CASE STUDY:

WATERFORD,
WEDGWOOD PLC
SUBMITTED TO:
PROF. CHAN

SUBMITTED BY:

BAUTISTA, MARINELLE
LAWAS, JAY-AR
MAGDASAL, SANDY
MANCERA, JOLINA
MESINA, JOWEELYNNE
MISA, KIMBERY ROSE
PASCUAL, DIANE PAULA MAE
SANTOS, CHAIRA GRACE

AREAS OF CONSIDERATIONS
I.

S.W.O.T. ANALYSIS

1.
2.
3.

STRENGTHS
Experienced artisans and craftsmen
Name and Credibility
Product Quality

1.
2.
3.
4.

WEAKNESSES
Product Design
Vision and Mission Statement
Limited Market Visibility
Limited manufacturing facilities

1.
2.
3.

OPPORTUNITIES
Modern Technology
Expansion of Market Visibility
Expansion of Factory/Manufacturing Facilities

1.
2.
3.

THREATS
Price Competition
Substitute Products
Changing Demand

II.

S.W.O.T. MATRIX

III.

PORTERS FIVE FORCES ANALYSIS

1. Rivalry Among Competing Firms (High)

- Rivalry among existing firms in the industry is high because of the factors
present in the market. For example, price competition. Although Waterford
Wedgwood plc has the ability to manufacture at lower cost in Asian countries,
it still has to operate competitively as low-cost manufacturers are always
present in the area that enable them to sell their products at lower prices.
2. Potential Development Of Substitute Products (High)
- The impact of the existence or potential development of substitute products is
high for Waterford Wedgwood plc as it surely affects the sales of the company
considering the price and quality of substitute products. For example, marble,

for its durability, and plastic and wood, for its lower price, can substitute the
products manufactured by the Ceramics Group and the WC Design and
Springs Group of Waterford Wedgwood plc, respectively.
3. Potential Entry Of New Competitors (High)
- The impact of the potential entry of new competitors in the industry is high for
the company because considering the cost of manufacturing the products that
substitute the product offerings of Waterford, Wedgwood plc such as plastics,
the less stringent regulations, for example in Asian countries, entrepreneurs
and investors can easily enter the industry and offer their products at lower
prices that enable them to overrun the company.
4. Bargaining Power Of Suppliers (Medium)
- The bargaining power of suppliers has a medium effect to the company as
Waterford Wedgwood plc has a long-term arrangement with its suppliers. The
company has a system linked to its suppliers that alerts them to supply raw
materials whenever the inventory reached the minimum limit; however, the
supplier still has the discretion on how many materials and when it will supply
such need to the company.
5. Bargaining Power Of Customers (Low)
- The bargaining power of customer is low to affect the company that much, as
the Waterford Wedgwood plc manufactures quality products made by the
combination of their experienced artisans and craftsmen and good types of
materials that enable the company to control the price of their product
offerings at a price justifiable by the quality and cost of manufacture.
IV.

STEPPLE FRAMEWORK

Social Analysis
As one generation transfers to another, people change their desire when it
comes to such products offered by Waterford Wedgwood plc and their
lifestyle, which now becomes cheaper than before, and these changes really
affect the company as it undergone hard times in coping up with the change
due to its association with the companys tradition of manufacturing its
products and maintenance of its iconic product designs that caused the

company to sell products at high prices.

Technological analysis
- Right now, technology has been used by most of the companies for easier data
management, easier transactions and even for cost cutting purposes. But
because of the companys tradition of making handmade products to maintain its
iconic status in the industry, it limits its opportunity to use more advanced
technology system in manufacturing its products.
Economic Analysis
- Economic variables like level of disposable income and propensity of people to
spend greatly influence their products marketability as their products were
considered as luxury goods. And considering the present age that people now
prefer low-priced products that offer the same purpose, the company has toughly
competed with its competitors.

Environmental Analysis
Actually, environmental issues dont have a significant effect to the company
as it manufactures its products manually- less waste to dump. Also, in the
production process, raw materials that didnt pass the quality control and
inspection are broken and recycled.

Legal Analysis
In the industry where Waterford, Wedgwood plc belongs has been limited by
different legal factors or existing laws such commercial laws in the sales of
products, employment or labor laws since the company operates primarily
with its artisans, craftsmen and employees, the laws covering business
entities and contracts because the company continues to acquire and make
contracts and arrangements with other companies and other laws and
legalities existing in the country where the company operates and distributes
its products.

V.

COMPETITIVE PROFIE MATRIX

CRITICAL SUCCESS
FACTOR

WEIGH
TS

WATERFORD,
WEDGWOOD
PLC

STUEBEN

BACCARAT

RATING

SCOR
E

RATING

SCOR
E

RATING

SCOR
E

.60

.60

Artistry & Design

.15

.15

Technology

.20

.20

Product Quality

.20

.80

Facilities Location

.03

.06

Price
Competitiveness

.05

.10

.10

Name & Credibility

.02

.08

.08

Workforce

.20

.80

Advertising

.10

.20

Global Expansion

.05

TOTAL

1.00

.15

2.54

.80

.80

.80

.80

.09

.09

.10

.60

.30

.20

3.57

.08

.60

.30

.15

3.52

VI.

FINANCIAL RATIOS
CURRENT RATIO: Current Assets / Current Liabilities
2007

385.7
176.4

2006
377.5
187.5

2.19

2005

2.01

347.8
186.9

2004

1.86

467.5
193.0

2.42

ACID TEST RATIO: Quick Assets / Current Liabilities

2007
133.0
176.4

2006
142.8
187.5

0.75

2005

0.76

125.7
186.9

2004

0.67

172.0
193.0

0.89

DEBT- TO EQUITY RATIO: Total Liabilities / Total Shareholders Equity

2007
779.0
(108.3)

2006

(7.19)

849.1
(167.4)

2005

(5.07)

814.6
(117.1)

2004

(6.96)

806.0
14.3

56.36

GROSS PROFIT MARGIN: Gross Profit / Net Sales

2007
354.0
741.5

2006

0.48

320.0
772.0

2005

0.41

276.5
699.7

2004

0.40

NET PROFIT MARGIN: Net Profit / Net Sales

2007
(71.2)
741.5

2006
(0.10)

(188.9)
772.0

2005
(0.24)

(151.3)
699.7

2004
(0.22)

VII.

INDUSTRY ANALYSIS