SWOT Analysis of Enkeseni Limited

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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