Strategic Management and Joint Venture

1469 WordsSep 2, 20116 Pages
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…show more content…
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

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