Qualispecs has a reputation for quality, traditional products: It has a group of optician shops, both rented and owned from which it sells its spectacles. Recently it has suffered intense competition and eroding customer loyalty, but a new chief executive has joined from one of its major rivals Fastglass.

Fastglass is capturing Qualispecs market through partnership with a high-street shopping group. These shops install mini-labs in which prescriptions, for spectacles are dispensed within an hour. Some competitors have successfully experimented with designer frames and sunglasses. Others have reduced costs through new computer aided production methods.

Qualispecs has continued to operate as it always has, letting the product speak for itself and failing to utilize advances n technology. Although production costs remain high, Qualispecs is financially secure and has large cash reserves, Fortunately, the countrys most popular sports star recently received a prestigious international award wearing a pair of Qualispecs spectacles.

The new Chief Executive has esb1ished as apriority the need for improved financial performance Following a review she discovers that:

(i) Targets are set centrally and shops report monthly. Site profitability varies enormously, and fixed costs are high in shopping malls;

(ii) Shops exercise no control over job roles, working condition, and pay rates;

(iii) Individual staff pay is increased annually according to a pre-determined pay scale.

(iv) Everyone also receives a small one-off payment. Based on group financial performance,

Market analysts predict a slowdown in the national economy. But feel that consumer spending will continue to increase, particularly among 1830-year-olds.

Required

a) Using appropriate models, analyse the internal and external variables of Quaplispecs, indicating the outputs of the two analysis (8 Marks)

b) Acting as the head of your consulting agency, advise the board of qualispeces why the outputs of the two analysis above will support the future strategic planning (8 Marks)

c) Discuss the uses of the output in a) above in aiding qualispecs s strategy developing

(6 Marks) d) Develop five (5) strategic goals from c) above and justify to the board why these must be pursued (8 Marks)