Swot Analysis

1.0 Introduction

Arnott’s is seeking to expand their operations internationally with the product Tim Tam into Myanmar. In this report will estimate by SWOT analysis and PESTL analysis following with recommendations.

Arnott’s is one of the largest food companies with manufacturing biscuit products in Australia. Tim Tam is one of the product of biscuit of Arnott’s which coated by two layer of chocolate malted biscuit and a chocolate cream filling between two layers. It is very famous in Australia that around 35 million packs are sold each year. (Arnott’s Biscuits Limited 2011) The recommended method is to import the ingredients such as cocoa bean to Myanmar and manufacture the final product in Myanmar. As the average monthly salary of manufacturing workers are very low compared with other international countries that’s only got USD$200. (ERI Economic Research Institute) As the lower salary in Myanmar, Arnott’s can increase their profit of their operation.

2.0 Political Environment

2.1 Government stability
The incumbent president of Myanmar is Thein Sein since 30 March 2011 who set policies to achieve a stable economy in Myanmar. (The New York Times 2011) The head position of Myanmar is not elected by Myanmar people directly but is elected by three separate committees in government. It proved a success situation of government by good policies set by past-president before and stabilized Myanmar in internal and external. 2.2 Government and contribution

Being one of the members is in Association of Southeast Asian Nations. (ASEAN Secretariat 2011) Myanmar has a good relationship with other members such as Malaysia and Singapore. Annual growth rate in 2011 in Myanmar is 3.2%, it attract more investment increasing the competitiveness in the world. (U.S. State Department 2011) 2.3 Analysis

A good growth rate will attract the foreign investments and stimulate the
local market in Myanmar. Political stability also will push the economic growth and production increased that’s providing a larger market and consumer power of citizens. As Myanmar provide a good environment for business. What’s more, Myanmar has a good relationship with the other countries in Asian. It means the main material imported from near countries will be easier and avoid tariffs.

3.0 Legal Environment

3.1 Regulatory framework
In Myanmar, it provides old age, disability and survivors, Sickness ; Maternity and Work Injury for social security. (U.S Social Security Administration 2010) 3.2 Business laws
Importers or exporters are required to register with the Export Import Registration Office under the Directorate of Trade, Ministry of Commerce as an enterprise permitted is under the FIL. (Myanmar’s NET 2010) Bribery payment is not allowed and discouraged in Myanmar. 3.3 Labour laws

The employees who worked at companies, trading centers or factories cannot works over 48 hours a week. Then, the cost of labour is very low compared to other near countries as it is fixed on mutual arrangement between the employee and the employer. What’s more, the minimum working age is thirteen. 3.4 Taxation laws

Myanmar will levy income tax and profit tax on public consumption and domestic production. Import goods also will be taxed by Myanmar government such as chocolate or biscuit. (Myanmar’s NET 2010) 3.5 Analysis

Basically, all the law is protecting the business and workers in legal. Myanmar government hopes those things can attract more investment to come with legally expanding operation.

4.0 Economic Environment

4.1 Interest rates
The current interest rate in Myanmar is 12% and the commercial bank prime lending rate is 17%. (The Central Intelligence Agency 2011) 4.2 Inflation rate
The inflation rate is 7.7% in 2010. Compare to 2009, it is lower than 2010 as the inflation rate in 2009 was 1.5% only (The Central Intelligence Agency 2011) 4.3 Currency exchange rate
The currency exchange rate in Myanmar is referring to 1 US dollar with 6.4560 MMK (Myanmar Kyat). It shows stable situation within half a year. (The Central Intelligence Agency 2011) 4.4 Free-market/command/mixed economies

Myanmar still has lots of barriers to move toward free market. In a world ranking of index of Economic Freedom, Myanmar just got rank 173 out of 200 countries. The source that Myanmar can get is only 38.6 and it seems to be repressed. (The Heritage Foundation 2011) 4.5 Economic trends/forecasts

By the GDP counting in Myanmar, the forecast of economic growth is predicted to increase 3%~4%. (The Central Intelligence Agency 2011) 4.6 Tax policies
There are five main taxes policies in Myanmar such as profit tax, income tax, commercial tax, lottery tax and stamp duties. As the income tax for corporate is 30% , the income tax for individual is 20% of the total income and the commercial tax rate is around 5% to 30%. (Myanmar.com 2011) 4.7 Analysis

High interest rate and high tax are the reasons to increase the capital of investment. The inflation rate and the currency exchange rate also show that the economic growth of Myanmar is increasing. It is difficult to entry the market and Myanmar cannot produce a free market for business as it is lots of barriers to avoid the investor coming.

5.0 Socio-cultural Environment
5.1 Hofstede’s Cultural Dimensions (Geert Hofstede 2009)

Australia
Myanmar
Collectivism Vs Individualism
Very high
Relatively low
Power Distance
high
low
Uncertainty avoidance
Relatively low
Very high
Time orientation
Very low
medium
Quality Vs Quantity
Medium
Very low

5.2 Analysis
In Collectivism Vs Individualism, it is relatively high and got around 85% in Australia and Myanmar only got 51% that’s lower than Australia. A group works are good for Myanmar employees rather than having an individual works. In Power Distance, Australia is higher than Myanmar which got 31% and 25%. It shows that the relationships are very well between managers and employees when Australia employees are less communications with their bosses. In Uncertainty avoidance, Australia is relatively low and got around 47% and Myanmar got nearly 90% that’s higher than Australia. They work flexible and freedom. In Time orientation, Myanmar is 45% that is relatively higher than Australia where it only got 28%. For the Myanmar employees, it is acceptable and fulfills the loyalty of social responsibility. In Quality Vs Quantity of life, for the index of Quality of Myanmar, it got only 23% and Australia got a higher percentage that is 45%. Myanmar workers do not get a positive respect from employers. Affording more welfare is recommended to employers to keep motivate for working.

6.0 Technological Environment
6.1 Technological infrastructure
As Myanmar absence the basic technological infrastructure in their countries,
but they get help from ASEAN and two powerful countries such as China and India. Myanmar also now gets ready to exhibit relative readiness in human resources, skills and well preparation for catching up the world-change. (Myanmar Info-Tech 2007) 6.2 Communication networks

The networks between Myanmar are not good as possible compared with other countries. It now has just 41600 fixed line phones with a density of eight phones per one thousand citizens. (Today in Myanmar 2011) Furthermore, not many people cannot afford the fiber cable connection for internet as the citizen in Myanmar are using a slower cable connection such as 128Kbs at home, 256Kbs at office ,512Kbs at business. (Mizzima News 2011)

6.3 Logistics networks
The common transportation in Myanmar is waterways, roadways, railways, cargo, heliports and airport runways. Besides, the roadways in Myanmar have not been improved by government that lots of roadways are difficult accessible by cars. (AsianInfo 2011) 6.4 Analysis

Being the basic technological infrastructure in Myanmar also is not totally complete that shows the ‘hardware’ may not suit the operation for business. Furthermore, the communication networks are also weaker than other countries. It cannot to support promotions and research from those. Also the roadways are not being well as a lot of parts are not accessible cars normally.

7.0 SWOT Analysis
7.1 Strengths
-Arnott’s is a world-known brand over 140 years not only in Australia, but also in other Asian region countries. -A powerful and steady financial background can make suppliers and workers more confidence and reliably. 7.2 Weakness

-Managers have to use lots of time for training unskillful works. -The type of product may not suit the eating habit of Myanmar people 7.3 Opportunities
-The labour cost is relatively cheaper than Australia in Myanmar. -Myanmar
gets a lower GST for attracting investments
-The number of citizen in Myanmar are increased that’s mean the market will be bigger in the future. -The forecast of economic growth are increased as the consumer power will be also increased. 7.4 Threats

-The cost will be more expensive because of high interest rate. -Many rules and laws increase the barriers to import materials. -It is a high tax in Myanmar to reducing the revenue.

8.0 Recommendations
To start up a new market in Myanmar, there are lots of problems and concerns such as demographic factors, high tax and interest rate, and restriction, affecting the business profit and the operation future in Myanmar. It is acceptable if having a cheaper workers and increasing a consumer power. In the political, legal and economic environment, it is all suitable for investigating a new market in Myanmar. However, in socio-cultural and technological environment, they make a lot of threats from now to the future. In Myanmar, it is lack of skillful labour to work and the communication network is too weak. For example, business cannot completely promote products via internet and phone, is making a decreasing sales if the situation is unchanged. In addition, we may employ some skillful worker from Australia to Myanmar and lead the other local workers for some technical works. Standing on the position of profit, it is not recommended to expand the operation TimTam to Myanmar.

AT&T SWOT Analysis

AT&T Company has both successes and failures in its businesses. The company has tremendously improved its businesses favored by its strong strategies both in the market and in leadership. To analyze the AT&T, SWOT analyses is conducted to get the trough picture of strengths, weaknesses, opportunities as well as threats.

Strengths

-The AT&T Company has an already large established business in the electronic and communication equipment market.  The Company has established itself as a leader in the market

In line with its vision, the AT&T Company has been striving to be the leader in the industry. Through innovation and strategic marketing, the AT&T has acquired about 15% of the US market.

-AT&T has good market reputation. With strong brands in the market, the Company is well positioned in the market. In the American market AT&T has strived to build a good market reputation. This has worked positively for its brands.  It is on this good reputation that the market can embark on introducing its products to a new market.

-The target market is also quite large. The electronics and communication equipment market has been recording growth in the recent past and there are future prospects of growth. Therefore the target market is quickly expanding with the need and the government regulations on the need to have fire fighting equipments.

-The AT&T Company has the best spectrum position with the carriers that are operating in the US. This has made it possible for the company to transports is products to the market as well as making it easy to get law materials.

-On the other hand, the company has strong developing strategies that make it easy to develop its products thus attracting more customers as well as having strong human relation within the company and outside the company.

Weakness

-The target market is quiet large and there are fears the demand for the AT&T products may outdo the capacity of the group to satisfy the demands of the market. It is still not clearly established the rate of growth of the AT&T’s brands in the market but there are expectation that the product will record a high growth rate. This means that the company will need to increase its production capacity in order to match the rate of growth of the market.

-AT&T Company has been able to establish a distribution network of its brands in the region that matches the demands of the market. In this case the AT&T Company has managed established a distribution network to the interior due to infrastructural development. Banking on the success of the other markets in the US may have negative effects on the introduction of the products in the market since they will be targeting the same markets.

-The AT&T has low subscription and growth rate compared with other companies in the same industry market.

– On the other hand, the company has not been able to have a good reputation in the market as it would be expected for a company of its size. The company has not been able to create a reputable relation with other stake holders in the company as well as the business environment.

Opportunities

-AT&T Company is marketing its products in a growing market. This is a unique opportunity for the company.  A stagnant market becomes difficult to introduce new products because there are already other companies which are likely to bring in competition.

-AT&T Company can introduce its products in the market in unique way. With the growing importance of Electronics and communication equipments in the world, the Company has of late been sponsoring youth projects that are also used to market the company’s brands. This will help in marketing the brand in the US market in unique way.  The Company can also sponsor other events like sports or engage in corporate social responsibility activities like girl child education to help the target market identify with its product more.

-The aggressiveness in the deployment of UMTS has enhanced perception of the technology leadership. Through this the company has been able to lead in technology as most of its customers have a perception that the company has quality and advanced equipments.

Threats

-There are threats of entry of other brands in the market.  In this case there are threats of entry of new and existing companies in the US market which will increase the level of competition in the market. There are other companies which are likely to introduce the same products in the market once there is success of the initial brand. The threat of change of external market could also affect the company, example if the government changes its taxing regime -There are other companies in the industry that are doing the same business as AT&T and they are posing threats to the market.

– The integrations Cingular and the AT&T companies’ workforces is a challenge to the company that needs a great observation and care as it may affect the company’s businesses.

Does the system support organizational goals and tie employee performance directly to those goals

The AT&T organization goals have a direct effect to the employees’ performance. The company has been in the front line campaigning for the welfare of the employees’. In AT&T company, the employees’ have freedom to express their views regarding the welfare of the company. This has enabled the company to improve tremendously in its business as every employee has company’s goal in mind and clearly knows his/her responsibility to achieve that goal.

The employees’ performances have a direct effect on the company’s goals. If the employees’ diverts from the main goal, the whole company’s goals would not be achieved because they merely depend on the employees’ performance.

Explain strengths and weaknesses, and recommend improvements

Looking at the strengths of SWOT analysis for AT&T, the company has potentiality of having an improved business and acquiring more market share than the one the company is holding now. The company should strengthen its strategies in order to have a stronger brand in the market. As the company has strong human relation that has enabled the company acquire more market in the US.

On the other hand, the company has a weakness in its production line as the already produced products cannot cover the market demand and thus there needs an improvement in this section.

It’s therefore advisable for the company to do a market research and get to know exactly what the customers wants in order to improve. The company needs to improve its reputation in the market in order to increase the demand of its products as well as well as improving the relation with the current and potential customers.

Reference:

• Annetter, G. 2000, Benchmarking for strategic performance improvement. McGraw-Hill

In 1899, Sebastian Spering Kresge opened a store in Detroit where he was solding everything for 5 or 10 cents.This store attracted hundreds of shoppers because of the low prices and allowed Sebastian Spering Kresge to expand to 85 stores in 1912; at this time he was making an annual sale of more than $10 millions. America experienced war and financial depression but Kresge stores still had a large success because families could afford these low prices products.

The stores also offered jobs when other businesses were not able to do so.In the 1920s Sebastian Spering Kresge opened stores that sold products for 1 dollar or less, that was the precursor of the actual discount store. However, nowadays prices are different in Kmart but the business philosophy is still the same : offering consumers what they need at low prices. In 1937, Sebastian Spering Kresge opened a store in Country Club Plaza shopping centre in Kansas City, Missouri. As the retail environment was getting more competitive, Sebastian Spering Kresge launched a newspaper advertisement, this advertisement was the precusor of radio promotions and TV commercials which followed 20 years later.

In 1959, Harry B. Cunningham became the president of the Kresge organisation helping the company to continue to be a leader in the competitive retail environment. The first Kmart discount department store opened in 1962 in Garden City, Michigan. Seventeen other Kmart store followed that year increasing the sales to more than $483 millions. In 1966, sales in 162 Kmart and 753 Kresge stores were of $1Billion mark.

In 1976, Sebastian Spering Kresge opened 271 Kmart stores in one year,this was the first time ever a retailer launched 17 million square feet of sales space in one year. By 1977, 95 percent of Kresge company sales were generated by Kmart stores, thus the company decided to change its name to Kmart Corporation. In 1990, Kmart gets a new logo and a new plan of 3.5 billion new store opening, enlargement and modernisation program.

In 1991, Kmart opened the first Kmart Supercenter (open 24 hours a day, 7 days a week) in Medina, Ohio. In 1996, Kmart are redesigned, making them cleaner, brighter and easier to shop. The frequently purchased products are moved to the front of the store and a new focus is placed on the Children’s and Home Fashions departments, the name changed for these remodelled stores and became “Big Kmart”. In January 2003, Julian C. Day become Chief executive of the company and achieved important objectives such as strengthening its balance sheet, reducing debt, focusing its store portfolio on the most productive locations, terminating leases for closed stores, developing a more disciplined, efficient organisation and lowering its overall operating costs. Kmart is now a new and vital enterprise which focus on delivering value to customers.

Company overview:

Nowadays, Kmart is owned by Sears Holding Corporation, in January 2011, Holdings had a total of 1.307 Kmart stores across 49 states, Guam, Puerto Rico and the U.S Virgin Islands. This is a total of 1278 discount stores averaging 93.000 square feet and 29 Super Centers, averaging 169.000 square feet. Most of the Kmart stores are one-floor, free-standing unit selling a wide range of products from consumer electronics to seasonal merchandise and services.

In January 2011, major home appliances were sold in 268 Kmart stores and the company started operating its own footwear business ( which was previously operated by a third party). 981 Kmart store have also their in-store pharmacies. Kmart super centre are operating 24 hours a day and have a full-service grocery with the merchandise selection of a discount store. Sears Auto Centers are also present in 20 Kmart stores; Sears Auto Centers offer professional automobile repair, maintenance services and full assortment of automotive accessories. 600 Kmart stores have also a new service (powered by MyGofer) which allow customers to buy online through kmart.com website and pick up in store.

Kmart Store Facts : Traditional Kmart stores size is 80.000 to 120.00 square feet, they carry a full selection of general merchandise and include a pharmacy. The average Kmart store carries between 60.000 and 80.000 SKU’s. Kmart Super Centers have a full-service grocery and a general merchandise stores, most of them are opened 24 hours a day and offer special services. Kmart Super Centers size is from 140.000 to 190.000 square feet, they offer in-house bakeries, USDA fresh meat, fresh seafood ( delivered daily), full delicatessen and variety of speciality food kioks. The average Kmart Super Center carries between 100.000 and 150.000 SKU’s.

Swot analysis : Companie’s strenght Kmart is the third largest US retailer in the US and has a strong market position which the company a good rank in the competition. A strong brand equity is one of the strengths of the company, indeed in 2006 Kmart had 1416 stores in 49 US states, in Puerto Rico and the Virgin Islands. Another strength of the company is the merge of Kmart with Sears Holding Corporation, which is the third largest broadline retailer in the US ( approximatively $55 billion in annual revenues).SHC own a wide range of brands such as Kenmore, Craftman and DieHard.

Companie’s weaknesses

Kmart has a limited geographical presence, indeed, the company operates only in the US, Puerto Rico and the Virgin Islands while its competitor Wal-Mart operates in the US, Canada, Mexico and the UK. Wal-Mart has also operations in Asia, Europe and South America. Carrefour also have extensive international operations. Compared to others companies, Kmart has a limited presence in the world and can’t take advantage of the benefits of diversification and increase its risk associated with these few markets.

The company has also a weak operating performance. During the fiscal year ended in December 2005, the company recorded revenues of $19094 million, that is a decrease of 3,8% over 2004.The company continued to decrease its revenues of 1,4% in 2005 and 0,2% in 2006. That means the company probably has an inefficient marketing and promotion strategies. In 2005, the operating profit of the company was $767 million, thus a decrease of 57.9% over 2004. Kmart’s operating margin declined from 9.2% in 2004 to 4% in 2005, that means the operating efficiency is declining. Weak operating performance in the long run can affect the financial stability of the company.

Kmart’s opportunities

The first opportunity for the company is increasing online retail spending, indeed, Kmart has expanded its online products portfolio. Online retail spending was expected to increase from $81 billion in 2005 to $95 billion in 2006. Online retail spending would reach $144 billion by 2010 and 71 % of online uses are likely to shop over the internet ( only 65% in 2005). In 2005, internet influenced 27 % of total retail sales, it will influence 50% in 2010. The company has to focus on strong online sales to benefit from growth in online retail spending.

The second opportunity for the company is the growth in private label products, indeed, private label products is growing up a lot in the U.S. One of five items sold in U.S supermarkets, drug chains and mass merchandisers is a store brand. Private Label Brands give higher margin than branded products, thus increasing the acceptance of the private labal products can have a favourable impact on the company’s margins.

Kmart can also take the opportunity of rising the US health care spending. As the population is getting older, people use more drugs, thus the US health care spending is expected to reach 4 trillion by 2015. By 2030, one in every five US citizens will be aged 65 or above ( predictions by the US Census Bureau and the National Institute on Aging ) Kmart’s threats are : Stiff competition, Slowdown in consumer spending and increasing rental rates.

References

Kmart corp, 2007, ‘Kmart Corporation SWOT Analysis’, p1 ( There is no Author, I found the articles by researching ” Kmart SWOT analysis” on Ebschohost)

SWOT Analysis for Treadway Tire Company Lima Plant

The Treadway Tire Company has almost 9,000 employees in North America. Treadway Tire is one of the major suppliers of tires to the original equipment manufacturers (OEM) and replacement tire markets. The company sells under the brands Treadway Primo, Treadway Performance, and also manufactures private brands. Treadway Tire Company has eight manufacturing plants in North America. The Lima plant in Ohio is one of them and has a serious problem of high turnover (almost 50%) of foremen. This SWOT analysis is mainly focused on the Lima plant in Ohio.

Strengths

Leadership in the industry. Treadway Tire Company is one of the major tire suppliers of the original equipment manufacturer (OEM).Their major customers are car manufactures such as Ford, General Motors, and Chrysler. High productivity and quality. The Lima plant expanded and modernized its facilities to increase capacity and manufacturing technology. Due to this $100 million expansion, the Lima plant has become one of the Tradeway’s top plans for productivity and quality. Lowest cost producer. The Lima’s plant rotating shifts of 12 hours vs. 8-hours shifts has reduced significantly the cost and can be the lowest cost producer in North America. Competitive salaries and benefits. Foremen earn $30 per hour, overtime, compensation for years of service, and benefits. In exit surveys foremen were very satisfied with the salary and benefits provided by the company.

Weaknesses

High turnover ratio. The foremen turnover ratio is extremely high at 46%. This means that in 2007, 23 out of the 50 foremen left the company. 10 did it voluntarily and 13 involuntarily. The issue of high turnover is affecting productivity and putting at stake the Lima’s plant positioning as the top productivity and quality rating plant of Treadway Tire Company. Low employee morale. According to the exit survey and current views of the foremen, they have low morale Foremen feel that they are not respected, they lack authority and support from the supervisors and managers. In addition, they have an adversarial relationship with hourly workers. When disciplining workers, foremen think they get away with it because workers are protected by the union.

Poor communication. Foremen are the direct link between the mid and upper management and the line or hourly workers. They have pressure from line workers, supervisors and managers. They feel isolated and supervisors and managers do not listen to their concerns. There are not open channels of communication with supervisors and line workers. Thus, these conditions cause the foremen frustration and adversarial relationships with supervisors and line workers. Thus, the main reasons why the leave or are forced to leave the job: lack of control of the workers, not meeting forecasts, and adversarial relations with supervisors and managers. Job dissatisfaction. The company does not provide support to the foremen to perform their duties. Foremen are overworked and under-recognized. This causes the departure of almost half of the foremen during the year. Besides, foremen feel isolated and they do not see ways to advance in the company. Unionized labor force.

All hourly workers are unionized with United Steelworkers (USW) and this causes constant conflicts with the union in terms of grievances, contract bargaining, salaries, overtime shifts, and benefits. Foremen consider that the union overprotects the hourly workers. Lack of formal training. There is not a formal training policy for the foremen. Foremen receive informal training only at the discretion of the supervisor or manager. Sink or swim approach or tried-and-true management styles are used by supervisors with the foremen. Foremen perform a variety of complex administrative, technical, and leadership duties that require extensive training. Rotational training and mentor training are on hold due to budget cuts. No advancement opportunities. The pool for foremen is heavily concentrated in internal candidates. There are very few new openings at the Lima plant for foremen to move up to supervisors, and also few openings to move up from supervisor to manager. When an opening is available, the company hires external candidates. Thus, the plant was not satisfactory developing new managers and supervisors.

Opportunities

Cost and productivity leadership. By resolving the issue of high foremen turnover, the Lima plant can consolidate its position as the top’s Treadway plant in productivity, quality, and lowest cost producer. Expansion to new markets. Treadway Tire as a major supplier of OEM in North America may use its positioning to enter new growing markets in Latin America, Asia, and Europe. Effective training program. If the Lima plan is able to develop an effective training program for foremen and thus reducing their turnover, this program can serve as a model and may be used by other Treadway plants. This training program will increase job satisfaction, boost employee morale, and productivity. New technology and development. New technology advancements can improve the tire manufacturing process and reduce the dependency of oil derivates raw materials.

Threats

Raising cost of raw materials. Raw materials used by the company are petroleum derivatives and highly dependent on oil prices. Variance of oil prices affects negatively the company because it increases the costs affecting profitability and competitiveness. Global competition. International competitors may displace the leadership position of Treadway Tire and lower its market share and profitability. Main competitors are located in Germany, Sweden, Finland, Italy, and Japan. New manufacturing tire companies are strongly emerging in India and China. Problems with the union. Unionized labor may cause problems with the company in terms of contracts, salaries, and benefits. A generalized strike may paralyze operations at Treadway plants. New Regulations. New environmental or government regulations may require new standards in the manufacturing of tires. This can be a factor of increasing costs.

Foremen

Foremen employees are experiencing job dissatisfaction at the Treadway Lima plant. This is causing a serious turnover rate of 46% during the year. In other words, 23 out of the 50 foremen left the job during the year and had to be replaced. Exit surveys reveled that foremen had very low morale. They feel left alone and overwhelmed with plenty of responsibilities, but without the necessary training and tools to perform their duties. The lowest areas of dissatisfaction were training and development, working conditions, supervisors, and advancement opportunities.

In addition, during a meeting organized by Ms. Wall, the Human Resources Director, the foremen expressed their frustration about their lack of authority and the adversarial relations with the hourly workers. They said that the administration expects them to meet or exceed targets, but they do not receive the support to accomplish these objectives. They have issues with staffing the production, disciplining workers, and union’s grievances. Besides, one of the major issues is the lack of training. Foremen perform a variety of administrative and technical duties such as scheduling, payroll, staffing, and production sheets. Yet, they do not receive a formal training and the company does not have an ongoing formal training for foremen due to budget reasons. Another issue affecting the foremen is the lack of opportunities to advance in the company.

The consequences of foremen’s job dissatisfaction have become a major issue at the Lima plant. The immediate consequence is the high turnover ratio. Almost half of the foremen during the year left the company voluntarily or involuntarily. As a result, productivity is being affected because the production targets are not met. Besides, the relationships with the hourly workers and supervisors are also affected. The relationships with hourly workers are seen as adversarial because they do not respect the authority of the foremen and hourly workers complain that foremen are rude and they treat them like slackers. Supervisors just put pressure to achieve the targets, but they do not provide any support to foremen. There is a clear lack of communication with lack of communication with supervisors and managers.

Work System

Treadway Tire work system has many elements that contribute to the problems experienced by the foremen. The first aspect is the 12 hour shifts. This policy is saving money to the company, but it is placing an enormous pressure on workers due to long extended day. There are many people absent or arriving late to work. So this policy may be counterproductive and it is affecting not only the foremen, but also the hourly workers and the productivity as a whole.

The second aspect is the lack of formal training. Foremen perform a wide range of activities in their daily jobs that may be overwhelming and counterproductive. However, they do not receive a formal training to perform these functions. There is only informal training for new foremen at discretion of the supervisor or manager. Formal training has been place on hold due to budget cuts. This is causing frustration of the foremen because they feel powerless to fulfill their duties without proper training and support.

The third element is the lack of advancement. There are few opportunities for advancement at all levels. Foremen who made it to supervisors are not typically promoted to managers because they administration selects an outside candidate.

Finally, the lack of communication in the chain of command is affecting also the foremen. Supervisors tend to blame foremen for not meeting the targets, but they do not provide support to the foremen to achieve these objectives. Neither the managers are taking responsibility in supporting the foremen. In addition, the efforts to improve communication by the plant manager are inconstant and minimal. There is no a formal channel of communication and the foremen are left alone and nobody is taking responsibility for their high turnover ratio.

Plan of Action
There are many strategies Treadway may implement to solve the high turnover issue at the Lima plant and improve the job satisfaction of the foremen.

Strategy One
Implement a formal training program. A formal training and mentoring program needs to be fully funded and implemented. Foremen play a key role in the company and they need to be trained and supported on constant basis. They need to receive training in the areas of management, leadership, production planning, payroll, conflict resolution, and labor/union laws. Besides, the mentoring program is necessary with supervisors, so they take ownership of the foremen’s performance and provide the necessary support. This program will empower the foremen and will improve the relationships with hourly
workers and supervisors.

Strategy Two
Modify the evaluation and targets for the foremen. Instead of having a yearly informal evaluation, the management should develop a monthly evaluation of the foremen so they have opportunity to make corrections and meet the targets. This new evaluation should consider both quantitative and qualitative data. In addition, this evaluation should also consider external factors that affect foremen productivity such as hourly workers absences or machinery breakdowns.

Strategy Three
Create collaborative committees. Managers and supervisors must have open channels of communication with foremen and hourly workers to improve productivity and avoid adversarial relationships. One way to improve this communication is through the creation of collaborative committees. These committees will formed by hourly employees, foremen, supervisors and managers. They will discuss issues related to targets, production, productivity, and continuous improvement. These committees will keep informed the top management of the issues at the production line level.

Strategy Four
Review the shift schedule. The 12-hour shift work schedule should be revised and compare with the 8 hours shift schedule in terms of savings and productivity. If the company is only considering the savings on the head counts, also the productivity and problems related with long shifts should be considered. The 12 hour shift may be saving money in personnel, but it may be losing money in productivity.

Strategy Five
Modify advancement policies. Policies should be revised and clearly outline the requirements and steps to follow to advance at the company. More in-house opportunities should be given to foremen and supervisors to advance at Treadway Tire Company.

CURRENT SITUATION

Levi Strauss & Co. s a privately held American clothing company known worldwide for its Levi’s brand of denim jeans. The core Levi’s was founded in 1873 in San Francisco, specializing in riveted denim jeans and different lines of casual and street fashion. Levi Strauss received a U. S. Patent to make the first riveted men’s work pants out of denim: the first blue jeans. The company briefly experimented (in the 1970s) with a public stock listing, but remains owned and controlled by descendants and relatives of Levi Strauss’ four nephews. Levi Strauss & Co. s a worldwide corporation organized into three geographic divisions: Levi Strauss Americas (LSA), based in the San Francisco headquarters; Levi Strauss Europe, Middle East and Africa, based in Brussels; and Asia Pacific Division, based in Singapore. The company employs a staff of approximately 11. 400 people worldwide.

STRATEGIC POSTURE

Vision and Core

Values Levi’s believes that business can drive profits through principles, and that core values as a company and as individuals give the company a competitive advantage.

• Empathy — walking in other people’s shoes Empathy begins with paying close attention to the world around. Levi’s listens and responds to the needs of customers, employees and other stakeholders.
• Originality — being authentic and innovative The pioneering spirit that started in 1873 with the very first pair of blue jeans still permeates all aspects of the business. Through innovative products and practices, the company breaks the mold.
• Integrity — doing the right thing Integrity means doing right by the employees, brands, company and society as a whole.

Ethical conduct and social responsibility characterize company’s way of doing business. Courage — standing up for believes It takes courage to be great. Courage is the willingness to tell the truth and to challenge hierarchy, accepted practice and conventional wisdom. It means standing by Levi’s convictions and acting on beliefs. Levi’s is the embodiment of the energy and events of time, inspiring people from all walks of life with a pioneering spirit. Generations have worn Levi’s jeans, turning them into a symbol of freedom and self-expression in he face of adversity, challenge and social change. Customers forged a new territory called the American West. They fought in wars for peace. They instigated counterculture revolutions. They tore down the Berlin Wall. Reverent, irreverent — they took a stand.

CURRENT PERFORMANCE

For its first 100 years, Levi Strauss & Company was a private company. Relatives of founder Levi Strauss owned nearly all the stock, and company employees owned most of the remaining shares. In 1971, the company went public to finance growth and diversification.

However, in 1985, the company again went private, which it remains today. In September 2004, Levi Strauss announced plans to sell its Dockers casual-clothing brand to Vestar Capital Partners (a private equity fund) and an apparel industry executive for about $800 million. Selling the Dockers brand would have allowed the company to reduce its heavy debt and refocus attention on turning around the Levi brand. However, the company soon changed its mind and chose instead to reinvest in and revitalize the popular Dockers brand.

Recently the company produces only for men under Dockers brand. Its products are sold in more than 110 countries worldwide through a combination of chain retailers, department stores, online sites, and franchised and company-owned stores. As of August 28, 2011, the company operated 499 stores within 31 countries. Levi Strauss & Co. ’s reported fiscal 2010 net revenues were $4. 4 billion. Regional net revenues for the quarter were as follows: The reported net revenues increase in Europe was due to currency; net revenues were down on a constant-currency basis.

Gains from the expansion of the company-operated retail network and the continued success of the Levi’s Curve ID collection for women were more than offset by declines in the wholesale business. Revenue growth in Asia Pacific, primarily driven by the Levi’s brand and continued expansion of the company’s brand-dedicated retail network in China and India, offset the revenue decline in Japan. Cash Flow and Balance Sheet As of August 28, 2011, cash and cash equivalents were approximately $231 million, and $337 million was available under the company’s revolving credit facility.

Cash provided by operating activities during the nine-month period in 2011 was $17 million, compared with $96 million for the same period in 2010; the decline reflected higher inventories, due primarily to the increased cost of cotton, increased selling, general and administration expenses and increased pension plan contributions. Net debt was $1. 75 billion as compared to $1. 6 billion at the end of 2010.

CORPORATE GOVERNANCE

Board of Directors

Fernando Aguirre, a director since July 2010, is currently Chairman of the Board, President and Chief Executive Officer of Chiquita Brands International, Inc. a position he has held since 2004. From 2002 to 2004, Mr. Aguirre served as President, Special Projects for The Procter & Gamble Company (P&G), a manufacturer and distributor of consumer products. From 1980 to 2002, he served P&G in various capacities, including in an executive capacity with P&G’s Global Snacks and U. S. Food Products business. Mr. Aguirre is also a director of Coca-Cola Enterprises, Inc. Chip Bergh, a director since September 2011, is the President and Chief Executive Officer. He joined the company in September 2011. Prior to joining Levi Strauss & Co. , Mr.

Bergh was Group President, Global Male Grooming, for The Proctor & Gamble Company (P), a manufacturer and distributor of consumer products. During his 28-year career at P, he served in a number of leadership positions. Mr. Bergh previously served on the Board of Directors for VF Corporation and on the Economic Board, Singapore, and was a member or the US-ASEAN Business Council, Singapore. Vanessa J. Castagna, a director since 2007, led Mervyns LLC department stores as its executive chairwoman of the board from 2005 until early 2007. Prior to Mervyns LLC, Ms. Castagna served as chairman and hief executive officer of JC Penney Stores, Catalog and Internet from 2002 through 2004. She joined JC Penney in 1999 as chief operating officer, and was both president and Chief Operating Officer of JC Penney Stores, Catalog and Internet in 2001. Ms. Castagna is currently a director of SpeedFC and Carter’s Inc. Robert A. Eckert, a director since May 2010, is currently Chairman of the Board and Chief Executive Officer of Mattel, Inc. , a position he has held since May 2000. He previously worked for Kraft Foods, Inc. for 23 years, most recently as President and Chief Executive Officer from October 1997 until May 2000. From 1995 to 1997, Mr.

Eckert was Group Vice President of Kraft Foods, Inc. and from 1993 to 1995, Mr. Eckert was President of the Oscar Mayer foods division of Kraft Foods, Inc. Robert D. Haas, a director since 1980, was named Chairman Emeritus in February 2008. He served as Chairman of the Board from 1989 until February 2008. Mr. Haas joined Levi’s in 1973 and served in a variety of marketing, planning and operating positions including serving as our Chief Executive Officer from 1984 to 1999. Peter E. Haas Jr. , a director since 1985, is a director or trustee of each of the Levi Strauss Foundation, Red Tab Foundation, Joanne and Peter Haas Jr.

Fund, Walter and Elise Haas Fund and the Novato Youth Center Honorary Board. Mr. Haas was one of the managers from 1972 to 1989. He was Director of Product Integrity of The Jeans Company, one of the former operating units, from 1984 to 1989. He served as Director of Materials Management for Levi Strauss USA in 1982 and Vice President and General Manager in the Menswear Division in 1980. Leon J. Level, a director since 2005, is a former Chief Financial Officer and director of Computer Sciences Corporation, a leading global information technology services company. Mr.

Level held ascending and varied financial management and executive positions at Computer Sciences Corporation from 1989 to 2006 and previously at Unisys Corporation (Corporate Vice President, Treasurer and Chairman of Unisys Finance Corporation), Burroughs Corporation (Vice President, Treasurer), The Bendix Corporation (Executive Director and Assistant Corporate Controller) and Deloitte, Haskins & Sells (now Deloitte & Touche). Mr. Level is also currently a director of UTi Worldwide Inc. Stephen C. Neal, a director since 2007, became Chairman of the Board in September 2011. Mr. Neal is currently the chairman of the law firm Cooley LLP.

He was also chief executive officer of the firm until January 1, 2008. In addition to his extensive experience as a trial lawyer on a broad range of corporate issues, Mr. Neal has represented and advised numerous boards of directors, special committees of boards and individual directors on corporate governance and other legal matters. Prior to joining Cooley LLP in 1995 and becoming CEO in 2001, Mr. Neal was a partner of the law firm Kirkland & Ellis. Patricia Salas Pineda, a director since 1991, is currently Group Vice President, National Philanthropy and the Toyota USA Foundation for Toyota Motor North America, Inc. an affiliate of one of the world’s largest automotive firms. Ms. Pineda joined Toyota Motor North America, Inc. in September 2004 as Group Vice President of Corporate Communications and General Counsel. Prior to that, Ms. Pineda was Vice President of Legal, Human Resources and Government Relations and Corporate Secretary of New United Motor Manufacturing, Inc. with which she was associated since 1984. She is currently a director of the Congressional Hipic Caucus Institute and a mem ber of the board of advisors of Catalyst.

Top Management in Turkey

Hakan Atalay is the general manager of Levi’s Turkey since 2008. He graduated from Textile Engineering Department from Istanbul Technical University and he also has a graduate degree from the Management Department of Marmara University. He has a 16 years of experience in retail, sales and product management in local and multinational companies like Mexx Turkey, Network and Unitim. Lately he was the country sales director of Nike Turkey. He is now responsible for the management of Levi’s and Dockers brand operations and for the development of strategic vision of those brands in Turkey.

Kayhan Ongun is the sales director of Levi’s Turkey since 2010. He graduated from Management Engineering Department from Istanbul Technical University and he has a Management of Business Administration degree from Rowan University. He worked at various sales positions in Michelin and Nike Turkey. Lately he was Football Sales Manager in Nike Turkey. Korhan Oz is the finance manager of Levi’s Turkey. Korhan Oz is a graduate of Istanbul University Department of Economics. He has in particular substantial experience in finance.

He worked as Country Financial Controller at Ernst Audit, Intergen and Nokia and then worked as Executive Vice President for Financial Affairs at Krea Group. Orhan Ors is the Information Technology Director of Levi’s Turkey. He has been working for Levi’s for 22 years. Ozan Duman is the Human Resources Director of Levi’s Turkey since 2011. Lately, he was HR Manager of Kimberly Clark Turkey. Ipek Bekiroglu is the Marketing Manager of Levi’s Turkey since 2006. Lately, she was working as a Brand Manager in Carslberg Turkey.

EXTERNAL ENVIRONMENT ANALYSIS: OPPORTUNITIES AND THREATS

SOCIETAL ENVIRONMENT

Socio-cultural Turkey has the youngest population in Europe with 31M under 25 and the population growth rate is 1. 35%. Life style changes heavily affect trends in casual apparel design and market. Being thin and skinny creates a trend in the market where skinny and tight jeans dominate the market. Economic There is a shortage in cotton supply in the world combined with high cotton prices due to several important factors: First, global stocks of cotton were drawn down sharply as less cotton was grown and shipped through the global supply chain due to competition from other crops.

Second, climate changes and bad weather undermined global cotton production. Thirdly, government actions further aggravated the situation where India, one of the world’s largest cotton producers, slapped export quotas on raw cotton. And finally, demand for textiles and apparel rose. Retail landscape is evolving with the opening of many new malls and locations. In addition street store rents are increasing, so brands are investing on shopping malls in primary and secondary cities. In line with this development, traditional outlet stores on the highway breakpoints have been converted to outlet malls.

Extended seasonal sale months, attractive promotions are offered throughout the year. There is high investment cost on one hand; as the average shop size is growing, rents are getting higher. On the other hand however, shopping malls have made significant discounts in their rents or currency rates have been fixed due to global crisis. Technological E-commerce is getting more popular with private shopping concept. (Trend-Yol, Markafoni and Limango are the main players in Turkish Market. ) Social media has a narrow effect right now but it is increasingly becoming a part of ompanies’ marketing strategies. Political legal There is continuous financial instability in Turkey that strongly affects the spending power of Turkish people. Income difference between regions is dramatic in Turkey which affects the spending power. However, lower income classes’ and regions’ spending is increasing. Environmental standards and regulations against hazardous jeans production are increasingly applied by many countries and companies (The blue dust that stems while sanding jeans is a heavy irritant to the lungs).

In the European Union, the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) regulations enacted 1 June 2007 require clothing manufacturers and importers to identify and quantify the chemicals used in their products. These regulations may even require manufacturers to inform consumers about potentially hazardous chemicals that may be present in their products. Actual end products are governed by stipulations of the European Equipment and Product Safety Act, which regulates the use of heavy metals, carcinogenic dyes, and other toxics used in textile manufacture.

Additional consumer protection is offered by the European Union’s Oko-Tex Standard 100, a testing and certification program established in 1992. The standard gives the textile and clothing industry uniform guidance for the potential harm of substances in raw materials as well as finished products, and every stage in between—these include regulated substances as well as substances that are believed to be harmful to health but are not yet regulated (such as pesticides). The standard also governs elements such as colorfastness and pH value.

Along with these standards, Levi Strauss and Co. Turkey does not produce jeans with sanding.

TASK ENVIRONMENT

Rivalry among existing firms There is a heavy weight of local players in Turkish casual apparel market. Local retailers like Mavi, LC Waikiki, Colin’s, LTB (Little Big) have their own denim production facilities so that they can sell with reasonable prices. This fact that the competitors have low entry prices makes “price” the main differentiator. International and local brands are investing in key cities and key locations. (Zara, Mango, Adidas, Nike, Mavi, Colin’s).

In addition, local competition is investing on O stores which are bigger than 200 sqm. Mavi was acquired by Turkven (private equity fund) with 35% share in 2008. The company has aggressive revenue targets and invests heavily in ATL communication. The company is focusing on head to toe look and as a result of this approach, their women and tops share increased. Colin’s is re-vamping the brand identity launched a new logo. The company focuses on O (owner and operator) model. In accordance with this approach, they re-fit O stores in major shopping malls.

Lee is losing ground, they have no presence in stand alone stores, and they focus on department stores. LTB is re-fitting their O stores in premium shopping malls. Diesel has not been aggressive in communication for a long period. Jack & Jones is entering department stores. Grey market is an important factor that has a huge impact in the competition. The high number of grey market producers impacts the competition between the existing firms as especially the local denim producers try to differentiate themselves by price.

INTERNAL ENVIRONMENT ANALYSIS: STRENGTHS AND WEAKNESSES

CORPORATE STRUCTURE

The worldwide leadership team, which includes the CEO and ten executives, sets the company’s overall direction and is responsible for all major strategic, financial and operational decisions. Many of the senior-most leaders have risen through the company ranks over the past two or three decades. But to maintain the lead in the fast-changing fashion industry Levi’s leadership team also includes executives who bring leading-edge expertise and new ideas from other consumer companies and other industries. Levi Strauss Co. as a corporation has operations divided under three main regions: Asia Pacific, Europe and America.

The company has headquarters in Singapore, Brussels and San Francisco. Every region is under the management of a Vice President. Country General Managers are directly reporting to their respective Regional Vice Presidents. In Turkey, human resources, information technology and finance departments are directly reporting to their respective region and they are indirectly reporting to Turkish General Manager. However, sales and marketing departments are directly reporting to Turkish General Manager and they are indirectly reporting to their respective region.

Retail Operations and Sales Manager and Wholesale Sales Manager are directly reporting to Sales Director. Retail Operations and Sales Manager manages four District Managers and Wholesale Sales Manager manages three Account Managers in Turkey.

CORPORATE CULTURE

Levi Strauss & Company as a multinational company embodies its vision that has four main values at the core: empathy – walking in other’s shoes; originality – being authentic and innovative; integrity – doing the right thing; and courage – standing up for what they believe.

In addition to guiding the strategic decisions and actions, the company’s values also guide its social responsibility in various ways – through the grants provided by the Levi Strauss Foundation, through the support provided to communities in which it has a business presence, through its employee community-involvement program, and through its ethical code of conduct for its business partners. The company’s strategic move to outsourcing has presented its own challenges because of Levi Strauss’ strong commitment to socially responsible business practices.

In 1991, Levi Strauss became the first multinational company to establish a comprehensive ethical code of conduct for its alliance partners in manufacturing and finishing. This code, titled the Global Sourcing and Operating Guidelines, establishes business practices such as fair employment, worker health and safety, and environmental standards. The company remains committed to ensuring compliance with its “Code of Conduct” at all facilities and works onsite with its contractors to develop responsible business practices and continuous improvement.

Trained inspectors closely audit and monitor the contractors and if it is determined that a business partner is not complying with the terms, Levi Strauss requires that the partner implements a corrective action plan within a specified time period. If a contractor fails to take corrective actions, the business relationship is terminated. By nature, the company is externally focused and determined to stay that way. This means constantly scanning developments that affect the business, and acting on that information to surprise their customers.

The above are part of Levi Strauss’ global corporate citizenship culture. To make these to also diffuse to Turkish Levis’ employees working environment, the top management team is making radical moves.

CORPORATE RESOURCES STRENGTHS

Levi Strauss and Co. is a member of Better Cotton Initiative. Better Cotton is a different way to grow cotton that decreases the negative environmental impacts and has the potential to improve the livelihood of the 300 million people involved in cotton farming worldwide.

At its heart, the Better Cotton Initiative aims to make all cotton grown around the world more sustainable by reducing water and chemical use (including pesticides and fertilizers), protecting the health of the soil and promoting important labor standards including bans on child labor. The Better Cotton Initiative also focuses on training and empowering farmers to improve their long term financial profitability. This is a conscious effort made by all partners of the Better Cotton Initiative to help prevent prices for Better Cotton from rising dramatically in the short term.

This is an advantage on behalf of Levi? s Turkey as the competitors in Turkish market are not involved in this initiative. Levi’s always had been described as a fashion innovator, as the company created the jeans market. The company continues to recognize the importance of the right products to its future success. One of Levi Strauss’s critical strategic goals is to “innovate and lead from the core,” and it continues to introduce product innovations. For instance, since 2001, the Advanced Innovation Team for the Dockers line has introduced several groundbreaking product innovations.

For instance, in 2004 and 2005, the team developed three new and exclusive product innovations. The first was the Never-Iron Cotton that dramatically minimizes wrinkling. Another was the Thermal Adapt Khaki pants that adjust to body temperature. And the third was Dockers Shirts with Perspiration Guard, a special finish that wicks away moisture from the body and eliminates the appearance of perspiration marks. This is a strength that differentiates Levi? s from its competitors. In addition to this, the company recently decided to make a tradeoff and it stopped producing for women under Dockers brand.

This is another wise strategic move on behalf of the company. And furthermore- in line with the above tradeoff- Levi’s was one of the first companies to tap into the mass customization trend by offering made-to-order jeans. In 1999, the company announced that it would begin offering customized versions of its classic denims to fit every woman’s body type, but this move was not successful at that time. In 2011, the company re-launched the same project under the name of “Curve ID” for women and now it proved to be a great success to regenerate growth on women? s product line.

This is another important advantage that makes the brand stronger than the other brands. Youth panel- as a method of consumer-driven brand innovation- is a qualitative consumer panel focused on the consumer typologies that the company believes exercise greatest influence on the dynamics of change within the casual apparel market. The panel has been built up in most fashion significant European cities and comprises between 50 and 100 of the most fashion-forward youth. It is convened twice a year to fit into the line development calendar. This tool is strength for Levi? as it provides the best indication the business has of how much momentum a particular trend has in it, and so serves to guide both general businesses forecasting as well as specific product life cycle management. Every second quarter the brand and design teams dedicate a day to working with the insights coming out of the panel. It helps set the strategic agenda and also enables some very effective and immediate trouble-shooting.

WEAKNESSES

One of the company’s most valuable assets is its Levi’s brand. However, that venerable Levi’s brand had lost much of its popularity.

Although Levi Strauss has one of the best-known names in the world, its market power has declined. An annual ranking of global brands with the most impact showed Levi’s ranked at number 32 in 2001, number 34 in 2002, and number 56 in 2003, and rebounding to number 44 in 2004. The products that baby boomers in the 1960s defined as hip and anti-establishment were now perceived as non-trendy and dull. In the brutally competitive apparel market, that type of image, particularly with younger consumers, has proven to be a disadvantage. As a way to p the consumer market, the company launched several new brands in USA and several other countries.

But the same product strategy is not applied in Turkey and the product range is not diversified to cover all customer segments as far as price competition is considered. The company chose to stick with low-tech, in-store posters and other promotions; rather than mass media coverage – television and print ads which the biggest competitors in Turkey extensively use. The company doesn’t invest on brand image and use localized advertisement. But the competitors are using constant brand communications strategy including celebrities, outdoor events

REFERENCES

1. http://www. levistrauss. com/
2. Company’s 2012 plan
3. Company’s distribution strategy
4. Inspiring the organization to act: a business in denial, International Journal of Market Research Vol. 44 Quarter 2, 2002, the Market Research Society
5. Denim Pazar? nda Marka Konumland? rmalar? n? n Karsilastirilmasi,

E selling and E-marketing these days is ever changing, always dynamic. Technology is advancing faster than we can think. As every day more and more consumers decide to do their shopping from home, whether it be groceries, personal items, or toys, web sites are changing significantly in order to meet their customer’s needs. Being an avid online shopper, I always look for a few things in order to fully trust a websites content and after purchase resources, which include; estimated time of delivery, estimated shipping price, product packaging, and their return policies.

These are only a few of the many key services a customer can take into consideration when dealing with an online store, but by no means are the only things that a potential e-customer should be aware of. Using the SOOT Analysis, as a guideline, I came to the following conclusions when I visited the Macy’s and Bloodiness’s online stores. An online store’s navigability should be very simple and to the point. This all begins on their homepage, were all the important information is centered.

It should use very big links, and buttons in order to facilitate a customer’s shopping experience. It should also provide enough information and a secretive photo of the item, so the customer can make the right decision and will be happy with it. In this critique both websites were equal, making this the strength of their websites.

A weakness that I found for the Macy’s website is they did not offer an “About Macy’s” link, where SWOT Analysis: Macy’s vs…Bloodiness’s. By ages_l second weakness to the Macy’s online store is in their customer services. It seems that their discount ads are the biggest and the services they offer are all left on the bottom of the page and in a smaller font size. One weakness that I personally found or the Bloodiness’s online store is their lessened line of ads, or discount ads. But then again I don’t think Bloodiness’s customers are looking for that in the first place.

The weaknesses that each online store holds can then be turned into opportunities for the rival store, which they have taken advantages of that. Macy’s caters more to middle class people, offering discount ads and inexpensive items. Bloodiness’s, on the other hand, caters to the upper class, in which they are trying to grab your attention with a line that reads “Like no other store in the world” and they also add that they’re the only apartment store that has hosted a Queen of England.

Bloodiness’s also offers the “About” page that Macy’s does not, by which they’re giving a sense of attentive service. Threats for both of these stores are certainly other online stores. If a person would make an online search for a men’s cologne, for example, they would receive thousands of links to online department stores. In this era of e-shopping, people of the upper class can now shop through a lower end department store, or bargain site like e-bay, without ever having to place one foot in any of these department stores, and no one would never know.

Alphabet is a collection of businesses – the largest of which, of course, is Google. It also includes businesses that are generally pretty far afield of our main Internet products such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo, and X. Google’s core products such as Search, Android, Maps, Chrome, YouTube, Google Play, and Gmail each have over one billion monthly active users.

Google is probably the world’s best-known company for pioneering the search engine revolution and providing a means for the internet users of the world to search and find information at the click of a mouse. Further, Google is also known for its work in organizing information in a concise and precise manner that has been a game changer for the Internet economy and by extension, the global economy because corporations, individuals, and consumers can search and access information about anything anywhere and anytime. Apart from that, its Chrome browser is the leader among web browsers. The business model of Google is based purely on innovation. It has helped the tech giant acquire a very large market share in a short period.

Google’s SWOT analysis shows the firm’s internal capabilities and the external factors that influence how these capabilities are used.

Strengths

Google holds the largest market share in the search engine market. Its name has become synonymous with online search. According to industry reports, Google holds more than 70% of the global search engine market. For years, it has continued to focus on making its search engine as user-friendly as possible. A large part of its revenue comes from online advertising.

Google has adopted the Android and mobile technologies and it becomes the direct competitor of Apple by introducing the new devices and their operating systems. About 80% smartphone users use Android service. It enables users to use some open source applications like Google Maps, Google Drive, Gmail and many others. When users use these applications, Google places targeted ads across its network. This is one of the major ways to advertise products and services. By this way, Google earns a profit.

Alphabet employs more than 27,100 people in research and development (R;D). The company invested USD 13,95 billion, USD 12,28 billion and USD 9,83 billion on R;D for 2016, 2015 and 2014 respectively. Massive investments in R;D have enabled the company to introduce new products for new markets in a consistent manner, thus adopting first mover advantage as a competitive advantage of the business. Specifically, the range of innovative products and services introduced by Google include, but not limited to self-driving car equipped with video cameras, radar sensors and a laser range, Google TV, a platform that integrates television and internet, Google Replay, a source for achieve of tweets, Priority Inbox feature in e-mails and others.

Weaknesses

Despite a highly diversified portfolio of Alphabet Inc. products and services, 88% of total revenues in 2016 were generated from advertising only. Google’s major strength – its leadership in online advertising can be its major weakness as well, in a way that the company mainly relies on only one source of revenue. Sustainability of this revenue source is not ensured as advertisers can terminate the contract at any time due to a wide range of reasons. Additionally, an introduction to fundamentally innovative forms of advertising by competition can result in highly negative implications for Google in short-term and long-term perspectives.

Google’s ‘Google Plus’ is a lot behind Facebook or Twitter. According to industry sources while the number of visitors on Facebook, Twitter, Pinterest and YouTube is growing, on Google Plus it is shrinking. Google plus is not as successful as the other brands in terms of the number of visitors and followers. Twitter or Facebook have superior features compared to Google Plus. It is why Google Plus failed to engage visitors like the other social media sites.

Opportunities

The company’s opportunities are mainly based on technological changes. Google is expanding its business to the driverless car. This innovation will be introduced within several years. This new technology will enhance the lifestyle of people though it will take several years to bring in the market. It will be safe for people to travel one place to another. The company will come in a new form in the market. There will not be any competitor. This will be the biggest opportunity for the company to capture the market.

Looking further ahead, Google has plenty of opportunities for long-term growth, including driverless cars, smart home efforts, robotics projects, artificial intelligence, medical equipment, and even medicine. Although many of these efforts are “moonshots” that might never generate meaningful revenue, the success of just one could diversify Google’s top line away from advertising.

The company will introduce Google Fiber and enhancement of cloud service. Google Fiber will bring ultra­high speed to increase easy access on the web. The experts think that Google Fiber will increase the profitability of the company. Though the company has cloud service, it is very little to serve the customers. They are trying to increase cloud service. It will be leveraging its massive computing infrastructure to compete with other competitors like Amazon, Microsoft, and Oracle.

Threats

The company faces tough competition. Competing firms include large ones like Yahoo and Apple, as well as start-ups and regional/national firms offering products similar to Google’s. Other firms can also imitate the company’s products, such as its Nexus consumer electronics.

Apple, Microsoft, and Facebook are its primary competitors. Its share in mobile ads is increasingly under threat by Facebook. Facebook’s ad revenue from mobile advertisements has seen significant increase recently. At several points, Facebook’s performance in mobile ads has been better than Google. Apple is also trying to reduce the presence of Google in its ecosystem. Amazon’s product searches could also prove a threat for Google’s shopping ads. Google has generally managed the threat of competition well by acquiring a very large market share in search engines.

Facebook is the highest level threat to Google with the plethora of information and data it has in its database. The Graph search feature initiated by Facebook will pose a great threat to Google since both are equally powerful in terms of money, performance as well as business capabilities. Google has to set a strategy to overcome this stiff situation

Conclusion

Overall, while Google has emerged as a powerful brand in the web world, it cannot ignore the threat from competition. While Google does face a potentially difficult road ahead, they still remain a dominant force in the technology industry and one of the most profitable companies in the world. In the realm of search engines, Google is a household name and that name has become a synonym for internet search, eg. “Google it.” Their continued growth through acquisition and innovation keeps them steps ahead of their competitors and their large cash holdings keep the company liquid enough to remain able to do these things. Google faces too many disruptive challenges to be considered a safe long-term investment. Its core search and ad revenues are strong, but its inability to expand into social networking or shopping is worrisome. Unless Google can shore up its defenses against Facebook, Amazon, and Apple, the value of Google’s ads could continue sliding.

References

• Alphabet Inc. Annual Report (2016) [https://abc.xyz/investor/pdf/2016_google_annual_report.pdf]
• Alphabet Inc. Wikipedia [https://en.wikipedia.org/wiki/Alphabet_Inc.]
• SWOT Analysis of Google Inc. [https://www.fool.com/investing/general/2015/07/03/swot-analysis-of-google-inc.aspx]
• Larry Page explains why he chose the name ‘Alphabet’ for his new big company [http://www.businessinsider.com/why-googles-new-name-is-alphabet-2015-8]