SWOT analysis of the company
Business environment includes the internal and external factors that can affect the working of the business. Business environment covers factors such as customers, competitors, suppliers, government and social, cultural, political, technological and legal conditions. It is dynamic in nature, and it is difficult to predict or foresee the exact nature of future happenings. Business environment differ from place to place, region to region, country to country (Klapper, Lewin & Delgado 2011). Further this paper shows the analysis of company blackmores limited. It is leading Business Corporation which is leading brand in Australia, which is natural health company. Company was founded in by Maurice Blackmore, who was passionate about the natural health products. Company delivers health products that are bases on the expertise in vitamins, mineral, herbs and nutrients (Blackmores 2017). Further this report includes the internal business environment (resources and capabilities, senior manager quality) and external business environment (Macro and Micro). Paper also includes some facts and figures related to the blackmores 5 year sale and share price. Blackmores environment analysis includes all the factors that can affect the company.
(Source: https://www.smartcookiemarketing.com.au/blackmores)
SWOT analysis includes strength, weakness, opportunity and threats of the company. From the above, strength and weakness are the included in internal factors and opportunity and threats are included in external factors (Ákos 2014).
- Workforce: – Company strength is company workforce, company has skilled workers who are skilled in taking care of health products, employees have a good knowledge of vitamins and minerals.
- Sales network: – Company is having a good sales network, which includes not only Australia but international market as well such as China, New Zealand, and Asia. Company easily sells product with an online mode.
- Currently, company is facing downfall in the sale in Australia, this will lead to impact on profit and in the future cost structure of the company (Chappell 2017). So company need to work on its weakness so that this may not affect the monetary working of the company.
- Company can think for expanding their product and outlets in the new market, which may lead the opportunity for the company.
- With the increase in population, there is an increase in the demand of vitamins and minerals as most of the people face health related problem.
- Company may aspect a warning of tax changes in the government policy as this will affect the working of the company. With the changes in tax policy of the company, company either have to pay less amount or have to pay more amount.
- Company has adapted a source of online selling product for increasing the sale but this may lead to problem for company as there will be lack of cash flow in the company. Company should not provide the system of cash on delivery because this may lead to late payment for the product.
This includes the factors outside the organization that can affect the working of the business. Factors may be part of micro and macro it depend on the situation and on the business (Hamilton & Webster 2015).
Macroeconomic factors: – These factors can affect the whole economy, which includes business as well. Macro includes Demographic/ economic, technological, cultural, and political (Offord 2011).
Economic: – Economic factors include the related change in the economy of the country. Change in the currency value is a factor which can affect the economy. Considering, Australian dollar value has been decreased which result in the increase in the demand of the vitamins and minerals in international countries. That brings an opportunity for the company, this result in increase in the sale of the vitamins. With the increase in the demand of product there is an opportunity to increase the working member. That will lead to employment opportunities in the country, which improves the employment rates and also shows an increase in the income (Porter 2011).
Technology: – Technology is showing a rapid growth in today’s world. Business Corporation use technology to up gradate activities and functionality of the business and products. Now a day, company like blackmores are adapting technology for increasing their sale. They are making their product available online this will lead to the easy availability of products at different states.
Social: – Australians are focusing on their health and this will lead to increase in the demand of the product. With the increase in population, aged people started facing problems related to lack of vitamins, joint and muscle pain, energy and exercise etc. so at that point of time they need vitamins. With the increase in employment rate in Australia, the working staffs are from different culture, which leads to diversity (Berkman, Kawachi, & Glymour, 2014).
External business environment analysis of Blackmores limited
Political: – Changes done by the government in the policies, taxs will lead to a threat for the company, because it totally depend what kind of changes government want to make. Might be possible government changes can bring positivity in the company’s working or can affect the smooth working of the company. Example: – Decrease in the tax will become an opportunity for the company.
Microeconomic factors: – Those factors that may affect your business are included in microeconomics; it includes customer, market, competitors, and environment (Adeoye & Elegunde 2012).
Customer: – This analysis includes the demand of customer, the needs of the customer and according to this, company should analyses and open outlet in the market where company find suitable customer for their products. Customer plays a vital role in the development of the country. With the increase in customer needs and demand this will lead to the growth of the company. Company will think for introduce new products in the market and will lead to increase in sales and will add in to the service that is provided by the company.
Market: – The analysis of market situation is must for each and every company, according to this blackmores will decide to which market there product are in demand and also to analyses projected growth, trends, entry barriers etc. according to this company will take future steps for the growth. With the change in trends there will be need of doing slightly changes in the market of that particular product.
Competitors: – Blackmores is leading in the market day by day and as per an analysis done by healthcare and life sciences ABN Amro Morgans is selling the health product. This will impact blackmores as the company competitors are rising in the market. Apart from it, one of the competitors was BioCeuticals. Recently, company has acquired shares of this company and the cost of acquisition of the company is AUD $40m (Blackmores 2017).
Environment: – Environment related to the external factors, company need to keep considering the factors which can affect the working of the company. If any changes occur then company will be able to make changes on time as per the situation (Rothaermel 2015).
This includes the factors inside the organization that can affect the working of the business. The factor includes resources, capabilities and senior manager quality. The manager quality matters a lot, he need to take care of resources and workforce management. Manager need to show his quality by accumulating resources, and using those resources at the right time. It also includes workforce management which is part of resources only, it is considered as human resource (Olsen 2017).
It includes two categories: Tangible resources and Intangible resources. Tangible resources includes: – finance resources and physical resources. Tangible resources are used by the company in the extreme situation where company need amount. Blackmores finance resource (capacity of borrowing money) is good; company balance sheet statement can clarify this and at times when company needs capital then they can raise funds by issuing shares. Or the way of raising fund is by selling the assets which is part of physical resources. As per the current steps company should think for what company wants to do. Intangible resources play an important role this can affect the working. It includes technology, reputation, human resources. With the change in the technology company needs to change technology which is followed by company, it is compulsory for the company to apply copyright, patents, and trademarks. Reputation of the blackmores company is good in the market as it is one of the leading company in Australia. Over here, customer point of view is also important what customer think for the company’s reputation. What is the image of product in front of customers? Human resource includes the work force who works for the company. Balckmores has shown growth in the sale from past years so definitely there will be increase in the number of employees (Stone 2013).
Internal business environment analysis of Blackmores limited
(Source: https://www.youtube.com/watch?v=-w8uN6l4sFk)
The above image clearly shows blackmores products that are available in the market. It shows the description that is mentioned for each product and it also shows the companies to whom blackmores had acquired such as BioCeuticals, Fusion, Oriental Botanicals and paw, this companies are acquired by balckmores limited (Blackmores 2017). There is a video in which the description for blackmores is given and for the further details you can visit the link and can easily watch video. This picture also shows the product design, which seems to be very attractive and that make customers to buy that product.
Each and every organization has some capabilities through which they will be able to achieve organizational goals and that capabilities will lead to make resources productive (Harnett 2016). These capabilities includes following points:-
- An organization needs to be capable of managing corporate capabilities such as motivating employees, coordination, management of partnership, etc. blackmores limited have all these capabilities that is the reason behind the success of the company.
- Blackmores need to research on the demands of the company’s product, as customer are aware about the existing product so it’s time for company to develop new product as per the requirement of customers.
- Top Management while making decisions related to management of the company should collect the correct information so that this will not lead to any kind of problems in the near future. Information should be accurate and should be correct so that this will not lead to any kind of problems in the near future. Because incorrect information will affect the working of the company.
- Blackmores product design is quite attractive and effective which attracts customer attention towards it. In general health product contains some specific information such as ingredients included in health product. Still company should add on new into the product design so that will also help company in making marketing or promoting the products. As the above image clearly shows the design of the product.
- As company is popular and leading company in Australia so the company doesn’t have to put extra effort to make marketing strategy and currently, company is facing down in sales in Australia so now it’s high time to bring change in the company marketing strategies (Chappell 2017).
- Blackmores limited is focusing on the sales so that company will be able to earn maximum profit. There are supplying there products in different places in different cities so that there sales will increase and they will be able to increase the profit of the company.
The graphical representation clearly talks about the sales and net profit of the company. The sale in the year 2012 was lowest and in the year 2016 was highest, definitely if sales will increase ultimately company profit will also increase. In the year 2012, sales was 1 lakh, in 2013, 2014, 2015 there is a slightly difference in the sale. But in 2016 it was highest and directly related profit is also maximum. For the further clarification you can visit the below link which clearly shows the same data and figures.
(Source: https://finance.yahoo.com/quote/BKL.AX?ltr=1)
The below image clearly state that the share price is continuously increasing in past 5 years. There is a rapid change in the share price from 2014-2016. In the year, 2012 the share price of the company was between 20-40, later 2013 and 2014, it was less than 2013 share price and in the year 2015, the share price increases and reached between 80-100, and showing constant speed it increases in the year 2016, share price was between 150-160. Below image also shows a link on which you can see the changes that generally occur in the share price of the company. Share price of the company keep changes as per the demand of the company’s share and this will affect the working of the company.
(Source: https://finance.yahoo.com/quote/BKL.AX?ltr=1)
Conclusion
This report talks about the analysis of the business environment that includes internal and external environment of the company. For the growth and development each company has to take care of the external business factors of the company apart from it for better management company need to focus on internal environment analysis (Craig & Campbell 2012). This paper through light on company’s working. The paper shows that company should work on his sales plan and on marketing plan which will lead to increase the sale of the company. Company should work on his resources accumulation process as well, as company sales is increasing do now it’s time for the company to employee more and more employers. Company should make changes in the marketing plan so that more and more awareness related to the products and brand will be generated and people will buy the products (Chan 2014). With the increase in the employment, there will be an economic benefit this will reduce employment rate of the country. So there are some of the external factors which can affect the economics of the country.
References
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