MGT603 Assignment 1 Solution and Discussion

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Please share you Assignment

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@Anaya-Ch please post questions

[Anaya Ch]

Topic : CPM & Factor evaluation Due Date: July 29, 2020
Objective of the Assignment: To familiarize students about different techniques of company evaluation and their application.

Learning Outcomes: After attempting the assignment students will be able to know how to calculate CPM and factor scores and it’s use in decision making.
Scenario:
Katan is a leading clothing brand having a large market share in the province of Punjab. Having started its operations just 3 years ago Katan rightly capitalized on the growing demand of ready- made designer clothes for both men and women through its brick and mortar outlets. Given the huge demand and positive customer response towards the brand, Katan decided to launch its brand in other provinces of Pakistan namely Sindh, KPK, GB and Baluchistan by opening 100 more outlets. All matters related to expansion were in the final stages when the whole world got hit by Covid-19 pandemic. Two months into the pandemic, sales have nose-dived to almost 5% of the pre lockdown levels and on top of that company is losing its market share to competitors who are operating online. Katan strongly believed in its business strategy of brick and mortar outlets which have now left it no choice but to reinvent its business model from scratch.
For this purpose, the company has hired a top Strategic Management Consultancy firm to develop and suggest a comprehensive strategy after analyzing the current environment and competitors to e with the changing business dynamics of the current era. In this regard, the consultancy firm has developed the Internal External Matrix and Competitive Profile Matrix for the company to gauge current competitive landscape and operating environment of the company so it will be able to devise a comprehensive strategy based on the current information. CEO of the company has directed you to further analyze the available data to figure out the important things for deciding about the future course of action. The consultancy firm has provided the following data for analysis.
External Factors Evaluation
Factors
Weight
Katan
Increased Competition
0.18
2
Government Support for Industry
0.10
2
Changing Social Factors
0.17
2
Subsidized Funding
0.10
1
Availability of skilled manpower
0.15
2
Technological advancements
0.15
1
Growth of the Pakistani economy
0.10
2
Variation of customers’ choices
0.05
3

Internal Factors Evaluation
Factors
Weight
Katan
Financial position and stability
0.20
2
Technological understanding
0.20
1
Market share
0.10
2 Management expertise
0.08
1
Market outreach in the region
0.07
2
Client relationships
0.25
4
Operational capabilities
0.10
2

Competitive Profile Matrix

Critical Success Factors
Weight
Katan
Zara’s Designs
HSU Designs
Advertising
0.06
2
3
4
Brand Image
0.07
4
2
3
Customer Loyalty
0.07
4
2
2
Brick & Mortar Market Share
0.10
4
2
3
Online Retail Market Share
0.20
1
3
4
Price Competition
0.07
3
3
3
E-Commerce
0.13
1
4
4
Distribution
0.11
2
4
2
Strategic Supplier Partnership
0.04
3
2
2
Variety of Products
0.07
2
3
3
Financial Position
0.08
2
4
2

1. Compute EFE and IFE scores for Katan and comment on their strategic position of the
   a. Identify one key External Factor that Katan should immediately take benefit of, to address its weak financial position. (2 Marks for whole part)
2. Calculate CPM score for each company (2 Marks)
   a. Based on your CPM calculations identify two major strong points and two major weak points of the Katan. (2 Marks)
3. Considering CPM, IFE and EFE matrix in mind, comment on the possible course of action that management should take to stride through these difficult times. (4 Marks)

[zaasmi]

@Anaya-Ch said in MGT603 Assignment 1 Solution and Discussion:

Topic : CPM & Factor evaluation Due Date: July 29, 2020
Objective of the Assignment: To familiarize students about different techniques of company evaluation and their application.

Learning Outcomes: After attempting the assignment students will be able to know how to calculate CPM and factor scores and it’s use in decision making.
Scenario:
Katan is a leading clothing brand having a large market share in the province of Punjab. Having started its operations just 3 years ago Katan rightly capitalized on the growing demand of ready- made designer clothes for both men and women through its brick and mortar outlets. Given the huge demand and positive customer response towards the brand, Katan decided to launch its brand in other provinces of Pakistan namely Sindh, KPK, GB and Baluchistan by opening 100 more outlets. All matters related to expansion were in the final stages when the whole world got hit by Covid-19 pandemic. Two months into the pandemic, sales have nose-dived to almost 5% of the pre lockdown levels and on top of that company is losing its market share to competitors who are operating online. Katan strongly believed in its business strategy of brick and mortar outlets which have now left it no choice but to reinvent its business model from scratch.
For this purpose, the company has hired a top Strategic Management Consultancy firm to develop and suggest a comprehensive strategy after analyzing the current environment and competitors to e with the changing business dynamics of the current era. In this regard, the consultancy firm has developed the Internal External Matrix and Competitive Profile Matrix for the company to gauge current competitive landscape and operating environment of the company so it will be able to devise a comprehensive strategy based on the current information. CEO of the company has directed you to further analyze the available data to figure out the important things for deciding about the future course of action. The consultancy firm has provided the following data for analysis.
External Factors Evaluation
Factors
Weight
Katan
Increased Competition
0.18
2
Government Support for Industry
0.10
2
Changing Social Factors
0.17
2
Subsidized Funding
0.10
1
Availability of skilled manpower
0.15
2
Technological advancements
0.15
1
Growth of the Pakistani economy
0.10
2
Variation of customers’ choices
0.05
3

Internal Factors Evaluation
Factors
Weight
Katan
Financial position and stability
0.20
2
Technological understanding
0.20
1
Market share
0.10
2 Management expertise
0.08
1
Market outreach in the region
0.07
2
Client relationships
0.25
4
Operational capabilities
0.10
2

Competitive Profile Matrix

Critical Success Factors
Weight
Katan
Zara’s Designs
HSU Designs
Advertising
0.06
2
3
4
Brand Image
0.07
4
2
3
Customer Loyalty
0.07
4
2
2
Brick & Mortar Market Share
0.10
4
2
3
Online Retail Market Share
0.20
1
3
4
Price Competition
0.07
3
3
3
E-Commerce
0.13
1
4
4
Distribution
0.11
2
4
2
Strategic Supplier Partnership
0.04
3
2
2
Variety of Products
0.07
2
3
3
Financial Position
0.08
2
4
2

1. Compute EFE and IFE scores for Katan and comment on their strategic position of the
   a. Identify one key External Factor that Katan should immediately take benefit of, to address its weak financial position. (2 Marks for whole part)
2. Calculate CPM score for each company (2 Marks)
   a. Based on your CPM calculations identify two major strong points and two major weak points of the Katan. (2 Marks)
3. Considering CPM, IFE and EFE matrix in mind, comment on the possible course of action that management should take to stride through these difficult times. (4 Marks)

Solution:
Strategic Management (MGT603)

Factors	Weight	Katan	Weighted Score
Increased Competition	0.18	2	0.36
Government Support for Industry	0.10	2	0.2
Changing Social Factors	0.17	2	0.34
Subsidized Funding	0.10	1	0.1
Availability of skilled manpower	0.15	2	0.3
Technological advancements	0.15	1	0.15
Growth of the Pakistani economy	0.10	2	0.2
Variation of customers’ choices	0.05	3	0.15
Total	1.00		1.80

The EFE rating of 1.8 suggests that Katan is below average in its efforts to pursue strategies that capitalize on external opportunities and avoid threats.
 
Internal Factors Evaluation

Factors	Weight	Katan	WEIGHTED SCORE
Financial position and stability	0.20	2	0.4
Technological understanding	0.20	1	0.2
Market share	0.10	2	0.2
Management expertise	0.08	1	0.08
Market outreach in the region	0.07	2	0.14
Client relationships	0.25	4	1
Operational capabilities	0.10	2	0.2
TOTAL	1.00		2.22

The IFE rating of 2.22 suggests that Katan is below average in its efforts to pursue strategies that capitalize on internal strengths and avoid weaknesses.
a. One key factor that Katan should take to address its weak financial position is Government Support.

Competitive Profile Matrix

Critical Success Factors	Katan			Zara’s Designs			HSU Designs
	Weight	Rating	Score	Weight	Rating	Score	Weight	Rating	Score
Advertising	0.06	2	0.12	0.06	3	0.18	0.06	4	0.24
Brand Image	0.07	4	0.28	0.07	2	0.14	0.07	3	0.21
Customer Loyalty	0.07	4	0.28	0.07	2	0.14	0.07	3	0.21
Brick & Mortar Market Share	0.10	4	0.4	0.10	2	0.2	0.10	3	0.3
Online Retail Market Share	0.20	1	0.2	0.20	3	0.6	0.20	4	0.8
Price Competition	0.07	3	0.21	0.07	3	0.2	1 0.07	3	0.21
E-Commerce	0.13	1	0.13	0.13	4	0.52	0.13	4	0.52
Distribution	0.11	2	0.22	0.11	4	0.44	0.1	1 2	0.22
Strategic Supplier Partnership	0.04	3	0.12	0.04	2	0.08	0.04	2	0.08
Variety of Products	0.07	2	0.14	0.07	3	0.2	1 0.0	7 3	0.21
Financial Position	0.08	2	0.16	0.08	4	0.32	0.08	2	0.16
TOTAL	1		2.26	1		3.04	1		3.09

As indicated in CPM Katan is the weakest competitor with a score of 2,26

a. Strong Points of Kazan

• Customer Loyalty
• Brick & Mortar Market Share

b. Weak Points of Katan

• Online Retail Market Share
• E-Commerce

3. Considering the IFE, EFE and CPM, we can clearly see the below par performance of Katan as this company is performing below average. It is not able to capitalize on external opportunities and cannot cope with the threats. The company cannot capitalize on its strengths and cannot overcome its weaknesses. It is the weakest in its competitors.
   After in depth analysis, I suggest that the company should rephrase its thinking and course of action. They should capitalize their brand image and customer loyalty but should consider that to survive in this pandemic they should go for alternatives like online shopping and e-commerce. For its financial stability, Katan should look for government support.

[Anaya Ch]

@zaasmi thankyou soo much

[zaasmi]

@Anaya-Ch said in MGT603 Assignment 1 Solution and Discussion:

@zaasmi thankyou soo much

You’re welcome

[Hania Butt]

Preliminary Requirement:
In this assignment students have to solve a case study. The case study can be downloaded from the Downloads section of LMS. File name: “Why Knowledge Management Fails - Lessons from a Case Study”.
The case study is about a typical organization with a strong awareness and expectation of knowledge management, yet its program failed within two years.
Question:
What are the reasons of failure despite of having awareness about the significance of knowledge management? Write three reasons of failures and what could be done differently to avoid those failures.
How to Attempt the Assignment:

1. Narrate the failures in bullets format. 2. Give heading of each failure and then rationally discuss about it in next paragraph. 3. Maximum word limit is 1000 words.