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Bus 475 Swott Jumbo Guest Ranch






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Bus 475 Swott Jumbo Guest Ranch
SWOTT Analysis - Jumbo Guest Ranch
As a strategic planning tool, SWOTT analysis is used to evaluate the
strengths, weaknesses, opportunities, threats, and trends of a business.
It examines both the external and internal factors that are crucial to the
operations and performance of a business. The results obtained from
this analysis are useful during the formulation of a strategic plan. Before
starting a SWOTT analysis, a clear and attainable business objective
should be defined. The purpose of the analysis is to identify the negative
and positive factors found within and outside of the company that
influence its performance.
Jumbo Guest Ranch is a ranch that targets the middle income earners
and corporations as its principal clientele base. To improve profit margins
while focusing on this market segment, the strategy of the ranch is self-
sustenance and expansion. These two key strategic components are
responsible for the ranch’s differentiation strategy. To enable its self-
sustenance strategy, the farm will use renewable energy forms, such as
solar and wind while most other resources and materials will be obtained
from its farm.
The Analysis
In an attempt to help develop full awareness of all factors, both internal
and external, which may affect the decision-making process and
strategic planning, the SWOTT analysis will be utilized. The tool is
excellent in emphasizing viable opportunities, identifying roadblocks,
organizing the available information and presenting solutions. To carry
out the analysis effectively, the following SWOTT analysis table below
will be used.
SWOTT Analysis – Jumbo Guest Ranch
External Forces and Trends | Strength | Weakness | Opportunity | Threat
| Trend |

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Legal and Regulatory | | | The government incentive on farming and
renewable energy facilities will significantly increase the ranch’s profit
margins by lowering investment costs. | There are no potential
Legislations threatening the business. | Economic recovery incentives
have created more jobs and hence increase the purchasing power of the
target market. This increases the number of people visiting the ranch. |
Economic | | | With the economy still emerging from the 2007 financial
crisis, the purchasing power of many middle income families was
substantially eroded. Such families are not able to take a vacation during
the holidays because of the high prices offered by vacation facilities. The
ranch will offer vacation facilities to this market segment at affordable
prices. | The ranch is heavily reliant on farming. An increase in prices of
farming would significantly reduce the profit margins of the ranch. Also, a
declining economy would further reduce the purchasing power of the
target market, hence reducing the sales. | Economic growth has started
to pick up from the 2007 crisis increasing employment opportunities.
This will increase the number of people in the target market. |
| | | The ranch seeks to offer guests a country life free of electronic
gadgets such as television, videos, computer games, etc. Therefore, it is
not in the strategy of the ranch to adopt such technologies. However, the
ranch will adopt the latest technologies in farming and renewable energy
in order to improve on its output. | At less expensive prices, the target
market may seek relaxation from the comfort of the movie theatres to
their homes by connecting to social media sites and watching movies. |
The young generation is attached to the latest technologies and social
media sites. It is, therefore, ‘not fun’ for them to spend their time on a
ranch that does not offer such technologies. |
| | | The ranch has adopted a learning organization model. This model
ensures that the employees seek to fulfill their goals in line with those of
the ranch. | The ranch has adopted the learning organization model that
is dynamic and; therefore it is not under threat from new ways of doing
business. | |

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| | | The society is becoming more aware about the benefits of healthy
living. This would provide opportunities for the ranch to sell its organic
products to the public. | The young generation is obsessed with the
latest technologies and social media sites. They, therefore, are not
excited about taking a vacation to a ranch, as they prefer places such as
movie theatres & shopping malls. | |
| | | With the ranch investing in renewable energy, there are chances that
it might supply excess energy produced to the neighboring ranches for a
small fee. | The production of the ranch is highly reliant on weather
patterns and climatic conditions. However, global warming increases the
unpredictability of these factors which could impact the planning process
of the ranch. | |
Competitive Analysis
| | | The existing guest ranches target the high-end market segment. The
differentiation strategy of focusing on middle income earners is
differentiating the ranch from the competition. | Competition for this
market segment is expected to grow, but the ranch’s expansion plan and
commitment to brand equity will set it as the market leader. | |
Internal Forces and Trends | Strength | Weakness | Opportunity | Threat |
Trend |
Strategy | Other ranches target the high-end market, but The Jumbo
Ranch targets the middle income earners. The strategy is set by the
ranch to ensure that there are healthy profit margins in this market
segment in order to have self-sustenance and promotion of brand equity.
| All ranches seek to establish their brand equity. Therefore, promotion of
the brand equity is highly dependent on the actions taken by
competitors. | | | |
| The ranch only recognizes team efforts. This makes it easier for
management to control the production process while increasing
efficiency and cohesion in the ranch. | | | | |

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This is great! Exactly what I wanted.