Job Rotation, Enrichment or Enlargement

Solution: Answer 1: (15 marks) There are different ways of doing competitive analysis. Out of which Porter five forces model and SWOT analysis are most appropriate as they both provide strong guidelines for doing competitive analysis for strategy making. Rationale for Porter Five Forces model: 1. Five forces model specifically focus on buyers, suppliers, substitutes, new entrants and rivalry. 2. According to Porter these five forces state the rules of competition so it can be a handy tool for strategy formulation. 3. These five forces guide the managers to find out the industries profitability, attractiveness and competition level. 4. Once the managers look into the five forces, they can formulate competitive strategy. Rationale for SWOT analysis: 1. SWOT analysis helps the managers in different way and focuses on the internal (strengths& Weakness) and external (opportunities, threats) factors for strategy formulation. 2. In the process of strategy formulation, managers need to identify strengths and weaknesses of the firm. SWOT analysis is the most appropriate tool for such purpose. 3. SWOT analysis does not only help in understanding the competitiveness but also helps in finding the opportunities available in the industry. 4. SWOT analysis also helps in finding the strategic niche that company may exploit with the help of effective strategy formulation. 5. It also helps organization to match its strengths with opportunities and improves weakness while considering the threats. Answer 2: (15 marks) If we carefully analyze the case, at least two competitive advantages of the business can be extracted: 1. ABC Toys focuses on small wholesalers who couldn’t get products from the large toy markers. In this way the company not only find a niche to serve but also exclude itself from the competition of large competitors. Furthermore, company served a market which was previously ignored by large supplier. Hence, this strategy is a smart move which can benefit the business