Final Ling Chai SM Report 2012 (Completed)参考.doc

Table of Contents 1.0 Introduction 1 1.1 Current Situation 1 2.0 Past Corporate Performance Index 1 2.1 Financial Ratio Analysis 1 3.0 Strategic Posture 5 3.1 Current Mission 5 3.2 Current Objectives 5 3.3 Current Strategies 6 3.4 Current Policies 8 4.0 Competitive Profile Matrix (CPM) 9 5.0 External Factor Analysis Summary (EFAS) 12 6.0 Internal Factor Analysis Summary (IFAS) 14 7.0 Analysis of Strategic Factors (SFAS) 16 8.0 SWOT Analysis 19 (TOWS) Matrix 19 8.1 Review Mission and Objectives 21 9.0 Alternative and Recommendation 22 10.0 Implementation of Strategy 24 11.0 Evaluation and Control 28 References 30 Appendix 32 Financial Ratio Analysis 32 1.0 Introduction In this part, this paper will start from introducing the current situation faced by Rosetta Stone Inc. 1.1 Current Situation The role of Rosetta Stone Inc. is to blend the language learning with technology as globalization can lead to the connection of more and more individuals and institutions within each other. It provides technology-based, self-study language-learning solutions under the Rosetta Stone brand. As it developed most of its own technology, the company expensed $26.2 million in Research and Development for the year ended December 31, 2009. In the other hand, the company’s growth and profitability relies heavily on the effectiveness and efficiency of the direct marketing expenditures. It can be seem that 82% of Rosetta Stone’s revenue in 2009 was generated through the company’s direct sales channels, which included its call centers, websites, institutional sales force, and kiosks. So, in order to make the company to be more profitable, Rosetta Stone Inc. has invested heavily in sales and marketing expenses. In the year ended December 2009, sales and marketing expenses were 46% of the total revenue. Within that year, the company also expands its direct marketing activities, and the sales marketing expense is increased by $21.5 million to $114.9 million. In the same year, the direct advertis