Jashan.Jawanda.219277235.ADMS.3510

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York University *

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ADMS 3510

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Management

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Apr 3, 2024

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SWOT Analysis for Tartan Corporation: Strengths: 1. High-Quality Products Lines: Tartan has a legacy of more than 80 years of manufacturing high-quality home lighting systems. Being in business for 80 years they must have acquired a huge market share for its product which gives them advantage in sales. This history gives the company a strong brand image and customer trust. They also have different lines of product which are beneficial. 2. Diverse Sales mix: The company has a diverse range of product lines, catering to different customer preferences and regional differences, which can help in mitigating risks associated with changing market trends. Tartan Corporation has evolved with time introducing new products as per the demand of the customers with the introduction of recent western line. 3. Skilled Workers in Classic Line: The Classic line has highly skilled and loyal workers, resulting in superior workmanship and quality products. They are getting paid well which gives them motive to only work for tartan and ensures their loyalty to the company. Weaknesses: 1. Decreasing Sales in Classic Line: Sales in the Classic line have sharply dropped, and production costs are high due to skilled labor and materials. Attracting and retaining skilled workers is increasingly difficult. Classic line requires the most workmanship for production. 2. Capacity Constraints: The unexpected surge in sales for the Western style products has created a backlog of orders, putting pressure on manufacturing capacity. It created backlog for western styles. 3. Regional Dependency for Classic Line: The Classic line is primarily popular in the northeast states, making the company vulnerable to regional market fluctuations. Dependency onto only one region can highly affect their sales. Opportunities: 1. Increasing Demand for New Styles: There is a growing demand for the new product lines like Western, Contemporary, Margaret Stewart, and Modern, especially in the southern and western regions. And Tartan corporation is responding to these changes in demand positively by introducing new lines with changing times. 2. Product Line Changes: Shifting production resources from Classic to high-demand product lines could improve overall efficiency and profitability. It would increase the production capacity and would release the highly skilled workers which will reduce company’s labor cost. 3. Innovation and New Product Development: Investing in new product development can open up opportunities for differentiation and attracting a wider customer base. Coping with the market demand changes with new products can help tartan to reach more customer and acquire more market share. Threats: 1. Wastage of Resources: Eliminating the Classic line could lead to a significant amount of obsolete raw materials inventory, incurring financial losses. The losses will add up to $233,000. 2. Competitive Market: Competing companies in the lighting industry may offer similar high-quality products, making it crucial for Tartan to continuously innovate and differentiate. This will increase competition and substitutes for products of Tartan. 3. Economic Downfall: Economic recessions or fluctuations could impact consumer spending on luxury home lighting, affecting sales. If focused more on luxury or

premium goods, tartan will lose customers of middle classes which are proven to be high in number in comparison to high- class customers. Importance of the Value Chain: The value chain is important for profitability and competitiveness of Tartan Corporation. It helps in understanding the activities that are involved in creating a product and how each activity adds value to the final product. In the case of Tartan, this is relevant for analysing production costs and quality control. By analyzing the value chain, Tartan Corporation can identify areas for cost reduction, process changes, research and development and quality enhancement. This understanding is crucial for maintaining profitability, as it provides more efficient resource allocation and cost management. Strategy Map: A strategy map is a visual representation of a company's strategic objectives and their cause- and-effect relationships. In Tartan's case, the strategy map outlines the following:  Financial: It aims for sales growth, improved profitability (earnings before taxes), reduction in product costs, and improved return on investment. The number of new customers increasing market share of the company is also a financial goal.  Internal: The company focuses on internal factors like new product development, reducing waste and utilization, increasing productivity, and reducing inventory levels.  Customer: It emphasizes on customer satisfaction, retention, and overall customer happiness and their feedback. It also includes specific categories such as quality. Employee satisfaction is another critical aspect, as it directly impacts customer experience.  Learning & Growth: This is about investing in employees' development, introducing training sessions, retention, and reducing cycle times for processes. The strategy map illustrates how each aspect is interconnected and how modifications in one area affect others. For example, investing in new product development can lead to higher customer satisfaction, attracting new customers, and ultimately driving financial growth. Balanced Scorecard: The balanced scorecard presented in Appendix B aligns with Tartan's strategy map. It translates the strategic objectives into key performance indicators (KPIs) for monitoring and evaluating performance. The KPIs include:  Financial: Sales growth, earnings, product costs, and return on investment.  Internal: Measures related to new product development, waste reduction, rework reduction, productivity improvement, and inventory control.  Customer: Customer satisfaction, retention, and employee satisfaction.  Organizational Learning & Growth: Employee training, retention, and cycle time reduction. The balanced scorecard provides a clear framework for measuring performance in various areas, ensuring that the company stays on track to achieve its strategic objectives. To make it more effective, Tartan should ensure that these KPIs are regularly tracked, reported, and used to drive decision-making and strategic adjustments. Additionally, it might be beneficial to add KPIs related to regional sales and inventory management to address specific challenges.

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