Foodcorp SPOT Analysis
Strengths: What are the things the company does well now?
Has great performance in cereal and dessert lines.
Be the Market leadership in frozen food and yoghurt business. Knows consumers’ need from the market research.
Has one of the best distribution systems in the industry.
Has good logistic system but can still be improved.
Has clear vision of its strength philosophy.
Problems: What is wrong now? What are the things the company does not do well? The formalized matrix reporting relationship in Marketing department is complex and can cause problems in many ways such as ambiguity, coordination, and tolerance. (P.16) The matrix-like organization structure which does not separate the international operation and sales from the domestic operation and sales does not give chief country officer the full control over the international activities. This might cause the delay in making decisions about international activities which the international market has more growth and profit than the domestic market. (P.16) Service tailored to needs score is very low (2.5 from 5). (P.17) International Market’s Problem (copied from P.19)
Net-after-tax profits are frequently in the 5-10% range; fluctuations in currencies, an error in raw materials purchasing, or changing transportation costs could wipe out much of the profit. Competitors are selectively attacking our markets and we are not fighting back in a coordinated manner. We do not always take advantage of our relationships with in-country nationals in understanding local government operations, personalities. Consumer advocates in some countries are attacking us both for pollutants emitted from our factories and the heavy salt or sugar content in some of our food products. The market share for some products is declining.
From the Financial and Market data, some ratios indicate that Foodcorp needs to be improved since these following ratios – Inventory Turnover, Return on average shareholder...
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