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Kiwi Shoe Company Ltd
Transcript of Kiwi Shoe Company Ltd
A swot analysis identifies strengths, weaknesses, opportunities and threats. It also guides us to identify the positives and negatives inside the organization and outside of it. Strengths and weakness are in the internal of the organization, opportunities and threats are in the external of the organization.
Objectives are long and short-term. It is measurable steps within a selected period of time that is stirring towards achieving the long term aim/goal.
KIWI SHOE COMPANY Ltd
Skilled and high morale staff
High market shares
Enhance efficiency at each procurement stage
Absence of important skills
Low customer retention
Lack of resources
Lack of strategic management system
Changing customer taste
Changes in government policies
New distribution channels
New customers and locations
Market poised for growth
Change of government regulations
Lack of financial resources
Cheaper overseas products
Objectives should be smart
Three levels of business objectives
Senior management/Board of Directors
Represent the basis for allocating resources
These are the daily, weekly and monthly targets of the floor staff (operational team). These are derived from the intermediate objectives.
These are the long term aim of an organization and are usually the concern of the Senior Management or Directors as they are the ones who decides where the Company wants to be in possibly 5 years time. These also provides the focus for setting more detailed objectives for the mail functional activities of the business.
These are short term plans (within a year) and are the responsibility of the Middle Management. When setting these objectives they will take into account the strategic objectives of the organization. These are designed to ensure that the strategic objectives are achieved.
EXPANSION OF THE MANUFACTURING SITE IN 7-10 YEARS
INCREASE PROFITS BY 10% IN 5 YEARS
FINE TUNE THE MANUFACTURING PROCESS WITHIN ONE YEAR BY 15%
INCREASE CUSTOMER BASE AND LOYALTY BY 10% BY END OF ONE YEAR
INTRODUCE ONE NEW AND EXCITING DESIGN ON MONTHLY BASIS
MEETING TEAM TARGETS FOR PRODUCTION
MEETING TARGETS FOR FINAL FINISHED PRODUCTS
MINIMUM WASTE OF MATERIALS AND TIME
DECREASE OF FAULTY PRODUCTS
The operational staff will need to be on top of the game to meet the achievable weekly targets set for them on the production line and in finalizing finished products. The materials will have to be used in a smart way so there is less wastage. Staff will be trained to use materials in a way so every useable little piece possible will be used and not go out in waste bins, as wastes are now closely monitored on weekly basis. There is also a quick procedure to call the technicians when machinery is showing signs of malfunction as this will contribute towards better time management and less down time on the production line. Every piece is monitored closely by production line staff so less faulty products are occurring and there is a possibility of re-doing these pieces if can be done immediately to perfect outcomes on daily basis. Great craftsmanship will increase customers and customer loyalty. These changes are made in the factory, keeping in mind the Intermediate objectives of the organization.
Due to the Strategic Objective, the Middle Management need to implement some changes in the way the company manufactures and find channels to increase their sales, and therefore production. Fine tune the process of the manufacturing so that the organization could reduce waste, production time and finally produce better products that gets to the customer faster. All these will contribute towards either reducing cost or increasing sales. The Middle Management will uncover ways to manage these issues and outcomes of improvement should be evident in six monthly or annual meetings . They may decide on better machinery, need to find new retailers to sell their products, speed up the delivery process, involve creative designing to markets liking, up-skill the production staff and to be able to do all this by keeping the end result in mind; working towards increased profits in five years.
The Senior Management has announced at the annual meeting, Kiwi Shoe Company Ltd needs to increase profits in the next five years and all going to plan the expansion of the manufacturing site will follow. The increase in profit will need to maintain at a set levels for modernization and extension of business operation in the future. Profits will also serve as the measurement of stability and process of the business enterprises and therefore determines the company future.
CHANGE OF GOVERNMENT REGULATIONS/POLITICS
Government regulations have a big impact on business productivity and profitability. There can be taxation changes which may or may not profit Kiwi Shoe Company Ltd. Taxation changes are normally a compulsory contribution to state revenue.
There may be changes made to the ACC levy. If the ACC levy increases it adds to the business expenses and if it drops (which in unlikely); expenses is cut. There may be other changes in the healthcare policies made by the government that affects the organization.
Changes in government policies may also bring big shoe business from overseas; this will defiantly affect the market place for Kiwi Shoe Company Ltd.
Government policies can introduce higher wage bracket or more leave for staff and this will affect the organization again, as expenses rise.
Like any business, Kiwi Shoe Company Ltd needs to keep up with technology to reap the benefits as business needs to adopt and change their infrastructure and therefore company expenses rise. Business operation is increasingly influenced and affected by the advance of technology.
There are smarter ways to design shoes and to keep up with the demand to quickly design and supply products, the company has to bring in new technology or they will be left behind in the competitive market.
Technology allows nation and international commerce to become reality and due to this technology, company knows exactly what the proposed materials look like before they purchase it. It would be time consuming if the product sample was received before placing an order.
Adapting to cloud computing, social networking and wireless applications will allow Kiwi Shoe Company Ltd to streamline operations. Business saves money on information technology model, energy and real estate cost due to centralization of data on servers. Social networking increases customer rapport which allows potentially greater profits.
Kiwi Shoe Company Ltd does heavily rely on great raw materials. These are purchased from overseas and locally. At times there may be short supply of raw materials and due to this a particular batch of production is held back; regardless of market or customer demand. There are no controls over this situation.
Delay in shipment of raw materials can also hold back production.
Raw materials may be not the best of quality and may cost much more to return therefore are used to produce cheaper shoes, yet the time and effort that has gone into designing a particular style of shoe with right materials has wasted.
EXTERNAL FACTORS IMPACT ON KIWI SHOE COMPANY LTD
CHANGE OF GOVERNMENT REGULATIONS/POLITICS
During the economic upturn more people are at work and this determines the purchasing power of customers. When the economy takes a down turn income rates go down and people are unable to indulge on extras like buying shoes (their main priority turns to putting food on the table first).
Economic Factors also determines general price level from raw materials to transportation and cost of production. This increases the price of a pair of shoes which will reduce the revenues as there may be a dip in demand because of the price increase.
When inflation occurs all the raw materials for Kiwi Shoe Company Ltd cost much more then than normal. The price hike of raw materials also increases the cost of a product.
During recession Kiwi Shoes Company Ltd faces a decrease in profit. To recover cost the company may cut down on hiring new staff, marketing and advertising expenses and research and developments of new products.
When Kiwi Shoe Company Ltd buys materials and machinery from overseas, it converts the currency for making payments. If NZ currency is higher it will benefit this company as they are spending less to meet the values of other currencies. If the NZ currency is weak Kiwi Shoe Company Ltd will have to shell out more money for the purchases.
External factors occur outside the business organization and it can affect a business in either a positive or a negative way. External factors is practically impossible to control forces outside the business.
WHAT IS EXTERNAL FACTORS
Increased competition affects Kiwi Shoe Company Ltd in a number of different ways. Most of all if the manufacturing company is based in NZ makes the same styles of shoes such as Kiwi Shoe Company Ltd, will show a significant loss of business as most of our retail customers enjoy selling the New Zealand made shoes. This will give the customers a choice which they may not have had previously.
Increase in overseas imports also affects this business as most imported shoes are made in countries where manufacturing costs are very low and therefor prices of shoes even after transportation is much cheaper than what can be supplied to customers if made in New Zealand.
Not just other manufacturing companies but also the increase in the retail shops that does not display Kiwi Shoe Company Ltd shoes can be of disadvantage to the company as customers may have alternative options when purchasing.