Vermont Teddy Bear Company

For the External Factors Analysis Summary (EFAS), I used part of the Strategic Audit found in Appendix 1.A in Strategic Management and Business Policy Book as a resource, along with Table 4-5 as a guide, and from the readings of Scanning the Environment (Albright, 2004 Wheelen & Hunger, 2006). The external factors I looked at were advertising, number 1 central theme for selling, being able to sell All-American bears to foreign countries, determining who the other competitor's are, buying raw materials from aboard, Joan Martin's shares, other bear factory outlets, and property surrounding the factory (Wheelen &Hunger, 2006).

The Vermont Teddy Bear Company

Introduction

The Vermont Teddy Bear Company (VTBC) was founded in 1981 by John Sorinto. 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

• Larger manufacturing facility

• Retail stores

• Made in America

• Production and Service, Customer perspective

Threats

Competitors (chocolates, flowers, and greeting cards)

Disney /Patents, Trademarks, and licenses

Bear Grams

2

.20

.07

.18

.15.

.20

.10

.10

3

4.6

4.2

5.0

4.2

3.6

2.8

2.5

4

0.92

0.29

0.90

0.63

0.72

0.28

0.25

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 Rating 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

• Human resources

• quality of products and services provided

• the efficiency of internal processes

• motivation