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MGT603 Strategic Management Assignment No 01 Spring 2019 Solution & Discussion Due Date: 23-05-2019

MGT603 Strategic Management Assignment No 01 Spring 2019 Solution & Discussion Due Date: 23-05-2019

MGT603 Strategic Management Assignment No. 1 Solution Spring 2019 due date 23-May-2019.

SEMESTER SPRING 2019

Strategic Management (MGT603)

Assignment # 01
TOPIC: EFE & IFE analysis

MARKS: 10
Due Date: 23 MAY 2019

Learning Objective:
• Students will be able to learn about EFE & IFE analysis.
Learning Outcome:
• Students will be able to evaluate the internal and external factors to know the
company position. Furthermore, they will be able to make decision about the
future of the company.
The Case:
Al Noor Foods is a fast growing agro-based industry in the central region of Pakistan. Al Noor
Foods initially started its operations in 2000 by supplying packaged vegetables in the nearby
cities. Over the years the operations of the company grew rapidly and it started supplying
its products to all major cities in Punjab province.
SEMESTER SPRING 2019
In 2002 the company started its poultry business and it owns farms for vegetable production and
chicken farming. By considering the healthy growth of the current business, Al Noor Foods
jumped into the dairy business in 2010 and earned success in the market by capitalizing its brand
name. Meanwhile, the company got listed in Pakistan stock exchange and showed a rapid activity
of its shares both by volume and price. However, since year 2012, the entrance of new players in
the agro industries has increased competition and it started impacting Al Noor Foods as well.
Mr. Nouman the CEO of the company is much concerned about the growing competition and the
general financial health of the company. After a long discussion with the executives, the company
has decided to conduct a strategic audit from a reputed strategic management consultancy firm to
review the company position and suggest future course of actions. The strategic consultants
worked with a team of representatives to conduct external and internal assessment of the
company. The results of the assessment made by the team are tabulated below:
Table 1: External Factor Analysis (ratings: 1 – low, 4 – high)
Factors Weight Farming Poultry Dairy
Increasing competition 0.22 4 2 3
Government support for industries 0.13 3 2 2
Hike in oil prices 0.17 3 2 3
Availability of skilled manpower 0.21 4 1 3
Technological advancements 0.10 3 2 2
Growth of Pakistani economy 0.05 3 2 3
Variation of customers’ choices 0.12 4 2 2
Table 2: Internal Factor Analysis (ratings: 1 – low, 4 – high)
Factors Weight Farming Poultry Dairy
Financial position and stability 0.23 3 3 4
Technological understanding 0.15 3 2 2
Market share 0.19 4 2 3
Management expertise 0.16 4 1 3
Market outreach in the region 0.12 3 1 2
Client relationships 0.05 4 2 3
Operational capabilities 0.10 3 2 3
Requirements: (6 + 2 + 2)
Based on the above information, please go through the case and answer the following questions.
1. Compute EFE and IFE scores for each division and comment on their strategic position.
2. By keeping in mind the above calculated assessment score, decide about divesture of one
division.
3. Identify one most important factor for Dairy division only with respect to EFE and IFE.
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Friends Rating kese nikale is assignment ki i mean company ki 3 products hain farming poultry and dairy 4+2+3 =9 ban jata hay lekin hamne 1-4 se tk deni hay rating to ye kese niklegi

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