QUESTION 2 (15 MARKS) Given below a table of Competitive Profile Matrix of three major competitors in the U.S. office supplies industry. STAPLES OFFICEMAX OFFICE DEPOT Key Success Factors Weight 0.12 4 2 2 0.11 3 4 1 3 2 2 0.10 3 3 3 2 3 3 0.09 0.08 0.13 0.09 4 4 Financial Position Advertising Market Share Customer Loyalty Product Quality Product Range Distribution Price Competitiveness Geographical Expansion Total Score 4 4 3 3 0.15 3 2 1 0.13 4 4 3 1.00 CONFIDENTIAL/4 FBA/PMS3393/JAN17 a. Do further calculations and indicate their ranking in the industry from the strongest to the weakest. (12 marks) b. Analyze the key success factors of Staples, Inc.. List out any THREE (3) superior factor for Staples Inc.. (3 marks) QUESTION 3 (10 MARKS) The big three office supply firms, including Staples, operate very similar business models, which means the firm with the best strategic plan and operational efficiencies will ultimately survive. Given Staples Inc. is in aggressive position in the SPACE Matrix and below are the EFE Matrix and IFE Matrix for Staples Inc. Table 1: General Environment Analysis Key External Factors Weight Rating Opportunities 1. Positive economic growth in the US. 2. US office supply industry's revenue increase. 3. Expanding in business community. 4. Increase in demand for office supplies worldwide. 0.16 0.09 0.12 0.12 3 4 3 3 Threats 1. Positive economic growth in the US. 2. US office supply industry's revenue increase. 3. Expanding in business community. 4. Increase in demand for office supplies worldwide. TOTAL Table 2: IFE Matrix 0.15 0.14 0.15 0.07 1.00 3 2 2. 2 Weight Rating Key Internal Factors Strengths 1. Largest office supplies retailer. 2. Well established infrastructure. 3. Good quality products. 4. Integrated supply chain. 5. Operates in 24 countries currently. Weaknesses 1. High expenses incurred. 0.16 0.10 0.11 0.13 0.12 4 4 3 3 0.06 2 2. Slow in entering market. 3. Limited of high end products. 4. High turnover rates in international stores. TOTAL 0.05 0.12 0.15 1.00 1 2 2. By capitalizing the Key External Factors and Key Internal Factors of Staples Inc., you are required to recommend strategies to Staples Inc.: TWO (2) Corporate Level Growth Strategies. (6 marks) a. b. ONE (1) Business Level Strategy. (4 marks)