Required 1. Based on the information in the case, do a SWOT analysis of this business. What are the biggest problems facing Mwana Hardware? 2. Consider Porter's generic competitive strategies. Which approach would work best for Mwana, given the nature of the competition? 3. What steps can Janine take to help convince her Uncle Momo that the company needs a strategic plan?
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At Bobo's graduation party, her Uncle Momo walked over and shook her hand. "I understand you're in
the job market now that you've gotten that fresh, new M.B.A" «Well» Boho renlied «I realize mv
real-world experience iS limited, but I hope to find a place where I can learn and work my way up
I know it's not as glamorous as some big corporate job, but how would you like to come work for me
in the hardware business? I'd like vou to consider coming into the head office: we could use some nev
1deas Over there
"Let me think about it and call you tomorrow." Bobo replied
Bobo considered the offer. Since her childhood, the Mwana Hardware stores were Dart of her life
The tamily owned twelve stores in eight districts in the province. The privately held company had been
started by her great-grandfather in the 180s, and as it expanded over the years, children, aunts, uncles
cousins, and in-laws had grown up and joined the business. The income from the stock Bobo received
automatically at birth paid for her university education
Bobo's Uncle Momo had taken over the company six months ago. Bobo knew from her mother S
letters that Momo was trying to bring the company into the new millennium, but it was quite a task
Bobo decided to ask her mother what she thought. As a family member who was not actively involved
with the company, her mother would be more objective than some
"I'm not sure that it's the place for vou. Bobo." her mother answered. "The company isn't doing as
well as it once was. The stores are going downhill. and there is a lot of blaming going on among family
members in the companv. Your Uncle Momo is the third companv president in four ears. I do know
that thev could use a new perspective over there. Your grandfather and the great-uncles think thev can
run the business the way thev always have, and evervthing will be fine, but the market's changed. The
baby boomers are buying, but from 'big box' competitors such as Builders Warehouse and Micmar
After considermg the situation. Bobo called her uncle. " What sort of lob did vou have in mind?
"Well." Momo replied. "to start. I would like vou to work in human resources and help them develop ¿
customer-service program. I don't think we pay enough attention to our customers anymore. But I'd
also like your opinion in general. You've got a tresh viewpoint and a newly minted business degree
We can use your knowledge of new management trends and ideas
Bobo's first week on the job was a real eye opener. She started by visiting all the stores with her Uncle
Nono, the operations director. While Nono chatted with the managers. Bobo wandered up and down the
aisles and looked through the stockrooms in the back of each store. She soon realized that the types an
levels of inventory, attention to service, cleanliness, knowledge and competency of the sales staff, and
even the prices varied dramatically from store to store. The only consistency was the name. Even sales
promotions could vary, since each store had a small personal advertising budget.
The customers were also a concern. Most of them were older and making small purchases. Bobo asked
her Uncle Nono about this. "Well. a lot of the voung kids just look at price, and then they shop at these
big warehouse and discount stores like Builders Warehouse and Micmar. We've already got three
different stores entering this market. It's also tough for us to compete against the national chains because
they can get much better price discounts
Bobo's concern grew deeper when she looked at the company's financial reports. Several stores hac
lost money regularly for over three years. When she asked Uncle Momo about them, Momo replied, "I
Know, but the last three great-uncles in the family are running those, and they re on the board of
directors. I can't do much about them. Besides, it isn't really their fault; those neighborhoods have
really gone downhill in the last five to ten years."
The next thing Bobo asked to see was the company's strategic plan. "There isn't one." Momo
explained. "We're all so busy just getting the day-to-day things done that we just don't have time.
Altogether, it had been a discouraging week for Bobo
Required
1. Based on the information in the case, do a SWOT analysis of this business. What are the biggest
problems facing Mwana Hardware?
2.What steps can Janine take to help convince her Uncle Momo that the company needs a strategic
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