan, Nw York, NY.
Jones, O, Macpherson, A, & Jayawarna, D 2013, Resourcing the start-up business: creating dynamic entrepreneurial learning capabilities, Routledge, New York, NY.
Proctor, T 2014, Strategic marketing: an introduction, Routledge, New York, NY.