Required:

1) Using the information in the case below as well as your logical analysis of what a textile business looks like, assign arbitrary weights to the factors highlighted below and construct an EFE matrix for Wiajik Ltd. (10 marks)

2) Interpret the results in 1) above. (5 marks)

Wiajik Ltd is a Textile company located in Jinja City in Uganda. The company manufactures various types of textile products and clothing. It sells its products both within and outside Uganda. During the year 2022 the following factors have affected the success of Wiajik Ltd: signing contract with a new cost friendly supplier; decreasing value of local currency that boosts exports; preferential market access granted for Uganda to enter the US textile markets; increasingly lucrative price of textile products; and the positive business environment created by government. While its major strengths include signing contract with a new cost friendly supplier, preferential market access granted for Uganda to enter the US textile markets and increasingly lucrative price of textile products.

The other factors remain its minor strengths. However, the company also had major threats in its environment. For instance, government has increased taxation of major inputs into the production process; liberalization of the Ugandan economy has led to increased competition from new entrants into the industry; developing countries; declining margins, inability to rapidly adapt to changing economic environment, and recent economic downturn due to Covid-19 pandemic and the last two being its major weaknesses.