STRATEGIC REPORT

The Biz Credit Card Strategic Report



Table of Contents

I.Situational Analysis3

a)Macro environment3

Economic Environment3

PESTLE Analysis4

b)Microenvironment6

The Travel Market6

The Card Market7

Global Market Analysis9

c)The Company10

II.Key Issues11

III.Objectives13

Mission Statement13

Objectives13

IV.Plan14

Task A: Individual Card14

a)Targeting14

b)Media Strategy14

Increased Internet presence14

Social Media Activities15

Airports, Travel agents offices, airplanes, rented cars15

c)Budget Breakdown16

Gant Chart17

Task B: Corporate Card17

a)Targeting17

b)Media Strategy18

Direct Mailing18

Internet Advertising through website, Social Networking Sites, E-mail18

c)Budget19

V.Summary/Conclusion19

The Biz Credit Card Strategic Report

Situational Analysis

Macro environment

Economic Environment

The UK economy attained a high growth rate of 2.8% in 2007, but economic deceleration began in 2008 when the GDP contracted by 0.1%. In 2009, the economy contracted by 4.9% with falling consumption and investment demand. External demand has also remained weak because of a slowdown in the global economy. The economy then recovered in 2010, achieving an albeit sluggish growth rate of 1.6%. Furthermore, economic problems have adversely affected the country's employment rate. Although the fiscal deficit fell from 3.4% of GDP in 2003 to 2.7% in 2007, it increased to 5.6% of GDP in 2008 owing to large-scale government expenditure programs. Due to lower tax revenues, the government's finances have also taken a hit in line with increased state spending, which is intended to boost the economy. This increased expenditure included the bailing out of ailing banks, with the fiscal deficit increasing to 11.5% in 2009. The UK's budget deficit for the 2010-11 financial years fell from almost €162bn to just below €147bn after a host of expenditure cuts were ordered by Conservative Prime Minister David Cameron. This resulted in the UK registering a fiscal deficit of 10.0% during 2010-11. Although the fiscal deficit fell in 2010, it continues to remain higher than the 3.0% stipulated by the European Monetary Union's Stability and Growth Pact (Datamonitor, 2011).

PESTLE Analysis

Political landscape

The UK is one of the most prosperous and influential nations in the world and has a large role to play on the international stage. It is one of the five permanent members of the UN Security Council, one of the founding members of the North Atlantic Treaty Organization (NATO), a member of the G8, and a member of the EU, although it has followed a conservative approach to the issue of European integration. David Cameron has taken a host of measures to reduce the fiscal deficit, including a 26% decrease in the central government's contribution to local councils by 2015, a 24% cut to the Foreign and Commonwealth office, and another 24% cut to the department for culture, media, and sport (Datamonitor, 2011).

Economic landscape

The country attained a high growth rate of 2.8% in 2007, but economic deceleration began in 2008 when the GDP contracted by 0.1%. In 2009, the economy contracted by 4.9% as external demand remained weak because of a slowdown in the global economy. The economy recovered in 2010 to grow at a sluggish rate of 1.6%. The economic slowdown has adversely affected the creation of jobs in the country. The unemployment rate was close to 5.6% in 2008, but reached around 7.6% in 2009. Nearly 2.5 million people were unemployed in 2010, which was the ...