Sensitivity Analysis

Sensitivity Analysis

  I. If the firm is a food producer and is adopting a new strategy – acquiring a newspaper publisher in HK, what should be the name of the new strategy?
  * The name of the new strategy should be unrelated diversification.
  * Sensitivity analysis of the new strategy:
  * What if we are lack of professional newspaper human resources?
Based on the firm policy to deploy HRM strategy on acquisition of self-motivated personnel, encouragement of personnel to develop on their own, or both
  * What if we fail to attract audience attention?
We can corporate with existing outstanding newspaper company like Apple Daily and provide food related information or news to our partner them, since Apple Daily does have food section in their newspaper, but it is lack of professional food information like food styles in different cities, recipes, diet therapy and food nutrition introduction etc.
We could also produce food related newspaper under our food company’s brand name with professionally diversified food and beverage information, kitchen decoration and layout design knowledge, and cooking tools and clothes introduction, so as to set up a distinctive identity to win market share and avoid repetitiveness from other newspaper
  * What if we fail to obtain customer loyalty?
Increase our commitment to market promotion and give more value to our customers: for example we can regularly organize sharing party that inviting our customer to enjoy and share their experience about food and life
  * newspaper price level inflation
if the price level show an increasing trend then we deploy the differentiation strategy, if it show the opposite, then we could consider a cost-leadership strategy
the new strategy is applicable and the critical resources for success is controllable

  II. If the firm is a newspaper publisher and is adopting a new strategy – acquiring a newspaper publisher in HK, what should be the name of the new strategy?
  * The name of the... [continues]

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