摘自
MAASTRICHT SCHOOL OF MANAGEMENT
The Netherlands
SHANG HAI MARITIME UNIVERSITY
P.R.C
BUSINESS STRATIGY DESIGN ON A LOCAL MANAGEMENT CONSULTING FIRM
A Dissertation of Strategic and General Management in Candidacy for Degree of Master of Business Administration
BY
ZHENG LEI, Intake IV
In this section, we will take TSC as the role for SWOT analysis. In scanning the threat & opportunities factors, we exclude the foreign MC firms and will focus on the targeted client segment.
Internal Factors Analysis: Strengths & Weakness
A survey on importance of strengths & weakness factors were conducted among TSC staffs, the results are listed in Appendix I.
Note:
1.List strengths and weaknesses in Column 1.
2.Weight each factor from 10% (most important) to 1% (least important) in column 2 based on that factor’s probable impact.
3.Rate each factor from 10 (outstanding) to 1 (poor) in column3 based on the company’s response to that factor. The ratings come from mean of ratings given by the 3 TSC directors and 2 management staffs.
4.Multiply each factor’s weight with rating to get weighted score in column 4.
5.Add weighted scores to get the total weighted score for the company. The maximum weighted score is 10.
Internal Factors
Weight
Rating*
Weighted Score
Comments
S1 Understanding of cultural context
S2 Experience/Case accumulation
S3 Training expenses
S4 Quick learning curve
S5 Competent consultants
S6 Subcontractor outsourcing &
assurance
S7 Service quality
S8 Structural system of knowledge &
Experiences
S9 Dominant market share or
distinctive reputation for some
specific product
S10 Knowledge property protection
Weaknesses:
W1 Service charge level
W2 Brand awareness
W3 Corporate finance & accounting
W4 Corporate culture & identity
W5 Employee satisfaction
W6 Ad. & PR expenses
W7 Responsiveness to change
W8 R&D intensity
W9 Sales strength & depth
W10 hardware & facilities
3%
3.5%
2%
8%
7.5%
8%
7.5%
4%
9%
1%
7%
8%
2%
1%
4%
6%
7.5%
3%
7%
1%
9
5.4
1
8.2
9.2
5.6
7.8
5.6
3
4.4
3.8
0.6
0.8
4.2
5.8
3.6
4
4
3.2
6.2
0.27
0.19
0.02
0.66
0.69
0.45
0.59
0.22
0.27
0.04
0.27
0.48
0.02
0.04
0.23
0.22
0.30
0.12
0.22
0.06
Need improvement
Need investment
Need improvement
Need improvement
Competence edge
Need improvement
Competence edge
Competence edge
Need to fix
Need improvement
Need investment
Need improvement
Need improvement
Competence edge
Total Scores
100%
5.36
Table 6. Internal Factor Analysis Summary
Radar digraph will be used to highlight the weakness aspects as per the above data.
This digraph will give us directions to fine-tune the operations targets and budget.
Figure 3. Competitive Weakness Allocation
External Factors Analysis
A survey on selection of opportunities & threat factors were conducted among TSC staffs, the procedure is listed in Appendix II.
The results are presented in the following table.※
External Factors
Weight
Rating
Weighted Score
Comments
Opportunities:
O1 More fierce competitions give SMEs huge pressure to improve quickly.
O2 Foreign firms need guidance & assistance to penetrate in this marketplace.
O3 Some large size firms turn to outsource local MC firms.
O4 New technologies require consulting resources as it is a cost effective and quick approach.
O5 Government driving on some industries will stir huge demands on MC.
O6 Prestige policies will support MC industry.
Threats:
T1 Foreign MC firms join in the competition with much lower price.
T2 Disorder and destructive competition among local MC firms ruins this industry.
T3 Local firms fail the competition and shrink the demands on MC and at same time local MC firms are not competitive to offer quality services to the winners.
T4 Not capable to offer services to meet customer needs due to immature consulting capabilities.
13%
5%
9%
11%
14%
10%
11%
14%
5%
8%
9
4
6.5
8.5
9
8
3
1
6
5
1.17
0.2
0.59
0.94
1.26
0.8
0.33
0.14
0.3
0.4
It is most possible to happen in the coming years.
TSC will be attractive candidates for this customer segment.
Based on cost & benefit study.
It will make TSC go into new market.
If it happens it will give TSC destructive hit.
It is most worse than the other factors if it happens.
Total Scores
10
6.13
Table 7. External Factors Analysis Summary
Now we try to work out proposals for TSC strategies by using TOWS matrix.
Key SW factors are selected as per the competitive weakness allocation (figure 3). OT factors in BLUE are identified as strategic factors. The strategies are presented in below table.※
IFAS
EFAS
Strengths:
S4 Quick learning curve
S5 Competent consultants
S7 Service quality
Weaknesses:
W1 Service charge level
W2 Brand awareness
W7 Responsiveness to change
W6 Ad. & PR expenses
W9 Sales strength & depth
Opportunities:
O1 More fierce
competitions give
SMEs huge
pressure to
improve quickly.
O5 Government
driving on some
industries will stir
huge demands on
MC.
SO Strategies:
l Focus on SMEs in the intensive competition area and strengthen sales forces.
l Quick develop consulting capabilities on the government drving industry sectors.
WO Strategies:
l Intensive Ad. To improve awareness.
l Cooperate with government on developing in the focused industries.
l More flexible policy on quotation to get the biggest profit margin.
Threats:
T1 Foreign MC
firms join in the
competition and
offer services at
competitive prices.
T2 Disorder and
destructive
competition
among local MC
firms ruins this
industry.
ST Strategies:
l Invest on training to improve consultants’ competencies.
l Build brand and quality image
l Abandon some servicing items with bad names.
WT Strategies:
Find new area or exit from MC.
Table 8. TOWS Matrix
A strategic factor analysis matrix will be applied to combine the key factors to reflect the priority of each factor as a determinant of TSC’ future success.
Key Strategic Factors
Weight
Rating
Weighted Score
Duration
Comments
Short term
Medium term
Long
term
S6 Subcontractor
outsourcing &
assurance
S9 Dominant market
share or
distinctive
reputation for some
specific product
W1 Service charge level
W6 Ad. & PR expenses
W9 Sales strength &
Depth
O1 More fierce
competitions give
SMEs huge pressure
to improve quickly.
O5 Government driving
on some industries
will stir huge demands
of MC.
T1 Foreign MC firms join
in the competition
with much lower
price.
T2 Irregular and
destructive
competition among
local MC firms ruins
this service sector.
0.15
0.15
0.12
0.07
0.15
0.05
0.12
0.08
0.10
4
6
4
3
2
9
7
6
2
0.60
0.90
0.48
0.21
0.30
0.45
0.84
0.48
0.20
X
X
X
X
X
X
X
X
X
This is cost effective way to
Lower price, need immediate
Action.
This is competent edge which
Should be achieved within a
Middle range of period.
Target to speed up growth.
To accompany expansion.
Need immediate action and
Improvement.
It will show in a long run.
This will present in the
Coming 5 to 10 years.
It is still big gap on price
Level and unlikely to happen
Within 5 years.
It is very possible to happen.
Total Score
1.0
4.45
Here comes a summary of strategy alternatives to TSC:
l Concentrate on SMEs of the government driving industries;
l Invest in employee training and product research to develop unique competitive advantages for the focused industries;
l Increase expenses budget to strengthen sales force, advertising effectiveness and public relations to improve brand awareness;
l Abandon some services with high risk of bad reputation;
l Pricing will be determined after the scenario analysis. Two options are available: Middle-Low price or Middle-High price.
※Note:
1. List opportunities and threats in Column 1.
2.Weight each factor from 14% (most important) to 0% (least important) in column 2 based on its
potential impact. Totally it adds up to 100%.
3.Rate each factor from 10 (outstanding) to 1 (poor) in column3 based on the company’s response to
it.
4.Multiply each factor’s weight with rating to get weighted score in column 4.
5.Add weighted scores to get the total score for the company. The maximum weighted score is 10.
※Note:
1. In the Opportunities block, list the external opportunities available in the current and future environment from Table 7.
2. In the Threats block, list the external threats TSC facing now and in the future from Table 7.
3. In the Strengths block, list the key strengths TSC has in current or future from Table 6.
In the Weaknesses block, list the key weaknesses TSC has in current of future from Table 6.
1. Key SW factors are selected from Figure 3 and they represents the weak points that require to be
highlighted.
2. Key OT factors are selected from Table 7 to reflect the key issues of opportunities and threats.
3. Rating and Weighted Scores are determined in a very similar ways.
4. For Duration column, 3 sub-columns will be checked as per the implement period of time.
In this section, we will take TSC as the role for SWOT analysis. In scanning the threat & opportunities factors, we exclude the foreign MC firms and will focus on the targeted client segment.
Internal Factors Analysis: Strengths & Weakness
A survey on importance of strengths & weakness factors were conducted among TSC staffs, the results are listed in Appendix I.
Note:
1.List strengths and weaknesses in Column 1.
2.Weight each factor from 10% (most important) to 1% (least important) in column 2 based on that factor’s probable impact.
3.Rate each factor from 10 (outstanding) to 1 (poor) in column3 based on the company’s response to that factor. The ratings come from mean of ratings given by the 3 TSC directors and 2 management staffs.
4.Multiply each factor’s weight with rating to get weighted score in column 4.
5.Add weighted scores to get the total weighted score for the company. The maximum weighted score is 10.
Internal Factors |
Weight |
Rating* |
Weighted Score |
Comments |
S1 Understanding of cultural context S2 Experience/Case accumulation S3 Training expenses S4 Quick learning curve S5 Competent consultants S6 Subcontractor outsourcing & assurance S7 Service quality S8 Structural system of knowledge & Experiences S9 Dominant market share or distinctive reputation for some specific product S10 Knowledge property protection Weaknesses: W1 Service charge level W2 Brand awareness W3 Corporate finance & accounting W4 Corporate culture & identity W5 Employee satisfaction W6 Ad. & PR expenses W7 Responsiveness to change W8 R&D intensity W9 Sales strength & depth W10 hardware & facilities |
3% 3.5% 2% 8% 7.5% 8% 7.5% 4% 9% 1% 7% 8% 2% 1% 4% 6% 7.5% 3% 7% 1% |
9 5.4 1 8.2 9.2 5.6 7.8 5.6 3 4.4 3.8 0.6 0.8 4.2 5.8 3.6 4 4 3.2 6.2 |
0.27 0.19 0.02 0.66 0.69 0.45 0.59 0.22 0.27 0.04 0.27 0.48 0.02 0.04 0.23 0.22 0.30 0.12 0.22 0.06 |
Need improvement Need investment Need improvement Need improvement Competence edge Need improvement Competence edge Competence edge Need to fix Need improvement Need investment Need improvement Need improvement Competence edge |
Total Scores |
100% |
|
5.36 |
|
Table 6. Internal Factor Analysis Summary
Radar digraph will be used to highlight the weakness aspects as per the above data.
This digraph will give us directions to fine-tune the operations targets and budget.
Figure 3. Competitive Weakness Allocation
External Factors Analysis
A survey on selection of opportunities & threat factors were conducted among TSC staffs, the procedure is listed in Appendix II.
The results are presented in the following table.※
External Factors |
Weight |
Rating |
Weighted Score |
Comments |
Opportunities: O1 More fierce competitions give SMEs huge pressure to improve quickly. O2 Foreign firms need guidance & assistance to penetrate in this marketplace. O3 Some large size firms turn to outsource local MC firms. O4 New technologies require consulting resources as it is a cost effective and quick approach. O5 Government driving on some industries will stir huge demands on MC. O6 Prestige policies will support MC industry. Threats: T1 Foreign MC firms join in the competition with much lower price. T2 Disorder and destructive competition among local MC firms ruins this industry. T3 Local firms fail the competition and shrink the demands on MC and at same time local MC firms are not competitive to offer quality services to the winners. T4 Not capable to offer services to meet customer needs due to immature consulting capabilities. |
13% 5% 9% 11% 14% 10% 11% 14% 5% 8% |
9 4 6.5 8.5 9 8 3 1 6 5 |
1.17 0.2 0.59 0.94 1.26 0.8 0.33 0.14 0.3 0.4 |
It is most possible to happen in the coming years. TSC will be attractive candidates for this customer segment. Based on cost & benefit study. It will make TSC go into new market. If it happens it will give TSC destructive hit. It is most worse than the other factors if it happens. |
Total Scores |
10 |
|
6.13 |
|
Table 7. External Factors Analysis Summary
Now we try to work out proposals for TSC strategies by using TOWS matrix.
Key SW factors are selected as per the competitive weakness allocation (figure 3). OT factors in BLUE are identified as strategic factors. The strategies are presented in below table.※
IFAS EFAS |
Strengths: S4 Quick learning curve S5 Competent consultants S7 Service quality |
Weaknesses: W1 Service charge level W2 Brand awareness W7 Responsiveness to change W6 Ad. & PR expenses W9 Sales strength & depth | ||
Opportunities: O1 More fierce competitions give SMEs huge pressure to improve quickly. O5 Government driving on some industries will stir huge demands on MC. |
SO Strategies: l Focus on SMEs in the intensive competition area and strengthen sales forces. l Quick develop consulting capabilities on the government drving industry sectors. |
WO Strategies: l Intensive Ad. To improve awareness. l Cooperate with government on developing in the focused industries. l More flexible policy on quotation to get the biggest profit margin. | ||
Threats: T1 Foreign MC firms join in the competition and offer services at competitive prices. T2 Disorder and destructive competition among local MC firms ruins this industry. |
ST Strategies: l Invest on training to improve consultants’ competencies. l Build brand and quality image l Abandon some servicing items with bad names. |
WT Strategies: Find new area or exit from MC. |
Table 8. TOWS Matrix
A strategic factor analysis matrix will be applied to combine the key factors to reflect the priority of each factor as a determinant of TSC’ future success.
Key Strategic Factors |
Weight |
Rating |
Weighted Score |
Duration |
Comments | ||
Short term |
Medium term |
Long term | |||||
S6 Subcontractor outsourcing & assurance S9 Dominant market share or distinctive reputation for some specific product W1 Service charge level W6 Ad. & PR expenses W9 Sales strength & Depth O1 More fierce competitions give SMEs huge pressure to improve quickly. O5 Government driving on some industries will stir huge demands of MC. T1 Foreign MC firms join in the competition with much lower price. T2 Irregular and destructive competition among local MC firms ruins this service sector. |
0.15 0.15 0.12 0.07 0.15 0.05 0.12 0.08 0.10 |
4 6 4 3 2 9 7 6 2 |
0.60 0.90 0.48 0.21 0.30 0.45 0.84 0.48 0.20 |
X X X X |
X X X |
X X |
This is cost effective way to Lower price, need immediate Action. This is competent edge which Should be achieved within a Middle range of period. Target to speed up growth. To accompany expansion. Need immediate action and Improvement. It will show in a long run. This will present in the Coming 5 to 10 years. It is still big gap on price Level and unlikely to happen Within 5 years. It is very possible to happen. |
Total Score |
1.0 |
|
4.45 |
Here comes a summary of strategy alternatives to TSC:
l Concentrate on SMEs of the government driving industries;
l Invest in employee training and product research to develop unique competitive advantages for the focused industries;
l Increase expenses budget to strengthen sales force, advertising effectiveness and public relations to improve brand awareness;
l Abandon some services with high risk of bad reputation;
l Pricing will be determined after the scenario analysis. Two options are available: Middle-Low price or Middle-High price.
※Note:
1. List opportunities and threats in Column 1.
2.Weight each factor from 14% (most important) to 0% (least important) in column 2 based on its
potential impact. Totally it adds up to 100%.
3.Rate each factor from 10 (outstanding) to 1 (poor) in column3 based on the company’s response to
it.
4.Multiply each factor’s weight with rating to get weighted score in column 4.
5.Add weighted scores to get the total score for the company. The maximum weighted score is 10.
※Note:
1. In the Opportunities block, list the external opportunities available in the current and future environment from Table 7.
2. In the Threats block, list the external threats TSC facing now and in the future from Table 7.
3. In the Strengths block, list the key strengths TSC has in current or future from Table 6.
In the Weaknesses block, list the key weaknesses TSC has in current of future from Table 6.
1. Key SW factors are selected from Figure 3 and they represents the weak points that require to be
highlighted.
2. Key OT factors are selected from Table 7 to reflect the key issues of opportunities and threats.
3. Rating and Weighted Scores are determined in a very similar ways.
4. For Duration column, 3 sub-columns will be checked as per the implement period of time.