East Central Ohio Freight

Weightage

Rank (on a scale of 1 to 10) for Market A

Coordinate for Market B

Market Attractiveness

Growth

0.2

4

0.8

Entry Barriers

0.2

5

1.0

Competitive Skills

0.2

3

0.6

Availability of Potential Customers

0.2

1

0.2

Strategic logistical position

0.2

2

0.4

Total

1

3.0

SBU Strength

Weightage

Rank (on a scale of 1 to 10) for SBU A

Coordinate for SBU B

Financial Strengths

0.25

2

0.5

Managerial Skills

0.25

3

0.75

Technology Orientation

0.25

4

1

Brand Strength

0.25

1

0.25

Total

1

2.5

Invest[pic 1]

Invest

Analyze

Invest

Hold

Divest

Milk

Milk

Divest[pic 2]

Political

No political points mentioned

Economical

• Recession in manufacturing sector – high rate of unemployment
• Total manufacturing revenues went up by 4% compared to year 2000
• 2 largest customers of ECOF closed/moved from the region
• Cambridge is located at the crossroad of Interstate 70 & 77 giving it strategic logistical position

Socio-Cultural

• Only 30% employee turnover
• Open door policy for employees
• Weekly wage payments & fair treatment to employees

Technological

• Trucks of the size of 48 and 53 feet. Loads are taken of 12 feet sizes. Additional revenue can be generated if entire 53 feet space is occupied.

Environmental

• Finding shorter new routes will reduce fuel consumption and thereby emissions.

Legal

• Due to deregulation, the barriers to new entrants were removed which caused many suppliers with varied services into the market.
• Deregulation also expanded pricing flexibility.