SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used by entrepreneurs to determine the success of their enterprises. The main factors put into perspective during the analysis include; opportunities that can be taken advantage of to enhance growth, weaknesses that inhibit development, strengths that should be used to boost the firm’s performance, and the main threats that may adversely affect the organization. As it can be noted from the definition, the main objective of carrying out a SWOT analysis is to explore the best strategies that proprietors can make use of to enhance the continuous development of their firms. Companies might be using a great proportion of their finances to hire qualified personnel, pay for advertisements, and even purchase more advanced machines but still, they may not boost their output production levels (Fine 5). Therefore, there is a need for the executives to use the SWOT analysis framework to determine the best techniques that should be implemented to make the desired objectives achievable.
SWOT Analysis of Heck
Human Resource Management
Accounting and Finance
Marketing
Strengths
The entity is a family business, hence, decisions on how to run it effectively can be made and implemented with ease.
The company uses 15 percent of its overall income to enhance innovation. Therefore, it is in a position to minimize the cost of operations by using advanced technology in its production activities.
The overall sales of the company have significantly increased by an estimated 500% every year (Burn-Callander). Therefore, it is evident that the company’s market share is increasing.
Weaknesses
In case the family members are not in good terms with each other, the firm might be adversely affected since the decision-making process can be quite slow.
The 5% benefits offered to the employees through the employee-ownership plan might negatively affect the organization’s operations in future if it fails to earn the anticipated profits. In such a scenario, the company would be forced to forego some of its critical projects in order to fulfill its promise to the workers.
Some of the products do not meet the clients’ preferences and tastes, hence, their sales are quite low. For instance, the customers point out that the meat-reducer does not have a good taste, thus, the reason why they have been despising it.
Opportunities
The company’s output levels might significantly increase in future due to employees’ motivation. Keeble notes that the firm will implement an employee-ownership policy whereby each worker will be given a share of the five percent profit earned by the organization (Burn-Callander). By doing so, the management will increase the staffs’ morale to work hard.
The overall percentage used in catering for wages and salaries is quite low – 5% - hence, the firm has excess funds to enhance its expansion.
The firm has been using innovation as it main platform of enhancing productivity. As a result, its net worth has also risen as it was estimated to be above twenty million pounds by the end of the year 2017.
Threats
All children are striving to get a leadership role in the business, which would negatively affect the company more so if any of the children assumes a role that is not within his/her area of specialization.
There is a probability that the staff’s wages might be hiked in future, hence, increasing the organization’s amount of expenses.
The number of people consuming flesh products has declined (Burn-Callander). Thus, the organization might be forced to exit the market as it may be incapable of meeting its costs of operation.
The Most Critical Issues Heck Should Address
The SWOT analysis above depicts that there are two main issues that Heck should address to enhance its output productivity levels. First, leadership positions in the organization should only be awarded to the employees depending on their potential to execute their respective roles as anticipated. Family relations should, thus, not be used as a basis of appointing anyone to a management position in any firm. As noted above, issues among family members – for instance, wrangles among them – might have far-reaching consequences on the organization one of them being slowing down the rate of decision making. Additionally, the management has to ensure that the firm produces commodities whose quality is above par. The case study depicts that the clients have been avoiding the use of some of the products since they do not meet their (customers) tastes and preferences.
How The Organization Should Respond to the Issues Above
Nepotism can be one of the main reasons that would lead to business failure. In most cases, executives who are appointed on family-relations basis are incompetent; hence, they cannot initiate programs that would lead to the increased development of the organization (Bute 186). Therefore, the company should have a policy that guides on how leaders are hired. Additionally, all the other employees should also be given the right to apply for the respective posts as long as they have the requirements to do so. On the other hand, the firm should carry out extensive studies on its prospective clients to identify their preferences (Al-Shatanawi, Osman and Halim 153). By doing so, the firm will be in a position to produce commodities that are in line with the customers’ tastes and preferences.
Works Cited
Al-Shatanawi, Hamza, A., Osman, Abdullah., Hali, " Mohd, S. A. “The Importance of Market Research in Implementing Marketing Programs. International Journal of Academic Research in Economics and management Sciences, vol. 3, no. 2, 2014, pp. 150-159.
Burn-Callander, Rebecca. “Sausage Brand Heck Gambles On Meat-Free Range As Millennials Suddenly Turn Veggie.” The Telegraph, 2016, http://www.telegraph.co.uk/business/2016/05/30/sausage-brand-heck-gambles-on-meat-free-range-as-millennials-sud/. Accessed 10 Feb. 2018.
Bute, Mustafa. “The Effects of Nepotism and Favoritism on Employee Behaviors and Human Resources Practices: A research on Turkish Public Banks.” TODAIE’s Review of Public Administration, vol. 5, no. 1, 2011, pp. 185-208.
Fine, Lawrence G. “The SWOT Analysis: Using Strength to Overcome Weaknesses, Using Opportunities to Overcome Threats.” Kick It, LLC, 2009, http://lawrencefine.com/downloads/SWOT%20-%20PDF.pdf. Accessed 10 Feb. 2018.
