Classic Ceramic - Swot Analysis

Task 2

Question:

Carry out a SWOT analysis on behalf of the company. Consider the current situation in terms of the strengths and weaknesses of Classic Ceramics, together with the major threats to the business and the opportunities that exist to develop their current product lines or exploit new business opportunities. You should summarize the conclusions arising out of the SWOT analysis in no more than 250 words to ensure that you focus upon the key issues.

Answer:

SWOT Analysis

 Strengths:

- Has been in operation for over 50 years.

- 150 production staff with advanced pottery-making skills, some have been working for more than 15 years.

- Produces the finest vases in the market.

- Has three large capacity factories in different areas.

- Strong relationships with raw material vendors.

- The management team is committed and confident.

 Weaknesses:

- The company’s products have greatly become more expensive than its competitors with same quality.

- The sales and market share are decreasing.

- Low revenues from products such as dishes, cups and saucers…

- Conflicts between the management and trade union.

- All three manufacturing sites and the machines are old.

- Poor working conditions for the staff.

- Disputes over new working arrangements and loss of overtime working.

- The Managing Director of the company has recently retired and the position is still vacant.

 Opportunities:

- Classic Ceramics has already been approached by three property developers with a view to selling either or both site B and C.

- There is a great demand in ceramic tiles. We can develop a new product line.

- Hotels and Tourisms industry is booming in Vietnam. Five star hotels are our potential customers.

- The staff can seek better supplier deals.

- New potential export markets such as Japan, Korea, and Singapore…

 Threats:

- Competitors are capable of producing cheaper products with the same quality.

- Other ceramic pottery companies in the market are willing to hire experienced production workers with higher salaries than what we are paying.

- There are many ceramic pottery companies in the market.

- Low priced import from China

- Increase in prices of coal and gas

Conclusion

According to the SWOT analysis, the first thing we should do is to buy new machines and upgrade our factories to the standard level for a safer and more comfortable working environment. With the new machines, we are capable of producing larger amount of products in reduced time. This leads to cost efficiency. We can minimize the cost of gas and coal. In the future, if possible, we can develop to produce using 100% gas because coal causes dust, pollution and lower productivity. By that way, we can compete with other companies on both quality and prices. After the working environment is upgraded, the working staff will feel more comfortable. Hence their performance will be boosted.

In order to have enough capital to do that, we should consider selling the manufacturing site C to one of the three property developers since products manufactured