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Comparison of Analysis - Research Paper Example

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John Ferrer and Deborah Furniture Company have experienced various situations during its growth that are describable through micro and macro-economic situations. SWOT and PEST are the best tools in micro and macro environment to cover global strategy. This is because they deal…
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Comparison of Analysis
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John Ferrer and Deborah Furniture Company 1st December John Ferrer and Deborah Furniture Company have experienced various situations during its growth that are describable through micro and macro-economic situations. SWOT and PEST are the best tools in micro and macro environment to cover global strategy. This is because they deal with both internal forces that affect the market as well as the external forces that cover the company. When taken into consideration, PEST analysis and SWOT analysis will be the best tools to implement a global strategy. This is because the above tools will cover political, economic, social, and technological factors influencing the company as well as the country in which the company wishes to invest.
The above tools are better as compared to other tools since they cover broad perspectives. For instance, if compared to porters five forces model, it only deals with threat of new competition from new market entrants, threat of substitute products or services, bargaining power of customers, bargaining power of suppliers, and intensity of competitive rivalry therefore living other important factors that influence the market.
Strengths of the Company
John Ferrer and Deborah Furniture Company have established itself as a market leader in providing quality furniture for its customer. The company has also established itself in Boston as well as the other different places in which it sells its furniture. The company has been able to grow from 5 distribution and manufacturing plants to over 10 manufacturing plants centers throughout the country. John and Deborah’s corporation is known throughout the industry for it has also exceptional customer service and superior quality. The company has also established itself well by providing contemporary designs that are attractive to the customers (Sarah & Chris, 2011).
Weaknesses of the Company
The company has various weaknesses that have drugged it behind in its efforts towards a quick growth. Such weaknesses include a lack of expertise in its workforce that could not immediately capture market attention. Moreover, the company failed in the level of technology that it used to process its furniture in its plants and equipment’s. The low level of technology caused the company to process low quality products that did not immediately capture the markets attention. Moreover, the company was faced the challenge of limited resources in its endeavors to process the furniture products. Such challenge is the unavailability of raw materials (Minton, 2010).
Opportunities of the Company
The company has various opportunities opened to it that will oversee its growth. The opportunities open to the company is that, the company has a great opportunity of reaching out to the untapped market. As we have learnt, the company has only 10 branches in the entire country while as the country has a large furniture market. Moreover, the company can make proper use of the untapped market that is changed by the lifestyles of the people. In addition, the company has an opportunity in the positive market perceptions created by the business. Most importantly, the company can benefit from changing trends of furniture business in the industry (Helms & Nixon, 2010).
Threats to the Company
John and Deborah’s corporation is faced by certain threats that hinder its growth. They include competition from rival furniture dealers, excruciating price increases by suppliers, governmental regulation to control forests destructions economic downturns such as market troughs and shifts in consumer behavior that reduces its sales.
Pest Analysis
Political Factors
John Ferrer and Deborah Furniture Company have been faced by various political conditions. Such political factors include current legislation of the home market whereby the business is expected to concur with the set legislations. Moreover, the company has to comply with government terms and changes such the regulations, which protects forest which is the company’s main source of law materials (Sixsmith, 2009).
Economic Factors
John Ferrer and Deborah Furniture Company is faced by various economic conditions. For instance, the company is subject to its own stages of the business cycle. Moreover, the company does not always meet its projected economic growth. John Ferrer and Deborah Furniture Company are also influenced by the impact of globalization and technology that has influenced its growth.
Socio-Cultural Factors
Socio-cultural factors that influence the company includes increasing population growth rate that influences the level of demand for their products. Additionally, the company is faced by lifestyle choices and attitudes that shape the demand for its products.
Technological Environment
One of the main technological challenges facing the company is the impact of internet that has changed the shopping trends of the buyers. Moreover, technology aspects have also transformed the way the company communicates to its customers. In addition, technological factors have improved the way the company conducts its research and development activities.
Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis - where are we now? Journal of Strategy and Management, 3(3), 215-251.
Minton, G. (2010). Using a SWOT analysis. Mortgage Banking, 71(3), 80-81.
Sarah, L. S., & Chris, L. S. (2011). Business Best Practices: SWOT analysis: The annual check-up for a business. Journal of Pension Benefits, 18(3), 75-78.
Sixsmith, R. (2009). Agency seeks views on PEST risk analysis. Horticulture Week, pp. 29-29. Read More
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