M3A1: SWOT Analysis: Weaknesses of your Organization
Strengths of Botanical Bounty Farm
Botanical Bounty is well known for its dedicated production of the botanicals. It is currently striving to be the best and leading producer of the botanical plants used in the natural supplements industries besides providing plants for nurseries. Its success has been owed to the fact that it has well-developed strategies that surround its strengths such as experienced staffs, continuous quality production and the availability of healthy plants (Botanical Bounty, 2003). The company can generate about £216,000 in three-year sales due to its ability to leverage a well-developed business plan implemented by the skilled management staffs. Besides, the management can run the enterprise under strict financial control to maximize production efficiency. On the same note, it strives to maintain high concentrated levels of ingredients in all the botanical plants coupled with implementation of a culture that ensures 100% customer satisfaction hence ensuring profitability in the business. Based on the highlighted success, the essay herein discusses the different strengths that the enterprise has laid to ensure continuity in all aspects that benefit it.
Weaknesses of Botanical Bounty Farm
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Weaknesses of Botanical Bounty Farm
Botanical Bounty is a farm based in Oregon with a variety of botanical and medical plants such as Ginseng which provides energy, Skullcap that is used for the treatment of inflammations, Ginger that treat stomach problems, St. John's Wort that helps in the management of mild depression and Echinacea that boosts the immune system. This two-year-old company is a family owned entity who loves the activity as a hobby and have been trained in plant biology and financial management. The company's performance is on the rise due to its strengths such as the continuous production of quality plant extracts, production of healthy plants and the availability of experienced staffs. As a consequence, the enterprise has been striving to focus on the main areas to improve on to enhance its reputation, competition and owns a larger market share. Some of its weakness includes lack of funding and low reputation since it is an entrant. The essay henceforth elaborates the weakness of the Botanical Bounty Farm as follows.
Botanical Bounty Farm is currently facing inadequate funding amidst continuous expansion. The company is owned by a couple who does farming as their hobby and has not expanded their production even though they currently experience high demands on nursery plants and plant extracts. The initial net worth of the enterprise indicated -19.6% loss in 2003 compared to 47.78% in 2005 (Berry, 2017). Thus, to ensure continuous expansion, the enterprise has to seek for more funds especially loaning. In respect to the above figures, it has been exhibiting costs especially the direct costs of sales which have been on the rise from the year 2003 which was $ 6,363 to $ 16,246 as at the year 2005. Besides, there is increased cost in payrolls which was $ 97,000 in 2005 up from 87,000 in 2003. On a similar version, marketing and other expenses at 2003 were at $ 14,000 with a continuous depreciation of equipment at $ 14,000 in 2005. This coupled with other expenses result to an operating expenditure of $ 168,346 in 2005 up from $ 152,846 in the year 2003. Regarding the operational cash flow, most expenditure is noted on cash spending of $ 97,00...