Situation Analysis Strength Stormer’s patented ironing machine is said to be the invention of the century. He has introduced modifications and fine tuning to his pet project every now and then, at the same time, he also teaches science. He has spent a considerable sum of money, including valuable time and efforts; now he wants to focus on it and become a successful businessman. The machine is environmentally friendly, hates pollution, and can iron out at least 400 garments weekly. Weakness Customers have to hang properly their garments in special hangers made for the purpose, which cost an additional $5 each for the customers. Without these hangers, there’s no way you can steam your garments in the steam cabinet which looked like a cupboard. What’s more adding to running the business is the cost of building a unit of the machine – $50,000 with maintenance cost of $3000. In operating it in a commercial establishment, a capital investment of $150,000 is needed to run the business. There are other expenses needed for running the business of ironing machine, for example, the lease for the outlet, operating expenses to include salaries for the manager, the machine operator, etc. Stormer is new in the business: he needs advice and experience. He needs a manager and experienced assistant who can be trusted while he’s away. He also needs a consultant who can advise him in the intricacies of business. Another weakness is availability of raw materials for Stormer’s ironing machine. Purchasing the hangers from Stormer is also needed. There may be some difficulties in finding suppliers along this line of product; finding suppliers could prove a hindrance to business success. With the emergence of China as supplier/producer of low-cost electronic materials, the company may have to import the materials or outsource product development. This is one of the problems of the industry and even in other products – finding the appropriate and efficient suppliers that can provide low-cost materials. Since Stormer’s machine is new to the market, he may find competitive forces improving their products to compete with his own. Opportunity There is an increasing demand of labour in the ironing services because of changes of lifestyles in the new century. A big percentage of households in many countries is composed of single parents or individuals who need the assistance of a household help, in some ways, or particularly an ‘iron lady’, or someone to take care of the household. These households have the money to pay. The law of supply and demand works in this instance: there’s more demand than the supply of ‘iron ladies’. This is a great opportunity for Stormer, the hero who is content with being a dreamer. He has the brains and the resources but lacks enthusiasm and zest. Nevertheless, he started a crude invention which, if fine tuned to the needs of the households in question, could bring him thousands, if not millions, of dollars. Stormer needs some motivation. Threat Stormer’s invention is new in the eyes of the public. Although it has been tested a bit in Stormer’s home, along with his wife as the manager, it has not yet proven its real worth to the taste of the consuming public. There could be new entrants because steam-ironing is not really that strange to existing laundry sho