Topics: SWOT analysis, Profit margin, Router Pages: 10 (2413 words) Published: May 18, 2005
1.Abstract Summary

A brief outline of Multiplastics Ltd Is discussed including the nature of their business and the problems and inefficiencies they encounter. Numerous Innovation tools are investigated leading to a recommendation towards a focus on the strengths, the elimination of weaknesses and the investigation into the opportunities using the SWOT analysis method.


This report demonstrates the use of an innovation tool and its application in business to provide solutions to problems or inefficiencies that are present. The report specifically focuses on the company, Multiplastics Ltd and the circumstances. An innovation tool will be applied in order to offer a solution to their problems and recommendations will be made as to what changes should be put into place in order to improve their business.


Multiplastics Ltd are a plastic sheet stockholder and have a head office in Basildon, Essex and a branch in Coventry. They stock many forms of plastic sheet including Acrylic, Polycarbonate, PVC and PETG. As well as stocking flat sheets in a variety of thicknesses and colours, they also offer a number of processing services which include cut-to-size panels, diamond polishing, edge profiling and multi-sheet CNC routing, a facility which is unique to Multiplastics in the market. Muti-sheet routing as the term implies means that the router cuts panels from multiple sheets stacked on top of each other by means of a hydraulic moveable beam, which moves in conjunction with the router heads. The beam holds the sheets in place as the router head cuts. This enables Multiplastics to produce high volume at low cost compared with convention suction bed routers.

The principal customer base of Multiplastics consists of Point of Sale companies and the competition is fierce with approximately ten competitors and no restriction on how a sale is done in terms of what price like for like sales can be sold at by different companies.

Multiplastics have a number of problems and inefficiencies on a number of fronts and change is required in order to increase profit margin and market share

One of the problems is that Multiplastics are based in Essex and although they have a branch in Coventry, this is merely a sales office for the midlands with a small amount of warehouse space. All cutting and, routing and processing takes place in Basildon where all the stock is kept also. This causes a problem logistically because some of their best customers are as far as Bradford, which can mean running a lorry from Essex to Bradford on a daily basis in order to keep the customer happy. This is not cost effective considering how tight profits margins can be within this industry.

Secondly, Multiplastics are losing a number of large routing jobs because they are not competitive in the small jobs. This is due to the fact that they charge for material by the sheet. – any offcuts are scrapped – instead of per metre square. This is something their competitors are prepared to do. Customers are taking the opinion that Multiplastics do not want to do the small jobs and are therefore unwilling to offer the larger volume work in some cases.

Lastly the company has no clear idea about the direction it is heading and where it sees itself in the future. There are no long-term goals in place and things have a tendency to be done on a day to day basis.


There are a number of ways innovation can help to solve the above problems. Strategy and tactics crucial to any business and must be well thought out and well documented. There are a number of ways this can be done but it was decided that in the circumstances of Multiplastics a SWOT analysis would yield the best information and therefore offer the best success

SWOT Analysis

To effectively analyse the company position within the marketplace and how it can make best of its assets, a SWOT analysis can provide a great insight into the company by...

Bibliography: SWOT Analysis [Internet] Quick MBA. Available from: (Accessed 13.12.04)
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