BAGB3013 Strategic Management

1. A to Z Fashion Sdn Bhd is considering one of the two strategies listed in the table below:

		Buy new store and relocate the business	Fully renovate existing store
Key Factors	Weight	AS	TAS	AS	TAS
Opportunities
Population of city growing 10%	0.30	3	0.90	4	1.20
Vehicle traffic passing store up 12%	0.20	1	0.20	2	0.40
Threats
Best Buy opening new store nearby in one year	0.25	4	1.0	3	0.75
New mall being built nearby	0.25	3	0.75	2	0.50
Strengths
Average customer purchase increased from $97 to $128	0.35	2	0.70	4	1.40
	Store's debt-to-total-assets ratio declined to 34%	0.15	1	0.15	2	0.30
	Weaknesses
	Revenues from businesses down 8%		3	1.20	2	0.80
	Often customers have to wait to check out	0.10	1	0.10	3	0.30
				5.00		5.65

Describe what is the table above and provide an explanation on the positive features and limitations of this type of matrix. (10 Marks)