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critical analysis of SWOT analysis
risk faced by multinational corporations
critical analysis of SWOT analysis
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Introduction
“Cargill is an international marketer, processor and distributor of agricultural, food, financial and industrial products and services.” (Kneen, 2002, p. 1) Cargill is one of the leading global companies today in the food and agricultural industries (MarketWatch, 2010). Cargill was established in 1865 and has since grown to employe 142,000 employees in 67 countries and is currently the largest privately held company in the US (Cargill: Our History, 2014). Because Cargill is such a massive company this paper will focus of the food ingredients systems platform better known as FIS (pronounced fizz) within the company.
According to Armstrong (2012), a SWOT analysis is one of the most analytical used tools. He explains that this type of analysis is a “looking in” and “looking out” approach that encompasses internal business elements as well as external elements. Coate (2007), states that a SWOT analysis is the “fundamental methodology” for devising the organizations strategy. I will briefly discuss and describe each strength, weakness, opportunity and threat listed in the matrix above.
SWOT Analysis
Strengths
1. Company size. Cargill is a huge company, Kneen (2002), states that the organization is expanding into every facet of the “global food system”. Cargill News Center (2014), reports that the second quarter net earnings of $556 million. FIS is reported to be the largest contributor to these results.
2. Global presence. Cargill operates its FIS businesses on a multinational level. From Cargill Cocoa and Chocolate in Brazil, Cargill Foods India, Cargill Specialty Asia to Cargill Texturing Solutions (Cargill:Our Business, 2014) the breadth of the company is huge.
3. Large customer base. “ 'We are the flour in...
... middle of paper ...
...ernley (2012), states that there is a risk of overlooking the organizational culture during strategic planning. Walsh (2012) recommends aligning the strategy with the corporate culture. By keeping the corporate culture at the forefront while undertaking the planning process it will not fall off and be forgotten, thus damaging the culture the organization has worked hard to achieve.
Walsh (2012), identifies “customer engagement” (p. 11) as a crucial area that often is bypassed. The pitfall of not communicating with the customers can be drastic. Fernley (2012), recommenders placing the customer at the front of the businesses activities and goals which will reflect the value the business places on the customer. By involving the key stakeholder, the customer, the company runs the risk of missing an angle or a point of view that is important (Raymond, 2014).
As a business in a competitive market we must be able to determine what may assist us to accomplish our objectives? What obstacles we must overcome or minimise to achieve our desired results? To achieve this we must carry out a strategic plan, which is a straightforward model known as a SWOT analysis (strengths, weakness, opportunities and threats). This will help us to establish our overall strategic position, based on internal issues (strengths and weakness) and external issues (opportunities and threats).
A SWOT analysis is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT is a planning evaluation used by businesses and organizations.
Just contrary to Porter’s five forces model, the SWOT analysis deals with both internal and external variables and forces of the company. The main quality of this analysis is that it is helpful in tracing out the real position of the company along with its strengths, weaknesses, opportunities and threats or the self-assessment. Consequently, it offers the company a proper framework to formulate, vision plans, strategies and goals. Here, it should also be assumed that the SWOT analysis includes both internal and external factors, whereas Porter’s five forces model only deal with external factors ignoring the internal factors.
Running a business or organization can be challenging, however, if there is strategic planning in place then the task seems less daunting. Strategic planning consists of carefully thinking about strengths and weaknesses and carefully comparing one business to another (Bateman & Snell, 2013). SWOT Analysis is step number 4 out of 6 steps that some businesses utilize in order to examine their business and some to get back on their feet (Bateman & Snell, 2013). This writer will be discussing in greater detail strategic planning, SWOT Analysis and will be exemplifying via a corporation of choice, with is McDonalds. This writer will be reflecting on a worksheet outlined in Bateman & Snell (2013) textbook to help the reader better understand such
The SWOT analysis involves four steps. They are strength, weakness, opportunity, and threats. This will assist you to ident...
What is a SWOT analysis? This concept involves assisting businesses to identify their strengths, weaknesses, opportunities and threats. It is often used to analyze an organization and its environment. Businesses find the analysis useful in assisting them to improve their business, establish goals and objectives.
A SWOT analysis is simple exercise that could be implemented on multiple subjects including an individual or a whole corporation. The SWOT analysis is an operational tool for managing change, defining strategic direction and setting realistic goals and objectives according to Simoneaux and Stroud (2011). Discovering new opportunities and manage and eliminate threats that are present in the company and the surrounding market. SWOT is a valuable technique that leads to a better understanding of the strengths, weaknesses, opportunities and treats both internally and externally. The strengths and weakness are to be considered internal factors and opportunities and threats to be e...
The definition of SWOT analysis is comprehensively summaries the internal and external conditions, critical evaluate advantages and disadvantages of organization, facing the opportunities and threats, in order to the combination of company 's strategy and internal resources and external environment (Yuan, 2013). In contrast, SWOT analysis method is a descriptive model, because the enterprise strategy is often a typical uncertainty problem, the lack of adequate analysis and logic, and a SWOT analysis cannot provide the specifically, format of strategic advice (David,
Marketing audit give a picture of where the company is, how did it get there and where is it heading. It goes through the through the strength, weakness, opportunities and threat of the company. This analysis is called the SWOT analysis. It is divided into two major parts:
The starting point of the strategic management is said to be the DESIGN SCHOOL with an emphasis on process. However this system is entirely based on the SWOT analysis. Swot stands for strength, weakness, Opportunities and Threats. Strength is a show...
SWOT (Strength, Weakness, Opportunities and Threats) is a brainstorming activity that helps the managers to evaluate an idea. The internal factors that can be controlled and changed will be the strengths and weakness and the external forces are the Opportunities and threats. As depicted by Harmon (2015) “current processes, finances, human resources, natural resources, physical resources and culture of the shop are the strengths and weaknesses. The demographics, economic trends, and market trends are considered as Opportunities and threats”.
Along the years, the company has been coming up with new and better products that has defferintiated from the rest based on its own methods and recipes.
Grupo Bimbo is quietly creeping up the food chain in the confectionary industry. They are building a solid international market foundation through acquisitions and mergers which is only going to get bigger. Acquisitions and penetrating international markets is an expensive operation to execute, thus some of the financial debt they are facing which could have greatly impacted their performance. At the end of the day it is a very necessary investment which will broaden their horizon. After looking at the strategies with a closer eye the firm's performance is most definitely only going to get better. They are going to intensify their expansion goals through more acquisitions which will increase their competiveness and profit margins. Grupo Bimbo is most definitely a company that you will be hearing a lot more from in the future.
Customer engagement also encompasses customer co-creation. Many organizations view CE as a route for creating and enhancing the value co-created in customer-firm relationships— thereby improving business performance. Moreover, managers seek to foster favorable CE—that is, managers understand that organizations should co-create value with customers as part of a dynamic CE process.
Strategic management is a universal concept that can help many different fields with their planning, their mission, and their competitive advantages. One huge similarity between Marketing, Supply Chain Acquisition, Human Resources, and Information Systems is the use of a SWOT analysis. A SWOT is an “analysis, which takes information from an environmental analysis and separates it into internal strengths and weaknesses, as well as its external opportunities and threats” (Investopedia, 2016). This is important in any field since it can potentially help identify a competitive advantage as well. What is interesting is that these SWOT analyses are used in such differing ways all to accomplish the same