CHAP: MEASURING AND s| YOUR PERSO AS People become more green,” that is more con. SclOus of environmental sus- 2 way to measure the size of their The second problem is developing duce that footprint in some mean ‘own carbon footprint. feasible programs to re ingful way. The Web site carbonrally.com solves these problems by Presenting competitive environmental challenges. and keeping score by translating green actions into pounds of carbon dioxide averted. For instance, Cutting the time of a = daily shower two minutes for a month reduces CO. emiSions by JE 3 mau Reco SR | -who has logged savings of more than 1,000 pounds of emissions, “This has been a great motivational technique. We just want to keep going and see if we can do better.” How does Carbonrally calculate someone's carbon shoe size? Since everything a person does that is powered by fossil’fuels has a carbon dioxide cost, many activities have the potential of being counted. Commuting in a gasoline Powered car has obvious carbon costs, but so does eating @ hamburger. Since livestock are res} onsible for an esti- | sCanning the Societal Environm sssible strategic fa ze tl ‘The number of becomes enormous when we reali represented by its own unique setol d some of ry ighboring countries and fe = “er cxample, even though Korea and China sh Kong (shat vai \d Hong aiwan, an pee role of busit in Japan) that land, ent views about the (and to a lesser extent development; however in Hon: PI ip indonesia, Singapore. a ofits for th ‘and varying difficu! sidiary to a corporal Hy tion’s b idquarter NMENTAL sustainabilit Kong. the repatriation of profits (t TER 4 “ronmental Scanning and Industry Analysis q y issue HRINKING NAL CARBON FOOTPRINT mated 18% burger results thing as smal of global carbon emissions, eating a ha if Carbon emissions by the consumer. Som as an iPod adds to a person's carb footprint due not only tothe energy used to produce \ansport the product, but also to the energy used. charge it over its lifetime—approximately 68 pounds ¢ CO,, Both the Nature Conservancy and the U.S. Enviros mental Protection Agency provide ways to measure a individual carbon footprint. The EPA even offers a carbor calculator on its Web site, epa.gow. Carbonrally offers concrete ways to sta emissions. One 2008 contest challenged people to avoid bottled soda, tea, and sports drinks for a month for an average individual savings of 25.7 pounds of CO, Other challenges were using a clothesline to dry one laundry load a week, unplugging:computers every night for one month, and sig peso oe of using a disposable cup. By the end of 2008, nearly 15,000 individuals had completed a challenge, effectively reducing over 1,622.57 tons of CO, Given that global carbon dioxide emissions total more than 28 billion tons annually, one person's reductions can seem very small. Why bother? Carbonrally might respond that the best way to change the world is one person at a time. rt cutting carbon “SOURCE” 8: Waish and. Sharples, “Sing Up Carbon Footprints,” Time (May 26, 2008), pp. 53-55 and wwx.carbonrallycom. P Analysis jeta-environment is very high. The number king. n the world can be that, generally speaking, each country i societal forces-some of| which are very similar to those ave very different. coi re Asia's Pacific Rim area with Thai- nent: ST cultural values), they have very differ in Korea and China al a lesser extent in the t imarily 1o make nd Malaysia), the role of business is priiar™y ae ferences may transfate tnto different tride reesiauens he transfer of profits from a foreign su sup of Pacific Rim countries (0 another, ing many similar : in society, It is generally believed i the role of business is primaril wan, and Thailand (and to 8) from one gro!B® PART 2 Scanning the Environment sg TABLE 4-1 i i Natural Environm, i Js in the Societal and 1 , STEEP Analysis: Monitoring Trends rs I societal environment in \ ; ions categorize the s imo STEEP A age corporations categorize the societal SSO MY : ea rogion ino four areas and focus their scannin in each fx on Wend a Sorecai relevance. By including tends fom te ara ronment ths Sang : i anning of Soci : Eee be called STEEP Analysis, the scant . robe called PESTELA : i I forces. (It may pe Ecological, and Political-legal environmental ( : er Fanner, Sociocultural, Technological, Bolo and Lapa ac ovicusty, trends in any ne area may be very important t0 Fm oti! a : i vn the economic part of the societal environment can have an abies impact business activity. For example, an increase in ilerest rales EAT fener of majing 0 or erae trent rate tends (o be reflected inhigher morgage aes Bia, a tof buying house, the demand for new and used hou, higher mortgage sates incre i JJar-when people change hone, higher mariage use most major home appliances are sold Wifen people change Hou intoa decline in sales of refrigerators, stoves, and ¢j reduction in house sales soon translates int Stoves, and dish, rasa pedoced profits for everyone in the appliance industry. Changes inthe pres oy rar nar impact upon multiple industries, from packaging and automobiles to hospi ity and Shippin omic development of Brazil, Russia, India, and China (often called iy BRIC counties) is having a major impact on the rest of the world. By 2007, China had becace aa varia’ second-largest economy according to the World Bank. With India graduating mag English-speaking scientists, engineers, and technicians than all other nations combined, ith become the primary location for the outsourcing of services, computer software, and telecom. munications? Eastem Europe has become a major manufacturing supplier to the Europea Union countries. According to the International Monetary Fund, emerging markets make w less than one-third of total world gross domestic product (GDP), but account for more tha half of GDP growth.'° Some Important Variables in the Societal Environment Economic Wicemrscr te ioe err Cetliticl! pe cade oo Antitrust regulations Lifestyle changes Interest rates Environmental protection i ; areer expectations ‘Money supply Total industry spending laws inisciaaee for R&D Consumer activism Inflation rates ae : Global warming legislation Rate of family formation Unemployment levels. Focus oftechnological efforts Jumigration laws * ae ally oe ic consall Patent protection oe Growth rate of population Devaluation/revaluation NOW Products Steal laccathee Age distribution gy dikes New developments in ee a of population “ rr technology transfer from lab ign trade regulations Regional shifts nergy availability to marketplace Altitudes toward forei; in i and cost Sans ‘ates toward foreign in population 5 ivity improvements 3 Disposable aad through automation Laws on hieing and oe a ae rg Internet availabilit Promotion Birthrates 7 ene markets ee Staitty of goverment Pension plans Global financial system infrastructure Outsourcing regulati Health care lation Computer hacking activity Foreign “sweat shops" Level of education Living wage ne | UlanStechuological pa Hh pati Part of the societal environment can also have a great impact Widespread use of personal tome i" computer microprocessors have not only led to the Piers but also to better automabileengine performance MrTerins on tal technology slows my through the use of microprocessors to, mngnitor fuel injection. Digi- cable service but 166 and tmusie 1 be available instantly over the Internet or through also means falling fe and CD stores such ae cio Fortunes or video rental shops such as the Movie Gallery manofaetre exreneh ‘ccords, Advances nanotechnology are enabling companies to : ys ma seviees {hut are very energy efficient, Developing biotechnology, Schiniques, is already providing new approaches to dealing with including gene manipult disease iid agricul 3 technological pecans aes At George Washington University have identified a number dv $a | ral < Jehs\hat are already having a significant impact on many industries: *ortable information-di ‘vices and electronic networki 3: Combining th ir oe ing: Combining the computing Lena ae i ne fe networking of the Internet, the images of the televi- iy Ua porate or eae pines hese appliances will soon be used by a major- transmit doctrvents sat — . ia nations to make phone calls, send e-mail, and ere. data. Even now, homes, autos, and offices are being con- This trend sand wirelessly) into intelligent networks that interact with one another. '< tend is being supported by the development of cloud computing, in which a person can tap ito computing power seat ee traditional stand- alone desktop computer may soon join the manual typewriter as a historical curiosity. Alternative energy sources: The use of wind, geothermal, hydroelectric, solar, biomass, and other alternative energy sour i considerably. Over the past two decades, the cost of manufacturing and installing a photovoltaic solar-power system has decreased by 20% with every doubling of installed capacity. The cost of generating clec- tricity from conventional sources, in contrast, has been rising along with the price of petro- —leum and natural gas. fr Precision farming: The.computerized management of crops to suit variations inland char— acteristics willl make {arming MOTE ETNCTER and sustainable Farm equipment dealers such as Case and John Deere add this equipment to tractors for an addtional $6,000 or so. It enables farmers to reduce costs, inease vields, and decrease environmental impact. The ‘ld system of smal, low-tech Tarming is becoming less viable as large comporate fms increase crop yields on limited farmland for a growing population. The concept of prec- sion farming is appropriate to solve many problems inherent othe Indian farming system; it has some preci difcles fr Indian conditions, at tot posible 0 oop ded to find out its applicability inthe Indian agricultur . ROD he M.S, Swaminalian esearch Foundation, Chena, nda joined hands with aoe entate PF on an experimental basis, including conducting taining programs. Israel 0 ie sent was first started in 2004-2005 in Dharmapuri district, Tamil Nadu. One such experititners were not ready to accept this project because oftheir frustration In the fist ear vi iaht since 2002. However, after seeing the success of the fist 100 due to continuons diate of the produce from this scheme, farmers started farms nt BIG gil cond (90% subsidy) and third years (80% subsidy). in large numbers for the se me Deller ‘Virtual personal assistants: Very sma ne cal ible to te sketch s yriting a letter, retrieviny Ils will be at ine I writing a let and phot call, or scree! sts. Acting like a secretary, a person's vir~ ‘making a phon fal assistant efor a per i ns. aling wi Fant could substiiute for a person at meetin or in deali tual assista ; and agriculture is "A convergence of biotechnology is prods organisms: rally modified 10 u Genetically ape Ife sciences, Plant seeds can be genetically mo 2 creating 4 new es or to be less attractive 10 pests and Ws Rat more needed vital =~se— ZPART 2 Scanning the Sawn" people) could be similarly modified for desirable characte, 4 j 8, imina isabilities and diseases. to eliminate genetic cisal - seal mobile robots! Robot development has been limited by a lack of senso, \ 1 sophisticated artificial intelligence systems Improvements in these areas ype" and nd to perform more sophisticated factory work, run errands, qo) Ne ‘Animals (including robots will be create f hold chores, and assist the disabled.!® s in the political. / part of the sociétal environment have a significant impact ny, Pe A iran industry but also on which strategies might be succe For example, Competition Act, 2002 has replaced the Monopolies and Restrictive +, Practices (MTP) Act, 1969, in India. The law has been put forth to prohibit and penn anti-competitive practices by enterprises and regulate potentially anti-competitive merge, ‘The Act prohibits anti-competitive agreements (including cartels), which determine pris, control or limit or share markets among players or result in bid rigging. }t prohibits abuse g ddogninant position through unfair and discriminatory prices or conditions Gncluding pre pricing), limiting or restricting production, denying market access, etc. Moreover, it enn, the Competition Commission the responsibility of undertaking competition advocacy, avan, ness, and training about competition issues.'* ‘As large companies find it more difficult to acquire another firm in the same or areal industry, they are typically driven to diversify into unrelated industries." High levels of taxation and constraining labor laws in Western European countries stimulate companies to alter tc competitive strategies or find better locations elsewhere. It is because Germany has some oft highest labor and tax costs in Europe that German companies have been forced to compete atte top end of the market with high-quality products or else move their manufacturing to lowercoa countries 29 Government bureaucracy can create multiple regulations and make it almost impos sible fora business firm to operate profitably in some countries. For example, the number of dys needed to obtain the government approvals necessary to start a new business vary from only ost day in Singapore to 14 in Mexico, 59 in Saudi Arabia, 87 in Indonesia, to 481 in the.Congo." 1. The $66 trillion global economy operates through a set of rules established by, the Wot ‘Trade Organization (WTO). Composed of 153 member nations and 30 observer nations, tt inally Tounded in 1947 as the General Agreement on Tariffs and Trade (GATT), the WTO ws created in 1995 to extend the ground rules for international commerce. The system's purpos _ isto encourage free trade among nations with the least undesirable side effects-Among its pat ciples is trade without discrimination, This is exemplified by its.most-favored nation claus® whic states tata county cannot grant a trading partner lower customs duties Without era ing them to all other WTO member nations. Another principle is that of lowering trade buts- ers gradually though negotiation. It implements this principle through a series of rounds o trade negotiations. AS a result of these negotiations, industrial countries’ tariff rates on indo trial goods had fallen steadily to less than 4% by the mid-1990s, The WTO is currently e8” tiating its ninth round of negotiations, called the Doha Round. The WTO is also in favor of fi! competition, predictability of member markets, and the encouragemient of economic devel0?” ment and reform. As a result of many negotiations. developed nations have started (0 allow duty-free and quota-free imports from almost all products from the | untsie though the world’s population is growing from 3.71 billion people in 1970 to 6. is 2010 to 8.72 billion by 2040, not all regions will grow equally. Most of the growth will be? the developing nations. The population of the developed nations will fall from 14% of total world population in 2000 to only 10% in 2050.23 Around 75% of the world will Hive’ city by 2050 compared to little more than half in 2008. Developing nations will coatinv’ e lave more young than old people, but it will be the reverse in the industrialized nation aGeneration ur WWUSilent c generations Baby Boomers o" ‘Age in 2005 Generation X_ D. Parkinson Board, 2002),p, 19°” For example, the demo; 1950s continues to Bre ehie bulge in the to fall from 127.6 million i rom 127.6 million in 2004 t i trol policy is causing the ratio of worken orogeny 20502 China's stringent bit £0.25 toon a ti of workers ote fl from 200 cirng ee sens oer prods i202 Companies with an eye onthe ture can find ee ices to the growin ‘. a find many opportunities to ts peopleove SU wilitwmey ote ing number. es ‘woofies” (well-off old folks—defined vehicles (RVs), take ocean cruises, and enjoy | ‘People are very likely to purchase recreational ing in addition to‘nocding ioanclal services and icaliveans Anica oe eee ditic and heal i for prescription drugs is one reason the Walgreen cae Spee Ce lang See ees aaa ipany has been opening a new comer ~To attract older-customers, retailers will nes Teta .ed to place seats in their | 5 shoppers can rest. Washrooms need to be more accessible. Signs need to ieee! ReGiet need to raise the level of lighting so people can read their menus, Home appliances need ae pler and larger controls. Automobiles need laser door openings and more comfortable seats Zimmer Holdings, an innovative manufacturer of artificial joints, is looking forward to its mar- ket growing rapidly over the next 20 years. According to J. Raymond Elliot, chair and CEO of Zimmer, “It’s simple math, Our best years are still in front of us."*! forming North America and the rest of the world: 4 [is Soy current sociocultural trends are trans! AG a Increasing environmental awareness: Recycling and conservation are becoming more : For example, has eliminated the use of disposable styrofoam than slogans. Busch Gardens, hing and reusing plastic trays. about personal health fuel the trend toward sales growth is slowing at tast-food Changing public tastes away from the maker of Twinkies and Won- a trays in favor of wash 2. Growing health consciousness: Concerns physical fitness and healthier living. “6 6 result, ; purges and fries” retailers such ws MeDona ‘ sugar-laden processed oad yn 2, te Fach goverment ws conser der Bread, 10 declare Hi xa fall, sal oF sugary products Phe European Union ing increas ro fered grain (“Frankenfood") beeause of possible ne ea ation of genetical al forbade the importation of BENELICNY YT og people worldwide ads even fur side effects. The spread of AIDS to more ther impetus to the health movement. 3. Expandi iors market: As their nun panding seni re “an even more importa 1 market. Already som in bers increase, people over age 55 will become companies are segmenting the senior® PART 2 scanning tho Environment Scanning the E aires i amp ces , for example, a population into Young Meo mature a des are the key market Toren fot of attitudes and interest eg: whereas, people whose children are grommet, ical ear and 100s panionshi OF Fn he United States. In 2007 em care facilities. The des! to grow 4.5% anu $41 billion on their pets—more 4%, Tag Te Te Ie US. SBE a le, 71.1 million ho countri ross domestic product NO geen 1978 ond eal baby boom ei 4. Impact of Generation ee stas largeas the baby oe roa oss a 1957, the ~~ X generations, thiscohort is babies were bom In 1990, thet Were 4.2 mit year of the postwar soem a By 2000, they were overcrowding elementary an, births in Generation Y's peak Yea seen since the baby boomers. Now ints apc as ed to have a strong impact on future products and Services and 20s, this cohort is expec ope dining the mazkelts enone a, 5. Declining mass market: Niche ted more to their personal needs. For exam, want products and services thal are a4 CPA des of You" lines of cosinetic prodee Estée Lauder's “All Skin” and Maybel n. “Mase customization” —the mae : : a are specifically made for African-American wo! a a and marketing of products tailored to a person’s requirements (Dell for example an, Gateway computers)—is replacing the mass production and eae ie Same prod. uct in some markets, Only 10% of the 6,200 magazines sold in the United States in 299, were aimed at the mass market, down from 30% in the 1970s. 6. Changing pace and location of life: Instant communication via e-mail, cell phones, ang overnight mail enhances efficiency, but it also puts more pressure on people. Merging the personal computer with the communication and entertainment industries through tele. phone lines, satellite dishes, and cable television increases consumers’ choices and allows workers to leave overcrowded urban areas for small towns and telecommute via personal et: Born computers and modems, 7. Changing household composition: The joint family is an ancient Indian institution, but it has undergone some change in the late 20th century. Although several generations lv ing together is the ideal, actual living, arrangements vary widely depending on region, social status, and economic circumstances. The family as a unit is in its transition stage and many Indians now are leaving joint families and opting for nuclear families—a couple with their unmarried children—is the most common pattern in the West. This trat- sition has led to rise in the number of dual-eamer couples in India that has not ofl increased the standard of living but has also given rise to issues such as how to balance home and work and how to devote enough time to’children, 8. Increasing diversity of workforce and markets: India is known as “politically on country but socio-culturally many countries in one.” In Indi ing people in terms of language, style of dress, cultural dances, ete. ever fe ec onorts states is like comparing Kammataka to Tel S, etc. even from two neighboring 'y. As per studies in India, the language stCHAPTER 4 Enviconmental Scanning and lodustry Analysis GE 4, Pedi wees of competitive advantage under each scenario. Petitors’ behavior under each scenario, 8. Select the scenari 4 Om the future of the a ether most likely to occur or most likely t have a strong impact pany. Use these scenarios as assumptions in strategy formulation, 6. Determine the so 4.5 The Strategic Audit: A Checklist for Environmental Scanning One way of sea and Auth foes cuisunett to identify opportunities and threats is by u checklist of questions bo ADPendlis L.A at the end of Chapter 1. The aust provides @ natural, social in fate f concer. For example, Part lof the aut examines the Teer ng ask environments. 1 looks atthe soeietal environment in terms of eniconmnn Gains . id Political-legal, and sociocultural forces. It also considers the task a oe a threat of new entrants, bargsning power of buyers and Skea products, rivalry among existing firms, and the relative power 4.6 Synthesis of External Factors—EFAS +#* ‘Afier strategic managers have scanned the societal and task environments and identified a number of likely external factors for their particular corporation, they may want to refine their analysis of these factors by using a form such as that given in Table 4-3. Using an ERAS ‘(External Factors Analysis Summary) Table is one way to organize the external factors into the generally accepted categories of opportunities and threats as well a to analyze how well a particular company’s management (rating) is responding to these specific factors in light of the perceived importance (weight) ofthese factors tothe company. To generate an EFAS Table for the company being analyzed, complete the following steps \AC In Column 1 (External Factors, lst the eight to ten most important opportunities and threats facing the company. 2, In Column 2 (Weight), assign a weight 10 each factor from 60 (Most Imprint 000 (Nor * Important) based on that factor’ probable impact on a parent compact rae ie postion. The higher the weight, the more impor S tisfatrtthe cnet ane arceess of the company. (AIL weights must stm fo LO regardless of the num (Outstanding) to 1.0 (Poor) : tors.) i rating to each factor from 5.0 3 g), assign a rating teach t ng) 19.0 (Poor) Nr ieee Cotumn 3 Geet ‘connpany’s specific response to that particular Facto: eh rang ona that garding how well dhe company’s currently dealing with each speci : is a judgmet z I factor. external . a ts ls 8 An a us et ! s Poor ding -avovernverage Avera outstats the Enviroment J » External Factor Analysis Summary (EFAS Table): Maytag as Example rice) Bel => PART2 Si Hua utcs Mince GEL) cana 1 2 3 Opportunities ‘cha _ a isition of He 2 Economic integration of European Community 20 a faa ities ‘m Demographics favor quality appliances 10 x a Economic development of Asia 05 e bo eae Presence Opening of Eastern Europe 05 : fend to “Super Stores” 410 18 Maytag weak in this can i 43 Well positioned 1 Increasing government regulations 10 43 iti ® Strong U.S. competition “10 40 40 Well Posioned & Whirlpool and Electrolux strong globally AS 3.0 AS er weak gltaly @ New product advances, 05 12 06 Questionable : & Japanese appliance companies 10 16 16 Onty. we presence in Total Scores 1.00 Bis, ee NOTES 1. List opportunities and threats (8-10) in Columa 1 2. Weight each factor from 1.0 (Most Important to 0.0 (Not Important) in Column 2 based on that factor’s probable impact onthe con- pany’s strategic position. The total weights must sum to 1.00. Rate each factor from 5.0 (Outstanding) to 1.0 (Poor) in Column 3 based on the company’s response to that factor. Multiply each factor’s weight times its rating to obtain each factor’s weighted score in Column 4. Use Column 5 (comments) for rationale used for each factor. Add the individual weighted scores to obtain the total weighted score for the company in Column 4. This tells how well the companys responding tothe factors in its extemal environment. SOURCE: TL. Wheelen, J.D. Hunger, “External Factors Analysis Summary (EFAS)", Copyright © 1987, 1988, 1989, 1990, and 2005 by TL Wheelen, Copyright © 1991, 2003, and 2005 by Wheelen & Hunger Associates, Reprinted by permission. ama 4. In Column 4 (Weighted Score), multiply the weight in Column 2 for each factor tine’ its rating in Column 3 to obtain that factor’s weighted score. 5. In Column 5 (Comments), note why a particular factor was selected and how its W and rating were estimated, 6. rally, add the weighted scores for all the external factors in Column 4 to determine tt ral a ted score for that particular company. The total weighted score indicates i particular company is responding to current and expected factors in its extemal & Cheer nae rie Score can be used to compare that firm to other firms in the indus! en nai that the ‘otal weighted score truly reflects the company’s current perfo™™ s of profitability and market share. The total weighted od i . yre for an av firm in an industry is always 3.0, — As i 1s Genie of this procedure, Table 4S includes a number of external factors for May Poropriate an cotresponding weights, ratings, and weighted scores provided. This tbe Pele e295: long before Maytag was acquired by Whirlpool. Note that May"! total weight was 3.15, meanii ly ex h 15, ing that the c¢ i i age in the me hese ‘orporation was slightly above average in the‘This interactive planning sy.y inked Web pages- i © Syste a Mather than on projected demand, Distrib ty, 1 usar fitions or changes in marketing, Heineke, wt Jon loos ia schedules. As result ofthis system, eas ty na ‘ks. This time savings j 104-6 wee! BS especi hty e ial 19-12. weeks a example, Pt aly been reduced from the tradit = Hyoduet teshness In ancihet eben & Gang fal in an industry competing +o move the company’s li Ne Produce ; s. Radio-fiequency identification, oe rae Lan ot, Produey i Walia cia et tnouugh inventory and distribution Par OF then ation is used to tra i ducts have passed (er and by store what prov passed wih War Mars kos by <8 a estan i al ays ve ‘of each day. The netwo! es is A iehel i low inventories.” and minimize stockouts while maintaining exceptionally igh thei Netherlands brewer throu Netherlands b Ise time-phased orders based able to modify plans based ¢ modifications to adjust brew 7 5.6 The Strategic Audit: A Checklist ~ for Organizational Analysis _ One way of conducting an organizational analysis to ascertain a company’s strengths axj weakness is by using the Strategic Audit found in Appendix 1.A at the end of Chapter. Tie audit provides a checklist of questions by area of concern. For example, Part IV of the audt examines corporate structure, culture, and resources. It looks at organizational resources ai capabilities in terms of the functional areas of marketing, finance, R&D, operations, huna resources, and information systems, among others. After strategists have scanned the internal organizational environment and identified fates for their particular corporation, they may want to summarize their analysis of these factors us ing a form such as that given in Table 5-2. 1, InColumn 1 (Internal Factors), list the ei ' : nesses facing the company, 'e cight to ten most important strengths and We aa oa 2 (Weigh, Assign @ weight to each factor from 1.0 (Most importa!) Cece ee oe factor’s probable impact on a particular comp") cu ion. The higher the weit : arse f current and future success of ie eee rare more important is this factor i" the number of factors, : ‘eights must sum to 1.0 regat'sents quality Maytag culture rienced top management 1S 5.0 fs Verica integration 05 42 ne Quality key to s 1 inployer relations 10 39 e ia onver's international orientation nS 30 2 Dedicated factories Is 28 a Cont but deteriorating Fe scan - joover name in eleaners « Distribution channels 05 22 i Se sa oan ‘05 Ey “1 Slow on ew prods a 15 eo ~ ‘Superstores replacing small dealers 0 i ay High debt load ‘ ? Hoover weak outside the Unit 1# Manufacturing facilities 40 Kingdom and Australia . ‘otal Scores i 20 Investing now Diba ah ll i et seal 205 NOTES: 4, Lis strengths and weaknesses (8-10) , ) in Column i 12 Weight each factor from 1.0 (Most Im; Y fa fost Important) to 0.0 (Not Important in * sn 0 it porn 108 Ot ee 1) in Column 2 based on that factors probable impact onthe company’s i ch fe en 5.0 (Outstanding) to 1.0 Poo in Column 3 based onthe company's kyo tr gine aig oobi ih er ih ne Wis ihaon 5 (oommens) fo rationale used for each factor. i vidual weighted scores to obtain the total weight : obiai Jghted score forthe company in Column 4, This tells how i . responding to the factors in its internal environment. ge RCE: TL, Wheelen & J.D. Hi “I : m Hunger, “Inteoa! Factor Analysis Summary (IFAS)” Copyright © 1987, 1988, 1989 190 and 2005 L.Whesen Copyright © 1991, 2003, and 2005 by Wheelen and Hunger Associates, Repined by Renmision gael rach factor from 5.0 (Outstanding) to 1.0 (Poor) to that particular factor. Each rating is a judg gement is currently dealing with each 43, In Column 3 (Rating), assign a rating 10 & rent’s specific response based on managem ‘ ment regarding now well the company’s ‘mana specific internal factor 4, In Column 4 (Weighted Score), ite rating in Column 3 10 obKain that factor 5. InColumn5 (Comments), hy a particular factor was note wl it d and rating were estimated: : 6. Finally, add the weighted scores for all the interna sor ie sama dodanie . Finally, 4 ofr that particular cOmPAN total weiel ints bow total ea mpany is responding (© ‘current and expected factors i ps nea well a particular comme Tan be used 1 COn that fem co othe firms in ts ingot environment. THe Te rotal weighed eoPe truly reflects the vom) scare - Checkin er ronitbilty Jind market share. TRE total weighted cor = ance in terms of fem in an industry always 3.0. multiply the weight in Column 2 for each factor times factor’s weighted score. selected and/or how its weight Column 4 to determine the