Internal SWOT analysis; major strength of the organization
Bundaberg is an Australian beer company whose market extends worldwide in countries like Germany, South Korea and the United States. Its worldwide market is major strength its profits are high and many people enjoy their products: any company’s dreams. As the company plans for its future, its major concern should be maintaining this market as well venturing new markets like South America and Sub Saharan Africa.
The organization’s has enjoyed great leadership over the years from its founder Keith Neilson to its current CEO John McLean. These leaders’ dedication and talent has been the company’s secret weapon. They have held the companies dreams as well as being sources of inspiration to the junior staff. This trend should continue into the future because the market responds directly to a company’s leadership and culture.
The company’s vast financial resources are also a major advantage. The growth of any organization depends directly of the amount of capital at its disposal. It can afford to acquire essential assets in market destinations as well as market its products. Research is very vital to a company from market research that helps the company understand its market to laboratory research that is vital and expensive in the brewery industry. The company has successfully accomplished all this and thus its robust growth.
Bundaberg is in partnership with large distributors like Admiral Beverage Corporation in the United States and AG Barr Plc in the United Kingdom. Such partnerships reduce the cost of distribution as well help infiltrate new market. The organization should continue signing deals with more companies so as to reach new markets and reduce the cost of distribution.
The company’s Ginger Beer is its popular most products. As the company ventures into new products, it should capitalize on the prominence of these products. Such a move will help it dominate the market; they have capitalized with what they are good at.
Internal SWOT Analysis: Major Weaknesses of the Organization
Bundaberg is a privately owned company. This is its most prominent weakness due to the limited access to capital. Unlike publicly owned companies privately owned companies cannot sell their share to the public. This means they have to depend on debt and friends’ investments no get their highly demanded financial resources. These resources are vital to the marketing of a company. Bundaberg directors should consider making the company to a publicly owned company. This will expand its horizons majorly.
The size of the company at times works against it. Its worldwide growth has greatly dilute its values and culture. This is due to the absorption of workers from other organisations with an aim satisfying its larger labour demand. The directors should insist on maintaining the culture and values. This will help the staff work as a united front.
High cost of expansion has over the years eaten up its profits. Expansion is always an expensive project for any organization. It forces the management to divert fund from staff salaries and its social responsibilities to expansion deals. The directors should ensure that there is balance in the distribution of financial resources.
Internal SWOT Analysis: Major Threats Facing the Organization
Australia taxes the beer industry heavily. A 24-carton of beer is taxed $16.49 on excise, $4.9 in goods and services tax and $20.85 in income tax (Herrernan 2018). All this eats into the organization profits thus demoralising the players in the players in this industry. Financial resources that would have otherwise been used to fund expansion and marketing are taken by the government. Bundaberg should alliance with other players in the beer industry and bargain for lower taxes.
Bundaberg faces stiff competition from larger companies like Carlton & United Breweries and Carlton Black. As these brands compete for the market per capita beer consumption has reduced. This means that firms continue to pump funds to marketing and sales and revenue continue reducing. The management should alliance with the other companies in the industry and conquer this threat because it faces the whole industry.
The robust growth of the industry is presenting a credible threat to Bundaberg company. This means that some companies will be buried by this tide and new companies join the market. The old companies in the market are thus forced to invest in constant innovation or else their existence is threatened.
Hostile government policy in the new company’s market destination is derailing its expansion progress. As the organization seeks to expand into new territory in foreign countries, it faces the challenge of hefty taxes with an aim of protecting the local industry. This also eats up into the organisation’s profits after tax. The management can negotiate for lighter taxes and in return, the company invests in the local community. Corporate social responsibility is where an organization sees beyond the increasing shareholder wealth and takes into account the ethical social and humanistic variables (Argandana A.2013)
Internal SWOT Analysis: Major Opportunities the Organization Can Exploit
Advertising on the internet is a great opportunity that Bundaberg can exploit. Unlike in the 20th century when the Bundaberg Company was established, the number of internet users has drastically increased. This means that many consumers are accessible through the internet. mare than 4 billion people use the internet globally (Emma L. 2018).
Investment in the soft drink industry is also very essential to the Bundaberg Beverage Company. The soft drink industry has gradually proven profitable. The industry is reached $310 billion in 2015. This can add into to the organizations profits.
Impact of the Internal SWOT Analysis on the Policy and Strategy of the Organisation
Internal SWOT Analysis gives a snapshot of en organization (Ramirez A. 2018) The management identifies its strengths, weaknesses, threats and opportunities. It capitalises on the strengths with an aim of dominating the market. Secondly, it identifies and works on its weaknesses. Opportunities are the future of every organisation. The management should invest in the new opportunities in order to secure its future. Treats are real in every industry but once overcome, the organizations territory is protected.
Internal SWOT Analysis gives the organisation a sense of direction and a secure future.
Internal SWOT Analysis: Goal and objectives
The organisation should invest in both market and product research. This ensures that the management has full knowledge of the consumer taste, competitors’ moves and opportunities that are ahead. The organisation should also invest in innovation in order to keep up with new technology.
Bundaberg should also invest more in the soft drink industry for a cartel with other breweries.
Internal SWOT Analysis: References
- Argandana A. (2013). Why Should Managers be Socially Responsible? Barcerona: European Business Review.
- Emma, L. (2018). Advantages and disadvantages of advertising on the internet. Washington: Chron.
- Heffernan, B. (2018). It time beer drinkers were served a tax break. Canberra: Courier Mail.
- International Distributors, http://www.bundaberg.com USA and UK distributors.
- Ramirez, A. (2018). How Can Internal SWOT Analysis Be Applied To an Organisation? New York: Azcentral.
- Smith S. (2016). Australia Beer Market Insights Report 2016. London: Cission.