Woodcrafts by Swott Analysis
Woodcrafts SWOTT AnalysisBUS/475August 4, 2015Woodcrafts by SWOTT AnalysisStarting a new business requires some analysis before operations can begin. It is important to conduct an internal and external analysis and identify any opportunities, threats, weaknesses, and trends that will impact the business positively or negatively. Strengths Weaknesses Opportunities Threats and Trends (SWOTT) analysis is a simple but powerful tool for sizing up a company’s strengths and weaknesses, its market opportunities, and the external threats to its future well-being (Thompson, Gamble, & Strickland, 2012). A business SWOTT analysis is crucial for the sustainability of the business and the creation of a strategic plan. [pic 1]Economic Factors Economic factors are very important to any business; researching economic indicators can be frustrating as reports change from day to day. Movements and changes in the economy affect the purchasing power and spending patterns of consumers which will affect your business. According to Economist Intelligence Unit database, the average median income for the United States is up a 1,000.00 this year from last year. This increase can provide consumers with extra spending cash, which will help increase sales of any business. Looking locally in Boise, ID, according to the Bureau of Labor Statistics jobs are on the rise, as shown in Chart 1, this too will provide money to the economy helping businesses.
Chart 1[pic 2]Legal and regulatory forces There are few legal and regulatory issues this company is confronted with. To sell and collect tax in the state of Idaho, the business must obtain a business license. Once the license is acquired the company can sell products and collect tax in the state, they will file a business tax return on a quarterly basis. Woodcrafts by Jim is a sole proprietorship, so all income is reported along with the owners personal taxes.Strengths Strengths are the aspects of a business that allow you to operate more effectively the competitors. Businesses strengths are internal aspects of the business which means they can control them and create opportunities to make the most of their strengths.Materials The woodworking industry has undergone a great deal of change this decade. The idea of using reclaimed wood to create new pieces has flourished over the last few years. Woodcrafts by Jim make their bowls by gluing strips of wood together to produce blanks. The stripes of wood can be of any variety; working with saw mills we can get loads of scrap wood free, to make the strips. This plan will save money in supply costs.Production method Producing bowls on a Ring Master turning machine gives us the advantage of less waste. This machine uses flat blanks from 4×4 up to 12×12 inches in size to produce bowls, compared to bowls produced on a lathe that use blocks of wood ranging from 4x4x4 to 12x12x12 inches. Our method gives us an 80% less waste, and that relates to less money spent on materials.