![]() ![]() With this weakness, the organisation may not be able to identify the potential improvement seeking areas in product/service mix. ![]() The inability to understand customers’ needs and expectations lead to an ineffective strategic decision-making process. Less expenditure on the research and development activities can weaken the company performance due to poor local/international market knowledge. Insufficient budget for the marketing and promotion activities weakens the firms’ ability to expand the customer base and encourage repeat purchase. The cash shortage or insufficient current assets negatively affect the liquidity position and harms the overall business performance. The shortage or excessive inventory can either result into The company may lose efficiency due to poor inventory management practices. The organisation can draw the criticism from the environmentalists for its poor waste management practices and inability to integrate sustainability in business operations. Weaknesses of General Mills A is the second element of the SWOT matrix. The horizontal and/or vertical integration can increase the control over whole value chain, result in improved access to raw material and quick product delivery to the final customer.Īn organisation may own different intellectual property rights that can make the product offerings unique and exclusive, making it difficult for competitors to imitate. Workplace diversity can also act as a major business strength, particularly when the organisation intends to operate in the international market. High product quality increases brand loyalty and improves General Mills A's performance in a competitive market. The well-developed and efficiently integrated IT infrastructure can improve the operational efficiency and increase knowledge of the latest market trends.Ĭompetent and committed human capital can act as a powerful source of competitive advantage, particularly when business is service oriented in nature. The locational advantage can improve the competitive positioning of the firm in various ways, such as- lower cost, improved accessibility or enhanced brand image. Strong financial position and health can allow the firm to make further investments.Īccess to the suppliers that offer raw material at a lower cost can improve the overall business efficiency. Strong online presence on different social networking sites and efficient social media management can enhance the effect of positive e-WOM and develop strong relationships with customers. The wide product portfolio can allow the organisation to expand the customer base and offset the losses from one product category with benefits obtained from the other. It determines the business’s reach to the target market and ensures the easy accessibility. ![]() The geographic presence in different regions can act as one of the major strength of the organisation. Strengths of General Mills A is the first element of the SWOT matrix. The four components of General Mills A SWOT analysis are given below. SWOT analysis of General Mills A can be based to make important strategic decisions and accomplish the business objectives. Overcoming weaknesses to minimise the threats.Leveraging strengths to minimise the threats.Overcoming weaknesses to exploit external opportunities.Leveraging strengths to exploit external opportunities.The framework is based on developing four types of strategies, including. Usually, it is presented in the two-by-two grid form. General Mills A can use the SWOT matrix to exploit the opportunities and minimise the threats by leveraging its strengths and overcoming its weaknesses. Some examples of external factors (opportunities/threats) are- customers’ changing tastes and interests, competitive trends, inflation and population growth. Some examples of internal factors (strengths/weaknesses) are- leadership competencies, intellectual property rights, locational advantages and geographic presence. General Mills A can adapt and control its strengths and weaknesses (internal factors), but it cannot control the external factors (opportunities and threats): Whereas, external environmental analysis can help the organisation to identify opportunities and threats that must be considered to ensure long-term business survival. The internal environmental analysis can help an organisation to identify its core strengths and weaknesses. SWOT analysis of General Mills A can lead the company towards making effective and wise business strategies. This simple framework is used to evaluate the positioning of a firm in a competitive market. A SWOT Analysis is a powerful tool to develop business strategies for start-up firms as well as for existing companies.
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