Introduction
SWOT analysis refers to the strengths and weaknesses of a company and the opportunities and threats that are in the market. They determine whether a company will strive or fail. They are core factors to be considered if a company is to achieve it’s goals. Every factor has it’s components which the company in question is to determine how to deal with it strategically. Strengths and weaknesses are internal factors while weaknesses and threats are external factors. Enkeseni Limited is a company located in Nairobi. It produces juice made from locally grown fruits like mangoes, pineapples and oranges.
Strengths
These are internal factors which contribute to the growth of a company. They help in achieving the objectives of the company such as increase in production and quality output. They are concerned with the company directly. Some of the strengths include: employees, machinery, good reputation, ethical values among others. These factors ensure the company remains to be one of the best in the market thus more sales. They also ensure the company retains it’s customers while at the same time they are happy and satisfied. They promote effective flow and continuous production.
Enkeseni limited has many strengths. Employees have shown positive feedback towards the company and this has lead to motivation of employees. They are also highly competent and uphold professionalism in their places of work.The laws and regulations have ensured the employees are ethical. Among the companies that have a good reputation in Nairobi city is Enkeseni limited.
Weaknesses
These are factors that are harmful in achieving the goals of a company. They hinder success or limit how fast the company can grow. They are internal factors. The weaknesses of a company are mostly attributes therefore originate from the company or are due to certain bad decisions made by the superior employees such as managers. Weaknesses can also be due to unavoidable circumstances such as lack of available numerous suppliers therefore the company is forced to rely on one supplier. Weaknesses of a company are mostly hidden by the company and may seem to not exist but they do.
Enkeseni Limited has weaknesses such as lack of enough employees. This has then led long working hours which leads to tiredness. The company has lost many employees due the later. Among other weaknesses are; use of outdated machinery which has leads to production of poor quality products. Also the company depends one supplier of raw materials. The supplier at times fails to deliver the fruits in time and this seems not to bother him as he knows that the company relies on him only thus no competition. The company does not also have alternative source of power. This has led to breakdown of of the processing process when the power goes off and the employees are forced to wait for electricity to be back thus affecting the quantity of that day’s output.
Opportunities
These are external factors that contribute to the growth and success of a company. These factors include growth of industry, emergence of new market and favourable laws. Most of the time the company has little or no control of external factors. For instance increase in population has nothing to do with a company. It’s a natural factor but it affects the business as it leads to more sales. Rizzo, A. S., & Kim, G. J. (2005).
There is a new local market that the county government has opened. This is a great opportunity for Enkeseni Limited for it will be selling its products. The current laws also favourthe company as the government will not impose tax on locally produced fruits thus be buying at cheaper price.
Threats
These are possible factors that affect the company or business. They cause a negative effect if they happen. They are possibilities which may happen ornot. When there is a possibility that another company is to come up, this posses a great challenge to the company. Another threat is when a competitor decides to sell its products at a cheaper price which is similar to throw away price. Enkeseni Limited is facing threats such as increase alternatives for juice such yoghurt and mineral water. Companies producing these products are likely to increase in number.
Conclusion
For a company to prosper, it has to take into consideration the four factors. Enkeseni Limited has put too much attention to it’s strengths and opportunities and failed to take into consideration it’s weaknesses and threats. The company should conduct a bench marking exercise in one of neighbouring best performing fruit juice producing company.
References
Hill, T., & Westbrook, R. (1997). SWOT analysis: it’s time for a product recall. Long range planning, 30(1), 46-52.
Jackson, S. E., Joshi, A., & Erhardt, N. L. (2003). Recent research on team and organizational diversity: SWOT analysis and implications. Journal of management, 29(6), 801-830.
Dyson, R. G. (2004). Strategic development and SWOT analysis at the University of Warwick. European journal of operational research, 152(3), 631-640.
Pickton, D. W., & Wright, S. (1998). What’s swot in strategic analysis?. Strategic change, 7(2), 101-109.
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