IntroductionThe SWOT analysis of any company is typically very imperative for the top company organs (Hacklin and Maria 178). It is through the SWOT analysis that the company managers can make the informed decisions regarding the operation of the firm. SWOT analysis similarly reveals the areas that the firm needs to improve on so as to continue making the profits as usual. It is very significant for the company managers to know the strengths and weaknesses of the firms so that they can improve on them. This paper specifically discusses the SWOT analysis for Danone Company.
Q1. Purpose of the strategic review
A1. A strategic review is supposed to act as the yearly evaluation of the progress that is being made towards enhancing the outcomes of a particular program the firm has initiated. It evaluates if at all an organization is employing the most excellent measures towards identifying progress for the program results as well as look at chances in support of the productivity gains. This can be done by employing various analytical, research, together with assessment techniques so as to support such evaluations. The outcomes of these reviews are supposed to provide an update on various decision-making methods within the organization in addition to decision-making that is done by the stakeholders of the organization.
Most of the companies engage in the strategic review due to the following reasons:
Improve transparency: The companies engage in strategic review exercises so as to offer the public with an information concerning progress in attaining mission of the company.
Recognize wherever extra skills are required: Strategic review provides the information to the companies on where extra skillfulness or capability gaps exist which hinder the progress of the organizational objectives. Capacity gaps might be associated with organizational processes as well as human resources. The company is supposed to include strategic goals for individuals’ performance, scheduling as well as the processes of assessment in addition to the rewarding contributions towards strategy advancement, wherever apt.
Assist in recognition together with the adoption of chances meant for the company development, incorporating the management of risk: The strategic review analyzes as well as evaluates the areas that the companies seem to be making some steps forward.
Specifically, Danone uses the strategic review due to the following reasons:
Enhance response period for the decision-making: The yearly review assists in strategic transformations owing to rising trends, occasions together with the factors that are external in an appropriate mode (Stanford 67).
Inform yearly planning as well as the formulation of the budget to be used in the company: Strategic review assists Danone Company to bring up to date the development concerning the yearly performance plan, bring up to date the budget formulation in an organization.
Q2. Strengths and weaknesses of Danone
A2. Strengths
These are some of the strengths that Danone possesses as per the article reviewed
Domestic market- The Company aspires to expand its domestic market. Expanding the domestic market shall make the firm distribute much of their product to the clients thus increasing the company revenue (Thompson and MacMillan 300).
High revenue and profitability-Danone Company through the expanded market makes generates high revenue together with the profit. This makes the company grow at a good pace.
Skilled labor force- The Company has very skilled labor force that normally work in attaining the company goals.
Weaknesses
These are some of the weaknesses that the company has:
Future profitability-The Company has been hit by the economic crisis, and its managers are never certain of the future profit for the company. The food safety warning similarly affected the company making their turnover to go down. Therefore, from such instances, future profitability is a big threat to Danone Company.
Cost structure- The Company has been facing the challenges of the running cost of the company owing to the economic downturn that the country recently. This has been hard in balancing the loss as well as the profit that the company is generating.
In particular, the weakness of the future profitability is supposed to be addressed. This is because whenever the weakness is never addressed then Danone Company might collapse owing to the perpetual losses generated. When the company makes profits, then such firm’s development is guaranteed.
Q3. Opportunities and threats for Danone Company
A3.Opportunities
New markets- The Company is acquiring new markets for its products. The Company C.E.O Mr. Ribound has in fact asked the managers for the company to explore the potentials for the company’s new growth strategies. The growth strategies shall help the company to get the new markets for the company products.
New acquisitions- The Company’s intention of acquiring firms like the French Dairy Company are some of the greater steps forward that the company has made in improving its capital base in future.
The level of the income for the company is constantly increasing. This is a great opportunity for the company as the managers can easily plan well for the company operations.
Profitability and growth rate- Danone Company rate of return is incredibly good. Besides, the growth rate of the company is similarly at par making it stand a better chance when it comes to the matters of development.
Threats
These are some of the threats that the Danone Company faces:
Government regulations-This is a big threat to the company since some of the regulations made by the government constantly affects the firm negatively impeding the growth.
Global economy – When the economy is in recession, the chances that the operation of the firm becomes affected is very high.
- Hacklin, Fredrik, and Maria Wallnöfer. “The business model in the practice of strategic decision making: insights from a case study.” Management Decision 50.2 (2012): 166-188.
- Stanford, Naomi. Guide to Organisation Design: Creating High-Performing and Adaptable Enterprises. London: The Economist, 2007. Print.
- Thompson, James D., and Ian C. MacMillan. “Business models: Creating new markets and societal wealth.” Long Range Planning 43.2 (2010): 291-307.
