It could be negative if we were not aware of the following:
- Franchising ice cream parlours could make a real money-spinner in one side but if we were not aware of neglecting other successful area we would be in debt.
- We have to be aware that Haagen Dazs already have a chain of ice-cream restaurants and we are small in compression to main rivals.
- We may need to invent new machinery and train new staff; this is costly. We will be in debt if the business of ice-cream parlours did not succeed.
The most affective strength in our SWOT analysis:
We have top management level:
John hardy who has grip on finance and me (Stephanie Wallace) who have good ideas and previously suggested an idea that worked.
The most affective Weakness:
We are not as big as main rivals. This is a problem because rivals such as Nestlé can close our business or make us lose money. They have a bigger advertising budget than Venetian Ices and they could lower their prices and take away potential customers.
The most affective Opportunity:
Franchising ice cream parlours. I think we should go for it. We won’t have any problems if we were aware of all the negative things that might happen.
The most affective Threat:
We might neglect other areas, which are presently successful, if we open ice cream parlours. The other areas of Venetian Ices business might suffer. There will be a lack of finance; most of the money will be diverted towards the parlours. And it will take time to launch.
All businesses have goals and targets (aims and objectives)
(AO 1.2 and 2.3)
The five general aims and objectives of businesses likeVenetain Ices Ltd are:
- Probability
- Survival
- Prestige
- Growth
- Social Benefits
Specific aims for Venetian Ices are:
- Franchising new ice cream parlours. The main aim for this step is expanding or growth.
- Maintain market leadership of own label of ice cream
-
Expand “take home” and impulse lines to eventually rival “Nestle” and “BEW”
Venetian Ices hope to achieve these aims in the future.
Venetian Ices must do the following in order of achieving their aims:
-
Conduct market research to know the demand of people. Conduct a questionnaire or a survey. This is important for the first, the second and the third aim. This is also important for aim 1,2, and 3.
- Invent new flavours, which is the next step after market research for Venetian Ices. This is important for the second aim.
- Raise finance.
The affects of these purposed development might have on some of the departments and how their managers run them are:
-
High Demand: more production will be made because of the ice cream parlours and the expanding of Venetian Ices.
-
“Opportunity cost: other areas of business will possibly suffer e.g. “take home” because finance in production.
-
Personnel: employ more people and therefore you will have to pay bigger wage.
-
Bigger management headache: more business decisions to be made. Decisions will be made for ice cream parlours and other areas of business too.
-
Raise more finance: to expand the franchising parlours
More research: Plan how to best conduct market research.
SWOT analysis is about identifying and analysing strengths, weaknesses, opportunities and threats.
The strengths are what is good about the firm and the opportunities is what they plan to do to make better business. These two are positive.
Venetian Ices Ltd’s strengths are:
- Well established (50 years)
- Good track record
- Appears Venetian Ices have good products
- Large business in a market dominated by huge businesses like Nestle and BEW
- Top management level
The opportunities are:
- People are more willing to try new flavours
-
Loans: cost of borrowing money is falling (lower interest rate)
- Franchising ice-cream parlours
- Website
- TV advertising is cheaper now because there are more channels now
- General population more disposable income to spend on luxuries and eating out
There are two more things in the SWOT analysis. They are negative things about the firm that needs to be improved.
The weaknesses of Venetian Ices are:
- Expansion of business could lead to a lot of debt
- Sceptical: John hardy prepared to take the risk
- Need to invent new machinery for ice cream parlours
- Train new staff for ice cream parlours
- Not as big as main rivals
The threats of Venetian Ices are:
- Hageen Dazs already have a chain of ice cream restaurants
- Hageen Dazs are global
- Venetian Ices are small in comparison to main rivals
Might neglect other areas of their business which are presently successful
