SWOT Analysis for Treadway Tire Company Lima Plant
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
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