Final Business Model and Strategic Plan

SWOTT ANALYSIS

Stacey Ques limited is a proposed new division. A swott analysis was done to identify how the division would operate best and whether it was fit to exist in its current surroundings. The analysis was as follows. (Egger 2008).

EXTERNAL FORCES AND TRENDS CONSIDERATION.

INTERNAL FACTORS AND TRENDS CONSIDERATION

SYNOPSIS OF FORCES AND TRENDS

The economic status of the region is low as great portion of the population rely on manual labor as a source of their income therefore they do not earn a lot. Their spending is also a bit low which may pose a challenge to the business. However, the legal framework is quite favorable as not many procedures have to be followed for one to do business in the area. This will in turn cut down the cost of operation of the division in the area. (Fritsch & Falck 2006)

The diverse nature of the management enables it to be flexible in their decisions and implementation of the business policies .This is because a 60% of the members of the managing committee are young people in their mid-30. This works well for the division as it is easy for it to adapt to changing situations in the environment and within the business unlike if the management had a majority of old people. The management is able to make prompt decisions in case of an emergency or in the event of a failed project. (De Brentanin 1991)

The close proximity of raw materials required for manufacture of products is an advantage to the business as this reduces the cost of transportation to the division. The amount of capital that is saved will be used to improve the process of manufacture and enhance the storage conditions of the finished goods. The availability of raw material will also mean that there will be increased production and therefore the division will increase its labor to cater for this. The increase of work opportunities will encourage more youth to stay me the region which will help to develop a diverse brand of products which will cut across different age groups. Several state of the art warehouses will be put up to accommodate the end products. Due to the economic status of the locals, 70% of the finished products will be distributed to nearby areas which will provide greater market for the goods. Transport of these goods will be through rail as it is readily available and is cheaper for the business. Samples will also be given to employees which will act as a form to motivation. (Fritsch & Falck 2006)

The major opportunity that the company faces is the high availability of raw material for production in the region. This will greatly propel the company to earn more returns. Also the legal framework of the area which allows for easy business activities also is an added advantage to the business (De Brentani 1991).however, being that the locals do not have much exposure to current technologies, it may be difficult for them to readily accept the company in the area. They may prefer to remain with the companies which they are familiar with thus increasing the competition.

The lack of exposure to current technology of the locals may be due to the kind of facilities present in the area. There are few schools which provide only basic education to the students in that there is little use of the internet and the schools are not modernized. This in turn limits the exposure of the students to only that which is available locally. Therefore most young people who are not able to secure work in other areas come back and are forced to do manual jobs and survive on low income. Having this in mind a research was undertaken with the main question being how adaptive were the locals to new forms of technology (Page 2007).

The circumstances that lead to the low exposure of the locals are poor levels of education the area and lack of investment of well-developed companies in the region. These circumstances and not within the control of the locals but purely lie on the government which has the capability to raise the levels of education and create avenues for other investors in the region. Classification of these circumstances makes it easier to understand the issues being faced in the area as the classification simplifies the reality on the ground and helps for easy development of a solution. The accuracy of the importance of the classification is quite high as this provides a framework of how the company can come with a policy to deal with the issues facing it. Also if the importance of the classification is not put into consideration then the classification will not be effective (Wood 1991).

References

MKT, M. P. P. I., Barker, M. K. C., Fenstra, D., Ringer, T., & Egger, K. W. (2008). Organizational Overview. Marketing.

James, S. D., & Kosicki, G. External Environment Analysis Legal and Regulatory Analysis.

Fritsch, M., Brixy, U., & Falck, O. (2006). The effect of industry, region, and time on new business survival–a multi-dimensional analysis. Review of industrial organization, 28(3), 285-306.

De Brentani, U. (1991). Success factors in developing new business services. European Journal of marketing, 25(2), 33-59.

Hair, J. F., Money, A. H., Samouel, P., & Page, M. (2007). Research methods for business. Education+ Training, 49(4), 336-337.

Wood, D. J. (1991). Corporate social performance revisited. Academy of management review, 16(4), 691-718.