Haramaya University

College of Distance and Continuing Education

Assignment of Strategic Management

Name: Hamza Dawid

ID NO: HU/AC/021/2014
Center: Haramaya University
Q1. choose the company dire dawa food complex and conduct
A. Internal Factors Evaluation (IFE) Matrix
B. External Factors Evaluation (IFE) Matrix
Q2. choose international company and conduct
A. Internal Factors Evaluation (IFE) Matrix
Internal Factors Evaluation (IFE) Matrix of COCA COLA
IFE matrix stands for internal factors evaluation matrix is a strategic tools used to evaluate
the internal strengths and weaknesses of a company. IFE has been used for internal
evaluation of company, business unit or corporation functional areas which includes
marketing, human resource, finance, information technology, corporate affairs, legal and
compliance, business development, procurement and operations. The internal organizational
structure depends upon organization size and industry.
STEPS TO DEVELOP IFE MATRIX
1. List key internal factors as identified in the internal audit process. Use a total of from ten to
twenty internal factors, including both strengths and weaknesses. List strengths first and then
weaknesses. Be as specific as possible, using percentages, ratios, and comparative numbers.
2. Assign a weight that ranges from 0.0 (not important) to 1.0 (all important) to each factor.
The weight assigned to a given factor indicates the relative importance of the factor to being
successful in the firm’s industry. Regardless of whether a key factor is an internal strength or
weakness, factors considered to have the greatest effect on organizational performance should
be assigned the highest weights. The sum of all weights must equal 1.0.
3. Assign a 1 to 4 rating to each factor to indicate whether that factor represents a major
weakness (rating = 1), a minor weakness (rating = 2), a minor strength (rating = 3), or a major
strength (rating = 4). Note that strengths must receive a 4 or 3 rating and weaknesses must
receive a 1 or 2 rating. Ratings are thus company based, whereas the weights in Step 2 are
industry based. 4. Multiply each factor’s weight by its rating to determine a weighted score
for each variable.
Strength Weight Rate Weight score
Strong brand 0.09 4 0.36
Strong marketing and advertising of products around globe 0.07 4 0.28
Products are globally available 0.10 4 0.40
Healthy financial position 0.08 3 0.24
Brand equity 0.07 4 0.21
Competent workforce 0.05 3 0.15
 Wide variety of products 0.05 3 0.15
Weaknesses High debts 0.10 2 0.2
Health Issues 0.10 1 0.10
Some products have low sales 0.09 2 0.18
Weak image in India 0.6 2 0.12
Negative publicity 0.10 1 0.10
Taste differentiation 0.05 1 0.05
Total Weighted Score 1 2.65
5. Sum the weighted scores for each variable to determine the total weighted score for the
organization.
IFE MATRIX FOR COCA COLA

As you can see the total weighted score value is 2.65 which means company internal position
is better.
B.EFE Matrix of Coca-Cola Company
External Factor Evaluation (EFE) matrix is a strategic-management device which is
frequently
used for evaluation of current business environment. The EFE matrix is a superior instrument
to prioritize and visualize the opportunities and threats that a company is facing. An external
factor in the EFE Matrix comes from social, political, legal, economic and other external
forces. An example of external factor evaluation (EFE) matrix is given for the Coca-Cola
Company.
Steps in the Construction of EFE Matrix
In the first column, lists down all the opportunities and threats. EFE matrix should include 10
to 20 key external factors.
1. In the second column assign weights to each factor that ranges from 0.0 (not
important) to 1 (most important). The total weights must sum to 1.00 (It should be
noted that the importance of weights depend upon the probable impact of factors on
the strategic position of the company).
2. In the column three, rate each factor (ranging from 1 to 4) on the basis of company’s
response to that factor. (Here, 1 shows poor response, 2 shows average response, 3
shows above average response and 4 shows superior response).
3. In the column four, calculate the weighted score by multiplying the each factor’s
weight by its rating.
4. Find the total weighted score by adding the weighted score for each variable.
 External Factor Evaluation Matrix of Coca-Cola Company

By adding the weighted score of various opportunities and threats of Coca-Cola Company,
we get the total weighted score of 3.05. Here it should be noted that the highest possible total
weighted score of a firm is 4 whereas the lowest possible total weighted score is 1. The total
weighted score remains in the limit of 1 to 4 regardless of the total number of opportunities
and threats. Similarly, the average total weighted score is 2.5. If the total weighted score of a
company is 4, it means that the company is effectively taking advantage of existing
opportunities and is also able to minimize the risk. On the other hand, the total weighted
score of 1 show that firm is not able to take advantage of current opportunities or avoid
external threats.
In the case of Coca-Cola Company, the total weighted score is above average, which means
that the Coca-Cola Company strategies are effective and the company is taking advantage of
existing opportunities along with minimizing the potential adverse effects of external threats.

Q3.
2.3 The Process of Developing Vision and Mission Statements
A widely used approach to developing a vision and mission statement internally prepared i.e.
1. First to select several articles about these statements and ask all managers to read these
as background information.
2. Then ask managers themselves to prepare a vision and mission statement for the
organization.
3. After collecting the vision & mission statement prepared by employee’s/ committee
members, a facilitator, or committee of top managers, should then merge these
statements into a single document and distribute the draft statements to all managers. A
request for modifications, additions, and deletions is needed next, along with a meeting
to revise the document. To the extent that all managers have input into and support the
final documents, organizations can more easily obtain managers’ support for other
strategy formulation, implementation, and evaluation activities.
4. Lastly single organizational vision & mission statement is prepared by incorporating the
necessary inputs from committee members/managers responsible for the preparation of
vision & mission.
The first is a statement of vision. It provides a destination for the organization. Next is a statement of
mission. This is a guiding light of how to get to the destination. These are critical statements for the
organization and the individuals who run the organization.
Vision Statement – A mental picture of what you want to accomplish or achieve. For example, your
vision may be a successful winery business or an economically active community.
Vision of an Example Business
– A successful family dairy business.
Mission Statement – A general statement of how the vision will be achieved. The mission statement

is an action statement that usually begins with the word “to”.

Mission of an Example Business
– To provide unique and high quality dairy products to local consumers.

Q4
Strategies, Goals, Objectives and Action Plans
Once you have created statements of vision and mission, and possibly core values, you can
then develop the strategies, goals, objectives and action plans needed to activate your
mission and achieve your vision.
Strategies – A strategy is a statement of how you are going to achieve something. More
specifically, a strategy is a unique approach of how you will use your mission to achieve
your vision. Strategies are critical to the success of an organization because this is where
you begin outlining a plan for doing something. The more unique the organization, the
more creative and innovative you need to be in crafting your strategies.
Goals – A goal is a general statement of what you want to achieve. More specifically, a goal
is a milestone(s) in the process of implementing a strategy. Examples of business goals
are:
• Increase profit margin
• Increase efficiency
• Capture a bigger market share
• Provide better customer service
• Improve employee training
• Reduce carbon emissions
Objectives – An objective turns a goal’s general statement of what is to be accomplished into
a specific, quantifiable, time-sensitive statement of what is going to be achieved and
when it will be achieved.
Examples of business objectives are:
• Earn at least a 20 percent after-tax rate of return on our investment during the next fiscal
year
• Increase market share by 10 percent over the next three years.
• Lower operating costs by 15 percent over the next two years through improvement in the
efficiency of the manufacturing process.
• Reduce the call-back time of customer inquiries and questions to no more than four hours.
Action Plans – Action plans are statements of specific actions or activities that will be used to
achieve a goal within the constraints of the objective. Examples of action plans within the context of
goals and objectives are:

Goal Objective Action Plan

Increase Profit Reduce operating costs by 10 Finance department will conduct an in-depth
Margin percent in 18 months analysis of identifying low cost suppliers.
Improve Conduct a training program in A special committee will be formed to select
Employee Skills the next 12 months to improve and hire a professional trainer to conduct the
employee skills. training.
Increase Profit Increase sales volume by 20 Marketing department will create and
Margin percent in 12 months. implement a plan to increase sales in regions
3 and 5.

Q 5.
Strategy formulation and implementation can be contrasted in the following ways:
Strategy formulation Strategy implementation
♦ Strategy formulation is positioning forces ♦ Strategy implementation is managing forces
before the action. during the action.
♦ Strategy formulation focuses on ♦ Strategy implementation focuses on efficiency.
effectiveness.
♦ Strategy formulation is primarily an ♦ Strategy implementation is primarily an
intellectual process. operational process.
♦ Strategy formulation requires good ♦ Strategy implementation requires special
intuitive and analytical skills. motivation and leadership skills
♦ Strategy formulation requires ♦ Strategy implementation requires combination
coordination among a few individuals among many individuals.

Q6

If you're a manager who wants to implement strategic change within your organization,
follow these seven steps to introduce and roll out a new strategy successfully.
KEY STEPS IN THE IMPLEMENTATION PROCESS

1. Set Clear Goals and Define Key Variables

The first step of the process is straightforward: You must identify the goals that the new
strategy should achieve. Without a clear picture of what you’re trying to attain, it can be
difficult to establish a plan for getting there. One common mistake when goal setting—
whether related to personal growth, professional development, or business—is setting
objectives that are impossible to reach. Remember: Goals should be attainable. Setting goals
that aren’t realistic can lead you and your team to feel overwhelmed, uninspired, deflated,
and potentially burnt out.

To avoid inadvertently causing low morale, review the outcomes and performances—both the
successes and failures—of previous change initiatives to determine what’s realistic given
your timeframe and resources. Use this past experience to define what success looks like.
Another important aspect of goal setting is to account for variables that may hinder your
team’s ability to reach them and to lay out contingency plans. The better prepared you are,
the more successful the implementation will likely be.
2. Determine Roles, Responsibilities, and Relationships
Once you’ve determined the goals you’re working toward and the variables that might get in
your way, you should build a roadmap for achieving those goals, set expectations among your
team, and clearly communicate your implementation plan, so there’s no confusion. In this
phase, it can be helpful to document all of the resources available, including the employees,
teams, and departments that will be involved. Outline a clear picture of what each resource is
responsible for achieving, and establish a communication process that everyone should
adhere to. Implementing strategic plans requires strong relationships and, as a manager,
you’ll be in charge of telling people not only how to interact with each other and how often,
but also who the decision-makers are, who’s accountable for what, and what to do when an
unforeseen issue arises.
3. Delegate the Work
Once you know what needs to be done to ensure success, determine who needs to do what
and when. Refer to your original timeline and goal list, and delegate tasks to the appropriate
team members. You should explain the big picture to your team so they understand the
company's vision and make sure everyone knows their specific responsibilities. Also, set
deadlines to avoid overwhelming individuals. Remember that your job as a manager is to
achieve goals and keep your team on-task, so try to avoid the urge to micromanage.
4. Execute the Plan, Monitor Progress and Performance,
and Provide Continued Support Next, you’ll need to put the plan into action. One of the most
difficult skills to learn as a manager is how to guide and support employees effectively.
While your focus will likely be on delegation much of the time, it’s important to make
yourself available to answer questions your employees might have, or address challenges and
roadblocks they may be experiencing. Check in with your team regularly about their progress
and listen to their feedback. One effective strategy for monitoring progress is to use daily,
weekly, and monthly status reports and check-ins to provide updates, re-establish due dates
and milestones, and ensure all teams are aligned.
5. Take Corrective Action (Adjust or Revise, as Necessary)
Implementation is an iterative process, so the work doesn’t stop as soon as you think you’ve
reached your goal. Processes can change mid-course, and unforeseen issues or challenges can
arise. Sometimes, your original goals will need to shift as the nature of the project itself
changes. It’s more important to be attentive, flexible, and willing to change or readjust plans
as you oversee implementation than it is to blindly adhere to your original goals. Periodically
ask yourself and your team: Do we need to adjust? If so, how? Do we need to start over? The
answers to these questions can prove invaluable.
6. Get Closure on the Project, and Agreement on the Output
Everyone on the team should agree on what the final product should look like based on the
goals set at the beginning. When you’ve successfully implemented your strategy, check in
with each team member and department to make sure they have everything they need to
finish the job and feel like their work is complete. You’ll need to report to your management
team, so gather information, details, and results from your employees, so that you can paint
an accurate picture to leadership.
7. Conduct a Retrospective or Review of How the Process Went
Once your strategy has been fully implemented, look back on the process and evaluate how
things went. Ask yourself questions like:
Did we achieve our goals?
If not, why? What steps are required to get us to
those goals?
What roadblocks or challenges emerged over the course of the project that could have been
anticipated? How can we avoid these challenges in the future?
In general, what lessons can we learn from the process?
While failure is never the goal, an unsuccessful or flawed strategy implementation can prove
a valuable learning experience for an organization, so long as time is taken to understand
what went wrong and why.

Q7
The Importance of Strategic Evaluation
Strategic evaluation occurs as the final step in the final step in a strategic management cycle.
Without it, a business has no way to gauge whether or not strategic management strategies
and plans are fulfilling business objectives. Strategic management attempts to coordinate and
bring business resources and actions in line with the mission and vision of the business.
Strategic plans outline the action steps necessary for achieving strategic business goals.
Why Evaluate?
Strategic evaluations provide an objective method for testing the efficiency and effectiveness
of business strategies, as well as a way to determine whether the strategy being implemented
is moving the business toward its intended strategic objectives. Evaluations also can help
identify when and what corrective actions are necessary to bring performance back in line
with business objectives.
Performance Measurement
Strategic evaluations start by defining a performance ideal according to business objectives.
This performance ideal includes both qualitative and quantitative performance benchmarks to
which actual performance of the business as a whole and the performance of individual
employees can be compared. Qualitative benchmarks are subjective factors such as skills,
competencies and flexibility. Quantitative benchmarks include “hard facts” such as net profit,
earnings per share of stock or staff turnover rates.
Ongoing Analysis
Strategic evaluations work under the assumption that because the business environment is
fluid and constantly changing, variances will commonly exist between ideal and actual
performance. Regular strategic evaluations provide an objective, effective way for a business
to evaluate, analyze and modify performance expectations. A positive variance can tell a
business what it’s doing right and confirm it’s on the right track while a negative variance can
be a signal that the performance of management and staff needs to change.
Corrective Actions
When strategic evaluations pinpoint areas where the business is not meeting strategic
objectives, corrective actions can attempt to solve the problem. For example, if a business
discovers strategic technical objectives are not being met because employees do not have up-
to-date qualifications, the business can design training programs that bring skillsets in line
with technical objectives. If a business discovers the business objective itself is out of line –
such as overly aggressive sales expectations – it can take steps to modify the objective and
bring it line with real-life potential.