Stretegic Plan

Strategic Plan, Part II: SWOTT Analysis

The market fluctuation and the economic downturn forced firms to create tools that will provide framework for the company to adapt to any changes occur. The strengths, weaknesses, opportunities, threats, and treads (SWOTT) identify factors that affect the operation of the business. TL Concrete analyzes the competitors and seeks their weakness to strength the company competitive awareness. Once the company identify the competitors' weaknesses, manager have to implement plan to take advantage of the opportunities to stay ahead in the industry. At the same time, the company seeks and identity the areas that need to improve such as new technology and new techniques. Threats and Trends are vital to the company's production and services because these two elements will show the external factors and internal forces affecting TL Concrete business objectives.

There are factors that TL Concrete cannot control, especially the external forces, but the company needs to monitor and maintain these forces impacting the performance of the company. The state and local laws would not allow any small concrete company to operate until all of the required parameters cover by TL Concrete. Therefore, Laws and regulations are elements will strength the company's position in bidding for public and private contracts. It will give the ability form the company to expand locally and nationally. The SWOTT table analysis will provide both external and internal forces that will impact the company's goals.

External forces and trends considerations:

1. Legal and regulatory- Need for consignment public, private contracts and business license

2. Global- increase and expand business to new territory

3. Economic - downturn of economy will increase business

4. Technological- new computer software and online selling

5. Innovation- updates employees training.

6. Social- free demonstrative to new customers

7. Environmental- contribute to environmental cause

8. Competitive analysis- monitors competitors' approach

Internal forces and trends considerations:

1. Strategy- Focus on low cost material and more profitably

2. Structures- Economies of scale

3. Processes and systems - how to sell the products and services

4. Resources---vendors that sell concrete related items at reasonable prices

5. Goals - customers 'satisfaction/guarantee

6. Strategic capabilities - provide the best service at the lowest price

7. Culture-availability of different style, color to different groups if needed

8. Technologies - use computer services to track sales and services

9. Innovations- stay in touch with customers

10. Intellectual property- location is important

11. Leadership- good managers who keep employees motivated.

Laws and regulations also affect and caused weaknesses to the company. The excise tax is a good example of a law that caused many small companies to close down or move to another state. For transactions prior to January 1, 2013, continue to change the same sales and use tax rate(s) you are charging now. For transactions on or after January 1, 2013, the tax rate(s) you are charging now will increase by one quarter of one percent (0.25%). In addition, to the statewide sales and use tax rate, some cities and counties have voter-approved district taxes. If you are located in a specially will be subject to the increase statewide rate of 7.50%, plus applicable district tax rate (Board of Equalization, 2012). The increase in tax rate affected the company economically because of the cost of the materials and human capital will also increase. Therefore, TL Concrete must consider the level of disposal income, and the customers' ability to spend. Prime interest rates, inflation rates, and trends in the growth of the gross national product are other economic factors they should monitor (Pearce & Robinson, 2009). The company must comply with any laws despite any increase in cost. This will ensure the company to stay operational in any economic situations.

There are those who believe that poor economy will increase the concrete company's profitability. At the post 2008 era, many small concrete companies either filed bankruptcy or close the business down. The few that survived the economic downturn used various approach to keep contact with its customers. It is obvious that the effect on the other small concrete companies benefits TL Concrete because of good reputation among customers. Poor reputation among customers weakened the company position to stay operational. There are times when concrete company takes advantage of the mishap of other company by attaining and fulfilling what the customer's need. It will take time for TL Concrete to comply with the new customer's request because these customers used to certain product and certain taste. Samples and demonstrations can provide the company with the needs and "taste" of new customers. The company can provide these services by using computer simulations.

Computer Technology use by different industries to sell products, maintain employees' file as well as the customer's information. Computer software develops style, color, and the production of different products according to the needs of the customers. The software will also provide the customers with the opportunity to present their own designs. The cost of the software and the issue of virus discourage many small companies to use technology, especially small concrete companies. Small companies usually do not concern with technological aspects of operating a business, but TL Concrete will train manager and employees on using the computer software to develop new ideas to attract new customers. The software also provides data on local and statewide competitors' new ideas, process, and development.

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