BMG625 SWOT ANALYSIS OF ALLIANCE TRUST PLC
Introduction
- Alliance Trust plc is one of the leading organizations in the financial service industries that have successfully implemented its business throughout various countries.
- It has successfully maintained its brand position in the international market.
- The critical internal analysis by the SWOT Matrix the organizational managers can identify the strengths of the company that can be beneficial for the organization along with the weaknesses, threats, opportunities.
- These factors highly reflect on the business environment of the organization.
- The analysis will be helpful in the identification of the required strategies in the organization and can provide the mitigation factors for the identified issues.
SN: The SWOT analysis of the Alliance Trust Plc can help understand the business’s condition, by the analysis of the strength factors along with the weaknesses, opportunities, and strengths.
SWOT analysis of the organization
- The SWOT analysis has been done in the case of the Alliance Trust Plc organization to ide tidy the strengths, weaknesses, opportunities, and threat factors of the company.
- Wright and Greenwood (2017) mentioned that the major objective of this type of internal analysis is to implement the important techniques for assessing the business attributes properly.
- The application of SWOT analysis has been advantageous for the identification of the development strategies requires for the company.
SN: The SWOT analysis has helped to analyze the business condition and to provide mitigation strategies for better business expansion.
Strengths factors of the organization
- A list of strength factors is observed in the case of the Alliance Trust Plc (one of the FTSE organizations).
- The specific organization has established a strong and reliable network distribution facility that has been the reason behind the potentiality in the target market (Fernfortuniversity, 2021).
- The organization has invested a lot of money in creating a strong brand image and portfolio which has been highly useful for bringing new products to the market.
- A strong and free cash flow system has been observed in the case of the company that provides huge resources to the organization.
- Successful execution of the projector works of Alliance Trust Plc has been observed that resulted in providing good returns to the company and has generated a great revenue.
- Nassar (2019) discussed that the organization has trustable, reliable, and strong supply chain networks which is the key factor behind the success of the organization.
Figure 1: Strengths factors of the organization
(Source: Created by the learner)
SN: The company has implemented the process of track recording successfully by the complimentary integration by acquisition and mergers. This facility has provided huge support by integrating a large number of technology companies. The marketing strategies of the company have helped in achieving success in the production limit. Besides the organization has implemented successful strategies for including innovation in the production.
Weaknesses of the organizations
- The analysis of the weaknesses of Alliance Trust Plc has provided information on mitigating various risk factors.
- The organization has faced difficulties in tackling the various challenges that arose due to the presence of new entrants which is required to be mitigated by presenting an internal feedback mechanism process (Fernfortuniversity, 2021).
- The gaps in the product range in another weakness of the organization which can be the reason for developing new competitors.
- The higher attribution rate of the organizational workforce is another major issue faced by the company that has resulted in investing a greater amount in the development and training process.
- The greater need for organizational investment in implementing new technologies has been another weakness of the company.
- Ullah et al. (2021) identified that the compatibility of the specific company only allows the current business model which has not been applicable for the business expansion process.
- The Alliance Trust Plc has a very low profitability ratio which is a disadvantageous process for the organization.
Figure 2: Weaknesses of the organization
(Source: Created by the learner)
SN: The Alliance Trust Plc is one of the leading industries which has faced issues of limited success because of its core business. The lack in the net contribution percentage has been another important weakness of the organization.
Opportunities of the organization
- The various new policies related to the business environment have been a great opportunity for the Alliance Trust Plc as it has suggested the implementation of new technologies for better production and product categories.
- The core competencies of the organization have been a great opportunity for the organization as it has helped in succeeding in the production field (Fernfortuniversity, 2021).
- A lower inflation rate has helped the organization in the business implementation which can be the reason behind achieving sustainability in the business.
- The recent taxation policies can help the organization in achieving profitability from the business.
- Dzhengiz (2018) analyzed that the opening of new markets has provided the scope of adopting new technologies which can result in the implementation of emerging into new markets.
- The acceptance from the new customers has been advantageous for the business expansion as it can provide the chance of getting a greater brand image among the customer from social media platforms.
Figure 3: Opportunities of the organization
(Source: Created by the learner)
SN: The new trends related to customer behavior had been beneficial for the expansion of the business of the organization as it can improve the organizational revenue. Moreover, the green drive opportunity given by the government can help in the procurements process of the products.
Threats factors for the organization
- The major threat factor of the organization is the increasing rate of raw materials.
- Zhang et al. (2020) stated that the new regulations related to the environment under the Paris agreement of 2016 are another threat factor for the company.
- The company has faced issues because of the lack of skilled workers in the organization that reflects on the production.
- Lack in the daily supply of various innovations in the products is another major threat factor for the organization.
Figure 4: Threat factors of the organization
(Source: Created by the learner)
SN: Besides all the threat factors the increase in the pay level is another threat condition for the organization that can negatively affect the steady growth of revenue and profits of the company.
Conclusion
- The internal analysis of the organization with the help of the SWOT matrix has helped in the identity of the exact strength factors that can help in gaining higher organization’s profits.
- Some threats have been analyzed in the study that suggested the mitigation strategies of the issues.
- The opportunity factor had provided information about the future requirements for the company.
SN: Some threat factors have been identified such as the lack of supply regularity and skilled workers which are required to be mitigated by exact strategies.
Reference list
Dzhengiz, T., 2018. The relationship of organisational value frames with the configuration of alliance portfolios: Cases from electricity utilities in Great Britain. Sustainability, 10(12), p.4455.
Fernfortuniversity.com, 2021. Fernfortuniversity. Available at: http://fernfortuniversity.com/term-papers/swot/nyse/6970-alliance-trust-plc.php [Accessed on : 11.07.2021]
Nassar, S., 2019. The Influence of Intellectual Capital on Corporate Performance of The Turkish Wholesale and Retail Trade Companies.
Ullah, A., Pinglu, C., Ullah, S. and Elahi, M.A., 2021. A Pre Post-COVID–19 Pandemic Review of Regional Connectivity and Socio-Economic Development Reforms: What Can Be Learned by Central and Eastern European Countries from the China-Pakistan Economic Corridor. Comparative Economic Research. Central and Eastern Europe, 24(2), pp.23-43.
Wright, S. and Greenwood, D.J., 2017. Universities run for, by, and with the faculty, students and staff: Alternatives to the neoliberal destruction of higher education. Learning and Teaching, 10(1), pp.42-65.
Zhang, G., Tang, C. and Qi, Y., 2020. Alliance Network Diversity and Innovation Ambidexterity: The Differential Roles of Industrial Diversity, Geographical Diversity, and Functional Diversity. Sustainability, 12(3), p.1041.
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