Thus, strategy is essentially a problem of allocating resources. If strategy is to be successful, it must allocate superior resources against a decisive opportunity. Describe how to conduct an external strategicmanagement audit.
Tan Theam Ping MR 2. Law Jia Chin MR 3. The products and services mix provided including computers, computer softwares, office furniture, business machines e. Currently, there are more than Office depot stores company-owned, alliances and franchise agreementwith more than employees worldwide.
The major problem is that the whole world is moving forward into a new era of paperless transactions, as such the current business model of the company have to be revised in order to reverse the declining trend in revenues and profits.
A clear three-year strategic plan is needed. Current Business Scenarios Nowadays, the world is shifting into a paperless transactions environment, which has greatly affect the performance of Office Depot recent years; besides, Office Depot is facing a vigorous competition brought forward by other major players in the industry such as Staples, OfficeMax and convenience stores like Wal-Mart.
Critical Problem Logical Current Situation Future Situation Assumptions Made Currently most of the Threats arose from paperless transaction environment revenues come from the sales of paper, office machines and furniture.
However, the world is shifting into paperless environment Paper and paper related products will be eliminated Revenues and profit decreasedPrimary competitors such as Threats from major competitors Staples, OfficeMax and secondary competitors such as Wal-Mart providing similar products and services Cut-throat price competition as foreseenRevenues and profit decreased4Quality of service is low, for example the errors on Office Quality of service decreased Depot website happened very often, contact number of customer service department hardly get response Non-recurrence expenses Nonrecurrence expenses is high stocks damaged during transportation, compensation to customer due to damaged and late delivery etc related to daily operations is high Consumer choose to purchase the products and services from other competitors Revenues decreased, profit decreased Consumer choose to purchase the products and services from other competitors Revenues decreased, profit decreased3.
IFE Matrix The strengths and weaknesses serve as key indicators to reflect internal affairs.
IFE matrix has been carried out to analyze the internal affairs of Office Depot. Strong retail stores network had over retail stores worldwide 3. Strong distribution channel online shopping, retail stores, call centers 4.
Provide large range of products and services 5. Go green effort been appreciated by the public 6. Strong customer base Key Internal Factors Weaknesses 1.
Weak financial position loss money continuously for few years 2. Weak competitive performance if compared to major competitors Staples, Wal-Mart 3. Non-recurrence expenses is high 4. Poor service quality both online and offline customer service Total0.
Expand business into EME markets increase total revenues 2. Online shopping users are increasing 3. Develop new product mix to overcome the effect brought forward by paperless transaction environment 4. Provide new business servicesWeight Rating0. Paperless transaction environment threatened the current business model of Office Depot 2.
Intensive competition from other major players in the industry 3. The total weighted score gained by Office Depot is 3. As IFE weighted scores of 2. As such the strategic planning proposed will focus on improving market penetration and new product development.
Potential Entrants HIGH The numbers of small and medium suppliers providing same products and services over internet increased dramatically. Forecast Critical Factors The factors to be considered during the development of strategic planning are summarized into the table as attached: Critical Factor Current Situation Whole world is moving To be adaptive in paperless transaction environment into paperless transaction stage, sales of paper related products A4 paper, photocopy machine etc dropped Maintaining key competitive advantages Nowadays, Office Depot facing vigorous competition, revenues and market share dropped sharply Currently there are only over stores outside Explore new market America, however the revenues increasing, potential new market is there Explore into EME markets e.
China, India, and South East Asia countries Global market share increased; revenues increased Future Situation Logical Assumptions MadeEfforts have to be made in transforming current business model to adapt with the new trend Efforts have to be made in improving competitive advantages so as to survive in new era Revenues increased; market share increased, sustainability increased Revenues increased; market share increased14Current product mix focus mainly on office Improve product mix furniture, IT hardware, office machines and stationary, low profit margin high competition Define existing issues related to operation and service Consumers lost faith towards the company Resolved the issues and improve service quality Regained customers faith; Revenues increased; increased sustainability Develop new product and promotional mix Revenues increased, market share increased Implementation Action Plan The main objective of this 3 years strategic planning is to increase theprofit and the sustainability of Office Depot in the future.
After analyzing the results obtained from SPACE Matrix, we proposed to focus on exploring and penetration of new market base, revised on current operation and service issues, and improve current product mix. Implementation Actions What to be implemented?
Improvised on current operating and servicing issues Define and resolve the issues related to nonrecurrence expenses Improve quality of service, both online and offline To retain customers faith and loyaltyWhy? To reduce losses due to transport failure, transport delay, stocks damagedHow?
Revised and improvised on current product mix Introduce new services e.
Contingency Plan Contingency plans are proposed as below so as to minimize the possible negative impact broughtup by the plan. Strategic Decision Made Action Plan 1. Exploring and penetrate into new market base 2.Free Essays on Staples Inc Ife And Efe Matrix for students.
Use our papers to help you with yours 1 - Search the history of over billion web pages on the Internet. Staples, Inc. Fundamental Company Report provides a complete overview of the company’s affairs. All available data is presented in a comprehensive and.
Being a continuation of the EFE matrix and IFE matrix models, the Internal External matrix (IE matrix) rests upon an investigation of external and internal business factors integrated into.
Strategic HR SWOT TOWS IFE EFE 1. STRATEGIC HR By Alfredo V. Primicias III 5 TOWS Matrix (SO and ST) 5 1. Brand the company as the pioneer in the niche BPO space by expanding the 5 centers of excellence and developing other revenue streams (S1, S2, S3, O1, O3, O4).
STAPLES, INC. - CASE SYNOPSIS Staple Inc. founded in by Thomas G.
Stemberg and Leo initiativeblog.com Brighton, Massachusetts and was the largest office supply retailer in the United States%(11). Introduction & Case Study Objective Critical Problem Scenarios IFE Matrix EFE Matrix IE Matrix Space Matrix CPM Matrix Porter Force Analysis Forecast Critical Factors Implementation Action Plan Impact of Action Plan Contingency Plan Conclusion Reference Appendix Documents Similar To Case 10_office Depot, Inc - Staples Case 5/5(5).