Month: May 2012

Steps in Developing EFE Matrix (External Factors Evaluation Matrix)

External factors Evaluation matrix (EFE) is used to audit the external factors of any company. In EFE matrix the external factors are divided into opportunities and threats. A company can capitalize on opportunities and avoid or reduced threats. Following are the steps to develop EFE matrix. 1. List down the external factors. 2. Categorize factors in opportunities and threats. 3. Assign weight to each factor based on its importance, ranging from 0 (not important) to 1.0 (most important). The sum of weight of factors must be equal to 1. 4. Assign a rating ranging from 1 to 4 to each external factor. The rating of each factor shows how promptly firm strategies responding to each opportunity or threat(1 = response is poor, 4 = response is extremely good). 5. Multiply each factor weight by its rating to get weighted score. 6. Sum the weighted...

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SWOT Analysis – The Marriott International

The Marriott International Company is the worldwide operating company which is American based and has number of franchises of the hotels. The company is based on the industry of the hospitality and tourism.  The company was founded at Washington, D.C, and U.S in 1927 and is headquartered in Bethesda, Maryland, United States. The company is operated by the key people who are the chairman and vice chairman J. W. Bill and William. J. Shaw.   The company is providing its services all over the world and is engaged in producing the products and services of the hotels and resorts. The Marriott International Strengths • The company has very strong position in the market having the diversified and expanded business all over the world. • The company is leading in the whole world market with the strong financial position because of the large number of debt. • The Marriott International Company is providing the wide range of satisfied products and services to its customers. • The company has developed strong position regarding the customers as with attaining the loyalty of those customers. The Marriott International Weaknesses • Due to the huge extended business the company is becoming weak in their management system as they are supposed to be pathetic in their performances. • The company is facing the state of high debt as because if it’s stabling the position of the...

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Eli Lilly and Company SWOT Analysis

Eli Lilly and company were founded in 1876 and were established by a chemist, Eli lily. It was his name after which the company was ultimately titled. Eli lily is a worldwide famous pharmaceutical company and is headquartered in Indianapolis, Indiana. It operates in 17 other countries too, having offices and manufacturing plants their, but has a wide distribution chain covering almost a 125 countries. It is honored to have the status of being able to develop first human insulin using the DNA recombinant technology and currently it is the largest manufacturer and seller of psychiatric medicines. In 2010, it generated revenue of almost $23 billions. Presently, it employs around 38,500 people from across the globe. It also had the honor of being among the fortune 500, ranking 148th company amongst other US businesses.  Eli Lily and Company Strengths Probably the biggest strength of Eli lily is its global presence. By operating in so many countries, it has become widely recognized and famous company and controls a hefty amount of market share. The employee and management team are very strong. Native employees from different areas are employed so that they could better understand local demands and produce accordingly. Furthermore, Eli lily uses extremely technological machines for the manufacture of medicines and its products are known to be highly standardized. Nevertheless, its medicines have always had good reports and feedbacks....

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External Opportunities and Threats

There are two environments in which any company operates. First one is external environment consist of opportunities and threats and other one is internal environment consist of strengths and weaknesses. Opportunities and threats are uncontrollable factors whereas internal strengths and weaknesses are controllable factors. External Opportunities These are the favorable factors exist in the external environment. Any company which has been proactively monitoring the external environment will surely try its best to utilize or capitalize the available opportunities. However, any opportunity can turned into threat if a direct competitors capitalize on it. Therefore, the time factor is important and should be considered while formulation and execution of strategies. What are the examples of External Opportunities? External opportunities contains but not limited to the following factors: Acquisition of direct competitors. Expansion in domestic and internal market. Offer new products and services in the market. Diversification External Threats These are the external factors which may harm the company in long run. However, the impact of threats can be minimized to some extent by using the company internal strengths and capitalizing on the opportunities. What are the examples of External Threats? Following are the example of threats but not limited to: Intense competition Low industry growth Many new entrants in the market High taxes and interest rates Government regulation Security conditions Weak economy due to high inflation Rapid change in technology. Opportunities...

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SWOT Analysis- The Fannie Mae Company

Headquartered in America, Fannie Mae is an organization established more than 70 years ago. It is a government sponsored company which ensures that the wealth of America is on a constant circulation amongst American families. It ensures the flow of funds in to the mortgage market so that American residents may enjoy a luxurious home which they can afford overtime, by accessing the mortgage credit. Fannie Mae Strengths Since Fannie Mae is a very old business institution, it has gained nationwide recognition and this is perhaps its greatest strength. This company has received the honor of being the second-largest financial organization in US and had once controlled 25 percent of the total housing mortgages in America. The company is far too strong, with a reported share holders’ equity increase, up to $8 billions (New York Times, 2004-04-16). The financial position and internal management of Fannie Mae Company enhanced after she took an initiative to improve accounting procedures after the 2004 scandal. Fannie Mae, being a government supported enterprise is entitled to receive a huge amount of subsidy annually and reduction in local and registration taxes. It is therefore very easy for the company to access market capital and thus, it has a greater scope for future development. Fannie Mae Weaknesses Home prices in American are falling down drastically and this has leaded the ‘Fannie Mae’ business in to extreme...

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Regression Discontinuity Analysis

The regression discontinuity design involves the two group evaluation model that is the posttest and pretest.  For regression discontinuity model, the statistical model is used to represent the value of pre test and coded values of dummy variables in order to operate the program. As the regression discontinuity analysis is the examination of the regression discontinuity design, so in order to understand the model few of the assumptions are important to portray such model. The assumptions for the model are; The Cutoff Criterion The cutoff criterion should be pursuing without any exemption. A biased threat arouses when in the program there appears the wrong cutoff values. Mismanagement in case of the cutoff is termed as fuzzy RD design which explains the difficulties in that are beyond the scope. The Pre Post Distribution the pre post distribution is explained as the polynomial function and if the pre post relation appears to be true in case of logarithm, exponential or any other then the program is supposed to be biased. For instance if the data is stated as polynomial distribution more preferable then the model is more likely to be problematic to understand and if the relationship that exists is not a polynomial then high order polynomial sufficiently notice for no matter what function exists. Comparison Group Pretest Variance A model contains enough number of pretest values in order to attain...

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SWOT Analysis of Victoria’s Secret

Strengths,Weaknesses, Opportunities and threat (SWOT) of Victoria’s secret company operating in clothing industry. It offers limited product range which includes woman undergarments and beauty products. Victoria’s Secret Strengths • They offer quality products to customers • It has been using online marketing (Internet) for marketing of their existing and upcoming products. • It has huge customer base due to the quality products they offer to its customers • Strong and well-known brand. • The marketing activities of Victoria secret are properly planned and executed which enhance brand value and increase sales • It has number of best models and photographers for advertising their products • Organize annual fashion shows to further improve its brand image and for their consumer knowledge regarding their products • It has international presence in following countries: Canada, Bahrain, Kuwait, UAE, Poland, Caribbean and UK. Victoria’s Secret Weaknesses • It has limited number of stores. • Limited products range for woman. • The dress can be worn only in bars and movies etc but in real life there very few people wish to wear such dresses. • Victoria’s secret products have very limited market in Asian market. • The company focus on very little sector. • The size selected by the company is very limited. • Marketing negative image of woman. Victoria’s Secret Opportunities • The company has top model in their sector and can...

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