Abbott Abad

Subject name: Business Policy and Strategy

Topic:

Application of Matrixes to own Company 04

Assignment No:

Submitted to:

Mr. Immad Khan

Submitted by: Registration #:

Haji Jan Sp10-MBA-043

Submission Date:

December 27, 2011

Jans Tea House:

Mission statement We believe passionately in making the world a better place through 1) Enhancing a sustainable quality 2) Make easy to the access of every one 3) Becoming a market leader in this sector 4) And its also our mission to make this a reality

Goals of Jan, s Tea House:

The goals of our existence are as follows To embark on our mission is the first priority of our company to convert our mission into reality. Customer satisfaction is our profit, so we never compromise on quality of our product at any cost. To bring every individual of this country regardless of their income level into our customer net through multiline packages is the aim of our existence in the market. Quality and efficiency is the first pre-requisites of becoming market leader, so our company will mainly focus on these factors.

Secret of Jans Tea House:

1) 2) 3) 4) 5) 6) 7) Highly intensive distribution system Best possible line extension Pro-active R & D department Continuous innovation Online customer care system Customer focus packaging Focus on quality than quantity

Products of Jan tea House:

Green tea (Chaska Green)

Black tea (Chaska tea) Ice tea (Chaska JTH) Coffee (JTH Coffee) Target Market: Urban areas
Mega cities

Internal Factors Analysis Summary (IFAS) Matrix of JTH

IFAS is a type of TWOS matrix which shows the important internal factors like (strength and weaknesses) of the organizations and analyzes the effective companies management Ratings in respond to the importance weight of these factors in the our company.

Internal strategic factors 1 Strengths: S1: Matchless quality and taste S2: Highly intensive distribution system S3: Effective management S4: Continuous innovation S5: Pro-active R & D department Weaknesses: W1: Poor quality plants W2: Poor collaboration among Deptt W3: Poor vertical integration W4: Financial position W5: No quick response to opportunity Total score

Weight 2

Rating 3

Weighted Score 4

.15 .05 .10 .15 .05

5 3 3.5 5 4

.75 .15 .35 .75 .2

.125 .175 .05 .05 .10 1.00

3.1 1.8 2.6 2.5 2.1

.3875 .315 .13 .125 .21 3.368

External Factors Analysis Summary (IFAS) Matrix of JTH

EFAS is a type of TWOS matrix which shows the important external factors like (opportunities and threats) of the organizations and analyzes the effective companies management Ratings in respond to the importance weight of these factors in the our company.

External strategic factors 1 Opportunities: O1: JTH can extent Product line O2: Extension of market O3: Grasp more and more customer O4: Increasing number of population O5: Export to another countries Threats: T1: Lipton and Tapal T2: Govt rules and regulation T3: Political instability of country T4: Image of Pakistan in other world T5: Change in customer taste Total score

Weight 2

Rating 3

Weighted Score 4

.15 .10 .075 .10 .10

4.5 3 3.5 4 5

.60 .30 .2625 .40 .50

.10 .075 .15 .05 .10 1.00

3 3 3.6 2 2.5

.30 .225 .54 .10 .25 3.368

Strategic Factors Analysis Summary (SFAS) Matrix of JTH

This table summarizes our companys strategic factors by combining the external factors from EFAS table and internal factors from IFAS table. It indicates the most important factors which have been showed in EFAS and IFAS table in from of Strength, Weaknesses, Opportunity and Threats. It helps companies in making their strategic decision easier. It is done by reviewing & revising the weight given to each factor along with rating in previous tables.

1 Strategic Factors S1: Matchless quality and taste S3: Pro-active R & D Deptt W1: Poor quality plant W3: Poor vertical integration O1: Extension of market O3: Export to other countries T2: Lipton and Tapal T3: Change in customer taste Total score Weight .14 .10 .11 .10 .13 .07 .15 .08 1.00

2 Rating 4 2.5 2.7 2.3 5 2.9 3.9 3.2

3 WS .56 .25 .297 .23 .65 .203 .585 .256 3.01

4 Short

Duration Intermediate

5 Long X X

X X X X X X

TOWS Matrix of Jan tea House

Internal Factors (IFAS)
STRENGT H 1. Matchless quality and taste 2. High intensive distribution system 3. Effective management 4. Continuous innovation 5. Pro-active R & D WEAKNESSE S
1. Poor quality plants 2. Poor collaboration among Deptt 3. Poor vertical integration 4. Financial position 5. Slow response to opportunity

External Factors (EFAS)

OPPORTUNIITIE S
1. JTH can extent product line 2. Extension of market 3. Grasp more and more customer 4. Increasing number of population 5. Export to another countries

SO Strategies
: Quality and opportunity depicts that JTH can extent its market to third world for achieving economies of scale. : To make network with those areas where our products are not being sold is our first preference

WO Strategies
: To make our product cost effective while ensuring the others factors to grasp opportunities which seems in market now a days : Working on more and more effective vertical integration to make sure the presence of our product to our specific targeted areas

THREATS
1. Lipton and Tapal 2. Govt rules and regulation 3. Political instability in country 4. Image of Pakistan in other world 5. Change in customer taste

ST Strategies
: Continuously working on customer taste fulfillment and meeting the changing trends in the market : Making best our product as compare to our direct competitors in the market

WT Strategies
: Working on target markets in order to erode the possibilities of new entrance or eliminate the existence one in the market : Extension to those areas where no other direct competitors are working

BCG Matrix of JTH

Green Tea (Chaska Green)

Ice Tea (Chaska JTH)

Black Tea (Chaska Tea)

Coffee (JTH Coffee)

Ice Tea (Chaska JTH)

Ice tea is the newly introduced product of Jan tea House, which recently has been introduced to the market and it is going through its growth phase now a days. So it needs more and more investment to bring it to the position of star. It has no contribution to companies profit where as it cuts companies profit due to extra investment on it.

Green Tea (Chaska Green)

Green tea is the star product of Jan tea House. It is a market leader among its all product line extension. It has its major contribution in companies profit but also need huge promotion expenses to make sure its sustainability in the market as a star. It has reached to the position of start after been through question mark.

Black Tea (Chaska Tea)

Black tea is the cash cow of Jan tea House, which generate only cash for company and has a major contribution in the profit of the company without consuming any extra cost on its promotion and sustainability of market share. In this position the product has reached to its maturity stage.

Coffee (JHT Coffee)

It is the first product of Jan tea House which has reached to its decline stage due to less investment on its promotion and outdated taste. It has no contribution in companys revenue and profit. Here Jan tea has two options, either to divest it or make investment to ensure its further sustainability.

Conclusion
It was a good experience as well a tremendous exposure of putting my volatile business into practical matrix. I learned so many things while doing this. Of course it was a difficult task but my continuous and consistent effort made it so possible that I did it. Here I work on almost five types of matrix and each has its unique types of application in business and it works differently from each other. After made this assignment I got to know the importance and practical application of these matrixes in the world of business. Some matrixes are there which tells us about the whole position of business, like what is the current position of business in that specific sector where it competes with other direct and indirect competitors, where as few are there which indicates the position of a product in the market and its market share and future sustainability. As first of all I put my own business into IFAS matrix. It is a type of TOWS matrix which tells us about the internal position of business, such as it tells us about the strength of our business, that what are the major strength our business contains and how we can utilize these for further development of our organization. It also tells about the internal weaknesses of business, that what the weaknesses there are in our business and how we can overcome it in order to make our products more fruitful. The second was EFAS which tells us about the external position of our business, like what are the major opportunities are there outside for our products and how we can avail it and it also tells about the external for our organization such as entrance of new competitors and so many other factors such as Govt intervention in business sectors and about the changing taste of our customers etc. The third one is called as SFAS. This matrix tells us about the duration of the internal and external position of the organization. It means that if an organization is facing any internal weaknesses then this matrix tells that for how much long it would be there, or if there is any opportunity which our organization is enjoying then it tells that for how much long the organization would be having it. The fourth one is TOWS matrix that tells us how to make strategy within an organization while keeping in view the contemporary position of the company or the specific products. Here it tells that if an organization is facing threats beside opportunities then how to handle that very kind of situation to make it benefited it for the organization. The fifth one which I studied here is BCG matrix; it stands for Boston Consultant Group, which tell us about the contemporary position of a specific product, such as where the product stand for and how much it is benefited to an organization etc.