Create an EFAS table from a SWOT analysis that is completed. For a business class.
Instructions
EFAS table
Using the information gathered from your SWOT analysis conducted in Unit II, create an EFAS table for the company you researched. Use Microsoft Word to create your table. It should have five columns. The first column heading should be entitled External Factors, the second column should be titled Weight, the third column should be titled Rating, the fourth column should be titled Weighted Score, and the fifth column should be titled Comments.
1. In the External Factors column, list at least six opportunities you saw in the company you researched. Underneath the opportunities, list at least six threats you saw in the company you researched.
2. In the Weight column, assign an importance factor to each of these issues from 0.0-1.0 (1.0 is most important; 0.0 is least important). These ratings are based on the probable impact on a particular company's current strategic position. The higher the weight, the more important the factor to the current and future success of the company. You may not be privy to the exact information for this company, so in some cases you will need to use your best judgment. (You will justify your weighting in column five.)
3. In the Rating column, assign a rating factor from 5.0-1.0 (5.0 is outstanding; 1.0 is poor). These ratings are based on the company's response to that particular factor. It is a judgment call on how the company is currently dealing with each specific factor. Once again, you may need to make an estimate in this area if you are not privy to all of the information. (You will justify your weighting in column five.)
4. In the Weighted Score column, multiply the weight from column two by the rating in column three to get the factor's weighted score.
5. In the Comments column, explain why a particular factor was selected and how its weight and rating were estimated.
6. At the bottom of column four, add the weighted scores for the external factors. Is the company doing better or worse than others in the same industry? Complete this answer underneath your table.
Format your assignment using APA Style. Use your own words, and include citations and references as needed to avoid plagiarism.
SWOT Analysis on Nike
Strengths
Created the slogan "Just Do It" which became the most recognized trademark in the world. Nike holds more than 60 percent of the American footwear market. Has contracts with famous athletes such as LeBron James, Tiger Woods Michael Jordan and Cristiano Ronaldo. The Nike brand is innovative and the products are always of top quality. Nike has brand diversity which includes Nike, Jordan and Converse which are all very popular. Nike is the world's largest athletic footwear maker which commands almost two-thirds of the market in the United States alone. Nike brand is worldwide. The brand operates in North America, Greater China, Europe, and other markets as well. Besides, Apple, Nike is perhaps the pre-eminent foreign company in building direct relationships with the Chinese consumer outside the United States. Nike stocks are high and is now currently the highest it has ever been. Nike's are worn by people of all ages, from 0 to the elderly.
Weaknesses
Weaknesses from Nike can limit the use of its opportunities. Eliud Kipchoge shoes which were made by Nike cause him to fail to set the world record during a marathon. His shoes disintegrated before the entire world. This caused Nike to be in the spotlight negatively. Nike is seen by many to have the image of being a greedy American corporation that exploits people suffering from poverty. The prices of Nike products can position the brand as a premium brand that is out of reach for many. Due to this, Nike shoes has become the product of many criminal cases in which the shoes are stolen from people. People get shot over Nike shoes, especially Jordan's because they are the most popular shoes with the younger generation.This issue adds to the Nike brand pricing strategy. The high prices can also push consumers to find cheaper shoes that is of equal quality. There were scandals in the late 1990's regarding poor labor conditions, low wages, and child workers in Nike factories in Asia which almost caused a corporation to collapse. During protests, Nike famous slogan was modified by protestors as "Just DON'T do it". Trust for the Nike brand is not a given from its uncomfortable past.
Opportunities
Nike has the opportunity to enhance their brand as a socially responsible manufacturer of retail products. They can create their products from recycling programs and manufacturing waste. If Nike continue to focus on areas like India and China for local sports stars and celebrities. Nike has the opportunity to look at other types of clothing and accessories to further diversify its product portfolio and continue to look for brand extensions by partnering with makers of sporting goods to put the Nike brand on sports equipment. Through technology, custom footwear can be created for the luxury segment so people can have their own shoe design. This is like Jumpman shoes from Nike. You can go online and create your own style of them. That is currently trending with celebrities.
Threats
Nike operates in a very variable market. Retail environments are constantly changing. Trends constantly change. Nike can find itself in a price war with other brands that can be just as good but cheaper and in demand. Although Nike holds the number 1 spot in the world sports apparel market, it has fallen in the footwear market in the U.S. which gave way to newer brands such as Under Armour and New Balance which is trending now. Under Armour is currently investing in high-profile endorsement deals. They are also building up their women's wear. This strategy is working as women have not been strongly represented by Nike like this. Endorsement deals has been a strategy that greatly exceled with Nike. Now Under Armour have caught on. They even signed supermodel Gisele Bundchen which appeals to younger and older women with sportswear, including college sports. "Under Armour still has only a fraction of Nike's $28 billion in annual revenue, but its growth makes it a viable competitor" (yahoo finance). Certain threats can come from labour strikes, international trade practices, and currency fluctuations. When consumers seek out lower priced brands on designer sports shoes and sportswear, it can lead to a price-cutting war.
Reference:
Nazario, M. Under Armour just proved it's a major threat to Nike (2015) Retrieved on March 7, 2016 from https://finance.yahoo.com/news/under-armour-just-proved-major-205800010.html