MGT60 Strategic Management Assignment No2 Fall 2011 solution

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Strategic Management (MGT603) VU Assignment No. 2 Fall 2011

Assignment No. 02 Marks: 30

Let us assume that a sports company is operating in Pakistan with the name “Indus

Sports”. Indus Sports manufactures sports goods of both indoor and outdoor games. You are required to formulate strategies based on the following SWOT Analysis of the company. For your convenience, the boxes of the four groups of strategies (shaded as yellow) are left vacant for you to fill.

TOWS Matrix for Indus Sports

Strengths-S

· Experienced top management

· High capital reserves

· Imported machinery

· Factories in more than one cities

Weaknesses-W

· No brand identity

· High employee turnover

· Less diversified portfolio

· Inexperienced lower staff

· No company owned outlets



Opportunities-O

· High growth industry

· Sponsorship opportunity

· Growing number of football fans

· Minimum govt. legislation

· Sports wear products

SO-Strategies WO-Strategies

Threats-T

· Potential entrance of multinational company

· Load shedding

· High no. of competitors

ST-Strategies WT-Strategies

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Idea Solution

SO Strategies: Every firm desires to obtain benefit form its resources such benefit can only be obtained if utilize its strength to take external opportunity. Resources (Assets) an important firm’s strength to get opportunity for external resources. For example the firm enjoying a good financial position which is strength for a firm and externally opportunity to expand business. The strong financial position provides an opportunity to expand the business. The matched strategy is known as SO strategy.
WO Strategies:
WO Strategies developed to match weakness with opportunities of the firm. WO strategy is very useful if the firm take advantage to external resources in order to overcome the weakness. For example the firm is in the critical financial problems that is weakness and firm is availing merger with Multinational Corporation.
ST Strategies
ST Strategies is an important strategy to overcome external threats. This does not mean that a strong organization should always meet threats in the external environment head-on. This strategy is adopted by various colleges by opening new branches in order to overcome competitive thereat. These threats also explain by the Porter in its competitive model.
WT Strategies
Every firm has a desire to overcome its weakness and reducing threats. This type of strategy helpful when weaknesses are removed to overcome external threats. It is difficult to target WT strategy. For example weak distribution network creating many problems for the firm if it strong many external threats can be removed.