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Starting a new business or company the owner must have a strategy plan that focuses on the companys strengths, weaknesses, opportunities, before opening the doors. Understanding the business SWOTT will help the development of the strategy plan and prepare for any unexpected problems that may occur within the internal and external environment. A SWOTT analysis particularly will allow Jean's rare find books, to audit, plan, and focus on key issues that come up in the business.
Jane's rare find books consider and selected the economic forces, competitive analysis forces, competitive external forces, and technological forces for the external analysis. .
Ray's books, and Blake's wholesales books warehouse are the market competitive analysis focuses on the company's (Jean's rare find books) competitors has decreased. Blake's wholesale books warehouse controls 20% of the market and Ray's books control 10% of the market. Jean's rare find books have computer kiosks set up throughout the store, which give them the competitive advantage over the competition. Selecting a book can be done with the touch of a button that will give a history of the book, first and last owner, and where the book is located. In addition, the store will have programs set up for high school and college students alike that will enable them to rent out available books using his or her school code, and student's identification at a price that fits his or her budget.
Strength: Offering rare books people cannot find, availability of signed, and first edition books of rare authors who people or individuals have not seen in years.
Weakness: Opportunities: The ability to advertise and connect with people looking for a book.
Threat: Larger store better technology
Trends: The trend shows improvement and the ability to change and move forward.
Economics facilitates the decision making in the business considering the cost of products and services. "Economic factors concern the nature and direction of the economy in which a firm operates. Because consumption patterns are affected by the relative affluence of various market segments, each firm must consider economic trends in the segments that affect its industry" (Pearce & Robinson, 2009, p. 94, Para 3).
Strength: Good economic conditions increases, the budget, and improve the shareholder confidence.
Weakness: fluctuation in economic conditions weakens and affects the company's operations.
Opportunities: A boost in economic growth helps the expansion, and growth of the company.
Threats: Slow tourist season affect the business.
Knowledge in technology helps a business in the daily process on filing documents, receiving suppliers, helping staff members, and customers. The correct knowledge of technology decreases the day-to-day business processing of paperwork. According to Pearce and Robinson, (2009) a technological development may have an unexpected result on a company's environment. It may produce refined products or greatly shorten the expected life of a production facility" (p. 98, Para 6).
Strength: Good technological skills help in operating a day-to-day business.
Weakness: technological breakdown of computer systems can put a business on whole causing loss of profits and customers.
Opportunities: The advance and upgrades of new technologies today will make it easier to track merchandise in less time and will help satisfy suppliers, and customers.
Threats: The use of old and outdated technology systems will reduce the satisfaction, demands of suppliers, and customers thereby losing cash flow.
Trends: Technological advancement enables the company to create an atmosphere customers appreciate, and expect without outside interference.
Internal Forces and Trends
Strengths and weaknesses internal analysis targets internal factors, which supplies a business advantages and disadvantages in meeting the needs of its market (My Strategic Plan, 2010). Businesses examine internal operating trends for less expensive ways to control business. Outsourcing unnecessary business performances or using the Internet to create sales is ordinary classes of internal trend (Vitez, n.d.).
The selected internal forces and trends for the Jean's Books are culture, and resource.
Culture is a force and trend that includes business related social culture, and diversity within the workplace. Businesses that efficiently establish an internal culture based on common support, respect, and teamwork will recognize increased output and a better focus on customer service (Richards & Media, n.d.).
Strength: Diversity helps in reaching the competitive advantage as it serves in sharing beliefs, morals, and behavior that boost the business's image.
Weakness: Old culture or unfavorable culture of the business reduces the idea of business expansion.
Opportunities: In today's work environment the company can easily grow and increase its market share offering new ideas on selling books within publishing industry
Threats: A company without diversity may affect the business processing.
Trends: Diversity, developing a business environment with a diverse group of people and individuals the company will have more value in the market
Resources from different publishing houses from around the country and overseas will generate more business for the company, and boost a loyal customer base.
Strength: Connecting with the customers, having the right book for the right customer
Weakness: Delays and unattainable recourses; competitors using similar concepts to sell books.
Opportunities: To collaborate with publishing house from around the world.
Threats: Competitors using similar concepts to sell books
Trends: Young adult books, and children books.
Issues and Opportunities
The issues and opportunities regarding internal and external environmental analysis reflect respective issues and opportunities for Jean's Rare Books, new to the publishing industry. Advancement in technologies is the first major issue that forces the company to carry out the technology as per the customer's current demand in this business environment. The highly competitive market will be good practice for Jean's rare find books company to implement a strategy plan that meets the needs of both the company and the stakeholders.
SWOTT analysis looks at the issues and the opportunities that Jean's Rare Book Company will. Opportunities and resources from publishing companies will help business expansions increasing market shares and promotes the business toward growth and success. "The most common use of SWOT analysis is as a logical framework guiding discussion and reflection about a firm's situation and basic alternatives. This often takes place as a series of managerial group discussions (Pearce & Robinson, 2009, p. 160, Para 3).
Circumstances and Importance Classification
Circumstances vary in the workforce; consider technological advancement the business may have issues with various changes and upgrades involving computer systems. Various changes and upgrades involving computer systems is very important for a new business, such as Jean's Rare Books to have a solid strategy plan in place. The company can get a clearer understanding of the weaknesses, threats, strengths, and opportunities to satisfy the customers demands. SWOTT is commonly used today in businesses across the country. It is a good practice, and learning point for a new business like Jean's rare find books to implement their long-term goals for the company.
Cuts down on tax burden
Fluctuations in economic conditions
Expansion and growth opportunities
Regular phenomenon that affects the long-term business performance
Helps run day-to-day operations
Problems in technology create slow down in work
Improved customer relations
Reduced satisfaction level of customers
Promotes company to furnish service is efficient way
Facilitates in effective strategy formulation
Lack of vital information
Easy competition with the competitors
Unable to concentrate on other requisites
Conduct at quarterly periods
Availability helps to achieve goals in cost- effective way
Delay of resources can cause harm to business
Adequate allocation can attract more customers
Unavailability can result in losses to company because of supply and demand
Good business cultures helps in reaching competitive advantage
With modern staff company can grow easily and attract business
Different cultures could affect day-to- day business
In today's businesses much, consideration is given to cultural environment.
Availability to a younger market