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Critical analysis of SWOT analysis
Risk faced by multinational corporations
Critical analysis of SWOT analysis
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Introduction
“Cargill is an international marketer, processor and distributor of agricultural, food, financial and industrial products and services.” (Kneen, 2002, p. 1) Cargill is one of the leading global companies today in the food and agricultural industries (MarketWatch, 2010). Cargill was established in 1865 and has since grown to employe 142,000 employees in 67 countries and is currently the largest privately held company in the US (Cargill: Our History, 2014). Because Cargill is such a massive company this paper will focus of the food ingredients systems platform better known as FIS (pronounced fizz) within the company.
According to Armstrong (2012), a SWOT analysis is one of the most analytical used tools. He explains that this type of analysis is a “looking in” and “looking out” approach that encompasses internal business elements as well as external elements. Coate (2007), states that a SWOT analysis is the “fundamental methodology” for devising the organizations strategy. I will briefly discuss and describe each strength, weakness, opportunity and threat listed in the matrix above.
SWOT Analysis
Strengths
1. Company size. Cargill is a huge company, Kneen (2002), states that the organization is expanding into every facet of the “global food system”. Cargill News Center (2014), reports that the second quarter net earnings of $556 million. FIS is reported to be the largest contributor to these results.
2. Global presence. Cargill operates its FIS businesses on a multinational level. From Cargill Cocoa and Chocolate in Brazil, Cargill Foods India, Cargill Specialty Asia to Cargill Texturing Solutions (Cargill:Our Business, 2014) the breadth of the company is huge.
3. Large customer base. “ 'We are the flour in...
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...ernley (2012), states that there is a risk of overlooking the organizational culture during strategic planning. Walsh (2012) recommends aligning the strategy with the corporate culture. By keeping the corporate culture at the forefront while undertaking the planning process it will not fall off and be forgotten, thus damaging the culture the organization has worked hard to achieve.
Walsh (2012), identifies “customer engagement” (p. 11) as a crucial area that often is bypassed. The pitfall of not communicating with the customers can be drastic. Fernley (2012), recommenders placing the customer at the front of the businesses activities and goals which will reflect the value the business places on the customer. By involving the key stakeholder, the customer, the company runs the risk of missing an angle or a point of view that is important (Raymond, 2014).
The starting point of the strategic management is said to be the DESIGN SCHOOL with an emphasis on process. However this system is entirely based on the SWOT analysis. Swot stands for strength, weakness, Opportunities and Threats. Strength is a show...
Earl Sasser Jr. discusses why customers matter in his lecture because customers are essential in every business that have been created. He began by providing a story about a local grocery store in Norwalk Connecticut that kept expanding. Their customers were dedicated to making their store the best it could be by providing suggestions and participating in focus groups that concluded in results from the suggestions. Sasser wanted to show businesses that were not efficient in their customer care why their customers should matter because there are some companies who have leaders that have instilled these ways in their companies but there are some that neglect the fact that their customers do matter. Sasser says that if you listen to all the CEOs
A SWOT analysis is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT is a planning evaluation used by businesses and organizations.
Just contrary to Porter’s five forces model, the SWOT analysis deals with both internal and external variables and forces of the company. The main quality of this analysis is that it is helpful in tracing out the real position of the company along with its strengths, weaknesses, opportunities and threats or the self-assessment. Consequently, it offers the company a proper framework to formulate, vision plans, strategies and goals. Here, it should also be assumed that the SWOT analysis includes both internal and external factors, whereas Porter’s five forces model only deal with external factors ignoring the internal factors.
The SWOT analysis (abbreviation for Strengths, Weaknesses, Opportunities and Threats) is an essential tool in marketing for understanding and supporting decision-making in all kinds of situations in business and organisations. In brief, it provides an accurate context for studying strategies, positions and directions of a company proposition. It is used mainly for business planning, competitor evaluation, marketing, business and product development and research reports. SWOT analysis is also a widely recognised method for gathering, structuring, presenting and reviewing extensive planning data within a larger business or project planning process. (Chapman, 2014)
What is a SWOT analysis? This concept involves assisting businesses to identify their strengths, weaknesses, opportunities and threats. It is often used to analyze an organization and its environment. Businesses find the analysis useful in assisting them to improve their business, establish goals and objectives.
A SWOT analysis is simple exercise that could be implemented on multiple subjects including an individual or a whole corporation. The SWOT analysis is an operational tool for managing change, defining strategic direction and setting realistic goals and objectives according to Simoneaux and Stroud (2011). Discovering new opportunities and manage and eliminate threats that are present in the company and the surrounding market. SWOT is a valuable technique that leads to a better understanding of the strengths, weaknesses, opportunities and treats both internally and externally. The strengths and weakness are to be considered internal factors and opportunities and threats to be e...
SWOT analysis is a necessary tool for business that allows corporations to analyze where their strengths, weaknesses, opportunities and threats lie. The SWOT tool contains paramount information about the industry and helps the executives of the business make decisions that are necessary for the business’s survival and success.
It goes through the through the strength, weakness, opportunities and threats of the company. This analysis is called the SWOT analysis. It is divided into two major parts. External Factors and Internal Factors Strength and weakness are concerned with the internal factors, and opportunity and threat are concerned with the external factors. 3.1 External Factors Here only opportunities and threats are analysed as these are supposed to be listed as anticipated events or trends outside the business that have implications for performance.
The definition of SWOT analysis is comprehensively summaries the internal and external conditions, critical evaluate advantages and disadvantages of organization, facing the opportunities and threats, in order to the combination of company 's strategy and internal resources and external environment (Yuan, 2013). In contrast, SWOT analysis method is a descriptive model, because the enterprise strategy is often a typical uncertainty problem, the lack of adequate analysis and logic, and a SWOT analysis cannot provide the specifically, format of strategic advice (David,
A SWOT analysis is a measure tool to summarize a company’s internal and external aspects. By measuring the company’s strengths, weaknesses, opportunities and threats and looking for improving solutions by using the strengths and opportunities to improve on the weaknesses and take the necessary actions concerning any threats a company can survive in today’s world market.
Have a very long history over 140 years Operated factories in 77 countries in all six continents, a truly global company Considered the innovation leader in the global food and nutrition sector with 3500scientists in company R&D network Offering thousands of local products, research and development capabilities.
Along the years, the company has been coming up with new and better products that has defferintiated from the rest based on its own methods and recipes.
Today, Kerry has emerged into a leader in the food processing and ingredients business, reaching its goal set in the early 1980’s. The group has five basic areas of business; which include Kerry Ingredients, Kerry Bio-Science, Kerry Foods, Kerry Agribusiness, and Mastertaste. If Kerry group continues to build from their corporate and business level strategies and continues to evaluate their SWOT analysis they will stay ahead of the competition and continue to remain a leader in the food ingredients and processing sector.
Many scholars believe that customer satisfaction has a crucial role in the success of a business, and is pivotal in increasing the overall profitability of the business (Kotier, 1991). Customer value is gained through the experience they receive from the goods or purchases they have obtained from a certain business. Customer value has various definitions and concepts, Holbrook (1999) stated that it is a kind of “interactive, mutual, and preferred experience”; but simply said, “the term customer value has many meanings.”