Running Head: SWOT ANALYSIS 1 SWOT analysis Ernad Civic 01-20-2018 I. SWOT Analysis SWOT ANALYSIS 2 a. External Analysis i. Porter’s Five Forces: 1. Current Rivalry a. Opportunities i. Expansion to other cities ii. Providing customers with a variety of products and services b. Threats i. High competition from the rivals ii. Inadequate finances for successful expansion activities 2. Potential Entrants a. Opportunities i. Maintain and adding value to the brand image ii. Doing different from the new companies thus acquiring a large market share (Bohlander & Snell, 2010) b. Threats i. New products by the new companies ii. Low prices that will attract customers for various services 3. Buyer Power a. Opportunities i. Quality products and services that attract high prices ii. A broad customer base and loyal customers b. Threats i. Availability of substitutes from other companies SWOT ANALYSIS 3 ii. Reduced quantities that do not meet the market demand (Bohlander & Snell, 2010). 4. Supplier Power a. Opportunities i. Paying for deliveries on time ii. Having a variety of suppliers for the different products and services b. Threats i. Having the same suppliers from the other competitors ii. Better prices by the rival companies for delivered items 5. Substitute Products a. Opportunities i. Brand image has continued attracting customers ii. Most of the customers are loyal to the products and services delivered by the company (Bohlander & Snell, 2010). b. Threats i. Availability of cheap and alternative products from the competitors ii. Higher quality brands by the rivals ii. General External Environment: 1. Economic a. Opportunities i. Economic stability in the region of operation ii. Advanced technology for marketing activities b. Threats i. Competition by other companies in the industry SWOT ANALYSIS 4 ii. Inadequate finances for expansion activities 2. Demographic a. Opportunities i. Acceptability by the customers in the region of operation (Godfrey & Grasso, 2009). ii. Established within the cultural beliefs of the society b. Threats i. Changing tastes and preferences by the customers ii. A wide variety of products and services demands from the customers 3. Socio-Cultural a. Opportunities i. Working under the cultural requirements of various communities ii. Employing a diverse workforce to meet the cultural demands (Bohlander & Snell, 2010). b. Threats i. Poor relations with customers in some parts where the company operates ii. Lack of understanding the requirements of the various cultural needs 4. Political-Legal a. Opportunities i. Adherence to the legal requirements of the region of operation ii. Political stability in the places where the company operates b. Threats i. New legal requirements by the government SWOT ANALYSIS 5 ii. High costs of attaining legal requirements in the different regions (Godfrey & Grasso, 2009). 5. Technological a. Opportunities i. The use of advanced technology by the company for various operations ii. Hiring IT professionals to manage and control business operations b. Threats i. Technology changes every day thus the need to keep updating ii. High costs of acquiring the advanced technology b. Internal Analysis: (use ‘insider’ contacts to support here) i. Strategic Managers 1. Strengths a. Apply the inclusive leadership method to meet the demands of the customers b. Allow the incorporation of the employees in the decision making process for the organization (Bohlander & Snell, 2010). 2. Weaknesses a. Inability to communicate effectively with the staff b. Not easily approachable by the workers ii. Corporate Structure 1. Strengths a. Incorporates all stakeholders in making some vital decisions in the company (Godfrey & Grasso, 2009). b. Embraces CSR activities for success in the regions of operation SWOT ANALYSIS 6 2. Weaknesses a. Weak regarding the heads of the organization b. Does not define the working terms for the employees iii. Corporate Culture 1. Strengths a. Embraces diversity from the stakeholders b. Supports teamwork by the employees 2. Weaknesses a. The emerging trends in the market related to business operations (Godfrey & Grasso, 2009). b. Resistance to change by some employees who hold tightly to their cultural beliefs iv. Production-Operations 1. Strengths a. Maximum utilization of the available resources b. Proper management by the operations manager and dedicated employees 2. Weaknesses a. Inadequate raw materials for the production process b. High turnover rate v. Marketing 1. Strengths a. Use of online platforms for marketing the company’s products b. A well trained marketing workforce that supports the activity (Godfrey & Grasso, 2009). 2. Weaknesses a. Changes in the tastes and preferences by customers SWOT ANALYSIS 7 b. Flooded market with similar products and services vi. R&D 1. Strengths a. The R&D department performs detailed research about the products and the market b. Support by the top management makes the activity successful 2. Weaknesses vii. a. Delayed research activities may not yield success to the corporation b. Outdated information may be acquired and will not have a positive impact t6o the organization’s operations HR Management 1. Strengths a. All employees undergo training which equips them with the right skills to handle operations in the organization. b. The HR department provides the employees with a healthy working environment promoting their utilization of skills and abilities (Godfrey & Grasso, 2009). 2. Weaknesses viii. a. High turnover rates requiring more hiring expenses to the organization b. Inability to handle diversity in the organization thus affecting some employees Info Systems 1. Strengths a. The firm has updated information systems handling all business operations (Godfrey & Grasso, 2009). b. Storage of all company’s information takes place through the systems SWOT ANALYSIS 8 2. Weaknesses a. Highly dynamic technology that requires regular updating b. Unauthorized access to hackers and privacy issues Civic's Pool Service Company operates in a highly competitive environment and this requires its utilization of available resources to rise above the rivals. The organization has its strengths and weaknesses as well as opportunities and threats in all circumstances. For instance, using Porter's five forces model, the organization has identified its opportunities which it can utilize to meet the demands of the customers in the market (Godfrey & Grasso, 2009). On the other hand, the threats that face the corporation should assist its management to design the right strategies which will make it easy to achieve its goals and objectives. The threat of the new entrants, for example, has both advantages and drawbacks. In this case, it will provide the company with an opportunity to utilize its resources to provide high-quality products which will maintain its customer base. Also, this will make it easy to implement strategies that will handle the new entrants and still make the corporation successful. On the other hand, the external environment within which the company operates may also contribute to the challenges faced. The political and economic environment poses threats to the firm but also provide opportunities that would lead to organizational success in the long term. The management of the corporation has to identify the right measures which it should apply to handle the threats by remaining successful in the dynamic business environment (DuBrin, 2009). Through proper utilization of the opportunities, it will become easy to overcome the threats. The management of the corporation should also aim at empowering the employees so that they can as well participate in making organizational decisions that will see its success in the future. Therefore, the SWOT analysis should act as a guideline on how the business should operate and ways through which it will achieve success. On the other hand, the firm should maximize the SWOT ANALYSIS 9 information acquired to make the right strategies that will move its operations towards a successful end. References SWOT ANALYSIS 10 Bohlander, G. W., & Snell, S. (2010). Managing human resources. Mason, OH: South-Western Cengage Learning. Retrieved from https://books.google.co.ke/books?id=J1MgADAhyr8C&pg=PA70&dq=SWOT+analysis +for+service+companies&hl=en&sa=X&ved=0ahUKEwj_7ffyqbYAhWMLY8KHWcwD10Q6AEISDAF#v=onepage&q=SWOT%20analysis%20for%2 0service%20companies&f=false DuBrin, A. J. (2009). Essentials of management. Mason, OH: Thomson Business & Economics. Retrieved from https://books.google.co.ke/books?id=dNThzoekGQcC&pg=PA140&dq=SWOT+analysis +for+service+companies&hl=en&sa=X&ved=0ahUKEwj_7ffyqbYAhWMLY8KHWcwD10Q6AEIQjAE#v=onepage&q=SWOT%20analysis%20for%2 0service%20companies&f=false Godfrey, P. C., & Grasso, E. T. (2009). Working for the common good: Concepts and models for service-learning in management. Sterling, Va: Stylus. Retrieved from https://books.google.co.ke/books?id=W9hYoEfJtQC&pg=PA154&dq=SWOT+analysis+for+service+companies&hl=en&sa=X&ved =0ahUKEwj_7ffyqbYAhWMLY8KHWcwD10Q6AEILjAB#v=onepage&q=SWOT%20analysis%20for%2 0service%20companies&f=false
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