SWOT analysis of EZ-Pleeze Food Company

SWOT analysis of EZ-Pleeze Food Company

Strengths	1.      The company has a strong workforce that facilitates the production of quality products. 2.      Active management facilitates informed strategies and decisions. 3.      The company has established partnerships with major fast food outlets within the United States. 4.      Use of modern food technologies.
Weaknesses	1.      The company has been facing financial stability in the last few decades. 2.      Limited presence in both local and international markets. 3.      The company is facing high operational and labor costs.
Opportunities	1.      Closure of rival companies offering similar products and services. 2.      Unrestricted penetration in the global markets. 3.      Increased demand for potato and corn products across the world.
Threats	1.      Increased rate of competition from rival companies. 2.      Unfavorable government regulations. 3.      Costly raw materials

Source; EZ – Pleeze case study

SWOT analysis refers to an evaluation carried out by an organization to determine its strengths, weaknesses, opportunities, and threats. This makes the activity crucial in the development of an active strategic plan (Kolbina et al., 2015). A SWOT analysis benefits EZ-Pleeze in numerous ways. Most importantly, an analysis relating to strengths enables the company to develop a robust framework that enhances market expansion and considerably increases market share. The company also achieves a competitive advantage against significant rivals as a result of a practical SWOT analysis.

The analysis provides an avenue for the company to understand its weaknesses enabling it to make the required changes. This may include establishing several branches in the developing countries to develop a long-lasting presence as well as increasing the market share. Also, an informed analysis of EA-Pleeze opportunities results in the realization of new markets and mechanisms through which the company can increase its sales hence the achievement of goals and objectives. Additionally, the SWOT analysis promotes creativity and innovation in the management as a result of the identification of threats; this is intended to address the threats identified, which may affect the company negatively. For the company to realize t goals and objectives, weaknesses and threats should be addressed as well as the establishment of approaches to take advantage of opportunities and strengths of the company.

Internal Strengths

EZ-Pleeze’s SWOT analysis identifies the main strengths of the company. The internal strengths include the strong and dedicated workforce, customer service, use of modern food technologies, and an active team of management. The use of modern technologies forms the fundamental internal strength that enables the company produces high quality products that suit the customers’ needs. In return, the company realizes an increased level of product sales. The dedicated and reliable workforce within the EZ-Pleeze Food Company embraces the use of modern technology and facilitates the production of enough corn and potato products. As a result,  the products are available to the consumers whenever they need them.

An active management team facilitates the implementation of decisions and strategies that consequently result in various forms of success ranging from customer satisfaction and returns (Phadermrod et al., 2019). Additionally, EZ-Pleeze has unique customers care services that increase the number of return customers. Consumers and suppliers are provided with the services that they require and suit their needs. Products are also affordable as the company employs a low-cost strategy to attract and retain customers as well as increasing product sales.

Internal Weaknesses

EZ-Pleeze’s internal weaknesses include financial instability witnessed within the last ten years. The company is also incurring high operations and labor costs resulting from its initiative to equip the organization with modern technologies and expanding market shares through merging and product improvements. Internal weaknesses have severe effects on the overall success of an organization. The company is facing financial challenges due to the reduced sales despite the company investing heavily in quality food technologies. The company is also incurring considerable amounts of finances arising from advertising and marketing. The company was on the verge of being bankrupt and also laid off several employees as a result of the financial breakdown.

Similarly, high operational and labor cost has resulted in the company increasing the value of produced corn and potato. High operational and labor cost has forced the management to employ the high price strategy on the company’s products to avoid incurring losses. This has driven away from a high number of consumers and suppliers and also reduced the competitive advantage of EZ-Pleeze on its rivals. A percentage of employees have also been affected by EZ-Pleeze’s internal weaknesses and lost their jobs as a result.

External Opportunities

External opportunities are beneficial to organizations as they form a sound basis for the achievement of an organization’s goals and objectives. These are outside factors that enhance the growth of a company, and an organization has no control over them (Kolbina et al., 2015).  One opportunity favoring EZ-Pleeze is the closure of a considerable number of companies producing similar products. This is an excellent opportunity for EZ-Pleeze management to establish mechanisms important in manipulating the market share left a void. Acquiring the market share left by the closing companies will consequently expand market share for EZ-Pleeze and increase sales and returns as a result.

Additionally, there is an increased demand for corn and potato across the world. EZ-Pleeze can seize this opportunity and establish numerous stations across the globe, especially in developing countries. Consequently, the company will benefit in the form of increased global presence and unrestricted penetration in the emerging markets. Furthermore, there have been increased levels of technological innovations and inventions. This has also been witnessed in the food production industry. EZ-Pleeze can effectively use improved technology and equip the firm with the latest forms of equipment to improve product quality and sales.

External Threats

EZ-Pleeze is facing several external threats that pose significant challenges to the overall success of the company. External threats refer to the external factors that are outside the business environment and exhibit substantial ability to influence the activities of the organization. The company is facing high competition from rival companies such as Gold Starch Foods and Prime Spuds Industries. These companies produce products and offer services similar to EZ-Pleeze’s; therefore, they pose a substantial threat in terms of market share and consumers.

Additionally, pesticide agriculture is increasing, resulting in high prices of raw materials. This is a result of measures put in place to protect the environment by emphasizing farmers to embrace organic agriculture. As a result, pesticide prices have deliberately been increased to discourage purchases.  These have subsequently reduced EZ-Pleeze margins and profits due to the high amount of capital and resources incurred in accessing raw materials. Quite similarly, unfavorable government regulations present an external threat to the success of the company. EZ-Pleeze operations are subject to federal, state, and foreign regulations.

Recommendations

Based on the SWOT analysis, various recommendations can benefit EZ-Pleeze and considerably enhance the realization of its goals and objectives. First, the company should place more emphasis on increasing its United States’ market share. The company is facing stiff competition from its rivals, Prime Spuds Industries, and Gold Starch Foods. The management should implement policies facilitating product diversity to attract more customers as the availability of the products and services will be easily accessible to the consumers; hence, customer satisfaction will be achieved. Also, the establishment of the company’s outlets in every state across the country will boost the company’s presence in the country, enhancing active competitive advantage.

Secondly, EZ-Pleeze should increase its presence outside the United States, which is increasingly deteriorating. Increasing world presence may involve the establishment of branches in other continents such as Africa and Asia as well as initiating a partnership with the already established companies offering similar services and products. A strong international presence considerably increases company sales, and returns as a greater number of product orders are sent to global consumers. Quite similarly, the established outlets across the globe provide a significant market share that promotes sales and strengthens brand image.

Thirdly, the company should embrace practices that protect the environment. This will counter the increased objections from competitors and non-governmental organizations with goals aimed at reducing environmental degradation. There should be a department within the company’s management to oversee the companies waste management activities. Companies that engage in environmental protection practices have higher chances of dominating the markets as consumers are slowly embracing healthy eating and are loyal to companies that take care of the environment. Through this, EZ-Pleeze will be able to effectively penetrate international markets as many countries do not place stiff regulations on countries engaging in environmental protection practices.

References

Kolbina, O. (2015). SWOT analysis is a strategic planning tool for companies in the food industry. Problems of Economic Transition, 57(9), 74-83.

Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, 194-203.

Western Governors University. (2019.). EZ-Pleeze Food Company: Company and industry profile [Course material].