Saturday, October 30, 2010

MGT603 Assignment # 1 Solution

MGT603 Assignment No.1 Solution



QUESTION:
As you have read in your course that strengths and weaknesses are an organization's internal controllable activities that are performed especially well or poorly and opportunities and threats are the external factors. The organization either small or large has to keep an eye on the internal and external environment for keeping the pace with the changing environment.
Read the following situation and identify what you consider to be Fashion Inn’s major opportunities, threats, strengths, and weaknesses. List these key factors under separate headings. (5 Marks for each)
Solution:-

STRENGHTS
Sound finical condition of the owner.
Decentralized decision making approach or Entrepreneurial style of management.
Good relations with politicians.
Committed managers & employees due to participative decision making approach.
Mr. Sadiq possesses a good entrepreneurial skills.
Land of the company is not rented or leased. Its owned by the Mr. Sadiq.

WEAKNESS;
Smaller size of target market.
The company has no strong brand.
Less positioning of company s' products into customer s' mind.
Lack of marketing and operational expertise’s.
Low quality of raw material.

THREATS:
Inflation
Economic downturn
Seasonal change in garments business
Adverse economic conditions resulting lower purchasing power of customers.
Competitor s' threats.

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