External Factor Analysis External Factor Analysis

Weight Opportunities Vacation Periods Kid Friendly Video Games Create urban bowling league Free consultative advice Research Triangle Change in commitments from 32 to 8 weeks Threats Economic changes Competition through other activities Political changes Inexpensive food services 0.1 0.125 0.1 0.125 2 3 2 3 0.2 0.375 0.2 0.375 0.05 0.15 0.15 0.05 0.05 0.1 2 4 4 2 3 4 0.1 0.6 0.6 0.1 0.15 0.4 Rating Weighted Score

Total

3.1

Internal Factor Analysis Internal Factor Analysis

Weight Strength Open 7 days a week 363 days a year Reputation based on its Old existence Upgraded screen and scoring Technology Loyal Customers Cutting down costs Contact with Bowling Association of America Weakness Insufficient staff Old Menu No mission statement High Marketing expense 0.125 0.125 0.125 0.05 1 1 1 2 0.125 0.125 0.125 0.1 0.125 0.125 0.075 0.1 0.1 0.05 4 3 3 4 3 3 0.5 0.375 0.225 0.4 0.3 0.15 Rating Weighted Score

Total

2.425

SWOT MATRIX
Strengths S List Strengths S1 :Open 7 days a week 363 days a year S2: Reputation based on its Old existence S3: Loyal Customers S4: Cutting down costs SO Strategies S1-01: 7 days opening will create much attraction of customer in Vocation periods. S3-03: Loyal customers will beneficial for kid friendly video games launched. . S4 02: Consistent decrease in cost helps to create urban bowling leagues. ST Strategies S1-T1: 7 days a week opening requires unemployment not be raised. S2-T2: Due to good reputation business can hold upper hand in competition. Weaknesses W List Weaknesses W1: Insufficient staff W2: Old Menu W3: No mission statement W4: High Marketing expense

Opportunities O List Opportunities O1: Vocation Periods O2: Create urban bowling league O3: Kid Friendly Video Games O4: Research Triangle

Threats T List Threats T1: Economic changes T2: Competition through other activities T3: Political changes T4: Inexpensive food services.

WO Strategies W1-O1: Staff handling should be proper so vocation periods cannot be wasted. W2-O2: New item in menu should be introduced to fulfill requirement of new segment. W3-O3: Mission statement should be developing to know the where business wants to go. WT Strategies W1-T1: Incentives for staff should be provided so in bad economic conditions they will support. W2-T2: New item should be added so to remain in the competition every department should be good.

Key Internal Factors

Loyal Customers (S) Old Menu (W) Open 7 days a week 363 days a year (S) Insufficient staff (W)

Key External Factors

Kid Friendly Video Games (O) Create urban bowling league (O) Economic changes (T) Competition through other activities (T)

Resultant Strategy
New segment should be introduced.(Marketdevelopement) Target market should be covered.(Product development) Strong employee relation should be maintained. Avoid HRM problems to compete in the market.

Space Matrix
INTERNAL STRATEGIC POSITION Competitive (CA) (-6 Worst, -1 best) Customer loyalty -1 Competitions capacity utilization -2 Technological know-how -2 Control over suppliers & distributors -3 EXTERNAL STRATEGIC POSITION Industry (IS) (+1 Worst, +6 Best) Growth potential +6 Profit potential +4 Financial stability +4 Productivity +4

X axis

Average= -2 Average= +4.5

Total X-axis result = +4.5+(-2) = +2.5

Financial Strength (FS) (+1 Worst, +6 Best) Environmental (ES) (-6 Worst, -1 best) Technological changes -1 Rate of inflation -2 Demand variability -2 Competitive pressure -1

Y axis

Return on investment +6 Working capital +3 C.F from Operations +5 Inventory Turnover +1

Average= + 3.75

Average= -1.5

Total Y-axis result = +3.75+(-1.5) = +2.25

Y axis
Aggressive
+3 +2 +1 Backward, forward, horizontal integration Market Penetration Market Development Product Development Diversification (Related or Unrelated)

X axis

-3

-2

-1 -1 -2 -3

+1

+2

+3

IE Matrix
Strong (3.0-4.0)
3.0 4.0

Medium (2.0-2.99)
2.0

Strong (1.0-1.99)
1.0

High (3.0-3.99)
3.0

I IV VII

II V VIII

III VI IX
EFE TOTAL SCORE

Medium (2.0-2.99)
2.0

Low (1.01.99)
1.0

IFE TOTAL SCORE

Grow and Build

Backward Integration. Market Penetration Market Development Product Development

Grand Strategy Matrix

Quadrant II
1. Market development 2. Market penetration 3. Product development 4. Liquidation

RAPID MARKET GROWTH

Quadrant I
1. Market development 2. Market penetration 3. Product development 4. Backward integration

WEAK COMPETITIVE POSITION

STRONG COMPETITIVE POSITION

SLOW MARKET GROWTH

Outcomes of Techniques in Matching Stage

Alternative Strategies Forward Integration Backward Integration Horizontal Integration Market Penetration Market Development Product Development Related Diversification Unrelated Diversification Retrenchment Divestiture Liquidation SWOT SPACE IE MATRIX GRAND

TOTAL

3 4 4 2 1

QSPM
Key External Factors Buy New Land and Build New Larger Store Fully Renovate Existing Store AS TAS

Opportunity

Weights

AS

TAS

Kid Friendly Video Games

0.15

0.45

0.30

Create urban bowling league

0.10

0.30

0.20

Vocation Periods

0.06

0.12

0.18

Profit potential economy

0.12

0.36

0.48

Threats

Economic changes

0.15

0.60

0.30

Political changes

0.15

0.45

0.60

Competition through other activities

0.15

0.45

0.60

Inexpensive food services.

0.12

0.24

0.12

TOTAL

1.0

2.97

2.78

Key Internal Factors

Buy New Land and Build New Larger Store

Fully Renovate Existing Store AS TAS

Strength

Weights

AS

TAS

Open 7 days a week 363 days a year

0.15

.60

.45

Reputation based on its Old existence

0.15

.45

.60

Upgraded screen and scoring Technology

0.06

.06

.12

Loyal Customers

0.15

.45

.60

Weakness

Insufficient staff

0.15

.45

.60

Old Menu

0.12

.48

.36

No mission statement

0.10

.40

.30

High Marketing expense

0.12

.24

.12

TOTAL

1.0

3.13

3.15

1 = Not attractive 2= Somewhat attractive 3 = Reasonably attractive 4 = Highly attractive