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Divisio N Revenue Profit EFE Scores IFE Scores

The document contains a SWOT analysis and IE matrix for a restaurant business. The SWOT analysis identifies the business's strengths as its original recipes and established locations. Weaknesses include slightly high pricing and lack of foreign worker training. Opportunities are customer demand and expansion, while threats are competition and pricing competition. The IE matrix analyzes four divisions of the business based on revenue, profit, EFE and IFE scores. It recommends growing and building the first two divisions as they have high revenue and profit percentages with low risk. The third division should be harvested or divested due to higher risk. The fourth division should also be harvested or divested as it has the lowest percentages and highest risk.

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Cresenciano Malabuyoc
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80 views3 pages

Divisio N Revenue Profit EFE Scores IFE Scores

The document contains a SWOT analysis and IE matrix for a restaurant business. The SWOT analysis identifies the business's strengths as its original recipes and established locations. Weaknesses include slightly high pricing and lack of foreign worker training. Opportunities are customer demand and expansion, while threats are competition and pricing competition. The IE matrix analyzes four divisions of the business based on revenue, profit, EFE and IFE scores. It recommends growing and building the first two divisions as they have high revenue and profit percentages with low risk. The third division should be harvested or divested due to higher risk. The fourth division should also be harvested or divested as it has the lowest percentages and highest risk.

Uploaded by

Cresenciano Malabuyoc
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Activity 3

1. Create a SWOT Matrix for a restaurant business within your location


2. Create an IE Matrix using below details and choose and explain a strategy that you will use for
each division

Divisio
n Revenue Profit EFE Scores IFE Scores
1 20,000.00 8,000.00 3.8 3.2
2 50,000.00 12,000.00 3.2 3.8
3 30,000.00 15,000.00 1.5 1.3
4 1,000.00 500.00 1.3 1.2
Total 101,000.00 35,500.00
1. SWOT MATRIX FOR RESTAURANT BUSINESS “OME RESTAURANT”

STRENGTHS (S) WEAKNESSES (W)


1. Original recipes 1. Slightly high pricing
2. Having established 2. Unprofessional
restaurants chain customer service
across san Antonio 3. Foreign worker lack of
Santo Tomas Batangas training
3. Certified restaurant

OPPORTUNITIES (O) SO strategies WO STRATEGIES


1. Customer demand  Introduce differentiation  Expansion of business
2. Promotion strategy of being to be explored more and
3. Expansion business to traditional fusion by employing foreign
city restaurant to meet new staff can reduce cost
4. Demand for delivery demand of customer (W2, O1)
service (S1, O2)

THREATS (T) ST STRATEGIES WT STRATEGIES


1. Monopolistic  Utilize mobile marketing  Due to the price is quite
competition to target customer in higher than other
2. Pricing competition the area (S2, T1) restaurant, they should
study market price and
affordable for customer
to pay (W1, T2)
2. IE MATRIX
STRONG AVERAGE WEAK

4.0 3.0 2.0 1.0


HIGH market development 33.8%

3.0 22.5%
MEDIU
M

2.0
LOW harvest or divest
42.3%
1.4%
1.0

3. IE Matrix

Divisio EFE Percent Percent Legend


n Revenue Profit Scores IFE Scores sale profit
1 20,000.00 8,000.00 3.8 3.2 20 22.5
2 50,000.00 12,000.00 3.2 3.8 50 33.8
3 30,000.00 15,000.00 1.5 1.3 30 42.3
4 1,000.00 500.00 1.3 1.2 0 1.4
100%
Total 101,000.00 35,500.00

STRATEGY

1. GROW, BUILD IT LEADS TO MARKET PENETRATION WHERE THE RESULT IS LOW RISK.
2. GROW AND BUILD WHERE THE PROFIT PERCENTAGE LANDED TO THE MARKET PENETRATION
3. HARVEST OR DIVEST THIS THIRD DIVISION HAVE A HIGHER RISK THAT FALL INTO
DIVERSIFICATION
4. HARVEST OR DIVEST THIS RESULT OF 4TH DIVISION FALL INTO HIGHER RISK OF RETRENCHMENT
BUT LOWEST PERCENTAGE.

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