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SWOT Analysis

A traditional approach to internal analysis:


SWOT is an acronym for the internal Strengths
and Weaknesses of a firm and the
environmental Opportunities and Threats
facing that firm.
 SWOT analysis is a historically popular
technique through which managers create a
quick overview of a company’s strategic
situation.

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SWOT Components
 An opportunity is a major favorable situation in a
firm’s environment
 A threat is a major unfavorable situation in a firm’s
environment
 A strength is a resource or capability controlled by
or available to a firm that gives it an advantage
relative to its competitors in meeting the needs of
the customers it serves
 A weakness is a limitation or deficiency in one or
more of a firm’s resources or capabilities relative to
its competitors that create a disadvantage in
effectively meeting customer needs

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SWOT Analysis – Strategic Direction

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SWOT ANALYSIS OF Spinneys – Problem Solution Approach
 Spinneys UAE is leading premium food and grocery retail chain, a part
of Middle Eastern based supermarket chain having operations different
countries in Middle East. Company has around 30 stores in UAE, having
major presence in Dubai – 21 stores, Sharjah- 5, Abu Dhabi -4, Ajman -1,
Al Ain- 1 etc. Spinneys found to be a part of Mall and primarily focusing
high end shoppers visiting shopping malls. . However, recent days
witnessed a mushroom growth of small, medium and large international
and locally grown retail chains such as LULU, CARREFOUR, NESTO, Al
MADINA, MEGAMART, etc. along with numerous stand alone
hypermarkets all over UAE threatening the niche market enjoyed by
Spinneys. Therefore, Spinneys intends to venturing into setting up new
format of small and medium retail stores focusing high and middle
income consumers dealing primarily with food products in different
neighborhoods of UAE. Suggest a right course of action to Spinneys
through assessing its potential through conducting SWOT Analysis.
Upon such analysis, you should recommend whether Spinneys should
venture into new formats focusing on different segment of consumers or
stick with its existing format i.e. Premium Food and Grocery outlet
primarily, a part of Mall Franchise
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SWOT Analysis -Spinneys
STRENGHTS WEAKNESSES
• High reputation • Large size
• Selling high quality food and grocery • Only focus on High end consumers
• Large variants • Relatively high pricing
• Large product categories • Cost intensive
• Organized layout • Primarily a part of Mall Franchise
• High end loyal consumer base

OPPORTUNITIES THREATS
• Growing retail behavior • Increasing competition from local
• Opportunities for organized retail and international retail chains focus
chain on all segment of consumers
• Stable economy • Increasing competition from small
• Reasonable buying behavior and retail formats
• Diversified background of residents • Dynamic hehavior of consumers
• Knowledge and awareness of high • Growing Consumer focus on
quality retail sector affordable pricing
• Stress on buying power
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Value Chain Analysis (VCA)
 The term value chain describes a way of looking at a
business as a chain of activities that transform inputs
into outputs that customers value
 Value chain analysis (VCA) attempts to understand
how a business creates customer value by examining
the contributions of different activities within the
business to that value
 VCA takes a process point of view

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The Value Chain

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VALUE CHAIN ANALYSIS of a Multi Specialty Hospital – Problem
Solution Approach
 Excel Business Conglomerate LLC, a leading UAE business
group has multiple businesses across UAE ranging from
hotels to retail stores. Considering the increasing demand
and requirements for high quality health care centers in UAE,
Excel LLC intends to venture into health sector by instilling
multi-specialty hospitals in major cities of UAE. It is evident
that UAE acts a high quality health destination for other GCC
countries. It is imperative to note that UAE attracts large
number high skilled expatriates from all over the World
including highly skilled medical doctors such as super
specialty physicians, surgeons etc. However, health industry
is alien to Excel group which poses a problem of commencing
such hospitals and understanding entire value chain process.
 You are a part of leading management consulting group
based at Dubai offered this job to identify appropriate value
chain process for setting up multi-specialty hospitals for
Excel group. Develop a pertinent value chain process for
health industry such as hospitals.
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VALUE CHAIN ANALYSIS of a Multi Specialty Hospital – Problem
Solution Approach

Hospital Management
Post medical care – patient satisfaction
Research, development, technology

Procurement of medical supplies

HRM- Marketing
Medical Patient
Medical and and business
Patients Process
paramedical developmen service
Equipment's
staff t

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Traditional Cost Accounting VS Activity Based Cost Accounting

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PRODUCT- ACTIVITY BASED COSTING
Product: Fixed Cellular Terminal
Location: Pondicherry
Target Group: Manufacturing Plants/Service Organizations
Activity: To Sell 60 FCT in a Month
Size of Sales Force: 6 (10 FCT / Sales Person = 60/10 =6)
Tentative Expenses:
Travel Expenses: 200 X 6 X 26 Days = 31200
Accommodation: Rent a House = Rs.6000/ Month
Food Expenses: 150 X 6 X 30 = 27000
Miscellaneous Expenses: 10000
Total Expenses 74200
PRODUCT- ACTIVITY BASED COSTING /BUDGETING
Tentative Target Sales
Conversion Rate: 50% (60X.50=30 FCT)
Price per FCT = 45000 X 30
Expected Return = 13,50,000
Profit per FCT = 10000 X 30 300000 (A)
(-)
Salary per Sales Person = 6000 x 6 = 36000
Commission Per FCT = 1000 X 30= 30000
Tentative Expenses = 74200
Total (B) 140200
Tentative Profit (A – B) 159800
Difficulty in Activity-Based Cost Accounting
 It is important to note that existing financial
management and accounting systems in
many firms are not set up to easily provide
activity-based cost breakdowns
 The information requirements to support
activity-based cost accounting can create
redundant work
 The time and energy to change to an
activity-based approach can be formidable

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