QSPM:
The Quantitative Strategic Planning Matrix (QSPM) is a viable tool for making strategy-formulation decisions. This powerful basis will assist managers of a firm to take alternative feasible strategies for their particular business.
For developing a QSPM, there are six major steps as follows:
Step 1
Make a list of the firm’s key external opportunities/threats and internal strengths/weaknesses. As we have done in SWOT analysis before.
Step 2
Assign weights to each key external and internal factor. This part is already done in SWOT analysis.
Step 3
Examine matrices, and identify alternative strategies than the company should consider implementing. In this part, three alternative strategies grasp from previous analysis based
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0.065 - - - - - -
13 5% unit case volume decrease in 2006 east and south Asia and pacific rim division 0.065 - - - - - -
14 Availability and affordability of coke products caused problem in India and Philippine 0.080 - - - - - -
15 Coke didn’t meet expectation in 2006 in Japan. 0.065 - - - - - -
16 Recent loss of joint venture with Nestle 0.065 2 0.13 1 0.065 2 0.13
17 Shipment volume weakness in north America & Europe caused less earnings from operations 0.015 2 0.03 4 0.06 4 0.06
18 Decreasing in Inventory Turnover 0.045 1 0.045 4 0.18 4 0.18
19 No Budget for R&D 0.080 1 0.080 4 0.32 1 0.08
Grand Total 1.000 11.575 15.02 10.54
RESULT:
Each of the strategies has been chosen precisely based on the analysis in SWOT matching matrix. The reasons for choosing these three strategies are as follows:
First strategy is Product diversification represents different beverages produced by Coke. These products have had successful markets in various geographic areas. For instance, Coke Zero was successful in Australia and Thailand or success of new product combination in FIFA World Cup, are the strengths emerged from product diversification strategy. This strategy would be a powerful one to continue due to the previous pleasant experience for the firm in this area. Also, value
1. (TCO 2) List at least FOUR sources you will use to obtain information about the firm’s strengths, weaknesses, opportunities, and threats. Discuss what categories of the SWOT elements of information are readily available on the Internet. What categories of data are difficult or impossible to find on the Internet? (When using the Internet, be sure to provide specific websites or URLs.)
SWOT Analysis SWOT Analysis is a very effective way of identifying your Strengths and Weaknesses, and of examining the Opportunities and Threats you face. Carrying out an analysis using the SWOT framework helps to focus activities into areas where the business are strong and where the greatest opportunities lie. Strengths: * What advantages do you have?
For a company to create a SWOT analysis, they have to have a clear set objective so that they don’t face any serious problems such as wasting much needed time
Determine the strategic factors of the company 70 12. Generating alternative strategies by using a TOWS matrix 73 13. Evaluate strategic alternatives – pros and cons. 74 14. Recommend strategic for company (short, medium, and long term) 81 1.
Internal analysis are conducted so it can identify an organizations strengths and weakness. Threats and opportunities are identified by assessing the external environment. Either in its broad or competitive environment. The most essential result of a SWOT analysis is the ability to draw conclusions about the organizations situation and need for strategic action.
The Coca-Cola Bottling Company holds true to their values and strategy, thus creating more value within their brand. Business level strategy implements new products that embodies a fun and sociable atmosphere amongst family members and friends. This ambitious quality in a company is what pushes them past the threshold of complacency to move their product. One way they were able manage their brand globally was by using intense advertisements. Adding to their already famous and highly desired beverage, a business level strategy was instituted to add flavors to their cola product. By adding Cherry Coke and Vanilla Coke to their products, they satisfied the taste buds of millions upon millions of consumers here and abroad. Having the corporate level strategy makes the corporation thrive in the global market. It is also viewed as staying relevant or competitive, by developing more products that would best serve everyone who enjoys their product.
These objectives are reasonable. However, objectives should be specific and measurable. Some alternative objectives would be to focus the Company's resources toward achieving profitability by the fourth quarter of 2000 (an annual objective), and to increase profitability by 5 percent per year for the next 3 years (long-term objective). These objectives would give meaningful, measurable goals that management would need to obtain, or it would require management to re-evaluate the Company's objectives or the Company's strategy to achieve the objectives. With the aforementioned objectives in mind, the Companyneeds to implement a strategy to achieve the desired results. It is necessary to evaluate alternative strategies before selecting the actual strategy to implement. The SWOT or TOWS, SPACE, Grand Strategy, IE, and QSPM Matrices are tools to help in the evaluation and selection of alternative strategies. The matrices indicate that Amazon is in a strong competitive position, and that the Companyshould build and grow. The matrices indicate that, despite Amazon's financial position, the Companyhas some distinct competitive advantages in a high-growth or unstable industry. Some strategies for companies that fit this profile are backward, forward and horizontal integration, market penetration, market development, product development and joint venture. One strategy that would fit into
SWOT Analysis: The internal strengths and weaknesses of the company, and the external opportunities and threats from the viewpoint of the company
The objective of this report is to evaluate the Organizational Resources and Competitive Strategies of The Coca Cola Company in the USA. This study is conducted in order to carry out the company’s overall strategic Marketing reasoning. The report will highlight the Marketing capabilities, Competitive strategies adopted and the competitive Advantage Coca Cola USA has over its competitors in the country.
Coca-Cola Company has realized significant growth since its establishment to become a global leader in the marketing, manufacturing, and distribution of syrup and soft drinks. Out of the four generic strategies, the company has followed the differentiation strategy to make its products unique in the market. Its interest is to maximize the market share through the development of the most innovative products and the establishment of effective strategies to influence the customer’s decisions. In such a way, the company has integrated various strategies to ensure that desirable results are attained in the market. Its strategic choices align with the differentiation strategy in an attempt to make its products unique and meet diverse market requirements. To reduce its weaknesses, the company should consider exploiting key opportunities in the market including venturing in the packaging of water, promotion of new brands, and launching of healthy products. In particular, the vision and mission statement of Coca-Cola seems to have reconfirmed and changed in this process of company’s strategic analysis.
The focus of the SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. SWOT analysis groups key pieces of information into two main categories; internal factors and external factors. The internal factors are the strengths and weaknesses that are internal to the company while the external factors are the opportunities and threats that presented by the external environment. The internal factors are determined by their impact on the company’s objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The external factors may include technological change, legislation, cultural changes, and changes in the marketplace or competitive position (Wood, 2008).
SWOT analysis covers the strengths, weaknesses, opportunities & threats which a company is facing in its internal & external environment. Strengths & weaknesses fall under the internal environment of the company and opportunities & threats fall under the
SWOT stands for strengths, weaknesses, opportunities, and threats (Ferrell and Hartline, 2014, p. 39). A SWOT analysis evaluates both the internal factors (strengths and weaknesses) and external factors (opportunities and threats) that create advantages and disadvantages to a company when serving its customers (p. 39). A SWOT analysis is extremely beneficial in helping a company determine areas of improvement (p. 39). Internal factors examine the actual company being analyzed while external factors examine the external market (customers and competition) (p. 85).
SWOT Analysis: The SWOT analysis uses the Strength as internal advantage, Weakness as internal disadvantage, Opportunity as external advantage to the system and Threat as an external disadvantage to the system as a way to classify the various operations management issues using a structured format.
The company’s brand recognition is visible globally. It also possesses strong capital resources and has exhibited positive results to its shareholders in the past.