Title of the Case:
Statement of the Problem:
Revlon inc., gives minimal time and attention to internal and external assessment. Areas of Consideration
Financial Resources- From the 2007 events in Revlon inc., they have a long-term debt higher than previous years which implies that the company is either preocccupied with the thought of how to pay long-term debt, how to survive and how to avoid further expenses.
Human Resources- Due to cost-cutting, employees are reduced into lower number.
Alternative Courses of Action:
* Conduct external factor evaluation (EFE Matrix) and internal Factor evaluation so that the company will have a realistic information to use in choosing the best strategy to pursue. The disadvantage of IFE compared to other tools is that it is subjective but it is far more realistic. The foundation for formulating strategies comprises of the study of the business environment as a whole. This aims at understanding the concept of external environment. It is necessary for any organization to identify the potential environment so that the goal of the organization are achieved. Therefore it becomes necessry for the organization to assess its environment especially its current and potential resources of the nature of the firm. * SWOT Analysis- This would allow achievable goals or objectives to be set for the organization. Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. These come from within the company's unique value chain. SWOT analysis groups key pieces of information into two main categories: * Internal factors – The strengths and weaknesses internal to the organization. * External factors – The opportunities and threats presented by the external environment to the organization. Recommendation:
The group recommends the company to use the IFE Matrix and EFE Matrix in solving the problems that are existing in Revlon Inc. if the company will have to determine its internal position through IFE Matrix and its External position through EFE Matrix, the company now can identify or think of a strategy that is approppriate to the result that will be taken in the IFE and EFE Matrix. The data that can be gathered is more factual and reliable. Data collected are from competitors themselves, media, and other references.
In the process of External Factor Evaluation (EFE), first, assign a group or team of Copmpetetive Intelligence who will gather information on what is happening on the external environment including the strategies and future strategies of their competitors such as avon, L’oreal, Uniliver etc, position of company’s product in the mind of customers , and after gathering information, these must be rated from the most important to the least important. Developing an EFE matrix is an intuitive process which works conceptually very much the same way like creating the IFE matrix. The EFE matrix process uses the same five steps as the IFE matrix. List factors: The first step is to gather a list of external factors. Divide factors into two groups: opportunities and threats. Assign weights: Assign a weight to each factor. The value of each weight should be between 0 and 1 (or alternatively between 10 and 100 if you use the 10 to 100 scale). Zero means the factor is not important. One or hundred means that the factor is the most influential and critical one. The total value of all weights together should equal 1 or 100. Rate factors: Assign a rating to each factor. Rating should be between 1 and 4. Rating indicates how effective the firm’s current strategies respond to the factor. 1 = the response is poor. 2 = the response is below average. 3 = above average. 4 = superior. Weights are industry-specific....
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