Free «Telesignos Investment Decision» Essay

Carlos’ SWOT Analysis for Fresh-Cut Food Industry

This is a formula for analyzing the way a business is organized. The formula also analyzes the business’s environment and its resources.  SWOT analysis helps in strategic planning of the business so that the businessmen can remain focused. It deals with internal and external factors that affect the performance of a business either positively or negatively. Strengths and weaknesses are the internal factors that are related to the current situation of a business whereas opportunities and threats are the external factors. Strengths are what a business does to outweigh its competitors. Weaknesses are what the competitors can do better. Threats on the other hand are ways in which a business can react out of an action done by the competitors.

Strengths

To improve on food safety, there has been a reduction in the hand exposure. The company has therefore improved on the uniformity and efficiency of the end product. However, some fruits still need human handling. Making use of different machines has resulted to higher product quality and yield.

Weakness

Brix level is used to measure the rate of flavor for a fresh-cut processing. It may result into a higher brix level which can shorten the shelf life. Therefore, there will be difficulties in management of flavor preservation and shelf life. These are internal weaknesses that need to be addressed.

Opportunities

Modified atmosphere packing is a new technology that can promote the processors to efficiently avail fresh-cut products to consumers. This technology is convenient for consumers since it provides fresh and safe for consumption. MAP reduces the rate of respiration of the produce as well as ageing reactions.  New products can be packaged in conspicuous designs. These package bags can be recycled and has two or more temper-proof seals. They can make a produce an impulse item due to their bright graphic features. These methods of packaging can as well result to the selling of tropical fruit salads rather than fruit products only. 

Increasing market is another vital opportunity. Immigrants from Southeast Asia and Latin America are important target group for the fresh pineapple produce. This can widen the market which in turn can increase revenue. Carlos decided to offer fresh-cut pineapples due to its high fiber content which enables it to maintain its form as opposed to mangoes that cannot retain their forms once they are cut.

Threats

Chiquita and Dole introduced transportation and distribution which threatened Carlos’ business. He could only manufacture and pack which was more or less the same as what his competitors were doing. Another competitor, Del Monte devised a new method of canning and distribution of its produce before dissemination to the customers. Carlos will therefore need to devise new skills that shall out-win their competitors. This is the only way to stand the waves of competition.

Lack of adequate capital was a threat to Carlos. It was not easier for him to obtain dept capital from Latin American countries and Ecuador. This situation forced him to use his initial capital in cash which amounted to $800,000. It wasn’t a guarantee that his cash would increase. And in case the produce did not increase, then he would need to pump a little more capital in the business.

Political risk such as Ecuador’s inflation was another threat that Carlos was exposed to. It could make the cost of production to shoot higher with no assurance that his sales match such increase. It was not possible to formulate the extent of sales that could guarantee relatively higher profits with regards to his produce.