STRATEGIC PLANNING AT D & D ELECTRONICS LTD

Mr. Drichi and Mr. Drani own an electronic company (D & D Electronics Ltd) housed in Uganda House along Jinja Road in Kampala. The company has two business line: sales of electronics and high-tech repair service unit called. Electronic sales is its oldest and high revenue generating unit as the repair unit has just been recently launched. D & D Electronics Ltd enjoys significant position in the electronic market within the greater Kampala region largely due to a number of internal factors that have enabled it leverage on its strengths to achieve 20% increase in annual revenue over the last five years. These internal factor include: (a) increase in annual average sales by 20%, (b) 20% reduction in TV advert charges that enabled it to run daily adverts, (c) increasing revenue (30% per annum) from budding the high-tech repair service unit, (d) the acumen of its highly trained technicians who assemble and troubleshoot and service the electronics and (e) the huge asset of retained earnings that it accumulated over the years.

D & D electronics, however, is not without internal troubles. The company is being evicted from its current location by the new landlord who wants to run its own business at the location. Although revenue has been increasing at an annual rate of 20%, last year's sales revenue was only 17%. The service queue is long, significantly 5% above industry average. During peak seasons the company also occasionally runs out of stock due to supplier induced problems. The location of the company in Namuwongo, a with dust roads and in a dilapidate building tends to drive off the affluent clients who do not want to be associated with old buildings with poor parking space. Moreover, the external environment is equally hostile. Sony and Panasonic companies are in the process of establishing their own branch in Kampala within a year bringing with them decade old global reputation. The advent of COVID-19 impeded sales as the company does not have the online platform on which ti launch online sales.

The future of D & D is however bright. Kampala City has been experiencing an annual population growth rate of about 6% providing room for an increasing market. More than 75% of this growth is accounted for by the youth population that constitutes the market segment targeted by D & D. Moreover, the local rival Music World Ltd has its nearest show 10 km away and the Namuwongo suburb has been experiencing an increased number of middle income young men who prefers to reside not too far from the city centre. There is no single high tech electronic service shop within a radius of 10 km, providing chance for the D & D to expand sales in this business line.

Required:

1. Identify two goals that D & D could pursue given the internal and external environmental factors described in the case above. (16 marks)
2. For one of the goals you have chosen in (1) above propose one SMART objective that could be pursued by D & D. (NB. It must be relevant to the situation and be realistic yet competitive). (16 marks)
3. Suggest two Intensive Strategies that could be relevant for D & D in its environment. Justify your choice. (10 marks)
4. With specific reference to the case study use the SWOT Matrix to propose relevant strategies that D & D Electronics should adopt in relation to the following:
5. Two Strength-Opportunity Strategies (10 marks)
6. Two Weakness-Opportunity Strategies (10 marks)
7. Two Strength -Threat Strategies (10 marks)
8. Two Weakness -Threat Strategies (10 marks)

NB The SWOT Matrix illustration carries 10 marks (10 marks)

1. With reference to the BCG Matrix and in not more than two short sentences, describe the two line of businesses being pursued by D & D Electronics. (8 marks)