Comprehensive SWOT ANALYSIS IN COMPANIES
Introduction
Through this task, I will develop the situation analysis of the proposal of a proposed business. I will prepare the SWOT study with all the corresponding elements. In the study, I will point out four strengths and weaknesses. In addition, four possibilities and threats that are related to the trade microenvironment. Finally, I will inform two just and certain tactics.
In order for any company to grow and prosper, the company’s managers must be able to anticipate, recognize and deal with the change in the internal and external environment. Change is a certainty, and for this reason, business managers must actively participate in a process that identifies change and modifies commercial activity to make the most of the change. That process is strategic planning.
Developing
All shops have an internal and external environment. The internal environment is closely associated with the human resource of the company or organization, and the way in which people carry out the work according to the organization’s mission. To some extent, the internal environment is controllable and modifiable through planning and management processes.
The external environment, on the other hand, is not controllable. The managers of a trade have no control over the competitors of the company, nor the changes to the regulations and neither to the general economic conditions. However, managers of a company or organization have a certain control measure on how the company reacts to changes in their external environment.
A comprehensive SWOT analysis helps to realize the strengths and weaknesses of the commercial strategy adopted by the company, in which the company can work and also helps identify market opportunities, which the market can capitalize, to improve its business andprofitability in general. Therefore, it results in good decision making, which will be good for the general commercial support of the company. Now, I will be presenting the SWOT study for the proposed trade of the food truck industry.
Strengths weaknesses
The prices of my business will be cheaper than the competition: the food truck business has a good margin due to the low operating and fixed costs compared to the traditional restaurant business. As a result, I will have the possibility of offering cheaper prices than competitors. Limited to Italian pasta: my food business will be limited to Italian pasta and will have a reduced range in terms of target customer. Result, limited scope in terms of income.
Specialized in Italian Pasta: The food truck business based on Italian paste means that it specializes in Italian paste. Objective clients will be those identified in the business plan, which prefer the Italian Boricua flavor. Objective clients will be limited to Italian food: the food truck business with Italian paste makes this commercial location oriented where the customer exists.
Brand recognition: customers who prefer Italian flavor could remember or recognize this brand easily. Competitors can offer similar products quickly.
Current market acceptance: the food truck business has a high acceptance. This will give me an advantage against traditional businesses. The limited starting cost can be an important factor, which I will have to observe.
Threat opportunities
Emerging market: The food truck business is an emerging market. I can take this as an opportunity to serve our clients in a unique and fast way to attract them. Legal challenges: the rules of local authority do not allow them to work freely. In my case, I will be in a shopping center and in case of having problems, I will have to risk my business in other places.
Mobility: Mobility is a strength and an opportunity because mobility provides an advantage over the traditional restaurant business. Limitations: There are many limitations on operations (in terms of location and quality of food).
I can point to an intact location: the food truck business has the opportunity to sign up for an intact location to maximize its income. Competition: The food truck business is an emerging business, so more competitors are entering this business. Competition can affect the profit margin.
I can address a large customer base: the food truck business has no limits, which means that it can serve a large customer base in multiple locations in Puerto Rico. Customer trend: customer trend is the main concern.
Strengths with strength opportunities to face threats
Prices are cheaper than competition can point to a large customer base through a price strategy. Specialized in Italian pasta;would reduce competition due to food -based specialized businesses. Specialized in Italian pasta to cover the initial location, it would be useful for maximizing income through an effective scope. Recognition of the brand would be useful to face the threat of client’s trend.
Weakness in opportunities weaknesses to resist threats. The emerging market always attracts competition. Limit to Italian pasta would reduce the possibilities of competition. The objective intact location is profitable and margin gain can be affected. Target customers will be limited to Italian food, which will be less attractive to our competitors.
conclusion
I explained the situation analysis and all its basic elements. Also, I specified the structure of the internal and external environments of the shops. In addition, I prepared a SWOT exam where I could point out all the forces, weaknesses, opportunities and risks of the situation analysis. Also, I carried out a further table referring to the tactics of the proposed business microenvironment.
In conclusion, I think that the writing of a good situation analysis can help make better decisions according to the traceability of all strategies based on the weak and strong points of a trade. According to Pedraza, Oh. Any company in a market has its own objectives ranging from dominating the market to reaching the maximum benefit.
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