ACE INSTITUTE OF MANAGEMENT

MBAe
Section: B

Strategic Management
Assignment: III
Strategic Audit of M.A.W
Date of submission: 25th November, 2017

Submitted by: Submitted to:

Bishop Panta & Kiran Acharya Mr. Sohan Babu Khatri
 Table of Content
Introduction ................................................................................................................................................... 1
Strategic Analysis ......................................................................................................................................... 2
External Analysis ...................................................................................................................................... 2
External Factor Evaluation Matrix ........................................................................................................ 2
Competitive Profile Matrix (CPM) ....................................................................................................... 4
Internal Analysis ....................................................................................................................................... 4
Internal Factor Evaluation Matrix ......................................................................................................... 5
Porter’s Five Forces Framework ............................................................................................................... 6
TOWS ....................................................................................................................................................... 7
PESTEL Analysis ..................................................................................................................................... 8
SPACE matrix........................................................................................................................................... 9
IE matrix ................................................................................................................................................. 10
BCG matrix ............................................................................................................................................. 11
Grand strategy matrix ............................................................................................................................. 12
Summary of Matrix Analysis .................................................................................................................. 13
Quantitative Strategic Planning Model [QSPM] .................................................................................... 13
Balanced Score card ................................................................................................................................ 15
Performance Assessment ............................................................................................................................ 16
Recommendations ....................................................................................................................................... 17
Implementation ........................................................................................................................................... 18
Evaluation and Control ............................................................................................................................... 19
 Introduction
Morang Auto Works Enterprises Private Limited (hereafter referred to as “M.A.W.”) was established
in Nepal in the year 1964 with a vision to widen the scope of activities and to portrait its presence in
the national level. M.A.W. is the authorized distributor and seller of reputed Multinational Brands like
YAMAHA Motorcycle, JCB Construction Equipment, SKODA & FIAT Automobiles, MAN
Commercial Vehicles, Greaves, Yamaha Generator and Music etc. for Nepal. Based on the slogan of
“Building trust through Service”, M.A.W. believes in long term relationship with their customers. All
the companies associated with M.A.W. have been focused and conscious about corporate governance
and the environmental impact. Its head office is located at Biratnagar and Corporate office in
Tripureshwor, Kathmandu.
The Core Value of M.A.W. Enterprises Pvt. Ltd. Is- Ownership, Positivity, Dignity, Work-Driven,
Transparency & Sharing
The Business Philosophy of MAW is:

 To deal in quality products of international standard.

 To form a broad customer base by achieving customer satisfaction through quality pre-sales
and after-sales services.

 To assure mutual growth through consistent and innovative marketing efforts.

The history of M.A.W. Enterprises Pvt. Ltd. includes

 M.A.W. is incorporated in 1965, started from Biratnagar, Nepal.

 Started 1st automobile workshop in Nepal.
 Took agencies of ancillary products like Yuasa Batteries- Japan, Boodyear Tyres- Singapore,
Talbros gaskets, Mahle Pistons, Goetze Rings, etc.
 In 1971, took agency of ford tractors.
 In 1975, took agency if Escorts/ Rajdoot motorcycle now Yamaha.
 Promoted United Finance Limited (UFL) now Public Limited Company for financing our products.
 In 1999, started our Industrial Equipment Division and took agency of IR, ECEL, MTNIL, Greaves.
 In 2003, started Construction Equipment Division and took agency of JCB.
 In 2004, took agency of Yamaha Generators.
 In 2006, promoted mutual craft factory of Aaron helmets in Sitargunj, India.
 In 2006, took agency of Greaves Concrete Equipment.
 In 2006, took agency of Yamaha Music. In 2007, started car division and took agency of Skoda
Cars.
 In 2011, started VMC with the name of M.A.W. RMC.

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 Strategic Analysis
External Analysis:
The External analysis includes weighing a list of key factors that are external, or outside the control of
the company. We see that the company has various opportunities & threat from each of its product
from the portfolio it has.
Opportunity
 Increase in living standard of the people which can attract potential customer.
 Increase in practice of having a private vehicle to meet the living standard & two wheelers
have become a household necessity.
 Increased customer base as younger people are also opting for cars, bikes &musical
instruments.
 Decline in bank interest rates on auto loans along with easy financing services.
 Increasing brand consciousness.
 Rapid road expansion has changed the perception of people making them believe that it would
provide them smooth roads to try out their vehicles and it would also enhance the use of heavy
equipment product from the company
Threats
 Lack of stable government as there is no clear government rules and regulations regarding trade
policy.
 Increase in fuel prices may lead to slow down in the sales.
 Rivals such as CG, Sayakar Ltd, HansrajHulaschand and Company etc. give cut throat
competition.
 Many banks are competing in offering car loans and even endorsing brands.
 Fluctuations in Exchange rates which effects the imports as they aren’t manufactured in our
country.
 Heavy custom duties and taxes on import.

External Factor Evaluation Matrix

Opportunities Weight Rating Score
1. Increase in living standard of the people which can 0.1 4 0.4
attract potential customer
2. Increase in practice of having a private vehicle to meet 0.04 4 0.16
the living standard & two wheelers have become a
household necessity.
3. Increased customer base as younger people are also 0.05 3 0.15
opting for cars bikes & musical instruments.
4. Decline in bank interest rates on auto loans along with 0.09 4 0.36
easy financing services.
5. Increasing brand consciousness. 0.09 3 0.27

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 6. Rapid road expansion has changed the perception of 0.1 3 0.3
people making them believe that it would provide them
smooth roads to try out their vehicles and it would also
enhance the use of heavy equipment product from the
company

Threats Weight Rating Score

1. Lack of stable government as there is no clear 0.1 2 0.2
government rules and regulations regarding trade
policy.
2. Increase in fuel prices may lead to slow down in the 0.07 2 0.14
sales.
3. Rivals such as CG, Sayakar Ltd, HansrajHulaschand 0.1 3 0.3
and Company etc. give cut throat competition.
4. Many banks are competing in offering car loans and 0.08 3 0.24
even endorsing brands.
5. Fluctuations in Exchange rates which effects the 0.08 1 0.08
imports as they aren’t manufactured in our country.
6. Heavy custom duties and taxes on import. 0.1 3 0.3
TOTALS 1 2.90

M.A.W. must focus on capitalizing its opportunities and dodging or reducing the impact of threats in
the market and implementing the strategies. We found that one of the major opportunity it could
capitalize was on the increase of the income of the general public and how the vehicles have become
a necessity. It could use various promotion activities to attract these income to their organization.
It should focus on attracting these income and change it to spending. To do this it should increase its
market penetration and make its brand available by partnering with different commercial bank for the
ease of financing to people. Not only this we saw the opportunity for its construction equipment’s due
to the ongoing road expansion and construction work within the country. For this it should try and cater
a good relation with the government officials.
However as most of its business is related with automobile sector, because of high tax implementation
it should plan accordingly for the import & MAW should always focus on its competitor’s landscape.
The final score in M.A.W is 2.90 which indicates that they are slightly above average in their efforts
to pursue strategies and capitalize on external opportunities and minimize threat.

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 Competitive Profile Matrix (CPM)
A competitive profile matrix is a strategic tool used to compare performance with others in the same
industry.

M.A.W Syakar CG

Critical Success Factors Weight Rating Score Rating Score Rating Score
Advertising 0.12 4 0.48 4 0.48 3 0.36
Market Penetration 0.12 4 0.48 4 0.48 3 0.36
Customer Service 0.08 3 0.24 3 0.24 2 0.16
Store Locations 0.08 2 0.24 2 0.16 3 0.24
Successful promotion 0.07 2 0.14 2 0.14 3 0.21
Employee Dedication 0.10 3 0.3 1 0.1 3 0.3
Financial Profit 0.08 3 0.24 2 0.16 4 0.32
R&D 0.12 2 0.24 2 0.24 4 0.48
Low cost structure 0.10 4 0.4 4 0.4 4 0.4
Brand Reputation 0.08 4 0.32 3 0.24 3 0.24
Range of product 0.05 2 0.1 2 0.1 4 0.2
Totals 1 3.18 2.74 3.27

Rating:
1 = Poor Response 2 = Average Response
3 = Above Average Response 4 = Superior Response

The distribution & selling industry is becoming more competitive amongst the reigning big companies
such as CG, Sayakar, and Laxmi intercontinental and so on. M.A.W’s biggest competition lies with
CG & Sayakar. These companies have all focused on gaining on huge chunk of the market. In order to
achieve this, each company’s business strategy is a Market penetration strategy that relies heavily on
Advertisement, promotion & operational efficiency.
The CPM analysis reveals that CG is the strongest player in the industry with relative strengths in Store
location, successful promotion, financial profit, customer retention & range of product. On the other
hand, M.A.W prevails in advertisement & customer service marketing. Sayakar is the weakest of them
all and doesn’t have any relative strengths against its rivals. The companies should create their
strategies according to their strengths and weakness and improve their ratings in the most significant
industry’s areas.

Internal Analysis
An Internal Evaluation identifies and evaluates key inner strengths and weaknesses from all functional
areas of business.
Strength
 Strong brand portfolio with just more than bikes and cars.
 International Affiliation with well recognized brands.
 Knowledge of home market due to its long presence.

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  Many Branches and dealers with even stronger good reputation and image.
 Receivables turnover is faster.
 Revenues are increasing.
 Environmentally friendly product.(After the end of their useful life, either by their disposal or
maximum use of recyclable materials e.g. :SKODA)
 The Gross profit margin is increasing.
Weakness:
 Centralized decision making.
 Subjective employee Appraisal System which results in employee turnover.
 Online presence
 Shortage of spare parts.
 Only bikes & cars are focused from its portfolio.
 The after sales service of the company

Internal Factor Evaluation Matrix

Strength Weight Rating Score
1. Strong Brand portfolio. 0.10 4.00 0.40
2. International affiliation with well recognized brand. 0.05 4.00 0.20
3. Knowledge of the home market due to long presence. 0.13 4.00 0.52
4. Many branches and dealers with good brand image. 0.04 3.00 0.12
5. Receivable turnover is fast. 0.04 4.00 0.16
6. High Liquidity Ratio. 0.05 4.00 0.20
7. Revenues are increasing. 0.06 4.00 0.24
8. Environmentally friendly product. 0.04 3.00 0.12
9. The gross profit margin is increasing. 0.05 4.00 0.20
Weakness Weight Rating Score
1. Centralized decision making 0.05 2.00 0.10
2. Under performing division 0.05 2.00 0.10
3. Online presence 0.10 2.00 0.20
4. Slow growth in market share. 0.07 2.00 0.14
5. Only bikes & cars are focused from its portfolio 0.05 1.00 0.05
6. The after sales service of the company 0.08 2.00 0.16
7. Higher-than-expected credit losses 0.04 2.00 0.08
TOTALS 1 2.99
Rating:
1 = Poor Response 2 = Average Response
3 = Above Average Response 4 = Superior Response

The strengths are determined by how important it can cater to the customer with its varied product and
how hard of an impact each has against other businesses. M.A.W has three major strengths are their
efficient distribution system through various dealers & Branches, Strong brand portfolio and
Knowledge of the home marked due to their long presence. M.A.W has the ability to do a very good

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job of capitalizing on these strength. M.A.W has a reputation for offering quality trend-setting
merchandise at very competitive prices.
M.A.W has two major weakness- the after sales service & high employee turnover .The after sales
service of the company is the reason that the people hesitate to buy the vehicle, so the market growth
is the much need .Employee turnover is seen because some junior level employees are dissatisfied with
the salary and incentives so they quit the job. Besides this there are products that are underperforming
in its portfolio.
M.A.W total weighted score of 2.99 indicates that they are slightly above average in formulating
strategies that capitalize on their strengths and minimize their weaknesses.

Porter’s Five Forces Framework:

The Threat of Entrants: Low
In the auto mobile industry, this is generally a very low threat. Factors to examine for this threat include
all barriers to entry such as upfront capital requirements manufacturing, brand equity (a new firm may
have none), legislation and government policy, ability to distribute the product, the inability to re-
establish a dealer network. Thus, new entry into the automobile sector is extremely low.
Bargaining Power of Buyers: Moderately High
A large part of the buyers are the small individual buyers they buy single vehicles. However, there are
corporations and government agencies that buy fleets of vehicles. Such buyers are in a position to
bargain for lower prices. Thus the bargaining power of the buyers is moderately strong.
Bargaining power of suppliers: limited
In the automobile industry this refers to all the suppliers of parts, tires, components, electronics, and
even the assembly line workers. We know that some suppliers are small firms who rely on the
automobile makers. Since in Nepal there is low concentration of suppliers. This means there are
suppliers with limited bargaining power.
Threat of Substitutes: High
If buyers can look to the competition or other comparable products, and switch easily there may be a
high threat of this force but customers of Nepal cannot easily switch to other products or because high
switching costs . High switching cost positively affects Automobile Industry.
Competitive Rivalry: High
Government policies and regulations can dictate the level of competition within the industry. In Nepal
government limit competition by imposing high tax in vehicles while importing. However rivalry
among the existing company is high. The automobile market is fierce, in addition, to this these
companies use huge amount of money for promotion like the one in the NADA auto show

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 TOWS
Strengths:(S) Weaknesses:(W)
1. Strong brand portfolio with just more than bikes and cars. 1. Centralized decision making.
2. International Affiliation with well recognized brands. 2. Underperforming division.
3. Knowledge of home market due to its long presence. 3. Online presence
4. Many Branches and dealers with good brand image. 4. Slow growth in market share.
5. Receivables turnover is faster. 5. Only bikes & cars are focused from its portfolio.
6. High liquidity ratio. 6. The after sales service of the company.
7. Revenues are increasing. 7. Higher-than-expected credit losses
8. Environmentally friendly product
9. The Gross profit margin is increasing.

Opportunities:(O) SO Strategies: WO Strategies:

1. Increase in living standard of the people which can attract  Promotion: Advertise more for selling differ product (S1, O2)  Promote the product from the portfolio more for the
potential customer.  Market Penetration: Utilizing the credit facilities to grab the increased customer base (W5, O3).
2. Increase in practice of having a private vehicle to meet the living opportunity of growing economy(S3,O4)  Maintain a good aftersales service as there is increased
standard & two wheelers have become a household necessity.  Product Development: Utilizing the good liquidity position & excess brand consciousness (W6,O5)
3. Increased customer base as younger people are also opting for cash to grab the opportunity of providing to new customer  Find better ways to grow the market share as people are
cars.
base(S5,S6,S8,O3) having opting for vehicle’s.(W4,O2)
4. Decline in bank interest rates on auto loans along with easy
financing services.
5. Increasing brand consciousness.
6. Rapid road expansion.

Threats:(T) ST Strategies: WT Strategies:

1. Lack of stable government as there is no clear government rules
and regulations regarding trade policy.
2. Increase in fuel prices may lead to slow down in the sales.
3. Rivals such as CG, Sayakar Ltd, HansrajHulaschand and
Company etc. give cut throat competition.
4. Many banks are competing in offering loans and even endorsing
brands.
5. Fluctuations in Exchange rates which effects the imports of the
vehicles as they aren’t manufactured in our country.
6. Heavy custom duties and taxes on vehicles import.
 Use the knowledge of the home market and strategically find ways
to finance service through banks(S3,T4)
 Use the diverse portfolio to compete against the cut throat
competition(S1,T2)
 Extend the branches so that we can compete(S4,T2)
 Strengthen product & service quality by continuing
improvement to capitalise brand value.(W6,T4)
 Improve the appraisal system to reduce the employee
turnover combat against the cut throat
competition(W2,T2)
 Focus on introduction of various product from the
portfolio to gain competitive advantage against the
competitors(W5,T2)

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 PESTEL Analysis
A. POLITICAL
Political situation in Nepal is one of the major unstable components and a major problem to the M.A.W.
Some of the key political factor that affect that this sectors are: tax policy, trade restriction and tariffs,
environmental regulation. During the blockade of the 2015 the automobile division was heavily
affected. It had to remain in the port of India. M.A.W must closely watch the political situation with
India as majority of the imported product it sells comes from India.
B. ECONOMICAL
Economic forces are also of importance in the context of this industry. This sector flourished during
the recent economic growth of 6.9%. When the economic conditions is, this good to the sales of
vehicles rises. M.A.W increased its sales during this time by more than 15% this year as compare to
last year, so this factor must be taken into consideration. There are various angles to analyze the
importance of the economic factors for the industry. The most used angle is the purchasing power of
the customers. It dips during economic downturns. Industries are dependent heavily on the purchasing
power of the customers, so the strategy must be as per the economy.
C. SOCIAL
The sociocultural aspects of the environment play a continuous part in M.A.W’s strategy in both the
operations and marketing divisions. The social aspect has made a huge leap in the last few years, most
of the younger generations are accustomed to a broader perception of lifestyle, however many of the
older generations (like the baby boom generation) are new to all the developments. They are old-
fashioned. M.A.W must be able to serve and accommodate all generation’s needs and wants.
D. TECHNOLOGICAL
In technological environment, the importing firms in Nepal are updating with the available new
features models of cars in the international market and introducing them as soon as possible. The
technological improvement has made a huge impact in M.A.W, with the improvement in technological
aspect company can able to tackle its competitors and able to meet their requirements. Customers is
always move towards new improvement in market thus technological factor is always important for
M.A.W. It needs to always focus on this
E. LEGAL
An important legal and regulatory issue that has directly affected M.A.W is always bounded with legal
activities. Many of the business of M.A.W is directly or indirectly related with legal source. The issues
with customers regarding payment or to make good flow of products from customs there is requirement
of legal power. The company has setup a separate legal department to mitigate the problem that might
impact the company’s performance.

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F. ENVIRONMNETAL
The second factor sociocultural aspect affecting M.A.W is the environment. People have become more
concerned with current environmental situation and are moving towards greener products and services
to help preserve the environment. In response to this issue, M.AW strives to create more
environmentally friendly developments relating to fuel, materials and noise like the SKODA
ecofriendly vehicle, low fuel consumption in bikes .They are committed to making every effort to
reduce their impact on the environment. The recent earthquake showed how important the environment
factor is to the organization. The earthquake halted various route thus effecting business. At that time,
it was just about finding ways to survive.

SPACE matrix
Internal Dimension External Dimension
Slowly growth of market share -3 Barriers to entry 6
Competitive
Advantage

Strength
Industry
Diverse Portfolio -1 Growth potential 4
Brand & image -4 Access to financing 4
Employee turnover -3 Profit potential 5

Total Competitive Advantage Weight -2.75 Total Industry Position Weight +4.75
Total axis X score:2
Revenues are increasing 5 Taxes imposed -5
Environment

High liquidity ratio 6 Fluctuations in Exchange rates & -3

Financial
Strength

Stability

Interest rates
Receivables turnover is faster 4 Increase in Fuel Prices -2
The gross profit margin is increasing 6 Increase in demand -2
Higher-than-expected credit losses 3 Technological changes -1
Total Financial Strength Weight +4.8 Total Stability Position Weight -2.6
Total axis Y score:2.2

FS
+6 Aggressive
Conservative
+2

+1
CA IS
-6 -1 +1 +2 +6
-1

Defensive Competitive
-6
ES

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M.A.W’s directional vector is located in the Aggressive quadrant is an excellent position to use its
internal strengths to:

 Take advantage of external opportunities,

 Overcome internal weaknesses and
 Avoid external threats.
M.A.W is a financially strong firm that has achieved major competitive advantages in a growing and
stable industry.
The appropriate Strategies in SPACE matrix for M.A.W are:
 Market penetration,
 Market development,
 Product development
 Or a combination strategy all can be feasible, depending on the specific statuses of the firm
Now how to achieve this strategy is explained in the recommendation below.
IE matrix
Using the finding’s score of EFE (at point 2.90) and IFE matrix (at point 2.96), we get the IE matrix
based on the following two criteria:

 The total weighted score from the EFE matrix: 2.90– this score is plotted on the y-axis
 The total weighted score from the IFE matrix: 2.96– this score is plotted on the x-axis
THE IFE TOTAL WEIGHTED SCORES
AVERAGE WEAK
STRONG
4 3.0 TO 4.0 3 2.0 TO 2.99 2 1.0 TO 1.99
1
THE EFE TOTAL WEIGHTED SCORES

HIGH I II III
3.0TO 4.0 Build
GROW And

3
MEDIUM
IV V VI
2.0 TO 2.99 Hold And Maintain

2
VII VIII IX
LOW Divest
1.0 TO 1.99
Harvest Or

As the matrix, M.A.W is in cell V that suggests the hold and maintains strategy. In this case, M.A. W’s
tactical strategies should focus on market penetration and product development. Since, M.A.W has
very good products like Skoda, Yamaha, JCB. Rather focusing on other strategy, the company should
focus on increasing the market share, along with promoting its new products. The competition is

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increasing day by day, it is better to maintain the optimum market share. Also, to obtain the market
penetration strategy, the company should also focus on new product development with new or different
characteristics that offer new or additional benefits to the customer. Customers are always centric
towards new taste and features so, creation of new product in brands like Skoda, Yamaha, JCB is must
for M.A.W.

BCG matrix

Stars Question Marks

Business Growth Rate

(JCB Heavy Equipment) (Fiat 4WH)

High

?
Cash Cows Dogs
(Yamaha Music) (Yamaha Generators)
Low

High Low

Relative Market Share

There are various product for M.A.W but we have taken only the important ones for the matrix. Going
through the different company products of M.A.W, we see that Yamaha Music falls under the category
of Cash Cows where the market share of this brand is high as compare to other brands like Roland,
Casio, Laney, Marshall and many more, but talking towards the growth rate the market is small in
context of Nepal and there are many brands which are competing Yamaha. Because of high in price
customers are diverting into other brands. Since, market share of Yamaha is high M.A.W should further
focus on maintaining its market dominance and Leadership. JCB Heavy equipment is the leader in the
construction business, it falls under stars category where there is high growth in the market along with
high market share of that brand. JCB is the major area where M.A.W is currently focusing because of
high return from this brand. To maintain the stable position M.A.W should focus on heavy investment
in marketing, strategy development, product development to maintain its market share. Since,
competition is high company should hold the market share and should focus on improving it otherwise
the star will become a cash cow. Fiat should focus on increasing its market share by implementing
market driven strategies. Since, this brand has single range products in market which currently is not
focusing on increasing market share rather sustaining in market. Thus, the suggestion for this segment
is that R & D should be done along with increasing competitive analysis so that there might be
improvement in this category and might have potential to become star. Due to the recent reduction in
the load shedding the product that has hit it more is the generator and we have place it in the dogs.

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 Grand strategy matrix

Rapid Market Growth

Quadrant II Quadrant I
1. Market development 1. Market development

Strong Competitive Position

2. Market penetration 2. Market penetration
Weak Competitive Position

3. Product development 3. Product development

4. Horizontal integration 4. Forward integration
5. Divestiture 5. Backward integration
6. Liquidation 6. Horizontal integration

Quadrant III Quadrant IV

1. Retrenchment 1. Concentric diversification
2. Concentric diversification 2. Horizontal diversification
3. Horizontal diversification 3. Conglomerate diversification
4. Conglomerate 4. Joint ventures
diversification
5. Liquidation

Slow Market Growth

According to the Grand Strategy Matrix, M.A.W is in the first quadrant with market penetration and
market development. Diversifying production M.A.W products also help reduce the risk associated
with narrower product lines. M.A.W also has the resources to take advantage of external opportunities
that expand in the different fields. M.A.W staying in the quadrant one of the Grand Strategy Matrix is
meant for this firm which are in a strong competitive position and flourishing with rapid market growth.
M.A.W location in this quadrant is in excellent strategic position and they need to concentrate on
current markets and products and diversify its portfolio. Concentration on current markets reveals the
adoption of strategies such as market penetration and market development and likewise concentration
on current products calls for adoption of product development strategy. It should focus on turning the
Fiat4WH to lead the market as seen in the BCG matrix.

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 Summary of Matrix Analysis
Alternative Strategies (SPACE) IE Grand TOWS Total
Matrix

Forward Integration 0
Backward Integration 0
Horizontal Integration 0
Market Penetration X X X X 4
Market Development X X X X 4
Product Development X X X 3
Concentric Diversification X X 2
Conglomerate Diversification 0
Horizontal Diversification 0
Joint Venture 0
Retrenchment 0
Divestiture 0
Liquidation 0

The results of the Matrix Analysis for M.A.W exposed that the most attractive strategies for M.A.W
to pursue, with market development strategies and Market Penetration. The results of the
diversification strategies exposed that concentric diversification strategies would be the most attractive
strategy for this set of strategies. M.A.W could consider adding new products related to their current
product line. This might include adding products for it car, bikes, heavy equipment or music that appeal
to a younger generation.

Quantitative Strategic Planning Model [QSPM]

This QSPM compares two alternatives. Based on strategies in the

 Stage 1: The input stage(EFE, CPM, IFE) and

 Stage 2: The matching stage (TOWS analysis, SPACE matrix, IE matrix, GSM)
We determined that M.A.W needs to pursue a competitive strategy aimed development of new product
and further penetration of the market.
It means the possible strategies for M.A.W is:

 Market penetration strategy: Expand into more Province that are currently without M.A.W
products.
 Product development strategy: Add new product to its portfolio.

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 Strategic Alternatives
Key Internal Factors Weight Product Market
development penetration

Strengths AS TAS AS TAS

Strong Brand portfolio. 0.1 3 0.3 4 0.4
International affiliation with well recognized brand. 0.05 2 0.1 3 0.15
Knowledge of the home market due to long presence. 0.13 3 0.39 4 0.52
Many branches and dealers with good brand image. 0.04 2 0.08 3 0.12
Receivable turnover is fast. 0.04 2 0.08 3 0.12
High Liquidity Ratio. 0.05 2 0.10 3 0.15
Revenues are increasing. 0.06 4 0.24 3 0.18
Environmentally friendly product. 0.04 4 0.16 4 0.16
The gross profit margin is increasing. 0.05 3 0.15 2 0.1
Weaknesses
Centralized decision making 0.05 2 0.1 2 0.1
Underperforming division 0.05 1 0.05 1 0.05
Online presence 0.1 2 0.2 3 0.3
Slow growth in market share. 0.07 4 0.28 3 0.21
Only bikes & cars are focused from its portfolio 0.05 2 0.10 3 0.15
The after sales service of the company 0.08 2 0.16 3 0.24
Higher-than-expected credit losses 0.04 3 0.12 2 0.08
SUBTOTAL 1 2.61 3.03
Opportunities AS TAS AS TAS
Increase in living standard of the people which can attract potential customer 0.1 4 0.4 4 0.4
Increase in practice of having a private vehicle to meet the living standard & two wheelers have
become a household necessity. 0.04 3 0.2 3 0.12
Increased customer base as younger people are also opting for cars bikes & musical instruments.
0.05 3 0.1 3 0.15
Decline in bank interest rates on auto loans along with easy financing services. 0.09 2 0.3 2 0.18
Increasing brand consciousness. 0.09 4 0.2 4 0.36
Rapid road expansion 0.1 3 0.2 3 0.3
Threats
Lack of stable government as there is no clear government rules and regulations regarding trade
policy. 0.1 2 0.15 2 0.2
Increase in fuel prices may lead to slow down in the sales. 0.07 2 0.1 1 0.07
Rivals such as CG, Sayakar Ltd, HansrajHulaschand and Company etc. give cut throat
competition. 0.1 3 0.05 2 0.2
Many banks are competing in offering car loans and even endorsing brands. 0.08 4 0.2 2 0.16
Fluctuations in Exchange rates which effects the imports of the vehicles as they aren’t
manufactured in our country. 0.08 4 0.1 3 0.24
Heavy custom duties and taxes on import.
0.1 3 0.3 4 0.40
SUBTOTAL 1 2.95 2.78
SUM TOTAL ATTRACTIVENESS SCORE 5.56 5.81
1= Not Acceptable 0=not relevant
2 =Possibly Acceptable
3 =Probably Acceptable
4 =Most Acceptable

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 The QSPM for M.A.W compares the two most feasible alternative strategies to pursue: (1) market
penetration and (2) product development. After examining the scores of both the strengths, weaknesses,
opportunities and threats in comparing these alternative strategies, it would seem that market
penetration would be most useful and effective as a higher score means a more acceptable alternative.
M.A.W must attempt to increase market share within existing industries, either by selling more product
to established customers or by finding new customers within these markets – typically by adapting the
‘Promotion’ element of the Marketing Mix and also find a new group of buyers for an existing product.

Balanced Score card

STRATEGIC OBJECTIVES MEASURES TARGETS INITIATIVES

Increase profitability Annual revenue Increase 10% each year Reduce operating costs, and
achieve economies of scale
through bulk purchases.
FINANCIAL

Increase return on investment ROI Increase 5% each year Increase revenues; make a more
thorough use of assets

Participation on emerging
Increase sales on emerging market Review of Balance sheet Increase 10% each year markets

Create brand awareness and Number of ads launched Increase 20% in three
recognition per province years, 8% annually. Provide varied product to the
customer
CUSTOMER

Increase customer satisfaction and Number of customer Improve the customer service
Reduce 25% each year
loyalty level complaint
Continuously gather feedback from the
customer
Total number of Increase 15% in three
Increase number of customers
customers years, 6% annually
INTERNAL PROCESSES

Decrease operating cost Inventory turnover

Emphasize Corporate Social
Responsibility (CSR)
activities
Deepen customer relationship
Increase education and experience of
employee
LEARNING
Decrease 5% per year
Use the right channel
Employee volunteer
Increase 5% per year
hours Partner with various NGOs
Revenue from cross- Frequently tracking your customer.
selling multiple Increase 10% per year
products and services
Employee participation
Minimum twice per
in professional
staff per year.
or trade associations Increase employee participation

Hire trainers to motivate employee and

Number of employee Minimum five courses
Enhance team-working skill inspire them
training in soft skill per staff per year

Number of completed (in

time and
Enhance teamwork productivity Increase 10% per year
budget) co-development
projects

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The Core Value of M.A.W. Enterprises Pvt. Ltd. respectively is- Ownership, Positivity, Dignity,
Work-Driven, and Transparency & Sharing. This strategy of M.A.W is to increase market
penetration.
If we look financial the three objectives are Increase profitability; Increase sales, and Increase
return on investment. The strategy of M.A.W is market penetration; increasing profitability is a
strong indicator of sound growth. Further, increasing sales will also help M.A.W maintain its
leadership. Finally, Increase return on investment will be possible only if M.A.W controls its
costs. Each of the financial objectives is related to the strategy of M.A.W. Similarly to create an
exceptional value for the customer if M.A.W can provide varied customer product and improve
the customer service it will help them fulfill their mission. Again it can also decrease the operating
cost, focus on CSR to develop the internal process more effectively, it would help achieve stability
in the industry. Finally it could also hire trainers and increase employee participations to increase
the learning and growth. This process contributes to the organization and improve the overall
performance.

Performance Assessment
The strategic analysis process begins with assessing your level of performance in each of the
following areas. Performance can be low or high based on the current situation, comparison to
goals, trends for the future, or your firm’s level of satisfaction.

Customer Satisfaction: ability to attract and maintain customers.

Low Performance 1 ----- 2 ----- 3 ----- 4 ----- 5 High Performance
Evidence: It is one of the reputed distributor which provide a good facility to their customers.
Competitiveness: ability to do better than your competition.
Low Performance 1 ----- 2 ----- 3 ----- 4 ----- 5 High Performance
Evidence: The market perception of customers is good. Many people prefer it rather then its
competitors.

Productivity: ability to provide products/services efficiently and effectively based on internal

management processes.
Low Performance 1 ----- 2 ----- 3 ----- 4 ----- 5 High Performance
Evidence: Comparing with other M.A.W has high productivity. It has well equipped showrooms
with good facilities, with highly qualified staff.

Profitability: ability to attract resources based on level of return to key stakeholders.

Low Performance 1 ----- 2 ----- 3 ----- 4 ----- 5 High Performance
Evidence: It is a company with a great history as being the 1st automobile workshop.

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 Recommendations
“The final analytical task is to home in on the strategic issues management needs to address in
forming an effective strategic action plan. Here, managers need to draw upon all the prior analysis,
put the company's overall situation into perspective, and get a lock on exactly where they need to
focus their strategic attention." (Thompson and Strickland)
The audit reveals that M.A.W seems to be too much focused on developing strategy for Bikes &
then the cars. The other product from its portfolio are simply not know to majority of the
customers. Simply put it this way-when asked about M.A.W, the customers simply say M.A.W
Company is a dealer of Yamaha. The overall strategy also has been to focus on this core product.
Besides this the company need a proper vision & mission statement to guide the organization and
effectively enhance the core values that it holds.
The Strategic Matrix for M.A.W showed the most attractive strategies to be market penetration
and market development M.A.W should continue the unique advertising, Continue to invest in
R&D for creating innovative products and Continue to compete with CG and others. As per the
market penetration strategy is to be implemented is to establish a goal of opening 25 new distributer
by the year 2025. The marketing department should conduct research to determine the best
locations for the new stores based on demographics, market segmentation, and include the new
distributer into the existing distribution system .The human resources department should be
responsible for the staffing requirements of the new location.
Its focus should also be on the other product such as the JCB, Guitar, and Skoda and so on. M.A.W
should establish an annual objective to increase sales revenues for M.A.W division by 10 percent
annually. The economy appears to recovering, after the blockade so it would be in M.A.W’s best
interest to remain focused in the current strategic plan. The organization has been gradually
expanding to increase its presence and adding to the customized services it provides. The
combination of the recovering economy, slow expansion, and continued technological innovations
should result in a better financial position in the long-run.
M.A.W should continue to develop its existing markets by increasing its attendance in existing
markets and should seek to increase its current market share by 30 percent by 2020. M.A.W should
establish a goal of opening 10 new distributers in its less ill increase market share, the hilly region,
& marketing expenditures advertising, promotion, and research need to be increased annually
based on the increase in sales.

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 Implementation
In a service industry, such as M.A.W, every employee is a key player in implementing the strategic
plan. It is imperative for M.A.W management and strategic planners to continually provide M.A.W
employees with the evolving strategic plan’s policies and procedures so that the employees at
every level can make it happen.
The implementation and monitoring of the plans progress starts at the top of the organization and
filters down to every employee. The operating companies have been structured so that each can
meet the needs of its distinct customers. Important programs are maintaining a proper organization
structure, operating budgets, standard operating procedures, sustainability programs, employee
performance reviews, customer service surveys and feedback, and customer service.
 Establish a strategy committee in which their is one member from each department, in
order to enhance the strategy communication, aligned on one vision, mission and objective
and will come up with an efficient and effectives product development for market
penetration.
o This committee should be responsible on building a detailed plan, where objectives
will be subdivided into tasks then steps.
o This will facilitate evaluation & control of Strategy implementation
 Expertise of each function should be recruited if needed like hiring of consultant from
company such 3H.

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 Evaluation and Control
Balanced Score Cards (BSC) management tool should be designed and implemented through
Management Information System for each and any function or task during strategy implementation
phases, which will follow, control, evaluate and correct the implementation in order to meet the
desired objectives.M.A.W can also analyze and review financial information on functional and
consolidated levels. Each operating division reports its financials to the company, which could
them consolidates then. The Corporation would be able to report and analyze the financials for the
corporation as a whole, as well as each operating division independently. It is important for
M.A.W to evaluate financials in both ways, so that can analyze how the operating product are
performing individually, as well as the corporation as whole.
Benchmarking is important for M.A.W so that they can evaluate their activities and performance.
It could Benchmark CG has it has varied product in comparison to itself. It is important for the
organization to analyze their performance and service levels so that they can rectify existing and
potential problems, modify policies and procedures, and create enhancements. Benchmarking is
an essential tool for M.A.W to be able to provide superior customer service, as well as continue to
meet their customer’s distinct needs and use it to penetrate the market.

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