Project One Case Study (Field is Business, Class is Business Policy Essay

Project One Case Study (Field is Business, Class is Business Policy and Strategy ) - Essay Example American made teddy bears- this is probably the most important core competency of the firm giving it the overall market recognition as well as acceptance at the national level. 2. Developing quality products is another important core competency of the firm given the fact that the firm due to the use of high quality American material and labor in manufacturing the teddy bears. EFAS and IFAS Matrix Factor Weight Rating Weighted Score Comments Strengths American Heritage 0.2 5 1 Firm has a rich American heritage and over the period of time has been able to achieve the success owing to the fact that it has American material and labor in preparing its products. Quality products 0.3 5 1.5 Over the period of time, firm has made quality products made directly from the American material. Weaknesses Poor Management Structure 0.3 5 1.5 Over the period of time firm has changed few CEOs. Further, board is not so active. Declining sales 0.2 5 1.5 Firm is facing declining sales since last few years owing to the structural problems. Opportunities Opportunity to sell on internet 0.3 5 1.5 Internet can offer a growing niche market for the firm to grow. Increase overall retail presence by developing different distribution channels. 0.2 5 1 Developing alternative channels of distribution will offer better opportunities to sell Threats Increased competition from firms offering gift items 0.3 5 1.5 As described the firm is not actually in the business of selling teddy bears but selling gifts. Structure and nature of industry 0.2 5 1 Overall industry is fragmented thus increasing the level of competition. SWOT Factors Considering the above discussion and facts provided in the case, following are the SWOT factors 1. Firm has a rich history and American heritage which offered the firm an opportunity to develop a niche market for itself in the local market. 2. Offering high quality services backed up by excellent customer services. 3. Firm works in a fragmented industry therefore the ov erall nature and extent of competition can be relatively higher and more intense. 4. Opportunity to develop alternative distribution channels through internet and ecommerce. Globalization Aspects Firm outsourced its materials procurement thus effectively participating in a globalized market and being affected by the forces dominating the global trade. There may some important aspects of globalization which can effectively allow the company to enjoy lower costs while at the same time enjoying same quality. This can allow the firm to become more competitive and improve its profitability besides becoming more efficient. Stakeholder Analysis Board of Directors is another stakeholder with high power but with low interest. Directors of the firm are the primary stakeholders with high interest and high power Government and other agencies may be stakeholders with high power but with low interest. Other Shareholders are another stakeholder group with high interest but low power. Decisions tak en Different strategic decisions taken are based on the fact that the firm intends to improve the profitability while at the same time improving efficiency. The decisions like retrenchment therefore are intended at ensuring that the costs remain within