Future Of Vermont Teddy Bear Co example essay topic

Introduction The Vermont Teddy Bear Company (V TBC) was founded in 1981 by John Sorin to. Unfortunately, for John, the company became too big for him to oversee since he was an entrepreneur. However, he gracefully stepped down in 1995 and supported the hiring of a new CEO that would lead the company into its future success (Vincelette, p. 27-3). One thing that has remained is the companies focus.

The Vermont Teddy Bear's '... focus has been to design, manufacture, and direct market the best teddy bears made in America using quality American materials and labor. ' (p. 27-1) In fact, 'American made with American materials' is the basis of the company's mission statement. Planning for the future of Vermont Teddy Bear Co. Inc it is important that we consider conditions / trends in the internal environment of the company that may impact the future success of the company. These factors (conditions / trends ) involve financial resources, human resources, the quality of products and services provided the efficiency of internal processes, student and stakeholder satisfaction, and the company culture. Specification of these factors will allow us to: 1) identify their potential impact on the market; 2) assess the probability that they will continue; 3) categorize them as strengths or challenges; 4) rank them in terms of how well the company is doing in each category. The internal strengths and weakness analysis examines the recent performance of the Vermont Teddy Bear Co.

Inc in terms of marketing, finance, operations and logistics, research and development, human resource management and information systems. The purpose of this analysis is to provide the data for the gap analysis -- the current performance of Vermont Teddy Bear Co. Inc and the desired (vision) performance required to successfully increase market share and customer satisfaction. Since strengths and weaknesses involve the study of the internal structure, or come from within the organization. This process is extremely important because Vermont Teddy Bear Co. Inc may want to develop new goals that should allow them to maximize its position relative to each functional area.

1 Opportunities ^aEURc Larger manufacturing facility^aEURc Retail stores^aEURc Made in America^aEURc Production and Service, Customer perspective Threats ^aEURc Competitors (chocolates, flowers, and greeting cards) ^aEURc Disney / Patents, Trademarks, and licenses^aEURc Bear Grams 2.20. 07.18. 15... 20.10.

10 34.64. 25.04. 23.62. 82.5 4 0.920.

290.900. 630.720. 280.25 The small village, the Teddy Bear Common More retail stores are willing sell Attracts more Americans. The company provided unique and original customized products to everyone, from ages 1-100. advantage of national and international distribution opportunities The customers became confused and allowed Disney to enter the personalized teddy bear gift market. The confusion contributed to a decrease in Bear-Gram sales. Decrease in sell Total Scores 1.00 3.99 Weighted External Factors Weight Score Comments This shows that the company is in good standing but they can always find ways to do better or improve in.

1 Strengths ^aEURc Human resources^aEURc quality of products and services provided^aEURc the efficiency of internal processes^aEURc motivation Weaknesses ^aEURc Financial Resources^aEURc stakeholder satisfaction, and the company culture^aEURc Company philosophy^aEURc Marketing Strategies 2.16. 07.18. 10.14. 10.10. 15 33.63. 03.84.

02.53. 02.82. 5 4 0.580. 210.680. 400.350. 300.280.

38 5 provides critical support and advice to line management The company sells good quality merchandise. The company is always looking for things they are best at. To be one of the few companies to have an all American made teddy bear company. Their revenue had gone down dramatically from the previous fiscal year Since revenue had gone down shareholders would be disappointed The company^aEURTMs mission is create an all U. S made teddy, but due to increase in cost of product they have decided that it would be best buy outside materials The company need to find new products other than bear grams to depend on. Total Scores 1.00 3.18 Weighted Internal Factors Weight Score Comments The Vermont Teddy Bear Company still has a couple of things to work on for them to be more efficient. For example they need to work on their Financial Resources, stakeholder satisfaction, company culture, Company philosophy and the Marketing Strategies The External / Internal Factors Analysis Summary Chart list the most important of the opportunities, threats, strengths, and weaknesses, that could affect the Vermont Teddy Bear Co, and then assigned a weight to each factor from 1.0 (most important) to 0.0 (not important).

The rating column lists an assigned number from 5 (outstanding) to 1 (poor). This rating is based on the likely impact that the listed factors will have on The Vermont Teddy Bear Co. Next, the weight figures are each multiplied with the rating to arrive at the weighted score column. The weighted score is then measured against the rating scale for analytical look at how the Vermont Teddy Bear Co measures to all these factors in the environment.

Of the opportunities, larger manufacturing was given the highest rating of 4.6 (above average) because of its use of promoting a warm and friendly atmosphere for customers and employees. We see this as a major opportunity to increase revenues and to stay ahead of competition. Because they are able to lease the unused portions of the company out to other companies, and also draws tourist who are likely to become customers. In the threats column, bear grams is placed as the highest threat because although Vermont Teddy Bear Co is a leader in its industry, it faces many competitors in this particular market. Additionally, since this industry is depend so much on bears, Vermont Teddy Bear Co must never lose its ambition, or rivals like Disney may out smart them. The Strengths column lists motivation with the highest weight and rating because of the mission of the company, which is to create an all U. S made Teddy bear, which is still their mission to this day.

Resources: Wheeler, T., Hunger, J., (2004). Strategic Management and Business Policy. Ninth Edition, Upper Saddle River, NJ: Pearson Prentice Hall.