SWOT Analysis of EZ-Pleeze Food Company, Thesis of Market economy

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C714 Task 2 Western Governors University SWOT Analysis Strengths:  Employee centric focus

 Competitive business nature  Food service industry presence Weaknesses:  Large marketing budget  Cost of goods sold  Outdated strategic plan Opportunities:  Rising demand for corn products  Competitor closing its doors Threats:  Increased government regulation  Natural disaster/pandemic A SWOT analysis is a strategic planning technique used to help a person or organization identify strengths, weaknesses, opportunities, and threats related to business competition or project planning. The SWOT analysis is conducted internally by analyzing core competencies, resources, talent of labor force, and technology; and conducted externally by analyzing the

Mr. Burnesplanned resignation complicates this as well, if a new plan is formulated and implemented, it could create a difficult transition under new leadership, if the individual or individuals are not on board with the new vision and mission. There are weaknesses that need to be addressed quickly and effectively, these areas will dictate the company’s success in the future. Through the SWOT analysis, there were two opportunities highlighted, increasing demand for corn and having a competitor close its doors this year. As the demand for corn increases, this presents an opportunity to increase corn related products production and new corn product lines. There also may be an opportunity to explore different ways to utilize corn products in different industries such as energy alternatives or livestock feed. The strong research and development team at EZ-Pleeze presents an opportunity to provide a competitive advantage over other companies. The potato competitor who is closing its doors at the end of the year provides an opportunity to increase its consumer base, since all of the clients who purchased from this soon to be closed company will need to purchase goods from a new vendor. There are many external threats that can possibly occur; the two listed in the SWAT analysis are increased governmental regulations and a natural disaster or pandemic. Government regulations have become stricter as time has gone by, this will not change in the near future. Laws are regularly passed creating greener emission requirements, higher safety levels in the work place, and health standards for products produced. All of these aspects create threats to business as usual and require companies to constantly adapt to the new laws which can create smaller profits and more energy spent modifying operations and procedures. A natural disaster

or a pandemic are extremely difficult to predict or prepare for but they do occur and will continue to occur. Both of these types of events can dramatically reduce demand for goods, place fear in consumers, and effect logistics and transportation. They also can affect the state of the labor force in various aspects, such as their ability to show up to work, work under socially distant conditions, and mentally interested in producing at a high level. Through the SWOT analysis, I have developed three recommendations for EZ-Pleeze to take action in preparing for a more financially stable future. First, the company must utilize a portion of its existing marketing budget and direct those efforts towards the clientele of the competitor who is closing at the end of the year. This will not increase expenses and could yield a great return for next year’s sales; this also will be a way to increase the rate of return on the current marketing budget. Second is to analyze and evaluate current cost of goods sold; there needs to be a focus on the most profitable items and consider the how the least can be eliminated or modify to increase interest in those products. This will capitalize on where the company is successful currently and prepare to be more successful in weaker areas or eliminate unnecessary costs. Third, the company will implement a new strategic plan for operations, taking into account the transition of leadership from Mr. Burnes to the next CEO. I smooth transition is paramount to the company’s success in the coming years and the new leader must be totally behind the strategic plan. A new plan will enable the company to stay relevant in the industry and pursue their goal of being a top three producer in corn and potato products. These are three recommendations that will benefit the company operationally and financially. Once these are completed there will be additional steps to continue to fine tune the operations and grow the business.