3rd Assignment (EOM)

Case 1
Starbucks Corporation is an American coffee company and coffeehouse chain. Top level
management of Starbucks has conducted Situation Analysis. It analysed the (I) internal
factors such as management, culture, mission, resources, system process and structure (II)
external factors such as customers, competitors, supplies, labour force, shareholders,
society, technology, the economy and governments. The following 17 points listed in Table 1
are the outcomes of Situation Analysis.
Questions to be answered:
(a) Categorize the 17 points given in Table 1 and re-write them under the following
headings: Strengths, Weaknesses, Opportunities and Threats. (3 marks)
(b) Using TOWS matrix, develop one strategy each for SO, ST, WO and WT. (2 marks)
Table 1

Strong brand-name recognition, Political conditions abroad may limit expansion,

Dependence on single source of business/income, Expansion into untapped U.S. markets,
Quality product, Strong dependence on suppliers, Economic conditions may make
consumers unwilling to pay high prices, Expansion into overseas markets, Expansion of
brand name into new products or business lines, Large retail distribution system, May be
reaching saturation point in some U.S. markets, Good supplier relationships, Prices high
relative to competition, Extensive product list, Merchandise sales in stores, Strong
financial history, Strong human resources
Case 2
The Snoozy Inn is a 40-unit, no-frills operation in the less scenic part of a major Queensland
resort town. The owner, Mr. Smith, firmly believes that there is a need for his style of low-
cost family accommodation amid the luxury and beauty of the area. His rooms are large,
family-style rooms (there is no television, for example). Although there is plenty of room for
future expansion, the grounds are fairly bear with a bit of landscaping, but mostly grass.

Mr. Smith can serve breakfast to the rooms and provides tea-making facilities. There are
now a lot of good restaurants and take-a ways in the area. Mr. Smith’s prices are less than
half of what similar motels charge and only a fraction of what the big five-star properties are
charging. And, really, he isn’t all that far away from the beach, shops and other attractions.

The problem is occupancy. He has some regulars who come every holiday period (and have
been doing so for the four years he has owned the property). Overall, occupancy is about
50% year round and he knows from the local tourist office that the other properties average
around 68% occupancy year round. New developments could mean trouble. This lack of
occupancy can be quite frustrating for Mr. Smith. Cars pull in, drive around the parking
areas, and then drive away.

Currently Mr. Smith does very little advertising in local district guides and the holiday
papers, mainly because he really thinks word-of-mouth is the best form of advertising. He is
a member of the local tourist committee, but too busy to go to meetings. However, he does
receive the local statistics and knows the average stay in the area is 3.8 nights, and that local
families and couples and increasingly overseas visitors are his potential customers.

He is not desperate yet, but he is getting worried and disillusioned. He thought he would be
overrun with guests, but that hasn’t happened.

Questions to be answered:
(a) Identify and write the Strengths, Weaknesses, Opportunities and Threats in relation
to the Snoozy Inn (3 marks).
(b) Using TOWS matrix, develop one strategy each for SO, ST, WO and WT (2 marks).
Case 3
What is missing in MBO?
“Managing by objectives is nothing new here”, said commissioner Chidambaram of the
metropolis Police Department. “We have always had important objectives toward which
everyone in my department strives. Our job is to maintain law and order, firmly but fairly;
to protect human lives and property; and to be the conscience and spirit of the general
welfare of the millions of people who call our city home. Everyone in this department knows
these objectives. Every man and woman knows that he or she must work toward them and
that, if they do not, they will be replaced. I recognise that in a manufacturing concern you
can measure objectives by profits, sales costs, and product output. We can’t, of course, do
that, for we are a service operation. But this does not mean that we are not managing by
objectives. Ask anyone in my department!
Questions to be answered:
a) Is Commissioner Chidambaram engaging in managing by objectives? What, if
anything, is missing? (2 marks)
b) Develop the quantitative objectives in any three key result areas by referring to
Peter F Drucker’s philosophy on “Management by Objectives (MBO)” in relation to
the above case. (3 marks)
Case 4
Shri Vishvakarma (Emery Stone) is a Private Limited company. Three employees who worked
with Shri Vishvakarma (SVIPL) for 94 days conducted a SWOT analysis. They analysed the (I)
internal factors such as management, culture, mission, resources, system process and
structure (II) external factors such as customers, competitors, supplies, labour force,
shareholders, society, technology, the economy and governments. The following 19 points
listed in Table 2 is the outcome of their SWOT Analysis.
Table 2

Serving the industry for last 43 years, No proper workflow that promotes unnecessary
movement of man and material, Innovating new products, which will generate demand
in near future, Pure competition in the market, Facing competition from many local
manufacturers; therefore, home state (Rajasthan) demand is very low, ISO 9001 Certified
Company, Highly reliant on employees due to which mismanagement has been seen in
certain areas in the company, Benefits of economies of scale, due to bulk production so
per unit cost is much lesser than competitors, High fluctuation in the price of raw
materials like iron which disturbs the market demand, Excellent quality control, No clear
duties and responsibilities assigned to the employees thereby creating some confusions
at the time of excess work, Exporting high quality flour mills, increasing exports day by
day, Being supervised by founder R.D.Sharma and Mr. Bhairon Bux Sharma, Orders are
not delivered on time, Demand of emery stone is high, but increase in the production
capacity is very expensive, Managed by highly qualified directors – Shri Gopal Sharma
(M.D.) and R.S.Choyal (E.D.), Little attention is being paid towards the complaints and
grievances of the customers, Emphasis on automation of production, so high quality and
low cost of production which gives edge above the competitors, Always keen on
innovation of new products and design

Questions to be answered:
(a) Categorize the 19 points given in Table 2 and re-write them under the following
headings: Strengths, Weaknesses, Opportunities and Threats. (3 marks).
(b) Using TOWS matrix, develop one strategy each for SO, ST, WO and WT (2 marks).