Question

• Create an IFE and EFE (Internal Factors and External factors)

• Assign weights to the IFE and EFEs

• Identify alternative strategies that the organization should consider

• Group the alternate strategies along the top of a spreadsheet

• Create an attractiveness score (AS)

• Create a Total Attractiveness Score (TAS)

• Determine the sum of all TAS per column

• Sum total will showcase which to use

Sodska’s Wines is a small winery in Leamington, Ontario. It specializes in Rieslings and Gewürztraminers. The company has an annual revenue of $2,000,000, and has a maximum capacity of $3,000,000. A bottle of wine is sold domestically for $20.00 – they are currently selling 100,000 litres per year, with a maximum capacity of 150,000 bottles. Melana is the owner and CEO of the company – she has come to you for advice regarding potential next steps. She has mentioned that her main competition is Niagara-based wineries, and believes that the local market is becoming saturated.

Using your reasoning skills, develop 3 strategies, which will align with the company profile, and determine the best option, based on the QSPM.

Bottle Sales Breakout:

1. At winery: 40%

2. LCBO: 35%

3. Wine Store: 15%

4. Reserves: 5%

5. Direct Export: 5%

This total output represents 66% of the total capacity

Answer 1

Based on the above data I do have one strategy :

1)Sodska wines should make same wine as made by the Niagara and must sell at lower price as compared to Niagara , then the demand will increase for our own product due to cost benefit analysis And this will make Niagara to do charge a less price compared to melena , Then at this point of time we(Melena) should buy all the stock having with Niagara , This will make Melena as a single seller in the whole Market. Melena can enjoy Monopoly Market , where one can charge how much margin the firm wants.