Scanning The Environment
...Scores
Opportunities
U.S. toy market increasing 3% year .15 5 0.75 Good market trend
Booming collection market .05 3 0.15 Future investment returns
Product recognition .15 4 0.60 International Opportunity
Efficient technology .10 3 0.30 Up to date technology needed
Direct Mail .05 2 0.10 Accounted for 9.2% of Sales
Threats
New Entrants .05 3 0.15 Unrestricted entry by competition
Winnie the Pooh (Existing Competitors) .20 4 0.80 Bear-Gram trade mark
Product Advancement .05 3 0.15 Questionable
Foreign Competition .10 4 0.40 Steiff, Asian companies
Legal Requirements .10 3 0.40 Internet business: User Privacy
TOTAL SCORES 1.00 3.80
IFAS (Internal Factor Analysis Summary)
Internal Weight Rating Wtd Comments
Strategic Factors Scores
Strengths
Brand name .10 4 0.40 Well Known
Favorable employee relation .10 4 0.40 Stimulates individual growth
Increase catalog sales .05 2 0.10 Increase profits
New Management .15 4 0.60 Eliminated unprofitable ventures
Product Quality .10 5 0.50 Craftsmanship
Weaknesses
Dependence on common carrier .05 3 0.15 Unreliability of shipment and cost
No dividends to stock holders .05 2 0.10 Limited stock holders
Bad lease agreements still in place .20 5 1.00 Balloon Payment at the end
Inconsistent sales .10 3 0.30 Highly Seasoned
Retail Stores .10 4 0.40 Low Profitability
TOTAL SCORES 1.00 3.95
From the time of its inception in 1981, the Vermont Teddy Bear Company had done superbly under the leadership of John Sortino, the founder of the great hand sewn teddy bears.
The journey embarked on the idea of making teddy bears using the quality American materials, and labor. Through out its first decade of progress, the company had...
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