Case Analysis of Gujarat Co-operative Milk Marketing Federation Limited

Submitted to Dr. Purva Kansal University Business School Panjab University, Chandigarh

On 09 March 2013

In Partial fulfillment of Masters of Business Administration (MBA)

By Aseem Soi Sarabjit Singh Sahil Khanna Vaibhav Trikha

EXECUTIVE SUMMARY
In todays competitive world while entering in the market it is very necessary to have good knowledge of the potential of a particular market. The growth of a company is invariably determined not just by its strategy, but on how it responds to the challenges it encounters. Over the decades AMUL has successfully countered several challenges that have come its way with innovative responses and continuous improvement, which have enabled it to remain stable and even convert some of these challenges into opportunities. It is the culture of endurance that has accorded AMUL the insight and focus to deal with the current economic environment. Drawing from its inner strength and beliefs, AMUL responded by launching several initiatives across all its operations in various geographies that are helping the group achieve growth even in current times. It is also this very strategic culture that will propel AMUL to continue on its growth trajectory in years to come.

The report provides a comprehensive insight into the company, including business strategies and operations, by using strategic analysis models such as industry life cycle, porters 5 forces and also the key success factors index, SWOT analysis. We have reported an assessment of the internal and external environment of AMUL dairy, considered its strengths and weaknesses, opportunities and threats, its competitive advantages that are valuable for the efficiency and effectiveness of its operations. Based on the information obtained from the above assessments, we analyzed its strategic matrix and generated several strategic options to attain its strategic options more successfully has been made. Lastly we have included in this report, the usefulness of applying these management models for AMUL dairy.

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Table of Contents

Executive Summary ................................................................................................. 1 1The External Environment Analysis .................................................................... 3 1.1Pest Analysis ...................................................................................................... 3 1.2Porters Five forces Model ................................................................................ 6 1.3SWOT Analysis ................................................................................................. 9 2Value Chain Analysis ........................................................................................... 11 3Amuls Business Strategy .................................................................................... 13 3.1Industrial Life Cycle ........................................................................................ 13 3.2BCG Matrix ..................................................................................................... 14 3.3Ansoff Model ................................................................................................... 15 3.Financial Ratios Analysis .................................................................................. 17 3.5TOWS Matrix .................................................................................................. 18 4.1Porterss Generic Strategies............................................................................. 20 4.2Future Options ................................................................................................. 20 4.3Implementations of New strategies.................................................................. 21 4.4Usefulness of strategic Management Models .................................................. 22

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1. The External Environment Analysis: 1.1 Pest Analysis

Societal Environment Sociocultural Forces

Task Environment (Industry) Stockholders Governments Special interest groups Customers Creditors Internal Environment Structure Culture Resources Competitors Trade Associations Suppliers Employees/ Labour Unions

Economic Forces

Political-Legal Forces

Communities

Technological Forces

Political Factors:
The Indian processed dairy industry has grown and diversified enormously in the last few years. To ensure the proper development and growth of this industrial sector, the Government of India has instituted various laws and regulations. Prevention of Food Adulteration Act, 1954 This Act is the basic statute that is intended to protect the common consumer against the supply of adulterated food. This specifies different standards for various food articles. The standards are in terms of minimum quality levels intended for ensuring safety in the consumption of these food items and for safeguarding against harmful impurities and adulteration. Milk and Milk Product Order (MMPO) 1992
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The Milk and Milk Product Order (MMPO), 1992, issued on June 9, 1992 seeks to ensure the supply of liquid milk, an essential commodity, to consumers by regulating its processing and distribution. Within eight years of its operation, the Central/State Registering Authorities have till December 2000 registered 666 units with a total processing capacity of 65.8 million litres per day (mlpd). Export (Quality Control & Inspection) Act, 1963 The Export Inspection Council is responsible for the operation of this Act. Under the Act, a large number of exportable commodities have been notified for compulsory pre-shipment inspection. The quality control and inspection of various export products is administered through a network of more than fifty offices located around major production centres and ports of shipment.

Economic Factors:
Amul Dairy is working in the best area of Anand in Kaira District. This is very good for dairy industry.Some benefits arising out of this location as follows: 1) Cheap Labour 2) Cheap Land 3) Cheap water supply 4) Constant Electric supply 5) Constant Water Supply 6) Suitable Nature and Environment

Social Factors:
Life Style Trend With more money on hand, more and more Indians are drinking milk and buttering their bread. Rising income levels have led to a rapid increase in the consumption of milk and milk products among Indian households. Day by day the need of milk is continuously increase. In the year 1972 average requirement of the milk per capita is 172 per gram. While in 2000 the requirement 215 gram per year. So there will be more demand or milk and milk products in nearer future.
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The consumption of milk is highest in north India that is 278 gram per day, while in west region 174 gram per day. In eastern and southern area combines 215 grams per day require. 46% of the total milk is consumed in liquid form and 47% is converted into ghee, paneer and ice cream and only 7% milk goes for western products like powder, cheese etc. The 98% of the milk produced in the rural area which is cats of 72% of the population whereas the urban sector with 28% populations.Even in urban India India as high as 83% of the consumed milk comes from the unorganized sector.Presently only 12% of the milk is represented by packaged and branded pasteurized milk.

Technological Factors:
Some areas of Indian dairy industry can be strengthened by the induction of specialized technologies and equipment from overseas. These include: Raw milk handling: It needs to be upgraded in terms of physico-chemical and microbiological attributes of the milk collected. The use of clarification and bactofugation in raw milk processing can help improve quality of the milk products. Milk processing: Better operational efficiencies are needed to improve yields and reduce wastage, minimize fat/protein losses during processing, control production costs, save energy and extend shelf life. The adoption of GMP (Good Manufacturing Practices) and HACCP (Hazard Analysis Critical Control Points) would help manufacture milk products conforming to international standards. Packaging: Another area is the range of packing machines for butter, cheese and the like. Better packaging can help retain nutritive value of products packed and extend shelf life. A cold chain distribution system is needed for proper storage and transportation of dairy products. Value-added products: There's immense scope for value-added products like desserts, puddings, custards, sauces, mousse, stirred yoghurt, nectars and sherbets. IT Technology Smart dairy Solution a comprehensive solution portfolio that addresses the unique needs of Dairy plant management. It provides a simple but complete business solution to efficiently meet a wide variety of general and Dairy-specific business requirements

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1.2 INDUSTRIAL ANALYSIS: PORTERS FIVE FORCES MODEL

New Entrants :
Threats of New Entrants, as there are no entry barriers

Suppliers:
Rural milk producers are the major suppliers which makes their bargaining power limited

Rivalry:
Competitive rivalry is very high due to the presence of local players and other established and upcoming brands

Customers:
Customer has the bargaining power due to the presence of various competitors

Substitute Products
High availability of other product causing the threat of substitution

1) Threats Of New Entrants :

i. Economies of Scale: GCMMF enjoys economies of scale, which is difficult to match by any other competitor. It is because of his reasons that no regional competitor has grown to a national level. ii. Cost and Resources advantages: Amul dairy is co-operative society. That means cooperation among competitive is the fundamental principle. Amul dairy is managed the norms of GCMMF and market the products under the brand name Amul which has very good reputation at domestic and international level. Here the raw material procurement is very difficult for the new entrants. Consequently capital requirement is also high. Still new entrants are moderate. iii. Brand preferences and consumer loyalty: there is an immense level of Brand preference of Amul in the mind of the people. The level of preference specifically in the liquid in the milk sector is that would go to other retailer if the retailer does not have milk.

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iv.

Access to distribution channels: The distribution channel of GCMMF is a very planned and perfect one. For any new entrant to enter it would be a very difficult task. For GCMMF the result is years of hard work and its investment in its employees as well as at different levels in the distribution network.

v.

Inability to much the technology and specialized know- how of firms already in the industry: The technology used by Amul is imported from Denmark. It is a state of art technology in India, a firm would require a huge amount of resources.

vi.

Capital Requirements: the total investments required in the industry is huge and is a decision worth considering even for MNCs . The investments decision cover the processing costs as well as marketing costs. To compete with the brand Amul in India is difficult as Amul is synonymous to Quality. Amul dairy is co-operative society. That means cooperation among competitive is the fundamental principle. Amul dairy is managed under the norms of GCMMF and market the products under the brand name Amul, which has good reputation at domestic and international level. Here, the raw material procurement is very difficult for the new entrants. Consequently Capital requirement is also high. Still new entrants are emerging such as domestic and international players. So the treats of new entrants are moderate.

vii.

viii.

Government rules and regulation are not favourable for new entrants. Raw material is also depending on the villagers who are mostly depend on good rain. In the seasonal uncertainties will also restrict the new entrants to establish the new plant.

2) Bargaining power of supplier :

i. The objective of Amul dairy is not profit making. As it is a part of co-operative society, it runs for the benefit of farmers those are the supplier of milk and users of milk product. According the concept of the cooperative society supplier has bargaining power to have a good return on his or her supply. However, supplier has limited rights to bargain with the cooperative society because it made and run for the sake of mass not for individual benefit.

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ii.

There is moderate bargaining power of the supplier. In olden days there were not any kind of cooperative societies as the farmer was exploited. But, nowadays the farmers right has been protected under the cooperative rules and regulations, which ultimately result in moderate power of bargaining from the supplier.

3) Bargaining power of buyers :

Amul dairy is having state of the art technology bring down from Denmark German. And except loose milk vendor mother dairy is the single district level seller of the milk. However the Amul dairy is bound by the norms of federation. So, the pricing policy will be decided only by GCMMF and customer would have not have bargaining power. In nutshell, the bargaining power of the buyer is low.

4) Rivalry among competitors:

The products of the most of dairy which are listed under the Gujarat cooperative milk marketing federation are marketed under the one unique name Amul. Though, it is not having competition from the domestic level. Amul dairy which is at the state level faces the competion from Nestle, Britania, Gayatri dairy, sugam, Dairy dan. The major competitor of the Amul in icecream category is HLLs kwality walls.Although, dairy is not having tough competition from the local players but international level it is exist.

5) Threats Of Substitute :
Most of the milk and milk products substitute are very low. Milk powder can be taken as a close substitute for the milk. In case of the ice-cream category the close substitute is cold drink and soft drinks. So, the substitute of the milk and milk product is completely low.

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1.3 SWOT Analysis Strengths 1. Wide Range of Products 2. Economies of Scale 3. Low cost manufacturing 4. Strong cooperative org. 5. Global Player Opportunities 1. Growing global demand 2. Greater Productivity 3. Export potential 4. Robust economic growth 5. Supply Chain Management Weaknesses 1. Poor Management of logistics 2. Low investment 3. Perishability 4. Lower yield management 5. Problem in distribution Threats 1. Competitors 2. Rising environmental costs 3.Milk vendors 4. Adulteration 5. Lower cattle yield

Strengths:The strengths for AMUL are product differentiation, Economies of scale, low cost manufacturing and strong cooperative organization. The demand profile is absolutely optimistic. While the margins are quite reasonable, even on packed liquid milk. Weaknesses:The Weaknesses for Amul are Poor management of logistics, low investment, perishability, lower yield management. Perishability is being overcome partially by UHT technology. UHT( Ultra high temperature) gives a longer shelf life to milk and milk products. Opportunities:As a Global Enterprise, Amul will be meeting global demands and ensure greater productivity and the opportunity to enhance integration in order to increase efficiency and effectiveness in the business. It has already wide geographic positions and hence it will give it an advantage to get access to gain presence in mature markets. Efforts to exploit export potential are already on, as Amul is exporting to Bangladesh, Sri Lanka, Nigeria and the Middle East. By following the new GATT treaty, opportunities have increased tremendously for the export of agric-products in general and dairy products in particular.

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Threats :Local competitors are the major problem faced by Amul. They sell their products at a lower price, since being a low capital company, they have fewer expenses to take care of. Secondly, as the environmental costs are rising day by day, its getting tough to carry the same pricing throughout. Thus cutting down the extra cost will surely help. Adulteration, also a major threat to quality, takes place due to illiterate farmers from remote villages.

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2. Value chain Analysis

The value chain, is a concept from business management that was first described and popularized by Michael Porter in his 1985. To analyze the specific activities through which firm can create a competitive advantage.

1. Activities of Value Chain a. Primary Activities i. Inbound logistics ii. Operations iii. Outbound logistics iv. Marketing & sales v. Services b. Secondary activities i. Firm infrastructure ii. Human resource management iii. Technology iv. Procurement

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Amuls Value Chain Process

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3 AMULS Business Strategies

Amuls Business strategies have twin objectives: i.
ii.

Long-term, sustainable growth to its member farmers Value proposition to a large customer base by providing customer base by providing milk and other dairy products a low price.

3.1 Industry Life Cycle Introduction Growth Maturity Decline

White revolution in India began in 1946 with two village cooperatives and 250 litres of milk per day, nothing but a trickle compared to the flood it has become today. They came up with AMUL as a brand name, which means priceless in Sanskrit language. It has made India the largest producer of milk and milk products in the world and the white revolution has finally created a billion dollar brand.

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The Industry life cycle has four stages. They are Introduction, Growth, Maturity and Decline.Dairy industry as a whole falls under early stage of Maturity, this is because of the vast range of products they offer to the customers domestically and internationally. Countries like Sri Lanka, UAE, Australia, Honk Kong, China, Singapore, UK and USA have already started selling Amul products of late.

3.2 BCG MATRIX

a. Cash cow i. AMUL butter (normal) ii. AMUL kool iii. AMUL milk (fresh) b. Stars i. AMUL butter (low fat) ii. AMUL tazza milk (packaged) iii. Amul cheese c. Question marks i. AMUL chocolates
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ii. AMUL lassi iii. AMUL mithai mate d. Dogs i. AMUL nutramul ii. AMUL shakti

3.3 Ansoff Model

The Ansoff matrix developed by Igor Ansoff is a very essential tool for strategic planning. It helps the firm to identify the firms growth using the intensification and diversification strategy, which aims at achieving growth through certain modifications in the firms existing business. According to Ansoff model four different strategies are possible. They are Market penetration strategy: This strategy involves achieving growth through existing products in existing market. Amuls market penetration strategy involves its expanding its customer base in the existing market. Amul is set to build up 10,000 `Amul Parlours' across the country during the year. These stores will sell the entire product range of Amul products, in addition to the existing retail network for ice cream, milk and other products.

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It is trying to get more and more customers through a more intensive distribution. It is opening more stores at Highways, Railway stations, Airports, Bus stations, Schools, Colleges, and Industrial Canteens etc.

Market development strategy: This strategy is concerned with creating business through developing new markets with existing products. Amul is using this strategy to capture new and unexplored sectors without creating new products. Amul is now shifting its focus from urban to rural markets and smaller towns. In 2005 Amul added 900 new stores all across small towns to increase its reach. Amul is capturing the market of diabetic and health conscious people through sugar free ice-cream, which is a variation of an existing product. Product development strategy: Product development deals with producing new products for the existing customer base . Amul has vastly capitalized on this strategy by constantly coming up with newer products. Amul-Cool (milk based cool drink) and Amul-Kool caf these are the products aimed at the youth of the country with synonymous marketing campaigns. Stamina the instant energy whey based sport drink has been launched to provide its customers with a totally new product. Amul-Masti, the packaged buttermilk is aimed to be another non-carbonated cool drink in the Amul Cool range which is not only aimed at the youth but also at the more mature society. Diversification: Diversification is a very important part for any business organization. For the further growth opportunities of a company diversification is required. When a new product is launched into the new market diversification holds good and provides more growth opportunities in the future. Diversification is a high-risk strategy as it involves taking a step into a territory where the parameters are unknown to the company. Amul has identified the need to increase its presence in newer markets and thus have come up with many new such strategies for increasing its presence in the entire market.

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3.4 FINANCIAL RATIOS ANALYSIS

Key Ratios

1993-94 1.044888 64.28 10.37303 3.184656 5.772328 0.10% 0.33% 7.5% 3.9%

1994-95 1.233886 217.28 13.64281 4.184885 6.879714 0.15% 0.62% 11.3% 6.7%

1995-96 1.014282 23.28 14.5889 4.228562 4.443161 0.74% 3.11% 66.5% 40.9%

1996-97 1.068432 132.28 10.48786 4.064071 2.36777 0.62% 2.53% 31.8% 38.9%

1997-98 1.217122 300.28 14.41111 5.849138 1.241562 0.56% 3.28% 19.2% 17.0%

1998-99 1.365361 425.28 21.63962 7.345097 1.026634 0.72% 5.28% 24.1% 26.0%

Measures of Liquidity Current Ratio Net Working Capital Operations Activity Ratios Inventory Turnover Total Asset Turnover Leverage Measures Debt-Equity Ratio Measures of Profitability Net Profit Margin Return of Assets Return on Equity Common Stock Ratios Earnings per Share (EPS)

From the above table, following can be interpreted about the financial condition of the company. Current ratio and Net working capital which shows the liquidity of the company is growing subsequently in the given years indicating the strong operating conditions of the company, as the optimum current ratio for any company is supposed to be around 1.2. As compared to the industry averages of milk products, which was around 9 in 1993 and around 17 in year 1998, Inventory turnover ratio and total asset turnover of AMUL indicate that the products are replaced quickly in the market. This shows that AMUL has efficient demand and supply management. Debt- Equity ratio is decreasing over the years showing betterment of financial health of the company thus increasing its credibility. Net profit margin is also getting better for amul indicating betterment of operations resulting in increasing bottomline as compared to sales.
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 Earnings per share is also increasing year by year showing better returns for the investors and shareholders. The summary of financial ratios analysis indicates that AMUL has significantly improved its operations in making value for its shareholders.

3.5 TOWS MATRIX

Strengths 1. Wide Range of Products 2. Economies of Scale 3. Low cost manufacturing 4. Strong cooperative org. 5. Global Player Opportunities 1. Growing global demand 2. Greater Productivity 3. Export potential 4. Robust economic growth 5. Supply Chain Management SO Strategies -Increased productivity through cost effective manufacturing - Increase global demand through global exposure - Improve channel of distribution Threats ST Strategies 1. Competitors - Product eliminating and 2. Rising environmental costs diversification 3.Milk vendors - Value marketing 4. Adulteration - Hygienic processing 5. Lower cattle yield facilities Weaknesses 1. Poor Management of logistics 2. Low investment 3. Perishability 4. Lower yield management 5. Problem in distribution WO Strategies - Increase of opportunity through new GATT treaty - Develop new process to improve the quality and shelf life of milk and milk products - Increase awareness of scientific development WT Strategies - Efficient and economical procurement - Control over logistics and yield - Product positioning

SO Strategies (Maxi Maxi): Amul can use the strategies that have been formed after in depth strategic analysis of the company and its industry. Some suggestions in this case would be to increase productivity by using cost effective manufacturing techniques. Also, increased demand for their products world over by first gaining more exposure to the global market. With the use of expansion strategy, it can overcome the location issue, as Amul can expand more areas and it will make the distribution of channel areas easier and convenient.

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ST Strategies (Maxi Mini): Amul must put into action some of these strategic options to meet the threats using its strengths. Product Differentiation is very important to differentiate Amul from the competitors, as it can tackle down the competitors product if Amul products are more outstanding and different from competitors. Options available can be classified as product elimination and diversification strategy, value marketing strategy and also developing hygienic processing facilities. WO Strategies (Mini Maxi): The strategies formulated to overcome the weakness through opportunities are increase of opportunity through the new GATT treaty, develop new process to improve the quality and shelf life of milk and milk products, this can be achived through pasteurization, homogenization and many other processes like producing UHT milk etc. Finally, Amul should also try to increase awareness of scientific developments. WT Strategies (Mini Mini): The strategies that have been formed to overcome the weakness and threats in Amul and the dairy industry as a whole are to apply efficient and economical procurement of products. Secondly, to have control over the logistics and to maintain them efficiently. Lastly, create the right type of product positioning for the various product categories that Amul deals with.

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4.1 Porters Generic Strategy

The three basic strategies are cost leadership, differentiation and focusing. According to Porter (1985) "Each of the generic strategic involves different route to competitive advantage, the cost leadership and differentiation strategies seek competitive advantage in a broad range of industry segment, while focus strategic aim at cost advantage (cost focus) or differentiation(differentiation focus) in a narrow segment." Cost leadership: Products like ice-cream, chocolates, cheese etc. were always considered to be premium product and were sold at a higher price. All players before Amul targeted only the premium segment in the market. The high prices were due to high production, refrigeration, distribution etc. Amul because of its less expensive distribution channel and low raw material cost has been able to price its products comparatively lower which has enable Amul to gain market share through costleadership strategy. Differentiation: Amul was the first to come up with different product, flavors varied in health usage, product ingredient etc. It also used differentiation, by using associated advertising by Indian made products showcasing patriotism, distribution channels etc. Focus: Ice-creams, chocolates, processed milk product was mainly targeted at the youth of India however, Amul brought about a change by positioning them as a family product, and this increased the volumes of consumption. Thus by pushing its product at a untouched market segment they witnessed a gain in market share. 4.2 FUTURE OPTIONS Product Positioning: Placing a product in that part of the market where it will receive afavorable reception compared to competing products. In case of Amul it has apositioning strategy and it is The taste of India. This had created value for everyone inthe value chain, be it customers or the suppliers/farmers. The USP for Amul is Qualitywith affordability, which appeals to most of the targeted markets.Amul positioned itself with Indias first pro-biotic wellness ice cream and sugar freedelights for diabetics. This was based on good strategies of positioning which helpsincrease awareness and also improve brand image. They expanded their products interms of those that can be used even by those who are restricted from consumption
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dueto medical reasons. Amul also priced their products such that it made competitorkwality walls rethink their marketing/pricing strategy. This type of product positioninghas proved beneficial to amul and so they must come up with many more of such ideasand products that can help them move forward. Product Elimination and diversification: Product elimination is when the productreaches the stage where continued support is no longer justified where performance isfalling short of expectations; it is desirable to pull the product out of the market place. Inthis case Amul eliminated one such product that was bottled water called JALDHARAthis was done as they noticed that this product did not have many potential customers tolast in the market. Product diversification is where seeking unfamiliar products ormarkets or both in the pursuits of growth. Therefore Amul in this category too had aphilosophy that was followed. They had progressive addition of higher value productswhile maintaining the desired growth in existing products. Secondly Amul introducedproducts with consistent value addition but never left the core philosophy of providingmilk at a basic affordable price. Amul must also use a value marketing strategy, which provides a product that works asclaimed, and is accompanied by decent service, and is also delivered on time. It mustinclude and provide the following: i.e. commitment to quality, value for money, thegeneration for awareness and finally foster loyalty.

4.3 IMPLEMENTATION OF NEW STRATEGIES Product Positioning: System: Product improvisation-Amul must try and improve on certain products thatare or as popular as the other products like butter, milk, and ice cream. This does nothave to be done only after having a clear marketing research. These are a fewcommon actions that must be taken. Structure: Amul hoardings are successful, but there is a need to advertise by cablechannels, newspapers etc to reach the rural areas. For improvisation they must focuson advertising to gain more awareness for those products. Policy: It must include strengthening of liquidity and working capital in order to bemore successful while trying to create awareness. Also to maintain the quality of theproducts as the percentage of perishability is very high for these products.

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Product Elimination & Diversification: System: Supply chain add-ons must be further strengthened for easierdiversification of the products. Also to venture in to new fields such as processedfood, vegetable and fruits. Structure: Venture into the above-mentioned fields is a good option as they can usethe same Anand Pattern to carry on its operations. Therefore strategizing wont takemuch of time and more over this will give higher margins Policy: They must achieve diversification and elimination of products through agood research system and also analyze the strengths, weaknesses, threats andopportunities. Amongst them they must try to nullify the threats and weaknesses.

4.4 USEFULNESS OF STRATEGIC MANAGEMENT MODELS There were several models that were applied so as to assess the competitive environmentof AMUL and to develop and generate more strategic options for the company. Briefdescriptions on the usefulness of the models being used in the company analysis aregiven.

Industry Life Cycle: this model came to use as a useful tool for analyzing theeffects of an industrys evolution on competitive forces. It is important to understandthe use of this model because it is a survival tool for businesses to compete in theindustry effectively and successfully. I have identified that the current dairy industryis positioned in the early maturity stage. As the global demands have pushed the barsway high comparatively. PORTERS 5 FORCES: This model is useful to analyze the competitive industryenvironment and business strategy development. This analysis helped me understandthe strengths of AMULS current competitive position. Its objective was toinvestigate how the organization needs to form its strategy in order to developopportunities in its environment and protect itself against competition and otherthreats of substitutes, power of suppliers and buyers. SWOT ANALYSIS: This can be very helpful for recognizing and analyzingorganizations internal strengths and weaknesses, as well as the externalopportunities and threats faced by the organization. By understanding these fouraspects of its situation, the company can better

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leverage its strengths, correct itsweaknesses, capitalize on golden opportunities, and deter potentially devastatingthreats.

TOWS MATRIX: This matrix is very useful for generating a series of alternativesthat the decision makers of a company or business unit might not otherwise haveconsidered. It can be used for the organization as a whole or for a specific businessunit within a corporation. In this report it was useful in analyzing the strengths of thecompany and how it can be used to generate strategic options by taking advantage ofthe opportunities and to avoid threats. Also to generate strategies that take advantageof opportunities to overcome weaknesses, minimize weaknesses and avoid threats.

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