MGT503 (Principles of
Management)
Assignmnet Solution
Question # 1:
If someone is conducting the competitive analysis of the organization,
which tool would you prefer his/her for competitive analysis? Justify your
answer with rational.
Answer:
According to the above scenario, the best and most
effective analysis tool is SWOT analysis. Because it gives us the complete
insight of internal and external forces effecting company in the above
condition.
SWOT
analysis is used to look at all the strength and weaknesses present inside the
organization and all those opportunities and threats effecting an organization
externally.
The
SWOT analysis:
In internal environment, we have to measure the
strength and weakness of company for an effective competitive analysis.
Strength:
Charlie has done PhD in management and now joined
the family business. He has great vision that he makes a very efficient
strategy for expanding his business and promoting it. Charlie’s effective
management and vision is a great strength of the company.
Weakness:
Weakness of the business is that, in early stages of
the company, it has no access to the market easily.Due to the small business,it
has big firms as its competitors with strong market position.so the company has
to join all other small toys manufacturers to expand its business.
For external views of the company, SWOT analysis
also gives two more options to cover external condition.
Opportunities:
This above condition of not being able to enter in
market for small toy manufactures,Charlie found the opportunity with his
vision,to provide the platform for small toy manufacturers and get a chance to
expand his business. In this way, he competed large toy manufacturing companies
and earns more profit.
Threat:
A great threat to the Charlie’s business was the
presence of large number of competitors, small toys manufactures as well as
large companies .So by using his effective management skills, he remove this
threat to a great extent and decide to develop a toy town.
Question# 2:
From the given scenario, identify at least two competitive
advantages of the company. Justify your answer with rational.
Competitive
advantage:
·
By his effective management, he expands
his business and gain a large share in the toy market. By introducing the toy market,
he attracts many customers toward his toy town very easily and earns customers
satisfaction and interest toward his toy town. In return, he earns a large sum
of profit from market.
·
The second great advantage he gains, by
doing so, he reduces his competitors on the small level and make them his whole
sellers, which is in the benefit for him now. And also easily compete the high
level competitors. He reduces the rivalry among competitors and adds up a large
sum of variety in his toy town. This ranked him high among competitors and
within market.