Conduct strategy group mapping for the data posted in the pictures There are four steps to construct a strategic group m
Posted: Sun Jul 03, 2022 3:17 pm
Conduct strategy group mapping for the data posted in the pictures
There are four steps to construct a strategic group map: (i) identify the competitive variables that distinguish companies; (ii) plot firms on a two-variable map with pairs of characteristics; (iii) assign companies to the strategic groups; (iv) draw circles around each strategic group.
If you post the same answer that has been re-posted multiple times on other questions with this same data I will give you a thumbs down.
Pencil Manufacturing Company Vision - To become a $100 million company by 2027 Mission - Providing school children with a smooth writing experience Established - 2015, Current Head Office - Dallas, TX; Factory - Sherman, TX (10,000 Sq. ft) of 500 school supplies outlets) Currently served markets - DFW Metroplex, Amarillo, Lubbock-all Texas; Oklahoma City, OK (Total Total Workforce-100 (30 at HO and 70 in factory), Current Annual Revenue is $20 million | Profit is $2 M (Dec 2021). 40% revenue from wooden pencils (No.2 pencils), 20% from plastic pencils, 20% from recycled material pencils, 10% from erasers (not manufactured by you), 10% from sharpeners (not manufactured by you). Erasers and sharpeners both imported from Vietnam, rebranded and sold. You have an investor friend of the founder's son who is willing to invest $10 million over years. Company is headed by Founder-Owner President (NSU Alumna/ Alumnus) and assisted by Executive Vice President (son of founder-Duke University Alumnus); VP-Finance, Supply Chain and IT (OSU Alumnus); VP- Operations (Factory Head); VP-Marketing & Sales. President directly controls HR function through the recently promoted Asst. Vice President HR (OU Alumna). and VP-Mktg & Sales are both OSU Alumni. Competitor Name (Founded) HO Crayools (1985) Tulsa Writing Materials (2008) YellowNBlack Writers (1999) OD Supplies (2015) San Jose, CA School Equippers (1970) Atlanta Factory (2021) Broken Arrow Atlanta Revenue Little Rock Little Rock Maryland Maryland $500 M $120 M $150 M Creat by se sermison Ops a $20 M Profit $750 M $40 M $15 M $20 M $5 M Workforce Market Spread $15 M 2000 40 states OK, MO, AR, CO 550 for pencils GA, AL, MS, LA, 650 TX 125 AR, OK, TX 2250 45 States. Products (% share of co. revenues) Black leaded Wooden (10%) and Mechanical Pencils (20%), Erasers (5%), Sharpeners (15%), paper (40%), glue (10 %) Wooden Pencils (20%), Pencil Leads (80%) (black-all diameters, all number types) Multi-colored lead pencils (12 color packs -40%), 24 color packs -60%) made of wood Black Wooden pencils (25%), environment- friendly recycled material pencils (75%) Different types of pencil-specific wood (85%), all varieties of artistic pencils (15%)
me Additional Information (Macro- Environment): 1) The worst of the Covid-19 crisis is over. Things are almost back to normal. But the after effects of 2 years of restrictive life has a high economic cost too- the inflation is at a 40-year high 2) Quarter-on-quarter Real GDP growth rates for March 2020, June 2020, September 2020, Dec 2020, March 2021, June 2021, Sept 2021, and Dec 2021 were -5%, -31%, +33.8 %, +4.5 %, + 6.3 %, +6.6%, +2.3%, and +6.9% (advance estimate) respectively. The annual GDP growth YoY for 2020 was -3.5% over 2019. GDP growth for YoY 2021 is +5.7% (https://www.bea.gov) 3) Unemployment rates for July, Aug. Sep, Oct, Nov and Dec 2021 were 5.4, 5.2, 4.8, 4.6, 4.2, and 3.9 percent respectively (https://www.bls.gov/web) 4) Total size of school supplies market is $2 Billion, out of which wooden pencils category comprises of $300 Million in 2021. Projected growth during 2022 to 2027 is 4% CAGR 5) Current Governor of Texas owns 10 wood-processing mills in Texas, Californi 6) California has banned lumberjacking due to the huge forest fires and Virginia es destroytic co soft wood trees millions of hectares of 7) Last 2 years, Texas and Oklahoma have showing sharp increase in incoming, i.e. immigrating population, mostly fleeing the high tax regime of California. Most of these new migrants are settling in Eastern Texas and Central Oklahoma. 8) A machine supplier company has offered the company a machine on which pencil manufacturing can happen in a single machine - you put in the large wood logs on one end and it gives out finished pencils from the other end. Only 10 people required to run it. But each of these machines costs $15 million. Also, this is a totally new invention, untested. 9) Due to forest fires in the Amazon in Brazil, environmental activists all over America had aggressively campaigned in schools about the effects of climate change, especially deforestation. 10) Before Covid19 crisis hit us, tariff war with China had already adversely impacted recycling business. Earlier, 80% of recyclable waste from US was sent to China. During 2021 it was only 40%. Since the COVID crisis began, there are huge noises on Capitol Hill about completely reducing the dependency on China for all kinds of trade activities. 11) As on Dec 31, 2021 US had increased the import duty on all graphite, coal and lead products from 10% to 75% of the import value as an anti-dumping measure to protect local producers. No duty change is expected in the current year 2022. Some Additional Information (Competitive Environment): 1) Currently, the only suppliers of pencil-worthy wood are School Equippers and Cray Inc., a sister company of Crayools. Black lead (actually graphite) for No. 2 pencils is supplied by only one company to everyone - Tulsa Writing Materials. All other varieties including colored lead are imported from China YellowNBlack and Tulsa Writing Materials, in addition to traditional sales channels of stationery supplies outlets like Staples and Office Depot, also sell through online presence (their own websites as well as Amazon). OD Supplies only sells through Amazon and Ebay. Crayools and School Equippers sell only through traditional channels-office supplies stores, grocery stores. 3) OD Supplies had initiated an aggressive campaign across few school districts in AR and TX for promoting their environment-friendly pencils. They visited school to school and conducted events in collaboration with the local Parks & Recreation Departments until few months back.
There are four steps to construct a strategic group map: (i) identify the competitive variables that distinguish companies; (ii) plot firms on a two-variable map with pairs of characteristics; (iii) assign companies to the strategic groups; (iv) draw circles around each strategic group.
If you post the same answer that has been re-posted multiple times on other questions with this same data I will give you a thumbs down.
- Conduct Strategy Group Mapping For The Data Posted In The Pictures There Are Four Steps To Construct A Strategic Group M 1 (86.35 KiB) Viewed 15 times
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me Additional Information (Macro- Environment): 1) The worst of the Covid-19 crisis is over. Things are almost back to normal. But the after effects of 2 years of restrictive life has a high economic cost too- the inflation is at a 40-year high 2) Quarter-on-quarter Real GDP growth rates for March 2020, June 2020, September 2020, Dec 2020, March 2021, June 2021, Sept 2021, and Dec 2021 were -5%, -31%, +33.8 %, +4.5 %, + 6.3 %, +6.6%, +2.3%, and +6.9% (advance estimate) respectively. The annual GDP growth YoY for 2020 was -3.5% over 2019. GDP growth for YoY 2021 is +5.7% (https://www.bea.gov) 3) Unemployment rates for July, Aug. Sep, Oct, Nov and Dec 2021 were 5.4, 5.2, 4.8, 4.6, 4.2, and 3.9 percent respectively (https://www.bls.gov/web) 4) Total size of school supplies market is $2 Billion, out of which wooden pencils category comprises of $300 Million in 2021. Projected growth during 2022 to 2027 is 4% CAGR 5) Current Governor of Texas owns 10 wood-processing mills in Texas, Californi 6) California has banned lumberjacking due to the huge forest fires and Virginia es destroytic co soft wood trees millions of hectares of 7) Last 2 years, Texas and Oklahoma have showing sharp increase in incoming, i.e. immigrating population, mostly fleeing the high tax regime of California. Most of these new migrants are settling in Eastern Texas and Central Oklahoma. 8) A machine supplier company has offered the company a machine on which pencil manufacturing can happen in a single machine - you put in the large wood logs on one end and it gives out finished pencils from the other end. Only 10 people required to run it. But each of these machines costs $15 million. Also, this is a totally new invention, untested. 9) Due to forest fires in the Amazon in Brazil, environmental activists all over America had aggressively campaigned in schools about the effects of climate change, especially deforestation. 10) Before Covid19 crisis hit us, tariff war with China had already adversely impacted recycling business. Earlier, 80% of recyclable waste from US was sent to China. During 2021 it was only 40%. Since the COVID crisis began, there are huge noises on Capitol Hill about completely reducing the dependency on China for all kinds of trade activities. 11) As on Dec 31, 2021 US had increased the import duty on all graphite, coal and lead products from 10% to 75% of the import value as an anti-dumping measure to protect local producers. No duty change is expected in the current year 2022. Some Additional Information (Competitive Environment): 1) Currently, the only suppliers of pencil-worthy wood are School Equippers and Cray Inc., a sister company of Crayools. Black lead (actually graphite) for No. 2 pencils is supplied by only one company to everyone - Tulsa Writing Materials. All other varieties including colored lead are imported from China YellowNBlack and Tulsa Writing Materials, in addition to traditional sales channels of stationery supplies outlets like Staples and Office Depot, also sell through online presence (their own websites as well as Amazon). OD Supplies only sells through Amazon and Ebay. Crayools and School Equippers sell only through traditional channels-office supplies stores, grocery stores. 3) OD Supplies had initiated an aggressive campaign across few school districts in AR and TX for promoting their environment-friendly pencils. They visited school to school and conducted events in collaboration with the local Parks & Recreation Departments until few months back.