Signature Assignment: Strategic Plan: Implementation Plan, Strategic Controls, and Contingency Plan Analysis

Running head: SWOTT ANALYSIS 1

SWOTT ANALYSIS 9

SWOTT Analysis

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SWOTT Analysis

FanataCompany is an excellent producer of hygienic products, and a SWOTT analysis will benefit its proposed new division since it is essential in arriving at business decisions on new products and development techniques.The developed SWOTT analysis will inform on the advantages and disadvantages offacing the startup of the business which can be used to modify thestrategic plan. Additionally, an analysis of the internal and external factors of the business will provide information that can improve the operations, structure or policy of the business.

Fanataproduces various hygienic products that have been doing very well and made the company gain many clients.The response from customers has been amazing, and the product's brand has gained tremendous recognition. The company has utilized new and innovative methods in the production of its commodities and improved their services delivery and customer care. However, the industry is continuously growing, and competitors in the market are increasing.In a bid to gain a competitive advantage, the company is set to launch a new productin the market. Fanata looks forward to launching makeup products which are suitable for use with the company’s personal hygiene products. The new makeup products are easy to apply and clean using the hygiene products. Additionally, a whole set of basic personal hygienic products and makeup kit comes in a convenient package designed to be light and easy to carry.

In this paper is the external and internal environmental analysis of the business. A comprehensive survey of the potential market was conducted to evaluate the requirements of the consumers, the law, and the impact of other competitors in the market.

External factors

Factor	Strength	Weakness	Opportunity	Threats	Trends
Industry Changes		One weakness in the industry changes is the capacity to quickly adapt to the changes in preference by clients.
Legal and regulatory				Law requirements may prohibit the production or sale of certain products depending on the laws of a state.
Global			Other well-established companies present a stiff competition in the market
Economic			Convenient products at affordable costs will benefit the economic status of the community
Technological				Using new technology in the new products may not be well received in the market due to acclimatization.
Innovation			The innovation of a new form of products will create new sales opportunities and an entry into a niche market	The cost of purchasing machinesnecessary for producing innovative products could be too high
social					Using the same products for personal hygiene is a growing phenomenon in addition to purchasing them together in a slight pack.
Environmental	The products have no adverse effect on the environment
Competitive analysis			This is an opportunity to present better products that will create a stronger customer base	Other companies producing such products are a threat to the new division because of products similarity

Internal factors

Factors	Strength	Weakness	Opportunity	Threats	trends
Strategy	the strategy aims at providing convenience		A chance to increase sales with more products selling as a unit.		There is a growing trend in selling products as a hamper at a lower price.
structures	The partnership structure of the company alleviates the impact of losses and boosts decision making
Processes and systems	The available processes can support the proposed production levels	The process and systems may not support an extreme sudden increase in demands
Resources	Available human and capital resources		Increased purchase of materials increases the company’s bargaining power to the suppliers.
Goals			To create a brand for the newly developed product
Strategic capabilities	The company has already established itself in the market and a producer of hygiene products			Other competitors may adopt a similar method in their strategy
Culture	The company has already developed a culture of producing quality products	Developing a new culture in production may not be quickly adopted by the workers	Introducing a new culture presents an opportunity for the company to become diverse
Technologies	The available technologies will facilitate a new division			Competitors with advanced technologies may be more efficient and hence more competitive.
Innovations	The company		New innovations boost company sales
Intellectual property	The launch of a new product offers the company intellectual ownership of the product. Thus improving Fanata’s competitiveness in the market			The tax burden for intellectual property may be too high.
leadership	The leadership of the company has the necessary skills to manage the new division		This is an opportunity for the leadership to apply new skills relevant to the launch of a new product	The new division is threatened by lack of management experience in the new field.

Analysis

Economic factors likely to affect the business positively, an industry analysis by BRICS indicated that the annual growth of hygienic product market is between six and seven percent BRICS (2018). Consumer awareness on the use of personal hygiene products has been on the rise, and it has thus increased expenditure on the goods. Economically, the products have increased expenditure and thus increase in revenue. Additionally, it has led to employmentby creating jobs for suppliers, producers, and retailers.Through the innovation of new products, employment and wealth is created. The legal requirements for producing the products follow strict guidelines meant to ensure the safety of the users. Many markets across the globe place standards that manufacturers must meet if they intend to sell in their markets. The chemical products used in the production must be acceptablein the markets, and be environmentally friendly. There is a growing trend where all products are expected to be environmentally friendly, and some are required to be organic to gain entry in some markets. Social perception also affects the sale of products depending on the culture of a society. These are forces which influence the sale of hygienic products, and a business is expected to meet them all if it seeks to grow in the industry successfully.

The organization adopts to change through its project management department which oversees the implementation of projects. The adaptation process is feasible as it entails making the employeesunderstand the transformation process clearly and subscribe to the strategic plan.Employees are an essential factor in all the processes of an organization; however, introducing changes in the working environment has an impact on the workers of an organization.Employee performance is influenced by changes in the organization which makes it important to inform and discuss with employees changes that are about to occur(Tefera&Mutambara, 2014).Fanata adapts to changes by first taking this important measure of involving its workforce. Additionally informing other stakeholders is another method of adapting to changes. The employed strategies by the company can be said to be effective in adjusting to changes.

The new division supply chainseeks to leverage on resources which will begin by looking at the supply of raw materials. The purchase of raw material for the new division will also include materials for the existing business. By purchasing in bulk, the company has a higher bargaining power and can thus influence lower costs in a purchase. Additionally, the new divisionlooks at convincing suppliers to produce several related products to reduce the cost of transport in buying from different suppliers. To minimize the manufacturing cost, the company plans on leveraging the cost of production energy by utilizing green energy. Savings on energy will amount to considerable savings in costs.Utilizing fewerpersonnel in production will also leverage on the supply chain by saving costs on wages. Under distribution, expansion of the warehouses is key in ensuring that products reach distributors on time. Having a stable network of distributors for the products will also facilitate product reception to the interior most areas

Internal organization considerations for a strategic plan begin with an evaluation of the available resources and production capacity of the organization. Assessing the available labor, technology, capital, management leadership, and innovation is primal in developing a strategic plan. Considering these factors will lead to the development of a strategic plan that is aligned with the available resources. Otherwise, a strategic plan that does not conform to the available resources in an organization is bound to fail.

The major issues faced by the organization include a strain on the production processes in case the demand for the products rapidly increases beyond the estimation. Introducing a new working environment and leadership on the sale of a new product is a challenge to the employees. The greatest opportunities presented are the possibility of gaining entrance in a market area that is not highly exploited and thus increases the chances of growing the revenue.

References

BRICS (2018). Disposable Hygiene Products Market - BRICS Industry Analysis, Size and Forecast, 2014 to 2020. Futuremarketinsights.com. Retrieved 15 April 2018, from https://www.futuremarketinsights.com/reports/brics-disposable-hygiene-products-market

Tefera, O., &Mutambara, E. (2014). Effect of organizational changes on employees’ motivation at a Country Club in Kwazulu Natal: from the employees’ participation perspectives.