A)

Corporate appraisal refers to an examination of the entire organization from different angles. It is
a measurement of the readiness of the internal culture of the corporation to interact with the
external environment. As a company works towards achieving its objectives the corporate
appraisal is a summary of the company’s strengths, weaknesses, opportunities and threats.

A main strength of Qualispecs is their new CEO from one of their major rivals’ fast glass, a new
chief executive with in depth knowledge of the direct competitor and the industry. The company
is well established in the market with a good number of shops. Qualispecs also have good
reputation of quality and customer loyalty which can be seen when the country’s most popular
star received a prestigious international award wearing a pair of Qualispecs spectacles.
Qualispecs is financially secured and has large cash reserves.

One of the weakness Qualispecs have is their high production cost the company was unable to
utilize advancement in technology resulting in high operation and fixed cost while their
competitors have successfully implemented computer aided design in manufacturing in order to
reduce costs and company was unable to tackle their competitor in the area of designer frames
and sunglasses. From the monthly shops reports they were able to identify that the shops exercise
no control over job roles, working condition and pay rates and the site profitability varies
enormously which shows that company has no remuneration control over local staff.

There are a lot of opportunities for Qualispecs as the consumer purchasing power will continue
to increase specially among 18-30 year old. Currently Qualispecs is producing traditional
products there is huge market for Qualispecs to design designer fames and sunglasses to appeal
to the fashion conscious in the 18-30 age range. Qualispecs need to attract celebrity endorsement
and sponsor event or people which are in interest of this age group having a popular celebrity or
television star as brand ambassador will be an additional advantage to secure company position.
Qualispecs need to implement computer aided design in competition to their competitors to
speed up production and reduce cost and can use their cash reserves investing in large malls, and
start operating in other large shops.
Company face threats from their competitors as the competitors can occupy Qualispecs market
share using advanced technology and by introducing new differentiated designer products
enabling customer to choose from wide variety of products and by satisfying market
requirements. Qualispecs currently enjoys high financial reserves but in future revenue can be
decreased to such an extent that it fails to cover the high fixed costs. A market analyst also
predicts a slowdown in the national economy that can affect Qualispecs sales.

B)

Qualispecs can develop strategies in number of ways but one of the best ways is to address their
weaknesses and threats by utilizing their opportunities and threats. As early it was mentioned in
the corporate appraisal that Qualispecs profits varies enormously from shop to shop, they can
start from reviewing shops and closing those which are making loss and setting more realistic
incentives and appropriate targets for the remaining staff in those shops. Qualispecs can get
advantage of their high quality products and can negotiate on space in high quality departmental
stores. Targeting these customers in these High fi stores who have high purchasing power and
always willing to pay for high quality and designer products will boost company’s profit .

Developing new innovative and designer spectacles and sunglasses appealing 18-30 age group
but emphasizing on quality and design, rather than design only to compete with their rivals.
Introducing a wide variety of new products and implementing new advancements in technology
such as CAD (Computer Aided Design) using company’s large cash reserves is also part of the
plan, this would be a productive use of cash reserves, Qualispecs will not only grab the market
share but will gain extra advantage in cutting production cost and earning customer satisfaction
while safeguarding quality.