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Swot On Pest U Like

Essay by   •  June 5, 2011  •  1,073 Words (5 Pages)  •  1,191 Views

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Introduction

The assignment is based on organization called PEST-U-LIKE. A case study of PEST-U-LIKE has been provided with this assignment and my objective is to show that I have understood the case study and acted accordingly.

My aim of this assignment is to show that I can devise different models to improve the organisation (PEST-U-LIKE). I have devised four different models and theories to improve the success and management of PEST-U-LIKE. The four models I produced include rich picture, a pestle analysis, a SWOT Analysis and a Balanced Score Card. I have designed these models to show some of the problems that are affecting the success of PEST-U-LIKE.

Main body / findings

Rich picture

The rich picture I have created had a lot of problems because the case study does not provide us with information on where they are getting their input from. I have been able to identify the main departments with in the company. I have gathered this information from the functional hierarchy and included this in my rich picture. The main employer of PEST-U-LIKE is the managing director and most of the departments are connected to the managing director. This is quite a complex issue which is very hard to show on the rich picture. All orders are carried out from the managing director. All communication is downwards, so the directors or the staff has no say or freedom in their job.

Pestle analysis

Political- employees work for 48 hours per week and get paid the minimum salary. The manager thought that firing the employees who are over the age of 18 would resolve the issue of the increase in minimum wage, but this will affect their company because the older employees would have more experience in working at their company. They should also ensure that they follow the European guidelines of the Working Time Directive.

Economic- the company is one of the largest in the UK and the majority of the shares are owned by the Managing Director. The annual turnover is around Ð'Ј200m per year which shows that the company is making some profit. The case study also highlights that the company's profit has increased by 6% this year. The profitability of the company is quite high.

Social- another issue is that the employees are not satisfied with the management at the company. This has lead to some disputes and vandalism to the company's machinery. The behavior of the employees has changed. They have become less motivated. If the management remains the same employees will be very unhappy with the way they are treated which affect the company because products would not b dispatched at the correct time.

Technological- the case study does high light that some of the machinery has been damaged by the employees, so there will be an increase in costs for repairing the machinery or replacing them with new ones. PEST-U-LIKE will have to find a way in resolving the disputes or the employees will damage more machinery and costs will also increase.

Legal- employees that are the age of 18 or over could act upon the decision of the managing director because legally he/she is going against the Employment Equality (Age) Regulations Act 2006, so the managing director could be prosecuted because he/she is going against the law.

Environmental- one of the main issues is the pollution caused by the leaking pesticide. This has caused the company to go to court. Media have managed to gather some information on this which may result in the sales decreasing because customers may not fully trust the company any more.

SWOT Analysis

Strengths One of the main strengths is that 49% of the shares are owned by the Managing Director. So the managing director makes most of the profit from the company. The company also runs by his/her rules and policy, so he has complete control over all his staff. The annual turnover

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