Introduction
The Healthy Potion business (HP) specialises in producing and selling a unique drink called Healthy Potion, which includes cold water with some special concentrate from northwestern China. Recently the business has been developing well and making significant amount of profits. In order to maximise this return and minimise the risk of relying on the profit earned from one product, the business is willing to broaden their product range and have put aside $200 000 for this investment. This case study will give in an in depth strategic analysis for new business development and evaluation of debt and equity financing.
Strategic Analysis
In order for HP to continue receiving significant profits the SWOT analysis can be used to identify HP’s internal strengths and weaknesses as well as it’s external opportunities and threats. (Ji, K. 2015)
SWOT Analysis:
Strengths Weaknesses
The unique beverage attains its ingredients from northwestern China, which enhances product quality and authenticity. Also the healthy aspect of the product allows HP to have the competitive advantage, as according to Coca Cola (2014) consumers are more demanding for beverages to be pro-health. In addition, having only one product to focus on allows the business to incur fewer expenses. Due to the ingredients being obtained from China HP is unable to take advantage of a popular cost-saving inventory management technique called Just-In-Time and will instead have to rely on sale forecasts as a
This review provides an in-depth strategic SWOT analysis of the company’s businesses and operations in the areas of internal strengths and weaknesses and external opportunities and threats. (Sector Publishing Intelligence)
SWOT Analysis: A tool for examining a company and its environment. Defines the company’s strengths, weaknesses, opportunities, and threats
Goodrich, Ryan. “SWOT Analysis: Examples, Templates & Definition.” Business News Daily. Tech Media Network, 2014. Web. 28 February 2014.
Kid-Fit will be a limited partnership. Limited partnership is a partnership in which only the general partner, who runs the business, has personal liability, while the limited partners, who are basically passive investors, can lose no more than their stake in the partnership. Our limited partner will be a larger established fitness company whose main focus is the adult population.
SWOT analysis can be used to describe and analyse a company’s internal capabilities in relation to its competitive environment. A strategy behind
“A SWOT Analysis is the most used tool for audit and analysis of the overall strategic position of the business and its environment. Its principal purpose is to identify the strategies that will create a firm-specific business model. The plan aligns the organization’s resources and capabilities to the requirements of the environment in which the firm operates. The analysis is to evaluate any potential and limitations and the probable/likely opportunities and threats from the external environment. The results provide the positive and negative factors inside and outside the firm that affect the success.” A SWOT analysis is conducted to determine the strengths, weaknesses, opportunities, and potential threats to the organization. ("SWOT
SWOT Analysis: The internal strengths and weaknesses of the company, and the external opportunities and threats from the viewpoint of the company
Coca Cola has differentiated its product and services that are valued by its customer. Its product are based on customer’s preferences, with affordable price and made easily accessible.
Strengths of this brand include: it is the 4th largest marketer, brand longevity, and it has a large/high awareness in big cities. Its’ weaknesses are: low market share, low market coverage, limited bottlers’ network, relatively low advertising
The process of SWOT analysis is a universal method widely approached in corporations to scan the internal and external environment so that companies can deploy relevant countermeasures to make improvements. It contains four elements, they are strengths, weaknesses, opportunities, and threats (Helms & Nixon, 2010).
As Zappos faces the challenge of determining next steps in regards to maintaining the existing business unit or to enter a new business venture, the SWOT analysis will provide clarity in the firms Strengths, Weaknesses, Opportunities, and Threats. This is an extremely suitable
The focus of the SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. SWOT analysis groups key pieces of information into two main categories; internal factors and external factors. The internal factors are the strengths and weaknesses that are internal to the company while the external factors are the opportunities and threats that presented by the external environment. The internal factors are determined by their impact on the company’s objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The external factors may include technological change, legislation, cultural changes, and changes in the marketplace or competitive position (Wood, 2008).
SWOT analysis is a useful tool for understanding and decision-making for all sorts of situations in business and organization. SWOT analysis can be classified into internal and external factors affecting a company. The Strengths and Weaknesses of the SWOT analysis represent the internal factors that influence the viability of the company. While the Opportunities and Threats, on the other hand, are the external factors that may affect the company's performances. A SWOT analysis provides more understanding of the organization in relation to its internal and external environment so that manager can formulate better strategy in pursuit of its mission.
However, there is high risk caused by HP’s reliance on a single product, as a fall in sales will decrease its only source of revenue. Whilst the business benefits from higher sales in hotter months, the seasonality of the product further increases risk, with sales on average falling by 43.5% from quarter 1 to 2 from 2012 to 2014. Instability in sales can cause cash flow problems in colder months and affect business profits (Koenig and Bischoff 2005 cited in Shields and Shelleman 2013, p. 37). Relying on a single supplier exposes the business to the risk of having to temporarily close if the supplier is unable to deliver stock, which is further increased by the vagaries of weather.
At Group Capital our mission is to broaden the finance options beyond the traditional model and our business development plan focuses on building the infrastructure, systems, processes, and economies of scale to achieve success. Group Capital, a Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) registered equity crowdfunding broker-dealer, will focus on service development, management information systems, and information technology requirements. By instituting lean service tactic, we can streamline our service model and create a best-in-class consumer experience. Group Capital’s business enhancement can be better understood by comprehending their conceivable expenses, developing the