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Fictitious Organization, SWOT Analysis Example

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SWOT analysis

ABC Corporation (ABC) is a global consumer goods company with operations in over hundred countries in six continents. The company’s closest competitors include P&G, Colgate Palmolive, and Unilever.

Strengths: One of the company’s major strengths is its brand name. The company has established itself as a producer of quality products at affordable prices over more than eight decades of its existence. The company’s strengths also include its leadership and management team. ABC’s CEO and most members of the management team have extensive work experience in the international markets in whichABC operates, thus, the company is in a strong position to take advantage of growth opportunities in emerging economies. In addition, CEO as well as most of the management team members have been with the company for most of their career, thus, they have a solid understanding of the company’s operations. The company’s business model is also its strong point becauseglobal scale of operations minimizes the negative impact of unfavorable conditions in any single market on the company’s overall financial performance.

Weaknesses: ABC’s greatest weakness may be its size. As organizations grow in size, they also grow in complexity and it may become more difficult for the management to effectively monitor and control the operations.ABC’s another weakness is its capital structure as the company has resorted to record levels of debt financing over the last few years to support its ambitious growth plans in emerging and developing economies. The rise in debt level doesn’t only make access to funds more expensive in the future but it also has negative impact on operating liquidity and profitability due to interest payments.

Opportunities: More and more retail companies such as Wal-Mart and Target are focusing on private label brands which are usually marketed as providing comparable values to mainstream brands at lower prices. The company has a great opportunity to add another revenue stream by partnering with retail giants around the world to help them develop their private brands. Another opportunity for ABC is to develop country-specific lower-priced brands in emerging and developing countries where income levels are lower than the developed countries. This strategy will also ensure that the company doesn’t hurt the prestige of premium and established brands through constant discounting and sales promotion.

Threats: Even though global scale of operations provide several benefits such as greater room for growth as well as diverse stream of revenues, it also increases business risks for the company such as varying levels of political instability, inflation, and legal protection of patents and trademarks around the world. Another threat facing the company is an increased degree of protectionism for domestic companies in emerging economies like China and India. Such a scenario may force the company to give some operating and marketing control to local partners who may cut corners for short term gains and hurt ABC’s brands’ perceptions in consumers’ minds.

New York City-based DEF Law Office (DEF)provides legal services to local taxi drivers regarding issues related totraffic laws and other regulations implemented by NYC Taxi & Limousine Commission.

Strengths: The first major strength of the company is its small size which results in operating efficiency, quick decision making, and close relationship among the three partners who are the only employees of the company. The second strength of the company is the cultural background of the partners. Two of the three partners are from India and Pakistan which explains why the company has a loyal client base. A significant number of taxi drivers in NYC are from India, Pakistan, and similar cultures and are more comfortable dealing with someone who can speak their native language. Weaknesses:DEF’s main weaknesses are low average productivity and limited growth potential. Legal consultation is difficult to automate and the challenge is even tougher for DEF due to low education of an average client who prefers paper forms to online forms. Since three partners share all the work, there are only so many more clients they can add to their clientele list.

Opportunities:DEF has a loyal client base which can be utilized to add more clients through word-of-mouth marketing. Thus, the three partners should consider adding more lawyers or even opening new branches. The company could open two more branches in the short term, each of which will be managed by one of the founding partners. Each founding partner may also be responsible for training new recruits at his branch. Another opportunity is to add a fourth partner with Hispanic background since Hispanic Americans is one of the fastest growing population segments.

Threats:One of the threats is the entry of new law firms due to low barriers to entry which will put a downward pressure on DEF’s revenues and profits. Another threat is the potential loss of customers to bigger firms who may be in a position to offer lower prices to customers due to economies of scale.

Silver Meal House (SMH) is a non-profit organization that serves daily meals to homeless individuals in LA County, CA. SMH’s operations are primarilysupported by private donations even though the organization also occasionally receives assistance from local businesses.

Strengths: SMH’s greatest strength is its reputation which is why the flow of private donations has kept the organization alive, even during difficult economic times, for more than two decades now. SMH’s other strength is its leadership most of whom have extensive private sector experience and use the lessons learnt in the private sector to efficiently manage the organization’s limited resources. SMH’s strength also includes its public relations department which has developed productive relationships with local businesses.

Weaknesses: SMH’s greatest weakness is its business model which is mostly dependable upon private donations. Private donations tend to vary from year to year which makes it difficult to prepare reliable plans, especially during difficult economic climate when the demand for SMH’s services is usually the greatest. Another weakness is the organization’s ability to attract talent, with the exception of leadership team, because the organization offers limited income potential as well as career opportunities to young talent.

Opportunities: The greatest opportunity lies in developing the brand by taking a lesson from the marketing strategies pursued by Susan G. Komen. SMH may sell licensed merchandise to raise funds and even place ads in print and electronic media to introduce itself to greater number of people and expand the donation base. Another opportunity lies in forging long-term partnerships with local restaurants and convince them to donate leftover food to SMH.

Threats: The greatest threat may be competition from other NGOs who might convince the donors that their mission is more worthy of donors’ support than SMH’s mission. Decline in public trust may also turn out to be a serious threat if SMH’s management fails to effectively communicate to the public, the progress being made by SMH in its mission to alleviate hunger.

Austin Veteran Affairs (AVA) is a government agency that provides health services to U.S. war veterans residing in Austin, TX.

Strengths: AVA’s primary strength is its staff most of whom has been with the agency for over a decade and have become quite experienced at anticipating veterans’ needs and resolving them in a timely manner. AVA’s other strength is its flexibility as the agency continues to seek ways to improve operations to provide services to maximum number of veterans.

Weaknesses: The agency’s main weakness is its funding amount which continues to vary from year to year, depending upon city’s and state’s finances irrespective of the fact that the number of veterans continue to rise due to Iraq and Afghanistan wars. AVA’s other weakness is its limitations regarding creating additional revenue streams because it cannot charge veterans unless authorized by regulations, even in the face of rising costs.

Opportunities: One of the opportunities for the agency is to develop close relationships with local and state lawmakers so that the agency gets funds that are appropriate given the rise in costs due to ongoing wars. Another opportunity is to introduce preventative care programs that will encourage veterans to lead healthy lifestyles and may help the agency reduce healthcare costs of an average veteran.

Threats:Probably the greatest threat comes from hawkish military policies because war increases the number of veterans and AVA is already struggling to effectively meet the needs of current veterans due to limited funding from local and state governments. Another threat to the agency comes from struggling economic climate which reduces local and state governments’ revenue base and, thus, AVA’s funding as well. The wars coupled with difficult economic climate only further worsen the issue.

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