SRATEGIC MANAGEMENT

PROF. PRADNYA GIRHE

NIKITA DAKI (64) SYMMS, DIV- B

STRATEGIC MANAGEMENT
CASE STUDY: 03

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SRATEGIC MANAGEMENT
PROF. PRADNYA GIRHE
NIKITA DAKI (64) SYMMS, DIV- B

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SRATEGIC MANAGEMENT
PROF. PRADNYA GIRHE
NIKITA DAKI (64) SYMMS, DIV- B

Q1. What should Rohit do? Expand or not?

Ans:

Rohit should not go for the expansion as he is already facing problem in

handling 4th outlet, in fact he needs to make sure that first he should be
able to manage the existing one better and then think about going beyond
borders, also the high pricing in effecting him in 4th venture so he needs
to figure out that issue first and then goes further. Due to changed concept
as well as expensive product pricing with alienation of young college and
university students are the challenges for Rohit which he needs to sort it
out.

Q2. What means would be best suited for the expansion

of Rohit Business?
Ans:

If Rohit wants to go beyond the limits then he should approach and go

with the same persons who have helped him when he was initially starting
up his business and with the venture capitalists as they already have
relations and trust on each other because of working together before.

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SRATEGIC MANAGEMENT
PROF. PRADNYA GIRHE
NIKITA DAKI (64) SYMMS, DIV- B

Q3. Conduct a SWOT & TOWS ANALYSIS for Rohit?

Ans:

Internal Factor Evaluation (IFE) Matrix

Key Internal Factor Weights Ratings (1- Weighted
4) Score
STRENGTH
New flavours 0.15 4 0.60
Self Management 0.05 3 0.15
Team Leadership 0.10 3 0.30
Strong Relationship with 0.10 4 0.40
suppliers
Better environment 0.06 3 0.18
Quality beans 0.10 4 0.40
Same Blueprints 0.05 4 0.20
Good Relationship with 0.09 3 0.27
employees
WEAKNESSES
No contract with clients 0.20 1 0.20
Weak financially 0.05 1 0.05
Self control 0.05 3 0.15
Total 1 3.48

Regardless of how many factors are included in an IFE Matrix, the total
weighted score can range from a low of 1.0 to a high of 4.0, with the
average score being 2.5. Total weighted scores well below 2.5

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SRATEGIC MANAGEMENT
PROF. PRADNYA GIRHE
NIKITA DAKI (64) SYMMS, DIV- B

characterize organizations that are weak internally, whereas scores

significantly above 2.5 indicate a strong internal position.
As per the weighted score of coffee cabana of 3.48, it has strong internal
position according to IFE matrix.

Q4. Make an IFE matrix for the case in hand?

Ans:-

Internal Factor Evaluation (IFE) matrix is a strategic management tool for

auditing or evaluating major strengths and weaknesses in functional areas
of a business.

The IFE Matrix together with the EFE matrix is a strategy-formulation

tool that can be utilized to evaluate how a Coffee cabana is performing in
regards to identified internal strengths and weaknesses of a Coffee cabana.
The IFE matrix method conceptually relates to the Balanced Scorecard
method in some aspects.

SWOT Analysis of Coffee Cabana:

STRENGTHS:
 Customization
 Fresh
 Good Relation with Suppliers
 Versatile Menu
 Better Taste

WEAKNESS:
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SRATEGIC MANAGEMENT
PROF. PRADNYA GIRHE
NIKITA DAKI (64) SYMMS, DIV- B

 High Pricing
 Management Issues
 Environment Issues
 Lack of Capital for Expansion

OPPORTUNITIES:
 New Outlets
 Educational Cities
 Young Customers

THREATS:
 Loans
 Low Pricing of Customers
 Higher Demands of Customers