SWOT Analysis
This is a technique in strategy planning used as a measure of the company’s internal and external factors that may impact on its performance and sustainability. The strengths are the factors that are found internally while the opportunities and its weaknesses are seen to be external to the company. This technique demands for an objective or plan to be laid down in distinguishing the favorable and unfavorable factors for growth and competitiveness (SWOT analysis: a tool for making better business decisions, 2008).
Describe strategies that will take advantage of strengths and opportunities
The main strength that the company has is that over half of the residents in its marketing territory are affluent. This is a crucial factor in expansion since the market is already available and set to accommodate a good level of expansion. The company also has a crucial opportunity on which its success is almost entirely dependent; the potential for more sales within the company’s existing customer base is high.
Based on its strength as concerns the available market, the company needs to lay down financial objectives during the planning. These may concern sales targets and earnings growth. Production of new goods and services to satisfy the ready market is also a possible strategy to exploit the available opportunity (SWOT analysis: a tool for making better business decisions, 2008).
Organizing has much to do with the competitors and resource allocation. In this aspect and considering the strengths and opportunities available, the company should increase in productivity to serve its market effectively before they shift to its competitors. This will cater for both its current strength and opportunity (Hitt, Ireland & Hoskisson, 2011).
Controlling ensures full utilization of available resources in achieving the set goals and objectives. In this case, performance standards should be set for the organization. This will ensure full utilization of the available resources and measurement of deviation performance.
As concerns leading, increase of wages can be used in ensuring employees are motivated towards better performance. The quality of services and products may also be raised to exploit the opportunity by luring customers to acquire more of the products.
Describe strategies to reduce weakness and threats
Despite having strengths, the company suffers a prime weakness. The independent contractors used are difficult to control from a reliability and quality standpoint. It also has a crucial threat from a new competitor started up its operation nearby 18 months ago and is cutting prices to attract market share (Hitt, Ireland & Hoskisson, 2011).
Planning as a management function is related to creativity and innovation. The company should, therefore, handle the contractors wisely to ensure they give their best or devise new ways of replacing their role. It should also be creative enough to give better services to its customers, retaining them despite its relatively higher pricing.
As regards resource allocation in organizing, reliable contractors who will be relied on to deliver quality things on time should be found. The company should also focus towards operational intensity so prices can be reduced a bit to retain the customers that may be lured into other companies due to their low prices (Hitt, Ireland & Hoskisson, 2011).
Control needs to be improved in the company if the set goals are to be achieved. Contractors need to deliver goods on time for full utilization as well as an economical use of resources to reduce capital intensity. This will further enable the company to regulate the costs but still make a profit.
Lastly, contractors should be motivated to do a decent job. This can be done by giving them a better and earlier pay. Customers should also be motivated to remain loyal to the company, for instance by giving one time offers on some goods and services. This can be done without a fee or at a subsidized price rate (Hitt, Ireland & Hoskisson, 2011).
References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2011). Strategic management: competitiveness & globalization. (9th ed.). Mason, OH: South-Western Cengage Learning.
SWOT analysis: a tool for making better business decisions.. (2008). Washington, D.C.: U.S. Dept. of Agriculture, Risk Management Agency.