There has been a substantial decrease in the birth rate over the last ten years. Threats 7. After a serious dispute with the manager of a competing leisure center, the leader of a respected local scuba club is looking for a new venue. Opportunity 8. Press releases have just been issued to confirm that Brills Leisure Center is the first center in the area to be awarded quality assurance standard ISO 9002.
Opportunity/Strength 9. Brills Leisure Center as received a grant to fit special ramps and changing rooms to accommodate the local disabled. Strength 10. It is widely acknowledged that Highly Brills has the best-trained and most respected staff of all of the centers in the locality. Strength Exercise 2 – SOOT 1. In the early sass’s Burger King Restaurants profits steadily declined as McDonald’s and Wend’s gained market share. Each year there were more stores closing than opening. Is this loss of market share a Strength, Weakness, Opportunity or Threat for Burger King?
Weakness 2. Eating habits of customers are changing, with research showing that most customers order food to go. Burger King can reduce the cost of building a new restaurant from $1. 3 million to $970,000 if they make their stores smaller. Is finding out this information a Strength, Weakness, Opportunity or Threat for Buy roger King? Opportunity 3. In 1999 McDonald’s launched a cross promotion with Beanie Babies (a small stuffed animal toy) at the height of the popularity of the Beanie Baby craze.
Is this cross promotion a Strength, Weakness, Opportunity or Threat for Burger King? Threats 4. In 2004 Greg Brakeman was hired to lead Burger King as CEO. Brakeman revisions helped turn around PWS consulting and helped facilitate that company’s merger with IBM Global Services. This merger earned the title of ‘deal of the year’ from Institutional Investor Magazine. Prior that, Brakeman spent six years at the helm of Continental Airlines, helping to return the company to profitability after 16 years of losses.
Brakeman also has an MBA from Harvard Business School. Is having Brakeman as CEO a Strength, Weakness, Opportunity or Threat for Burger King? Strength 5. Burger King spent $340 million on an ad campaign that targets teenage males t the expense of other market segments, especially women. Franchisees are unhappy as they felt this advertising was too focused on a narrow segment. Is this franchisee reaction a Strength, Weakness, Opportunity or Threat for Burger King? Weakness 6. McDonald’s trains its franchisees and others at its own Hamburger University.
Hamburger University is on an 80 acre (320,000 mm) campus with 19 full- time international resident instructors to teach students from more than 119 countries. The state-of-the-art facility includes 13 teaching rooms, a 300 seat auditorium, 12 interactive education team rooms, and 3 kitchen labs. Hamburger University translators can provide simultaneous translation, and the faculty has the ability to teach in 28 different languages. Is Hamburger University a Strength, Weakness, Opportunity or Threat for McDonald’s? Strength 7.
In May 2003, a cow with Bovine Sponsoring Encephalopathy more commonly known as Mad Cow Disease was discovered in Alberta, Canada. Is publicity about Mad Cow disease in North America a Strength, Weakness, Opportunity or Threat for McDonald’s? Threat 8. McDonald’s in 2010 announces that it will introduce free Wi-If Internet access in over 1 1 ,000 restaurants. Is this introduction of free Wi-If a Strength, Weakness, Opportunity or Threat for McDonald’s? Strength Exercise 3: 5 Forces Analysis The Porter’s Five Forces analysis is designed to evaluate the competitive forces in the industry the firm operates.
If it determines that the combination of forces in the industry act to reduce profitability, it is saying the industry is unattractive. Please evaluate the attractiveness of the Automobile Industry considering car manufacturers such as Ford, Fiat, Renault etc. By using 5 Forces Analysis Volkswagen Bargaining Power of Suppliers High levels of competition among suppliers acts to reduce prices to producers. This is a positive for WV. The more diverse distribution channels become the less bargaining power a single distributor will have. This positively affects IV.
When critical production inputs are similar, it is easier to mix and match inputs, which reduces supplier bargaining power; a positive for IV. The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching costs positively affect IV. When suppliers are reliant on high volumes, they have less arraigning power, because a producer can threaten to cut volumes and hurt the supplier’s profits. This can positively affect IV. Bargaining Power of Customers The more diverse distribution channels become the less bargaining power a single distributor will have.
This positively affects IV. When there are large numbers of customers, no one customer tends to have bargaining leverage. Limited bargaining leverage helps IV. Intensity of Existing Rivalry Large industries allow multiple firms and produces to prosper without having to steal market share from each other. Large industry size is a positive for IV. Threat of New Competitors High capital requirements mean a company must spend a lot of money in order to compete in the market. High capital requirements positively affect IV. High Capital Requirements (IV)” has a significant impact, so an analyst should put more weight into it. Weak distribution networks mean goods are more expensive to move around and some goods don’t get to the end customer. The expense of building a strong distribution network positively affects WV. If strong brands are critical to compete, then new competitors will have to improve their brand value in order to effectively compete. Strong brands positively affect IV. Economies of scale help producers to lower their cost by producing the next unit of output at lower costs.
When new competitors enter the market, they will have a higher cost of production, because they have smaller economies of scale. Economies of scale positively affect IV. Advanced technologies make it difficult for new competitors to enter the market because they have to develop those technologies before effectively competing. The requirement for advanced technologies positively affects IV. Patents that cover vital technologies make it difficult for new competitors, because the best methods are patented. Patents positively affect IV.
SOOT Analysis The analysis will present Vow’s strengths, weaknesses, threats and opportunities. Strengths Strong Brand Image Strong research cooperation among brands Good Distribution Market Leader in Western Europe Good market position in passenger car market Efficient human resource management Weaknesses Quality Dealership and retail sales network is too big and inefficient IV is not good at serving niche demand such as scabrous and coup©s IV entered the Asian market without a partner. The most important platform, the Golf platform, can’t support any more models
The production is based too much on the German production location and thus expensive Multi-brand strategy and full range market presence is cost- too intensive Opportunities Better Acceptance of IV Brand The strong market position in China and in Brazil (both huge markets) is a guarantee for prosperous future The possible merger with Volvo Threats Lower Priced Asian Cars The stock price evaluations, unattractiveness of the old economy New and more stringent regulations on national and European levels with respect to emissions And end of life vehicles Too many nameplates raise costs and dilute marketing efforts.
