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CHAPTER 3 SWOT AND ISSUES ANALYSIS

3.1 INTRODUCTIONS

SWOT analysis is the overall evaluation of a companys Strengths, Weakness, Opportunities, and Threats analysis. It involves monitoring the external and internal marketing environment of My Danish Bakery. External environment analysis is to monitor key of macroenvironment forces like demographic, economic, natural, technologies, political-legal, and social-cultural) and significant microenviroment actors such as customers, competitors, suppliers, distributors, and dealers that will affect its ability to earn profit. So, should set up a marketing intelligence system to track trends and important developments and any related opportunities and threats.

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To be a good marketing must know art of finding, developing, and profiting from opportunities. Opportunity is an area of buyer need and interest in which there is a high probability that My Danish Bakery can profitably satisfy need. An environment threats is a challenge posed by an unfavorable trend or development that would lead, in the absence of defensive marketing action, to lower sales or profit. Threats should be classified according to seriousness and probability of occurrence for My Danish Bakery. Strengths are also known as characteristics of the business or team that give it an advantage over others in the industry. Weaknesses are characteristics that place the firm at a disadvantage relative to others Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is not attainable a different objective must be selected and the process repeated. Every company has their own strengths, weakness, opportunity and threats. So do My Danish Bakery. My Danish Bakery had identified it to make sure that the objective of their company can be achieved. By knowing the SWOT analysis of My Danish Bakery, it can ease the company in order to make sure that that what they have planned can be run smoothly.

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3.2 SWOT ANALYSIS

STRENGTHS Customer can assure that the ingredient used by this company is Halal.

WEAKNESSES Lack of promotion Low sales.

Offered an affordable price. Overall poor profit performance. Quality of product. Insufficient staff.

OPPORTUNITY Expand the market around Bukit Mertajam Seminars organize by FAMA. Demographic changes: once the increasing of working class consumer the food market is in demand.

THREAT Competition from another bakery store. Critical world economic situation. Hard to fulfill the taste and preference of locals. Customer perception.

Technology: The new gadget is available to produce a variety flavor of bread.

Table 3.1 shows the SWOT analysis.

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3.3 STRENGTHS

Strengths are internal capabilities for My Danish Bakery that may help to reach its objectives. The first strength for My Danish Bakery company is the raw material that this company uses to produced their product is based on a fresh, goods and halal raw material. People nowadays are very concern about the halal logo and they can be assured that product produce by this company is halal. Therefore, My Danish Company must ensure the raw material use for produce their product is from halal source material. This is the one way to make customer confident with My Danish Bakerys product before this company get the halal certification. Other than that My Danish Bakery also give an affordable price for the customer. Before this only certain people can have bread and cakes but after this all people can having it at an affordable price. The owner wants to make student as their target customer, so with setting affordable price, customer effort to buy the bread as their food substitutes. Beside that My Danish Bakery also make their product be more quality in ensure the duration for bread is durable from the expired date. To make sure the quality for this product the owner use the good quality of the material and produce in a clean place to keep hygiene place to make a good product. The owner will ensure the raw material will keep in good condition and not beyond the expiry date.

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3.4 WEAKNESSES

Every company had their own weaknesses because it an internal limitations that may interfere with a My Danish Bakery ability to achieve its objectives. The first weaknesses of this company are it has the lack of promotion. This is because My Danish Bakery only just defends on the intermediaries to promote their product. Even though the distributed the My Danish Bakery for customer, only distributed it at the nearest store. My Danish Bakery never makes management for promotion to increase their sales. Customer did not aware about the product and company because My Danish Bakery does not make any way to communicate with customer and just depends on their intermediaries. The second is My Danish Bakery still have low sales even the owned started this business in 5 years. Sales still no get in the target because have a lack in marketing strategy and lack of planning for marketing mix. The owner just only makes sales depend on demand from customer. The third one is My Danish Bakery showed the poor profit for the overall performance. This is because the profit that My Danish Bakery gained had to spend at their project in developing their company at North Region. This company dont have account statement for make reference in future to improve their management. Furthermore My Danish Bakery does not have an enough workers. The management cannot give 100% attention to their subordinate because the top management is busy to develop their company. Otherwise My Danish Bakery cant wages staffs to help manage this company.

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3.5 OPPORTUNITY

The opportunity is My Danish Bakerys external factors that the company may be able to exploit to its advantages. The first opportunity that this company has is to expand the market around Bukit Mertajam. My Danish Bakery had this opportunity because My Danish Bakery is the only one SME Company who monopoly the bread food product based on variety type of flavor of bread. My Danish Bakery can also get the guidance from FAMA and MARDI about how to develop their product. With the guide line from an expertise this company can get the knowledge about how to develop business, also can improve the management of company to make it more robust. The third one is demographic changes which are once the increasing of working class consumer the food supplement is in demand. So this is an opportunity for this company to expand their market when the demand is increasing due to the changes of social class. The biggest opportunity for this company is the use of technology. With the use of technology My Danish Bakery had develop the new gadget to prepare bread, cakes and traditional cakes. These can easy the process of the production of bread and packaging.

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3.6 THREATS

That is current and emerging external factors that may challenges My Danish Bakerys performance. The first threats for My Danish Bakery are the biggest competition from Gardenia. Although it had others competitor, Gardenia is the most aggressive and indirect competitor in the market. The second one is critical world economic situation. When the economy is not stable, customer will limit their consumption. In order to make sure that there is no waste in their money. That can make low demand for bread and cakes. Consumer will limit their consumption because they just buy the only important thing to use. In Malaysia bread and cakes is not the primary foods. The next threat is to suit the taste and preference of locals customer. As we all know, everyone had their own taste and it is difficult to fulfill the needs and wants of the consumer taste. Certain consumer always changes their need and taste for cakes and bread. So this company need to fulfill very each of their target customer. Other than that customer perception because customer is curious about the quality of the product because of its price and this can be the biggest threats for this company. My Danish Bakery had to overcome this problem by changing the perception of the consumer about the quality of their product.

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