Strategic Management-II

Class Assignment-II
Date: 22/02/2017

Q1. Help a Retail Computer Store to find out exact combination of strategies based on the information
provided:

Strengths Weakness

1. Inventory turnover up from 1. Software revenues in-store

5.8 to 6.7
2. Average customer purchase
up from Rs. 10k per month to
15k per month.
3. Employee morale is excellent
4. In-store promotions = 20%
increase in sales
5. Newspaper advertising
expenditure down by 10%
6. Revenues from service/ repair
up by 16%
7. In-store technical support
persons have good technical
knowledge
8. Store’s debt-to-total assets
ratio down by 34%
down by 12%
2. Location of store hurt by
construction of new highway
3. Carpentry and paint requires
urgent repairment
4. Total store revenues down by
8%
5. Store has no website
6. Supplier-on-time-delivery up
to 2.4 days
7. Customer checkout process
too slow
9. Cost per employees up by
19%

Opportunities SO WO
1. Population of city growing by
10%
2. Rival computer store is
approximately 2.5 kms away
3. Vehicle passing the store up by
15%
4. Vendors average 6 new
products/ yr
5. Senior citizens using
computers up by 8%
6. Small business growth in area
up by 10%
7. Desire to have own websites
for the business etc. is up by 18%
Threats ST WT
1. Best Buy options are coming
within 6 months
2. Local university offers
computer repair at a nominal rate
3. New Highway will divert
traffic within the next 1 year
4. New mall being built nearby
5. Petrol prices up by 9%
6. Vendors are raising prices to
6%