Strategic Management (MGT603) Assignment No. 1 Marks: 20

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)

Fashion Inn is a local garment factory in Faisalabad. His owner Mr. Sadiq is not very well educated but has a good sense of business. He is very polite with his workers and staff and treats them like a family. Usually he prefers to take opinion from his staff and workers before making a final decision. Mr. Sadiq owns the land of the factory plus has good financial support. He also has good contact with some politicians.

In these days he is looking for suppliers from whom he can purchase his raw martial in some cheaper prices as he is thinking to lower down his prices in coming season. In addition to that he is not satisfied with the quality of the raw material. He has also heard from his manager that one of his competitors is planning to explore Europe market by exporting ready made garments. Seasonal change in the garment business is problematic in sense that he has to deliver his supply well on time in the market to secure confirm sale and profit.

Economic downturn and inflation has also adversely affected the purchasing power of people in Pakistan.

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.