Most organizations must recurrently make adjustments to maintain their optimal functioning. Over the years, several techniques have been employed to determine the areas of change. One common technique that has been used by a majority of organizations includes an evaluation of the potency, limitations, prospects, and risks, known as SWOT. After several reviews, it was found out that SWOT analysis has been used in many industries but not Galaxy Toys, Inc. Company especially during the introduction of new products. Gibis et al. (2001) stated that SWOT assessment is a precursor to strategic scheduling and management. Based on the case study, the SWOT analysis for Galaxy Toys, Inc. will be performed by the production manager, who will, in turn, present the finding to Board of Directors and the vice president of production. According to Sacket, Jones, and Erdley (2005), the main objective for strategic scheduling is to maintain a balance between the internal factors of a company and the external factors for a long duration. Companies have to achieve this aim exploring new programs and services with the intent if increasing surplus and maximizing performance. In this case, SWOT analysis will be the initial decision-making tool for the project. Before presenting the SWOT and managerial analysis of the two products, it is important to be familiar with the mission and the vision of the company. This will assist to assess if the goals and the objectives of the business are met as per long-term and short-term goals. The vision of the company is based on manufacturing toys that motivate many children in the globe to aspire to become space explorers and offer a desire to attain that aspiration. On the other hand, the mission of the company is to produce both classic and modern space-related toys for all ages. They ensure that all the products are environmental friendly. Galaxy’s main toy making principle revolves around sturdy and resilient creation, uniqueness, and innate playability. It manufactures toys that are inexpensive (Retrieved from Galaxy Toys, Inc. Company Profile, 2016).
Brief summary of the project
Having registered lower and unexpected sales in January 2016 of only three percent within a year, Galaxy Toy, Inc. Company decided to have a thirty-month plan that was aimed at reducing low sales and jump starting productivity. Initially, the team came up with three options. First, they thought of producing one million Payload Nine toys or MMTJE1 for December 2016. Secondly, they had the option of producing one million Payload Nine toys for December 2016 and one million Moon Mission to Jupiter’s Europa (MMTJE1) for December 2017. Their third option was to produce one million five hundred thousand MMTJE1 for Christmas 2017. Each product had unique production requirements. After further consultations and reviews, the production team settled for the second option, which was to manufacture one million Payload Nine toys for December 2016 and one million MMTJE1 for the following year. Payload Nine was presumed to increase the sales by 6.8%. Besides, the production of the toys would require no additional labour and well as finances. On the other hand, the production of MMTJE1 was estimated to intensify profits by about 15% in 2016 and 21.6 % if marketed in 2017. However, unlike the single production of Payload Nine, this project would require a budget increase of around three hundred thousand dollars, rescheduling in the five plants, and work overtime by the workers.
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Steps in SWOT Analysis
Before beginning the analysis, it is important to understand the critical steps involved in SWOT analysis. Normally, it is made up of four steps. The first step includes the collection and assessment of the key information. This step usually depends on the organization. The information might include demographic data such as the age of the children who likes toys and the status of toy technology. Once the data is collected, Galaxy Toy Inc. Company will analyse its capabilities in the areas evaluated. Secondly, the data collected in the first step are grouped into four sections of strengths, weaknesses, opportunities, and threats. At this point, it is important to note that the strengths and weaknesses stem from internal factors of the organization, whereas opportunities and threats originate externally. One writer asserted that the important information to be gathered include the company’s capital, functions, and business ventures. Step 3 includes the establishment of a SWOT matrix for all of the business options under analysis (Gretzky, 2010). For instance, since Galaxy Toy Inc. Company has resolved to produce two products with different costs and production methods; a separate SWOT matrix will be created for each product. The fourth step will involve integrating the SWOT analysis into the decision-making process to determine the best business option that is in alignment with the company’s overall strategic plan.
Understanding managerial objective, functions, goals, and essentiality in the analysis
The skill and art of management is very crucial in achieving goals and maintain continuous improvement (Olum, 2004). Management objectives often involve three factors. The first one ensures that all company’s goals and objectives are met suing the minimum costs. Secondly, it aims at taking care of the welfare, health, and safety of the employees. Lastly, it should protect the different resources of the organization.
Part one: Long-term Planning Goals and Decisions
SWOT Analysis
Strengths
It refers to something that adds value to the organization because of its positive outcomes, In case it does not offer value, it paves the way for competitive advantage. Normally, strengths include valuable assets such as finances, equipment, and well-established customer base. Galaxy Toy Inc. The company derives one of its strengths from the existing business philosophy. For instance, in the quest to remain on the cutting age of the competitive global market has motivated the Galaxy Toy Inc. Company to resolve to “long-term” planning, which is limited to a timeframe of two years. This is a strength because it grants them the opportunity to maintain agility in the current business environment.
The desires for innovation and implementation of highly advanced technology are the strength for the company especially in the production of Moon Mission to Jupiter’s Europa (MMTJE1) in December 2017.This product is characterized by the latest technology of the 3- dimensional engineered vehicle built to explore Mars. The toy is remotely controlled giving the child and the opportunity to unleash the capsule referred to as “Juno1” craft. It is interesting that the craft can release the rover commonly known as Galileo, which can navigate all the terrains. Moreover, the Galileo can capture pictures and send them to a cell phone. Such characteristics are highly likely to attract customers because every consumer wants to be at par with the latest technologies, thereby increasing the sales by 21.6% in 2007. The demographic data presented as per the step one in SWOT analysis indicate that the product is suitable for children of eleven to twelve years of age. However, children who are below this age can use it in the presence of an adult.
Moreover, the utilization of three-dimensional materials adds their advantages over their competitors because it increases the innovative, competitive advantage. Closely related to this is the use of environmentally sustainable materials, which can be recycled
Thirdly, producing one million Payload Nine toys for Christmas 2016 will be considered as a strength for the Galaxy Toy Inc. Company because of several reasons. For instance, the company will not have to adjust the annual budget because the estimated production costs will be covered in the current expenditure. Since capital is perceived as strength in SWOT analysis, the Company can maintain production costs, while at the same time increasing profits from 3% to 6.8%. Therefore, integrating these ideas of sustainability and innovation in the new product line manufacturing are considered the current strengths.
Moreover, the product comes with building blocks that can be used as a different set of toys. Children can enjoy playing two games at the same time with the Payload Nine toys. This characteristic can attract many buyers, which will ultimately help to achieve the stipulated goals. Besides, this product does not require the company to restructure budgets and workforce making it effective to increase the sales.
Moreover, Galaxy Toy Inc. Company has strived to treat its employees with dignity and respect. All the employees working for the company are appreciated for their efforts, and different method are often used to motivate them. This culture would qualify as a strength when utilized appropriately especially for the workers who will be stationed to produce Moon Mission to Jupiter’s Europa. Since the workload for the product will be enormous, a group of employees in the five plants are expected to work overtime. Therefore, the culture of the company of having strong human resource will be effective in promoting the sales.
Weaknesses
These refer to the Company’s factors that will increase the production costs or undermine the workforce. The two common outcomes of weaknesses include the elimination of competitive edge and dilution of offers. Based on the production of the two products, the company is likely to experience a few setbacks. For instance, the production of one million Payload Nine toys for Christmas 2016 may be successful, but the sales may not be as successful. As compared to its counterpart, this product may not be attractive in the market because of its limited use in technology; hence, the profits might reduce than expected. The focus group did not consider it a “wow” product as it stands, the current generation of children are fascinated by trendy things. Science lovers believe that having the latest technologies like NASA might help them achieve their dream of exploring the space and its contents. Having effective toys to assist in “achieving” this dream is the starting point.
The second weakness that is likely to be experienced is financial challenges in the production one million Moon Mission to Jupiter’s Europa (MMTJE1). Even though it is set to future in the market by 2017, the product requires massive budget restructuring. First, the materials that will be used in its production are quite expensive and will require the Galaxy Toy Inc. to allocate an extra amount of about three hundred dollars. This amount comes after a standard allocation of $450,000. Secondly, the starting date for the productions is inflexible for the plant workers because they have to speed up the current productions to achieve this long-term goal. This means that the workers are likely to work extra hours. Working extra hours means increasing the wages of the workers. Besides, one disadvantage for the rush production of the current toys is that they may fail to meet the standards of the consumers. Failure to meet the needs of the clients may necessitate disinterest in customers making them look for other options. However, being a long-term plan, the company is capable of foreseeing the impending weaknesses and deal with them appropriately.
Assessing the planning decisions and goals
In the current globalized world, it is crucial to integrate decision-making skills with the Fayol’s principles of management, which include planning, organization, commanding, coordinating, and controlling. In the case study, one crucial way of ensuring that the goals of Galaxy Toy Inc. Companies are met having excellent management functions that can understand the strengths and weaknesses and come up with better solutions for them.
Planning will entail identifying the missions and objectives and the actions that will assist towards achieving them. It heavily relies on decision making, which involves settling for future performances among the available options. Usually, the plans are diverse. They might include general functions and objectives to the specifically outlined actions to be implemented. Most times, no actual plans exist until a decision, which is the evaluation of human and material resource has been established. Simply, planning and proposals exist before an actual decision is established.
In the case of Galaxy Toy Inc. The company, the Board of Directors through the help of focus groups, came up with one lasting decision of rolling out the production of Moon Mission to Jupiter’s Europa (MMTJE1) to 2017. It was an appropriate decision because rushing to introduce the product in the market by 2016 would mean a quick adjustment in human resources as well as the equipment and finances. There were analysis and features utilized in the assessment of the vision, mission, lasting goals, and SWOT analysis of the organization. For instance, the vision of the company is to manufacture gadgets that inspire children in the globe to gain interest in discovering the space and offer a motivation to realize the aspiration. On the other hand, the mission of the company is to produce both classic and modern space-related toys for all ages. They ensure that all the products are environmental friendly. Galaxy’s main toy making principle revolves around strong and durable construction, uniqueness, innate playability, and action as it manufactures toys that are affordable for all. When Galaxy Toy Inc. The company chose the two products; they had reviewed several factors such as finances, consumer preferences, and time. In the previous year, the company had registered very low sales because the products they had in the market did not meet the vision and the mission of the Company. Two assumptions that can be made from the sales of the current products were that they were expensive or they lacked uniqueness and intrinsic playability.
Moreover, by putting up a competent team, different groups within the company will strive to achieve their roles. When it comes to management, proper organization entails having detailed rules for people to ensure success in the production of the new products. Closely related to this is staffing. The company had targeted the production of one million toys within a year for the Moon Mission to Jupiter’s Europa and one million Payday Nine toys in less than a year. As a long-term strategy, the company was able to identify the different workforce requirements. For instance, the new products would need training for the current or future staff to ensure tasks are effectively accomplished.
The department of production and shipping area expected to have the ability to control the budgets for expenses as well as measure and correct activities to guarantee conformity to plans. The power of control in management determines the performance against goals and plans. Through this, the relevant bodies will be able to track down deviation trends to help ensure the achievements of different goals.
The factors that have been used in the analysis during the formulation of the long-term plan include customer’ preferences as per the company’s mission, availability of finances, duration, current advancements in technology, and availability of human resources. The products under evaluation meet the criteria for the company’s mission, which is to produce both classic and modern space-related toys for all ages. They ensure that all the products are environmental friendly. Galaxy’s main toy making principle revolves around strong and durable construction, uniqueness, innate playability, and action. Besides, the Moon Mission to Jupiter’s Europa to is more advanced. Users of the products will likely realize this satisfaction thereby building a rich customer base for the company in future. Finances have also been one of the major factors in the long-term plan. Since the company had experienced insignificant growth in the current financial year, introducing new products into the market will present opportunities. The quality and the advancements of the two toys are likely to attract a rich customer base. However, based on the SWOT analysis, certain threats might arise during productions as well as the sales. For instance, Galaxy Toys, Inc. The company might be allocating too many resources on the two toys even though the future sale might fail to match the input because of external competitors or “complications” with the toys. Furthermore, setting duration for one year is favourable for the company while trying it strives to manufacture one million technologically advanced toys. These long-term planning strategies are suitable for the company because they can assess and identify threats and opportunities along the way.
Part 2: Short-Term Production Goals and Objectives
After a virtual meeting by the production managers, a list of short-term objectives and goals was created. However, after further review of the list, certain objectives were short-term while others did not qualify as objectives because they were not in line with the vision and mission of Galaxy Toys, Inc. Company. This section of the paper will determine if the items on the list qualify to be goals or objectives. After that, a decision will be made whether they should be adopted or abandoned. First, in this situation, it is important to understand the difference between goals and objectives. Goals refer to the potential achievements a business wants to achieve. For instance, Galaxy Toys, Inc. The company has a goal that inspires children in the globe to gain interest in discovering the space and offer a motivation to realize the aspiration. On the contrary, objective refer to the specific steps the company will assume to achieve these goals. For instance, the company can make toys that are a replica of NASA’s rockets and vehicles. Typically, objectives should be measurable and quantifiable with a timeline.
“ Appropriate” short-term goals derived from the list
Manufacturer of superior MMTJE1toys must commence on February 20th, 2017
Additional, staff must be employed by February 20th, 2017
3D printers must be bought by February 20th, 2017
New packages should be palletized by May 1st, 2017
Shipping should begin an approval immediately is received from the Quality Control
These goals are considered appropriate because they match the company’s mission and timeline. MMTJE1 toys are set to be rolled out in 2017 and as per the above goals because they meet the timeline.
“Appropriate” short-term objectives derived from the list
March 31st, 2016 must prepare employees for all production processes
Quality control should determine safety protocols by May 1st, 2016
3D printers must be purchased and installed by November 1st, 2016
Upkeep of 3D materials must be done daily
Personnel must be cross trained on 3D printers
Tuition on the new printers must be done by October, 31st 2016
As stated earlier, objectives are the steps taken to realize the stipulated goals of a company. Therefore, the steps should have earlier planning. Since production of MMTJE1 is a long-term planning project, the objectives should give a detailed timeframe for the expected outcomes. For instance, if Galaxy Toys, Inc. The company begins personnel planning as early as 2016; it will have enough time to tackle future opportunities and threats.
Abandoned goal and objectives
IT must confirm programming for 3D printers is complete by June 1st, 2016
3D machine operators must be trained by, October 31st, 2016
Production of quality MMTJE1 should start by July 1st, 2017
The first MMTJE1 toys should be produced by December, 1st 2016
Quality control should evaluate the toys by December 31st, 2016
Shipping should begin July 1st, 2017
The reasons why the above objectives and goals are featuring in “abandoned” category are that they failed to meet the timeline for the production of MMTJE. For instance, the goal that states that the first MMTJE1 toys should be produced by December 1st, 2016 conflicts with the timeline goal of the company. Initially, only Payload Nine toys were fit to be produced in 2016 because of the financial needs. However, when the goal states a production of the first toy by December 2016, it becomes irrelevant. Secondly, shipping of the products cannot be limited to a specific date as the goal suggests, but it should require approval by the Quality Control department. This means that the shipping can be done earlier or later than July 1st, 2017. It is important to note that these abandoned objectives and goals can be useful in giving insights and should not be completely neglected.
Conclusion
SWOT analysis is often a precursor to the strategic planning process. Based on the Galaxy Toy, Inc. Company, its strengths included effective innovation, high-profit margins for the products, and a strong brand image especially as its products are associated with NASA. On the other hand, the weaknesses identified included readjustments of finances and human resource, high-cost of equipment, and a limited customer base. The opportunities that the company could achieve from these products included a massive network expansion, establishment of new product lines, and the demand for the new products because of the innovativeness. Conversely, the company could face threats such as imitation, stiff competition, and rising labour costs.
Recommendations
From the SWOT analysis, it can be deduced that the company has major strengths that can be utilized efficiently to deal with the organizational weaknesses in launching the products. Moreover, the company can use its strengths to exploit the existing opportunities. For instance, since the products are of high-profit margins, the company can use the expected profit margins to establish new product lines, which are in line with their vision and mission. Galaxy Toy, Inc. The company can also exploit its ability to embrace latest technologies in enhancing the successful launch of its products. The nature of globalization has prompted a majority of companies to be competitive. Therefore, this company can achieve this through appropriate utilization of the strengths. To help deal with the threats, the company can address them through a solid patent portfolio. It should have an effective management framework. Besides, they can practice continuous innovation to beat imitations and ensure a higher competitive advantage.
References
Galaxy Toys, Inc. Company Profile (2016). BMGT 364 Galaxy Toys, Inc. Company Profilehttps://www.homeworkmarket.com/sites/default/files/qx/16/09/15/03/company_profile.pdf
Gibis, B., Artiles, J., Corabian, P., Meiesaar, K., Koppel, A., Jacobs, P., & Menon, D. (2001). Application of strengths, weaknesses, opportunities and threats analysis in the development of a health technology assessment program. Health Policy, 58(1), 27-35.
Gretzky, W. (2010). Strategic Planning and SWOT Analysis. Retrieved on 30th November 2016 from http://mydesievent.com/wp- content/uploads/2014/10/Harrison_Chapter5.pdf
Mind Tools (2016). Management Training and Leadership Training, Online. Retrieved on 30th November 2016 from https://www.mindtools.com/pages/article/newTMC_05.htm
Olum, Y. (2004). Modern management theories and practices. Uganda: Makerere University.
Sackett, K., Jones, J., &Erdley, W. S. (2005, April). Incorporating healthcare informatics into the strategic planning process in nursing education. In Nursing leadership forum (Vol. 9, No. 3, p. 98). Springer Publishing Company.
