SWOT denotes the strength, weaknesses, opportunities and threats in an organization. SWOT analysis is defined as a tool for planning strategies that businesses and organizations refer to while setting clear objectives. Organization’s that use the SWOT analysis always identify their strength, and making then to venture into viable projects benefiting the organization (Ifediora Christian Osita). Business organizations use the SWOT analysis for obtaining information for planning strategies and also as a means through which the organizations strength is built.
The SWOT analysis as a strategy for setting clear objectives by business organizations is used in the identification of policies for the development of agriculture mostly in farming systems (Ommani). The SWOT analysis involves the determination and identification of both external and internal factors that can be favorable or unfavorable in achieving the organizations objectives. The internal capabilities and sources are identified by the internal analysis for better results and viable advantage (GÜREL·).
SWOT analysis on House of Fraser
SWOT table
Human Resource Management
Accounting " Finance
Marketing
Strengths
Long serving committed staff.
Stockholders relations.
Multiple distribution channels
The use of online sale.
Weaknesses
The approval of the company’s voluntary arrangement.
The lack of human resource manager for long time.
Poor trading.
Lack of investment.
The idea of closing the distribution channels.
The cutting back of the in-house women’s wear.
Inflexible and expensive store estate.
Opportunities
The development of new technology.
Increasing the information technology.
Adaptation of the fundamental change.
Threats
Laying off of over 3000 workers.
Reduction in rent.
Creditors pushing to take action against the organization.
The increasing cost of operation.
Competition from other online shopping centers.
Detailed discussion of the table above on the SWOT analysis of the house of Fraser.
The long serving committed staff. According to the house of Fraser employees are considered to be their major assets and hence, well-motivated and satisfied employees are always a ground for competitive businesses through improvement of product quality productivity increment (IVETA). Stockholders relations. According to the case study, the contribution of the stockholders in the house of Fraser is the ownership of the business assets hence, limiting the agency problems. In this case, the law legislators of the companies will strongly protect the investors hence, increasing on the company’s share capital (DEKHORDI).
Multiple distribution stores. The house of Frasers’ strength in the marketing function is the channeling of the different stores in the north-east England. Secondly, the house of Fraser’s introduction of online shopping greatly increased the organizations sales.
Weaknesses of the house of Fraser includes the lack of human resource management for long time, there was always delays in decision making, hence, weakening the performance of the various departments.
The lack of investment and poor trading since the house of Fraser did not list its shares on the stock market. The idea of closing some of the distribution stores and the cutting back of the in-house women’s wear and the inflexible and expensive store estate impacted negatively on the marketing function of the house of Fraser. According to the case study, the opportunities are the development of new technology and adaptation of information technology. The house of Fraser has the opportunity of adopting the fundamental change so as to increase on its sales and to compete favorably in the market.
According to the case study, the house of Fraser is facing threats from creditors pushing to take court action against the organization, increasing cost of operation and competition from other online shopping centers such Amazon, eBay and Tesla.
The key issues to be addressed by the house of Fraser according to the case study.
The lack of human resource management in the human resources management function, lack of investment in the accounting and finance function and the cutting back of the in-house women’s wear in the marketing function. According to the case study in the house of Fraser, the key issues that has to be addressed is the lack of human resources management which for many years was a nightmare. On the other hand, in the accounting and finance function, the lack of investment is another key issue the house of Fraser has to address according to the case study since investors increase on the business’ market share hence, profit to the organization in this case the house of Fraser.
Another key issue to be addressed by the house of Fraser according to the case study carried out is the cutting back of the in-house women’s wear that has hindered the work of the marketing function.
How the house of Fraser should address the key issues.
The house of Fraser should look into appointing the human resources management to aid decision making and manage the human resources of the other departments’ within the house of Fraser. Furthermore, the house of Fraser should list its shares on the stock exchange to attract potential investors to take investments in the organization. The house of Fraser should also maintain the in house women’s wear so as to increase on the sales volume of the organization. It is therefore, highly recommended for the house of Fraser to identify both its external an internal factors in order to achieve its objectives.
References
Osita.I.C, Idoko.O.R " Justina .N. (2014), Organizations Stability and Productivity: The Role of SWOT Analysis an Acronym for Strengths, Weaknesses, Opportunities and Threat. International Journal of Innovative and Applied Research Vol 2(9):23-32.
Ahmad.R.O, (2011), Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis for Farming System Businesses Management: Case of Wheat Farmers of Shadervan District, Shouster Township, Iran. African Journal of Business Management, Vol 5(22), 9448-9454.
Emet.G " Merba.T, (2017), Swot Analysis: A Theoretical Review. The Journal of International Social Research, Vol 10(51), 1-13.
Iveta. G, (2011), the Employees-The Most Important Assets in the Organizations. Journal of Human Resources Management and Ergonomics, Vol 1(2011).
Dehkordi.B.B. (2013), Role of Corporate Governance in Organization. GSTF International Journal of Business Review, Vol 2(3), 1-12.
