Swot Analysis

Topics: Revenue, Affect, Finance Pages: 2 (442 words) Published: October 1, 2012
|Team Name Team 20 |Date 11/22/11 | |Company Name ADP | | | | |TEAM MEMBERS |CELL PHONE NUMBERS |

Although ADP (Automatic Data Processing) is one of the leading providers of business outsourcing solutions, it has weaknesses that negatively affect the company. One significant aspect of ADP is that the company has clients in many foreign countries, but less than only 20% of ADP’s revenues come from other regions of the world. The company has been majorly focusing on customers’ needs here in the US, keeping their clients up to date with the current laws and regulations (their HR department) and making payroll processing convenient. What they lack, though, is a diversified geographic. It’s important to concentrate on the US operations, but other countries have specific issues that may need to be handled differently. If ADP wants to expand and take full advantage of their services, they ought to pay more attention to their geographic diversification.

Another weakness ADP is affected by is the low margins that are affecting the confidence of their investors. The numbers may not seem severely low, but compared to their competitors, it makes a significant difference in ADP’s appearance. The company is perceived as unable to pay for its fixed costs because of the low operating and net profit margin. This industry is highly competitive, so this can be a huge disadvantage that ADP needs to take care of. If they are...
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