S/W PRINTING COMPANY

SUBMITTED TO:

MISS TAYABA AKRAM

SUBMITTED BY:NABI BAKHSH

00923337828306

BALOCHISTAN UNIVESITY OF INFORMATION TECHNOLOGY,ENGINEERING & MANAGEMENT

SCIENCES QUETTA

CASE ANALYSIS

“S/W PRINTING”

ABOUT S/W PRINTING COMPANY

In 1932 S/W Printing Company began as Stricklin Printing in downtown Florence, South

Carolina. After 78 years, today S/W Printing is owned by Steve and Susan Powers. The

Powers families have continued the company's philosophy of providing customers with

the highest quality professional printing services; all at an affordable price.

S/W BUSINESS SERVICE

S/W PRINTING SERVICES

SIGNAGE

GRAPHIC DESIGN

BROCHURES

BUSINESS CARDS

BUSINESS FORMS

LETTERHEAD & ENVELOPES

PROMOTIONAL ITEMS

COPIES

WIDE FORMAT PRINTING

EXISTING MISSION STATEMENT

The mission statement of S/W Printing is to provide customers with high-quality

professional printing services at affordable prices.

PROPOSED MISSION STATEMENT

Our mission is to consistently deliver the finest quality professional printing services with

exceptional value on time, every time, and to meet or exceed our customers’ expectations

in order to enhance their business and make them more successful at affordable prices.

EXISTING VISSION STATEMENT

S/W printing’s vision is to be known throughout the industry as the dependable, quality

and service oriented, low-cost provider of business documents.

PROPOSED VISSION STATEMENT

S/W printing establishes and maintains lifelong customer relationships through superior

graphic communication services and printed products. We strive for excellence in all we

do and treat everyone with dignity and respect and become dependable, quality oriented,

low cost provider of print media.

EXTERNAL ASSESSMENT

OPPORTUNITIES

The city of Florence has recently under taken a massive redevelopment of

Downtown Florence. 

There are over nine foreign affiliated companies and fourteen Fortune

500 companies in the region.

Population in July 2008: 31,570. Population change since 2000 is +4.4%.

Florence County jobs have decreased by 3.30 percent, and local businesses are

increasing.

Estimated median household income in 2008: $41,280 (it was $35,388 in 2000).

Pollina Corporate real Estate study has ranked South Carolina as the top-pro

business state after reviewing 29 factors.

THREATS

Intense competition as the printing industry is known for its price elasticity.

Two major competitors within 5 miles radius.

U.S may fall back into a recession.

Market is growing rapidly, probability of more competitors to enter.

Technology is becoming more affordable and increasing number of government

agencies and corporations within Florence have in-house printing facility.

EXTERNAL FACTOR EVALUATION MATRIX (EFE)

OPPORTUNITIES weight rating Weighted

score

The city of Florence has recently under taken a

massive redevelopment of Downtown Florence. 

.18 3 .54

There are over nine foreign affiliated companies

and fourteen Fortune 500 companies in the region.

.05 2 .1

Population in July 2008: 31,570. Population change

since 2000 is +4.4%

.10 2 .2

Florence County jobs have decreased by 3.30

percent, and local businesses are increasing.

.065 3 .195

Estimated median household income in 2008:

$41,280 (it was $35,388 in 2000).

.065 2 .13

Pollina Corporate real Estate study has ranked

South Carolina as the top-pro business state after

reviewing 29 factors.

.07 2 .14

THREATS

Intense competition as the printing industry is

known for its price elasticity.

.05 4 .20

Two major competitors within 5 miles radius. .10 3 .30

U.S may fall back into a recession. .08 2 .16

Market is growing rapidly, probability of more

competitors to enter.

.12 3 .36

Technology is becoming more affordable and

increasing number of government agencies and

corporations within Florence have in-house

printing facility.

.12 1 .12

TOTAL 1.00 2.38

COMPETITIVE PROFILE MATRIX(CPM)

S/W PRINTING

COMPANY

M&M

DOCUMENT

CENTRE

OFFICE DEPOT

Critical Success

Factors

Wei

ght

Rating Weighted

Score

Rating Weighted

Score

Rating Weighted

Score

advertisement

Product Quality

Price competitiveness

Financial Position

Brand image

Online business

.25

.15

.15

.15

.20

.10

4

4

4

3

3

4

1.0

.60

.60

.45

.60

.40

3

3

3

2

3

3

.75

.45

.45

.30

.60

.30

3

4

3

3

4

3

.75

.60

.45

.45

.80

.30

Total 1.00

3.65

2.85 3.35

Internal assessment

Strength

Strong Brand Image.

On-site printing press allows for a faster turnaround on orders along

with the available delivery service.

Steve Power’s strong inter-personal skills and development of strong

relationships within the community.

The website provides an avenue for current customers to reorder,

review and find out the job status.

Florence Downtown Development Corporation helping in the physical

establishment and business.

S/W printing is very well positioned geographically.

Marketing and Advertising efforts are better than M&M document

center, and better customer relationship management than Office

Depot.

Weaknesses

M&M Document Center leads them in the copy jobs because S/W

printing offers the services but does not promote copies.

S/W printing is offering lesser products and services than competitors

and contains a narrow product line.

Most customers have yet to embrace electronic methods, which

creates a considerable amount of time to complete orders.

Payments are not accepted and automatic quotes cannot be generated

through the website.

General expenses are considerably high.

S/W printing has only one contracted account and the majority of

sales are open sales by repeat customers or walk-ins.

Lack of financial resources.

Financial Ratio Analysis

RATIO ANALYSIS INTERPRETATION

Current Ratio

The current ratio of company is increasing, which is a good sign for company. This

shows that company’s ability to pay its current liabilities is increasing.

Quick Ratio

Its is clear from quick ratio that company has enough cash to pay its liabilities but

increasing trend is a good sign for company.

Debt to total assetIt is used to measure a company's financial risk by determining how much of the company do assets have

been financed by debt and it is increasing which is not a good sign for company.

Debt to equity ratio

This debt to equity ratio show that company have paid its debt. Now the company

position is very strong

Inventory turnoverA ratio showing how many times a company's inventory is sold and replaced over a period and it is

increasing which is positive sign for company.

Account turnover ratio

The decreasing trend shown by figure is a clear indication that the firm is loosing control

over its receivable which is not a good sign for company.

Grass profit margin

Here the profitability is constant which show that s/w is gaining the same profit over the

next year. Its normal for company.

Net profit margin

Here the net profit of the company is negative which is not good sign for s/w company.

Return on asset

It tells an investor how much profit a company generated for each dollar in asset.

According to figures s/w is moving toward failure because it has a decreasing trend.

Return on equity

Return on shareholders equity measures a corporation's profitability by revealing how much profit a

company generates with the money shareholders have invested.  Decreasing trend shows a bad sign for

company.

Internal factor evaluation (IFE) matrix

Strategy Formulation

BOSTON CONSULTING GROUP MATRIX (BCG)

The internal external (IE) matrix

Grand strategy matrix

Qu

antitative strategic planning matrix

Strategy formulation

Market development strategy

Marketing penetration strategy

Product development strategy

Long term objective

Increase sales by approximately 75% overall till the end of next three years.

Increase market share by at least 25% by the end of three years.

Launch of four new products and improving on quality by the end of 2012.

Annual objective with implementation

Objective for 2010

Open one outlet in Darlington County, would result in approximate increase

of 20% in sales, the development would cost $40,000 through equity

injection by Steve powers increase of 5% of sales; by attaining contracts

from local businesses. Marketing expense of electronic and print media,

banners & broachers is $15000 which would be covered by equity injection.

Increase of 10% of sales; expense of improving and updating and the site is

$5000 covered by equity injection.

Production of new product line for 2010; business handbook, Banners; incur

cost of $15,000 for production materials, will increase sales by 5%. The cost

would be covered by equity injections.

Objective for 2011

Increase of 2% of sales; by attaining contracts from local businesses and

improving customer base. Marketing expense of electronic and print media,

banners & broachers is $20000, covered by retained earnings.

Increase of 3% of sales; expense of maintain and updating the site is $1000

covered by retained earnings.

Production for new product line for 2010; Greeting cards and invitations;

incur cost of $11,000 for production materials and $10000 for new

equipment will increase sales by 3%. The cost would be covered by retained

earnings.

Objective for 2012

Open one outlet in Quinsy county, increase of 15% in sales, and incur cost

of $50,000 through retained earnings.

Increase of 5% of sales; expense of maintain and updating the site is $2000

covered through retained earnings.

Increase of 7% of sales; by attaining contracts from local businesses and

improving customer base. Marketing expense of electronic and print media,

banners & broachers is $25000 covered through retained earnings

Comparison to recommendation to the actual planned

The comparison reveals that actual planned strategies are intensive in nature

too. The recommendations suggests for market development(geographic

expansion) and market penetration strategies too to better exploit on

opportunities and capture greater piece of the pie (market share).

Strategic review and evaluation

Reviewed

Financial reports would indicate in terms of Sales, increased Return on

Investment, Increased return on Assets and EBIT.

Customer feedback would be taken on the new products and existing

services provided by the firm.

How firmly the firm is competing in the market and exploiting the

opportunities emerging.

How the firm existing policies are in line with the annual objectives being

set.

Evaluation

The firm is moving towards its long term goals with the help of a strategic-

evaluation framework.

Balanced Scorecards would be developed to measure the improvement in

performance of the firm.

Proper Audits would be conducted to identify financial slumps and to

compete with cost efficiency.