SWOTT Analysis: Candy BusinessThis paper examines the internal and external environmental forces and trends to consider when opening a candy business. This paper will look at the legal and regulatory forces of a sole proprietorship and social external trends to consider. The internal forces and trends that will be analysis are strategy, structures, goals, culture, and leadership.
Legal and regulatoryThis business is going to have a sole proprietorship which means that the candy shop will be owned by one individual. This will leave the owner responsible for all the legal and financial liabilities of the business. Sole Proprietorships are probably the simplest and cheapest forms of business organization. They do not require registration with local, state or federal governments (other than taxes and special regulatory agencies). They are businesses which have one owner and they do not have stock.
The sole proprietor owns all assets and is responsible for all debts. If the business cannot pay its bills, creditors can sue the owner to collect. The company does not conduct legal or contractual transactions, rather the owner does. Advantages of the sole proprietorship include:•Ease of formation – no legal registrations•Low overhead – income reported as ordinary income to the owners. Taxes tend to be straight-forward•Easy control and direction established by the owner – no boards or advisors.
•Suitable business form for many types of products, services and enterprises (Sole Proprietorship, 2008).
Being a sole proprietor means that the owner will need watch their competition to make sure that they do not lose customers to the competitions that also sale sugar-free candy. Sole proprietor also means the owner assumes all liability risk.
SocialThe candy business will work to promote a healthier environment by advertising their sugar free candies more then regular candy. But they are in the business to sale candy; this will also give their customers an opportunity to make a healthier choice when it comes to candy. The candy business will sale their candy online, to ensure the safety of their web site orders, credit card numbers are never stored. The information is never sent to a database to retain the information. The only information that is kept is customer names, addresses, and emails so that they can follow up with customers if something goes wrong with their purchase (Van Otis Chocolates, 2005).
StrategyThe proposed candy business has a very unique business strategy because of the specialized product that the business sells. The candies sold are considered to be top of the line product that is only available in certain stores, which keeps the stature of the candy high. The candy business has centered sales around the sales of their sugar free candies for those people who love candy, but need to watch their sugar intake for different health reasons.
StructuresThe candy business will operate both as a brick and mortar business in a mall and an ecommerce business. This way the business will reach more customers and the candy business will try to keep consistency between their ecommerce site and their brick and mortar store. That way if customers see something on the web site but do not want to purchase on the site they can come to the store and make their purchase. The candy business will offer all the same products to help satisfy the consumer’s needs.
GoalsOne of the number one goals of the candy business is the availability of all products offered in the store to be available on the website. This is important because their candy is the favorite to people all over the country who wish to have the entire store available to them. Another goal of the candy business is to sale Weight Watchers candy in the store. This will bring those customers that are trying to loss weight but need something sweet sometime. This will also help with the growth of the business. Even though there are other candy stores out there who also sale sugar free candy, this will help pull customers to this store and that Weight Watchers candy is available in this store that other candy store to not sale.
CultureCandy in general is deemed children’s food, just as toys in general are labeled for child’s play. Most likely, a person would expect an event intended for children to be a more appropriate venue to serve candy than an event intended for adults. But surprisingly, adults lead the way in candy consumption. In fact, according to the National Confectioners Association, adults over age 18 consume 65% of all candy (Hudak, 2008). “Americans did not always have a sweet tooth. When candy was first made and sold in the United States, most people considered it a frivolous luxury for women of means (Knowlton, 1999).” Most dentist will tell their patients not to eat a great deal of candy, but if a person rinse, brush and floss faithfully they can keep from getting cavities just like with any other type of food.
LeadershipA sole proprietor has complete control and decision-making power over the business. All responsibilities and business decisions fall on the shoulders of the sole proprietor and investors will not usually invest in sole proprietorships. A sole proprietorship can hire any number of employees. A strong leadership is needed to grow the business. Without good leadership and a management system the business could close. Management needs a measurement and improvement system that makes the orchestration of day-to-day activities possible so there is true business-needs alignment-a system that not only monitors operations, but also provides the entire workforce with information that can be used up and down the line to make sure everyone’s performance supports corporate strategies for any business to succeed (Breyfogle, 2007).
When opening a business there are many things that need to be considered. Doing a SWOTT analysis can help a business to know where they need to focus their needs to grow their business. Having a strong management system and good leadership skill can help a business grow and be successful.
Breyfogle. F.W. (2007). Quality Management. Retrieved July 21, 2008, fromhttp://www.qualitymag.com/CDA/Articles/Feature_Article/BNP_GUID_9-5-2006_A_10000000000000105938Hudak, D. (2008). Pop Rocks: A Discussion of Children’s Culture and Candy Consumption.
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http://www.candyfavorites.com/shop/pop-rocks-history.phpKnowlton, B. (1999). American Topics: How Candy Became Dandy. Retrieved July 18, 2008,from http://www.iht.com/articles/1999/07/22/topics.2.t_5.phpVan Otis Chocolates. (2005). Social and Legal Issues. Retrieved July 20, 2008, fromhttp://it.snhu.edu/classof2006/mcgannheather/vanotis/Social_Legal.htmSole Proprietorship, (2008). Retrieved July 19, 2008, fromhttp://www.companiesinc.com/incorporate/businesstypes/soleprop.asp