Sie sind auf Seite 1von 17

S/W PRINTING COMPANY

SUBMITTED TO:

MISS TAYABA AKRAM

SUBMITTED BY:
NABI BAKHSH

00923337828306

BALOCHISTAN UNIVESITY OF INFORMATION


TECHNOLOGY,ENGINEERING & MANAGEMENT
SCIENCES QUETTA

CASE ANALYSIS
“S/W PRINTING”

ABOUT S/W PRINTING COMPANY


In 1932 S/W Printing Company began as Stricklin Printing in downtown Florence, South
Carolina. After 78 years, today S/W Printing is owned by Steve and Susan Powers. The
Powers families have continued the company's philosophy of providing customers with
the highest quality professional printing services; all at an affordable price.

S/W BUSINESS SERVICE


• S/W PRINTING SERVICES
• SIGNAGE
• GRAPHIC DESIGN
• BROCHURES
• BUSINESS CARDS
• BUSINESS FORMS
• LETTERHEAD & ENVELOPES
• PROMOTIONAL ITEMS
• COPIES
• WIDE FORMAT PRINTING

EXISTING MISSION STATEMENT


The mission statement of S/W Printing is to provide customers with high-quality
professional printing services at affordable prices.

PROPOSED MISSION STATEMENT


Our mission is to consistently deliver the finest quality professional printing services with
exceptional value on time, every time, and to meet or exceed our customers’ expectations
in order to enhance their business and make them more successful at affordable prices.

EXISTING VISSION STATEMENT


S/W printing’s vision is to be known throughout the industry as the dependable, quality
and service oriented, low-cost provider of business documents.

PROPOSED VISSION STATEMENT


S/W printing establishes and maintains lifelong customer relationships through superior
graphic communication services and printed products. We strive for excellence in all we
do and treat everyone with dignity and respect and become dependable, quality oriented,
low cost provider of print media.

EXTERNAL ASSESSMENT
OPPORTUNITIES
 The city of Florence has recently under taken a massive redevelopment of
Downtown Florence.
 There are over nine foreign affiliated companies and fourteen Fortune
500 companies in the region.
 Population in July 2008: 31,570. Population change since 2000 is +4.4%.
 Florence County jobs have decreased by 3.30 percent, and local businesses are
increasing.
 Estimated median household income in 2008: $41,280 (it was $35,388 in 2000).
 Pollina Corporate real Estate study has ranked South Carolina as the top-pro
business state after reviewing 29 factors.

THREATS
 Intense competition as the printing industry is known for its price elasticity.
 Two major competitors within 5 miles radius.
 U.S may fall back into a recession.
 Market is growing rapidly, probability of more competitors to enter.
 Technology is becoming more affordable and increasing number of government
agencies and corporations within Florence have in-house printing facility.

EXTERNAL FACTOR EVALUATION MATRIX (EFE)


OPPORTUNITIES weight rating Weighted
score
The city of Florence has recently under taken a .18 3 .54
massive redevelopment of Downtown Florence.
There are over nine foreign affiliated companies .05 2 .1
and fourteen Fortune 500 companies in the region.
Population in July 2008: 31,570. Population change .10 2 .2
since 2000 is +4.4%
Florence County jobs have decreased by 3.30 .065 3 .195
percent, and local businesses are increasing.
Estimated median household income in 2008: .065 2 .13
$41,280 (it was $35,388 in 2000).
Pollina Corporate real Estate study has ranked .07 2 .14
South Carolina as the top-pro business state after
reviewing 29 factors.
THREATS
Intense competition as the printing industry is .05 4 .20
known for its price elasticity.
Two major competitors within 5 miles radius. .10 3 .30
U.S may fall back into a recession. .08 2 .16
Market is growing rapidly, probability of more .12 3 .36
competitors to enter.
Technology is becoming more affordable and .12 1 .12
increasing number of government agencies and
corporations within Florence have in-house
printing facility.
TOTAL 1.00 2.38

COMPETITIVE PROFILE MATRIX(CPM)


S/W PRINTING M&M OFFICE DEPOT
COMPANY DOCUMENT
CENTRE
Critical Success Wei Rating Weighted Rating Weighted Rating Weighted
Factors ght Score Score Score
advertisement .25 4 1.0 3 .75 3 .75
Product Quality .15 4 .60 3 .45 4 .60
Price competitiveness .15 4 .60 3 .45 3 .45
Financial Position .15 3 .45 2 .30 3 .45
Brand image .20 3 .60 3 .60 4 .80
Online business .10 4 .40 3 .30 3 .30
Total 1.00 3.6 2.85 3.35
5

Internal assessment

Strength
 Strong Brand Image.
 On-site printing press allows for a faster turnaround on orders along
with the available delivery service.
 Steve Power’s strong inter-personal skills and development of strong
relationships within the community.
 The website provides an avenue for current customers to reorder,
review and find out the job status.
 Florence Downtown Development Corporation helping in the physical
establishment and business.
 S/W printing is very well positioned geographically.
 Marketing and Advertising efforts are better than M&M document
center, and better customer relationship management than Office
Depot.
Weaknesses
 M&M Document Center leads them in the copy jobs because S/W
printing offers the services but does not promote copies.
 S/W printing is offering lesser products and services than competitors
and contains a narrow product line.
 Most customers have yet to embrace electronic methods, which creates
a considerable amount of time to complete orders.
 Payments are not accepted and automatic quotes cannot be generated
through the website.
 General expenses are considerably high.
 S/W printing has only one contracted account and the majority of sales
are open sales by repeat customers or walk-ins.
 Lack of financial resources.
Financial Ratio Analysis

RATIO ANALYSIS INTERPRETATION


Current Ratio
The current ratio of company is increasing, which is a good sign for company. This shows
that company’s ability to pay its current liabilities is increasing.
Quick Ratio
Its is clear from quick ratio that company has enough cash to pay its liabilities but
increasing trend is a good sign for company.

Debt to total asset


It is used to measure a company's financial risk by determining how much of the company do assets have
been financed by debt and it is increasing which is not a good sign for company.

Debt to equity ratio


This debt to equity ratio show that company have paid its debt. Now the company
position is very strong

Inventory turnover
A ratio showing how many times a company's inventory is sold and replaced over a period and it is
increasing which is positive sign for company.

Account turnover ratio


The decreasing trend shown by figure is a clear indication that the firm is loosing control
over its receivable which is not a good sign for company.

Grass profit margin


Here the profitability is constant which show that s/w is gaining the same profit over the
next year. Its normal for company.

Net profit margin


Here the net profit of the company is negative which is not good sign for s/w company.

Return on asset
It tells an investor how much profit a company generated for each dollar in asset.
According to figures s/w is moving toward failure because it has a decreasing trend.

Return on equity
Return on shareholders equity measures a corporation's profitability by revealing how much profit a
company generates with the money shareholders have invested. Decreasing trend shows a bad sign for
company.

Internal factor evaluation (IFE) matrix


Strategy Formulation
BOSTON CONSULTING GROUP MATRIX (BCG)

The internal external (IE) matrix

Grand strategy matrix


Qu

antitative strategic planning matrix


Strategy formulation
Market development strategy
Marketing penetration strategy
Product development strategy
Long term objective
Increase sales by approximately 75% overall till the end of next three years.
Increase market share by at least 25% by the end of three years.
Launch of four new products and improving on quality by the end of 2012.
Annual objective with implementation
Objective for 2010
Open one outlet in Darlington County, would result in approximate increase
of 20% in sales, the development would cost $40,000 through equity
injection by Steve powers increase of 5% of sales; by attaining contracts
from local businesses. Marketing expense of electronic and print media,
banners & broachers is $15000 which would be covered by equity injection.
Increase of 10% of sales; expense of improving and updating and the site is
$5000 covered by equity injection.
Production of new product line for 2010; business handbook, Banners; incur
cost of $15,000 for production materials, will increase sales by 5%. The cost
would be covered by equity injections.
Objective for 2011
Increase of 2% of sales; by attaining contracts from local businesses and
improving customer base. Marketing expense of electronic and print media,
banners & broachers is $20000, covered by retained earnings.
Increase of 3% of sales; expense of maintain and updating the site is $1000
covered by retained earnings.
Production for new product line for 2010; Greeting cards and invitations;
incur cost of $11,000 for production materials and $10000 for new
equipment will increase sales by 3%. The cost would be covered by retained
earnings.

Objective for 2012


Open one outlet in Quinsy county, increase of 15% in sales, and incur cost of
$50,000 through retained earnings.
Increase of 5% of sales; expense of maintain and updating the site is $2000
covered through retained earnings.
Increase of 7% of sales; by attaining contracts from local businesses and
improving customer base. Marketing expense of electronic and print media,
banners & broachers is $25000 covered through retained earnings
Comparison to recommendation to the actual planned
The comparison reveals that actual planned strategies are intensive in nature
too. The recommendations suggests for market development(geographic
expansion) and market penetration strategies too to better exploit on
opportunities and capture greater piece of the pie (market share).

Strategic review and evaluation


Reviewed
Financial reports would indicate in terms of Sales, increased Return on
Investment, Increased return on Assets and EBIT.
Customer feedback would be taken on the new products and existing
services provided by the firm.
How firmly the firm is competing in the market and exploiting the
opportunities emerging.
How the firm existing policies are in line with the annual objectives being
set.
Evaluation
The firm is moving towards its long term goals with the help of a strategic-
evaluation framework.
Balanced Scorecards would be developed to measure the improvement in
performance of the firm.
Proper Audits would be conducted to identify financial slumps and to
compete with cost efficiency.