Strategic Plan Part II: SWOTT Analysis Essay
Strategic Plan Part II: SWOTT Analysis
When working with in any business it is important to complete a Strengths, Weaknesses, Opportunities, Threats, and Trends (SWOTT) Analysis. The strengths are those things that a company excels at, and out performs their competitors in this area. Weaknesses are areas that company has the most vulnerability in, where their competitors may hold the advantage or the company can improve in. Opportunities are areas that company can grow and excel in, such as a new market, or areas where the company can use to become strengths.
Threats are areas where the company is in danger of losing market share or performance; this can be something as simple as accounting mishaps to a new company entering the market. Trends are things that the consumer wants at the current time and may end soon or be prolonged for a while. A company that recognizes the need of a SWOTT Analysis and uses that analysis can continue to prosper and grow. A SWOTT Analysis covers both internal and external factors that affect the company. For Just for Us recognizing these factors and making the appropriate corrections and or additions can mean the difference between succeeding or failing.
External factors can be environmental, legal & regulatory, economics, technical, or other things that happen outside the company that affect the company. Internal factors can be structure, system processes, strategies, or anything else inside the company that can affect the company. To better understand these factors one would have to take a deeper look in to factors both external and internal that affects the company. External Factors Legal and regulatory factors affect Just for Us in the way that they receive, send, and sell their products.
Operating primarily in the United States and being a publically traded company, Just for Us has to report to the Security Exchange Commission, their financial statements. These statements have to be certified by the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) and the members that compromise the Board of Directors for Just for Us. As part of this requirement the company has to obtain an outside audit company that checks the validity of the financial data, which is at a cost to the company.
Laws and regulations can add costs to the company and its competitors, and can eliminate any competitors that do not have the resources to comply with the laws and regulations. Economic factors are probably one of the most important factors for Just for Us to consider. The United States started into a recession in late 2007 and as a result many Americans lost their jobs because of businesses closing or moving to a more affordable location. Operating primarily in the United States Just for Us had to adjust their price index in order to survive during the recession.
Just for Us saw that the buyer was struggling and that there was room in their pricing to reduce their price and ease the burden on the buyer. Not only can the recession be national it can also be global, so Just for Us needs to keep a close on the economy and adjust constantly to the changing economics of the world. Technological factors that affect Just for Us in that growing technology improves processes, and allows one person to complete more in less time. Going simplistic the type writer uses to be the technology of the day, and assisted everyone in the completion of reports.
Then came along the computer that now allows editing prior to printing. Computers hooked into a network can communicate with each other and share information more freely. Computers also brought about the internet, which connects business to business partners and the buyers to the companies. Technology is more than computers and processes, it is advancement in the overall way things are done that allow the company to perform in a more efficient way. Just for Us is on the leading edge of technology in that they use a state of the art automated distribution center.
The entire process is proprietary and allows Just for Us to receive product just in time to ship out to their stores. Most items received in at Just for Us distribution center is processed and shipped out within 24 hours. Internal Factors The strategy of Just for Us is an internal factor that affects the way the company operates. Just for Us wants to position itself a company that provides great fashion to the seven to fourteen year old child at an affordable cost to mom and dad, and the way that Just for Us does business either lowers the overall cost or increases it.
To maintain a profitable company Just for Us has to continually evaluate the strategy and make adjustment where needed. If the Just for Us adds a new department, that new department has cost involved with startup and continued operation, and Just for Us has to see a return on this strategic move in order to maintain current costs. Strategy also involves the buyers’ perception of the company, and if Just for Us can maintain a positive perception through its strategic initiatives then continue success will happen. Leadership is another internal factor that can affect Just for Us.
The leadership of the company sets the overall tone of the company by setting the direction the company will take to accomplish its mission. Having leaders that are open to new ideas, and constantly looking for ways to improve on processes and reduce overhead costs affect the bottom line of the company and the overall profitability. Leadership has choices in how to accomplish tasks that help the company fulfill their mission, and that direction can be seen as positive or negative by the buyer, consumer, and employees.
Structure is another internal factor that can be controlled by the company. Structure is the makeup of the company, how it hierarchy is distributed. A company with too many in a leadership role and not enough in a doer role can affect the way the company adjusts to other factors both internally and externally. The structure of Just for Us is enough leaders to keep the doers on track, but also empower the doers to be leaders. Just for Us has fewer managers and being in the fashion industry that proves to be extremely beneficial because trends are normally short lived in the industry.
Making adjustment based on the current trends need to be almost instant and the structure at Just for Us allows for that to happen. Resources are another internal factor that can affect Just for Us. Resources are the things that Just for US have readily available to assist them in completing their mission. Resources can be cash on hand, facilities, personnel, technology, or anything that Just for Us can use in its business. The more resources that a company has available to it quicker that it can make a needed changes.
Just for Us has resources all over the world from the sourcing offices in Asia to the distribution centers in the United States. Just for Us also maintains reserve funds in case there needs to be an immediate change made, and cost is a factor. Conclusion SWOTT Analysis is needed by every company no matter what market they are in. Every company experiences competition for some other company and that all factors in to their success. A company that has a good understanding of what their SWOTT Analysis means, and know how to improve their ability to handle internal and external factors that can affect will have a better chance at success.