Assignment 4: SWOT Analysis Using EFAS and IFAS Table (8 Factors Each)

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Leah Jean L.

Gaba STRAMA-18

Assignment 4: SWOT Analysis Using EFAS and IFAS


Table (8 factors each)
Select any multinational company you are interested in.  Discuss how did the corporation perform in the
past years in terms of Return on Investment (ROI), market share and profitability.  You may obtain a copy
of their most recent annual report.  To what is its performance for the past year attributed?  What strategy
does it seem to be following? 

Describe the corporate current vision, mission, objectives, and policies.  Are they clearly stated?  Is it
memorable?  Does it concern with its stakeholders?  

What are the resources, capabilities, and core competencies of the corporation? Are they rare, valuable,
and imperfectly imitable?   

How will you describe the corporate top management's qualities, attitudes, and behavior? Are they
supportive of their vision and mission?  Do they exhibit good leadership style that encourage, motivate,
and engage people? 

What are the key factors in the environment that impact their business operations?  How it impacts their
stakeholders, their market share and their profitability?  Make a  SWOT analysis using EFAS and IFAS
Tables provided in the additional file below.

What is the likely future of this firm if it continues on its current path?  Identify two major challenges
company might face in the future and how would you plan to overcome them?

Company Name: The New York Times Company (formerly New York Daily Times)
Head Office: New York, New York, USA
Founded: September 18, 1851 (170 years in operation)
Date Incorporated: August 26, 1896
Website: https://www.nytco.com

Mission: “We seek the truth and help people understand the world”


Values: Independence, Integrity, Curiosity, Respect, Collaboration, Excellence
Objectives: New York Times mission statement is “we seek the truth and help people
understand the world.” The statement shows that this company stays objective in how it
analyses, packages, and reports stories. By doing this, it keeps people informed and connects
the world.
EXTERNAL FACTOR ANALYSIS SUMMARY (EFAS Table)

Weighted
External Factors Weight Rating Comments
Score
Opportunities        
With the modern world we have
1. Growing Consumption of today, this can greatly affect the
Digital Media  0.20 5 1 company’s growth and currently
with its number of subscribers, NY
Times surely is focusing on it.
The increase in revenue greatly
2. Increasing Revenue from affect the company as a whole and
with NY Times current
other services offered 0.20 5 1 investments, it really focuses on its
improvement and further
development.
Consumer and user are now
preferring handy and user-friendly
application through their cellular
3. Accessible Mobile phones easily accessible
Application 0.10 2 0.2 anywhere and anytime, and yes
NY Times has it but still need to
improve and put more effort to
advertise and attract users and
subscribers.
TV media are now one of the
preferred media of the people,
though not many because of the
technology and internet, it still
4. TV Media Expansion been used and can be a great help
0.03 1 0.03 for the company, the company has
it but it was not really highlighted
or the company do not put so
much effort in investing on it for
development.
Decreasing amount of debt is good
for NY Times, as it is one of the
5. Decreasing Amount of Debt reasons of the great decline I
0.10 3 0.3 revenues of the company in the
past, and NY Times is benefiting
greatly on this factor as well.
Threats
Competition in business is always
there, so instead of putting a very
much high weights on that NY
1. Strong Competition Times should focus more on
0.10 3 0.3 improving itself with precaution to
its competitors. Build their own
authentic identity and user will
follow.
2. Substitute Channel/Platform 0.10 3 0.3 Competition in business is always
there, so instead of putting a very
much high weights on that NY
Times should focus more on
(Indirect Competitors) improving itself with precaution to
its competitors. Build their own
authentic identity and user will
follow.
This one, NY Times doesn’t have
control so they should not focus on
3. Changing Demographics it as a problem instead adapt to
0.02 4 0.08 changes and continue improving,
which is what NYT is currently
doing.
This end is not unstoppable,
4. Anticipated End of Physical though its just anticipation, with the
Newspapers 0.05 4 0.2 provided data and studies, its not
impossible, NYT is preparing for it
as well.
Controversies are always there
and once not taken care well can
badly affect the company
especially with the media company
5. Employee Controversies
0.10 2 0.2 where in human capital, journalist
plays big part. They should have
put proper internal control and
proper handling of people inside
the company.
NY Times is above average
based on the 3.61 total weighted
score. This imply that NYT is
trying and their strategies is
Total Scores 1.0 32 3.61 helping and working for their
growth but still need further
improvement as to its response
to external factors
 

Notes: 

1.       List eight to ten most important opportunities and threats facing the company in
Column 1. Weight each factor from 0.0 (not important) to 1.0 (most important) based on that
factor probable impact on the company’s strategic position.  The sum of all weights must be
1. 

2.       Rate each factor from 1.0 (Poor) to 5.0 (outstanding) based on the firm’s response to
each factor.

3.       Multiply the two previous columns (Weight *Rating)

4.       Explain the rationale used for each factor.


5.       Add the individual weighted scores to obtain the total weighted score for the company
in Column 4.  This tells how well the company is responding to the factors in its external
environment.

INTERNAL FACTOR ANALYSIS SUMMARY (IFAS Table)

Internal Factors Weight Rating Weighted Comments


Score
Strengths
1. Longevity in the industry With its 170 years in operation,
NYT is really doing well. Its current
position in digital media is proving
0.05 4 0.2 it that they are using its identity
that they were able to build
overtime.
2. Quality Journalism One of the reasons why NYT is
continuously prospering in the
industry its quality journalism,
along with the prizes it was able to
gain and receive, readers are
0.20 4 0.8 choosing them because of its
quality content, but there are some
few cases that NYT should taken
care of when it comes to their
credibility.
3. Number of paid subscribers Its increasing paid subscribers is
0.15 5 0.75 really helping the company greatly,
with the digital era nowadays
4. Number of employees This increasing number of
employee means a lot of growth
for the company’s overall, since
human capital is of the company’s
great asset as journalist produce
0.10 4 0.4 content and share the news
around the world. NYT is really
focusing as well on handling them
well trying to fix the issues and
diversify the employees.
5. Increasing Stock Price This is a great indication of growth
for investor and for the company
as whole. Since its management
are able to increase and continue
to progress despite the fast-
0.15 4 0.6 changing world, they are adapting
well =, which can create and
attract more investors to help in
company’s sustainability and
growth.
Weakness
1. Declining Advertising This decline is also due to the
decline in the print media, and
Revenue
indirect competitors in the digital
media. NYT is aware of it and
0.10 4 0.4 trying to balance out this decline
through their subscription and
other services, which works well
but still need more better
strategies for improvement.
2. Decline of Print Media This is inevitable, is still called
weakness but the company is
trying to make it an opportunity by
0.10 4 0.4 conquering the digital world
instead. They are putting
investment on it which is good.
3. Vanishing Newspaper and In connection with the previous
weakness, the decline is due to
Newspaper Readers
this vanishing reader, but with that
0.05 4 0.2 the company is trying to solve this
by trying out other possible
solution in the digital era and they
are doing well.
4. The Profitability Ratio is In their current financial status,
they are just starting to recover
Below the Industry Average
from their past regression and now
are trying to copy=e up in their
profitability ration, the company is
0.05 3 0.15 trying and it was doing good
despite the pandemic, but still
need wait to see if their current
plan and strategies would be good
for the future results.
5. Cash Flow Difficulties Along with their financial difficulties
is this due to their past debt and
investment cost for the further
development that affect their
0.05 3 0.15 current financial standing. They
need to further plan thoroughly
finically and monitor their
accounting.
The result is good with 4.05
total weighted score, which
Total Scores 1.0 39 4.05 shows that they are responding
well in the internal factors that
affects their company.
Notes: 

1.       List eight to ten most important strengths and weaknesses of the company in Column
1. Weight each factor from 0.0 (not important) to 1.0 (most important) based on that factor
probable impact on the company’s strategic position.  The sum of all weights must be 1. 

2.       Rate each factor from 1.0 (Poor) to 5.0 (outstanding) based on the firm’s response to
each factor.
3.       Multiply the two previous columns (Weight *Rating)

4.       Explain the rationale used for each factor.

5.       Add the individual weighted scores to obtain the total weighted score for the company
in Column 4.  This tells how well the company is responding to the factors in its internal
environment.

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