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Swot Analysis of Hayleys Company LTD
Swot Analysis of Hayleys Company LTD
Introduction
Hayleys is one of the leading multinational companies established (1878) in Srilanka with a team of
35,416 persons providing a variety of services covering a large business sector such as Fiber, Hand
Protection, Purification, Transportation, Agri products, Plantations, Knitted Fabrics, Agri Inputs,
Consumer Products, Industry Inputs, Power and Energy, Investments and Services, Resorts,
Aviation and Destination Management Services both in local and international markets involving with
a 2.6 percent of export income for Srilanka.
the quality of the procedures and the processes that are performed
Weaknesses are the factors that could be affect the company's existence. Management should
identify these weaknesses and must take necessary action to overcome. There could be a number
of common weaknesses that could effect an organizations such as:
Opportunities involves with the new areas that the company could grow into. By adopting various
opportunities the company management could easily decide how the technological development or
demographical change could be involved to move in to various directions. The common
opportunities for an organization could be listed as the following:
Threats could be sources of danger for a company, but this could be an opportunity for another
company's existence in the commercial environment. By identifying and by making the proper
decisions the management of the organization could overcome from such situations. A threat could
be:
company.
How ever taking in to consideration about the above discussed information an analysis of SWOT
representing Hayleys Company Ltd. is performed and the results are demonstrated bellow.
Business Model
The company stands with an optimized business model.
Financial Position
Globally accepted financial position with higher profit rates.
50% of dipped products attributable profits at the end of the 3rd quarter.
Technology
Involvement of Information Communication Technology (ICT) in a vast area of business sectors for
the day-to-day information and business transactions.
Online transactions with there international partners and customers (Business to Business, Business
to Customer etc.)
Analytical tools are being implemented for the ease of taking analytical and strategic decisions along
with progress and business critical activities.
Implementation of special units for coordination and monitoring of company based activities.
Market
Hayleys has captured both local and International markets maintaining relationships with industrial
giants.
Penetrating to the market covering almost all the business sectors in the industry providing variety of
goods for their customers.
Products
Diversified products are available to suite different markets
The company mainly depends on the overseas market in some of the product areas.
The dissemination of the company sales agents are limited only to the countries main cities.
Product
Looking in to products the product innovation time lags.
The products introductory are less comparatively with the organizations. (Once a new technology or
a product has being invented there is no introduction about it and the customers awareness is very
less)
Technology
Local customers do not have direct contact while dealing with the company.
There are limitations for online transactions (this is not effected in internationally but locally)
comparatively with the other competitors.
1.2.3 Analysis of Company Opportunities
Market
Immerging markets are identified as in mainly in the European region as well as the Asian Region
Finance
Breaking old supplier chains to reduce the costs
Introduction of the technology to the local markets and convincing them the effectiveness of the
product.
Technology
Sharing transferring technology within the industrial framework both internationally and locally.
Implementation of new more Technology based solutions for industrial analysis will increase
opportunities for the industrial expansion.
Products
Involving in to new projects and by implementing current products enables new product introduction
and new inventions.
The possibility of incurring bad debts and the prospects of protracted legal proceedings without
assurance of satisfaction.
Lack of supplies and suppliers could effect due the less of raw materials and less work force for the
production of supplies.
Technology
Competition among the less complex, innovative, and price effective (Tax effective) products over
the market with the involvement of Information Technology.
The group depends on accurate timely information from key computer systems to enable decision
making.
Therefore, taking in to consideration about the above analysis the information will effectively offer the
managers to choose between numerous strategic alternatives for the frequently resulting
unnecessary industrial changes.
Therefore, to analyze these variations of the industrial structure an analytical model could be used to
evaluate the strategic position in the market which is being affected by five forces.
Commonly considering the factors of Hayleys company's supplies, it involves partially with
international suppliers and local suppliers. About the local suppliers, it is considered that a 2/3 of
goods for there business sectors such as Agri products, Fiber and knitting fabrics etc are being
supplied by there own plantations and there own assisting branches. Furthermore, the establishment
of long term business partnerships with the internationally reputed giants the risk and uncertainty
with there suppliers are considerably in a low rate comparing with there competitors in the market.
2.2 Buyers
The influence of the customers for an industry which makes productions is known as the buyer
power. When the power of buyers are considerably strong the industry which involves with the
production is termed as a monopsony by the economists which is consisting with a many to one
(many suppliers and one buyer) market condition. In this case the prices are being set by the buyers.
But in reality only a few of the monopsonies and an asymmetry do exist among the buyers and
industry which makes productions.
However, Hayleys have accompanied there buyer power along with their trust worthy services and
there long term reputation in the local and the international markets. Accolades and internationally
reputed standards have increased the trust which have made more investors to invest in there
organization and this has enabled them to supply satisfactory products among there buyers.
Information Communication Technology (ICT) on the other hand, plays a leading role for the
company by providing buyers to communicate and make necessary transactions under various
buyer categories by maintaining the privacy and the affability and to make necessary strategic
movements.
Looking in to the overall buyer process of the organization it could be demonstrated according to the
following diagram.
Looking back at the past 132 years of industrial experience and its diversed industrial areas both in
internationally and locally, Hayleys could be introduced as a top rated multinational company, which,
rivalry affects in a certain levels comparing with the industrial environment in Srilanka. For example,
looking in to Srilanka's agriculture sector the higher percentage of the counties income depends on
the exports of the agricultural products and this is being supported by the private and governmental
organizations. Under this process the main competitors are being identifies as the other private
companies such as Chemical Industries Colombo (CIC), Morison, Opex. etc which they have begun
to diversify with there products for competition by introducing internationally and locally recognized
products.
Assuring the quality is one of the key features when competing with the industrial rivals. Looking in
to Hayleys point of view the company has achieved various quality assurance certifications which
has made more easier to compete with the rivals by giving the a good picture to the public and to
analyses these rival movements Information Communication Technology combined with Information
Systems have been effectively used by the Company.
Considering about the market and the competitors in the Srilankan industry, pointing out substitute
products for each and every product that the company produce is very difficult as it has spread all
over the market and because of the price fluctuation effected to the products according to the current
economic environment. Therefore, to overcome and to analyze about the threats of substitutes, this
will be covered as a group comparing with its rival industries. For example: Hayleys is one of the
main Agricultural product providers to the market and produces products such as tractors, fertilizers,
seeds, and services. As there rivals Chemical Industries Colombo (CIC), BOURS Ltd. could be
named as there main rivals provides the same products for a considerably low price. The best
substitute is the hand tractor which they have introduced for the market which it has the same
features in the tractor that the Hayleys produced and the price is comparatively lower.
Considering about the industrial background Hayleys have limitations for penetrating the industry as
new entrants. For example the Electricity industry in Srilanka is highly monopolized and there are
government barriers for organizations to establish there own private electricity generating
technologies to benefit themselves. Therefore, Since Hayleys are involved with the Power and
Energy industry they have not directly involved as competitors for the countries monopolized
industry, but they exist with the corporation of the government.
With the analysis of the companies competitiveness strategic managers will able to gain an idea
about the competitive rivals of the company and by the next section it will provide an explanation
how the core competence has effected the company.
The extreme capabilities of impressive relationship with there customers, promotions which effect
the organization or for there products, preferable organizational structures, Information Systems (IS)
and Information Communication Technology (ICT) and furthermore, manufacturing and distribution
would be one of the competitive advantage also could be called blocks of core competencies. This
will lead the company for the development of the core products which may or may not be directly
sold to the customers, but this will be effectively used to develop different products.
Further discussions relating to core competence of Hayleys Company it provides various product
types in various business sectors such as Fiber, Hand Protection, Purification, Transportation, Agri
products, Plantations, Knitted Fabrics, Agri Inputs, Consumer Products, Industry Inputs, Power and
Energy, Investments and Services, Resorts, Aviation and Destination Management Services and
they made products and services characteristic for their company comparing with their main
competitors namely, Chemical Industries Colombo (CIC) . Therefore, the bellow figures will
demonstrate the competencies through the products and service areas.
Using that as evidence, Hayleys Co. competes with almost all the industrial areas that are available
in the present industrial environment. The competition with there rivals are performed by making the
necessary changes by adopting and performing Information Communication Technology,
Information Systems (IS/IT) along with proper strategic planning. Partnering with the international
community by providing goods for the international market is one of the best competencies for the
company and it has not become an ease to penetrate the market because of the frequent
introduction of divers products and services.
Segmenting the company into a number of departments and divisions have made easier with their
day-to-day processes. With this it has made the organizational strategic managers and the
operational managers to figure out the unexpected rival effects for the company and to make
necessary strategic plans effecting values and production to more diversify within the industry. Each
of those individual divisions or the sectors will be concentrating on their own survival of the industry
considering as an individual which has made this process collectively a great benefit in the industry.
For example looking in to the Knitting Fabric Sector it has become one of the leading industrial
knitting suppliers with the co-operation with Australian partnerships and has become the best fabric
material supplier for TESCO, Marks & Spencer, Woolworth and Decathlon, BHS etc. standing as a
separate sector for Hayleys Company.
On the other hand while discussing about the Core Competency it is necessary to mention about the
customer relationship with the involvement of Information Technology and Information Systems and
how it has involved with the advancement of core competency. Interactive web pages with regular
updates which provide detailed information about the company, Services, Accolades, and other
customer transactions services are provided for the ease of the customers by providing equal care
for regular and new customers by providing high customer security, satisfaction for each and every
detail that they share.
The introduction of new technologies unique to the company gains more profit and effects with the
core competence which will gain the opportunity to compete with the industrial rivals. Organizational
News on 2009 revealed that Hayleys Agro Products Limited has introduced two new mechanical
devices which could be reduce costs substantially in establishment of crop and which will
significantly improve (15%) the harvest of rice paddy from the two cultivation seasons (Yala and
Maha). Therefore, with that it is clear, that with the involvement of core competencies Hayleys
Company has benefited in various areas to compete with there rivals.
Concentric Diversification (new product closely related to current product in new market)
According to recent NEWS released by Hayleys Company, revealed that they have supplied and
have implemented (Sampath Bank established in Jaffna is one of the establishments established
with this technology) over 1000 convertainers (Converted Containers) fabricated, furnished and fully
equipped and catered to those who required functional space with furnished functional areas in a
hurry providing the opportunity for expansion business and projects to proceed quickly and
efficiently, is one of the best examples for diversification.
Information which will be more helpful to get an idea about whether there is a potential market for the
idea, and if there is, giving proper estimations, demand and allocating a proper price for the product
is necessary.
Financial feasibility and legal approval is another important point which is needed to be considered.
This mainly analyses whether the company can afford referring to their current financial situation
(Investments made by the regular investors for the company has made a crucial factor on this
process) and whether it is possible to gain the necessary governmental and industrial
approvements.
Diverse policies for pricing to which attracts customers or introduction of modern market segments.
With the involvement of Information Communication Technology (ICT) and Information Systems (IS),
timely information has been gathered (this specially involve with the company's e-commerce sites
which have gained an opportunity to understand the movements of there potential customers) for
proper strategic decisions to identify the market development areas for the company.
2009 company NEWS revealed that a home grown sustainable sourcing initiative rooted in
empowering smallholder rubber farmers has resulted in Srilanka's Dipped Products PLC (DPL)
giving the world its first Fair Trade rubber gloves and as a result of this natural rubber glows with a
variety of styles were supplied as DPL's own brands as well as glows which was made in Srilanka by
DPL for 'Traidcraft', one of the UK's leading fair trade organization, and reaching many countries as
Fair Trade gloves and have represented first in the worldwide rubber glove sector and with that it is
clear that Hayleys Company always look forward for Market Development to increase their business
growth.
5. Identifying the Key Roles of the Company
PAEI which stands with four main key roles namely
P - Producer
The most superior person who involve with the responsibility of driving the company toward its
achievements.
A - Administrator
Involves with the organization by performing activities on organizing, systematizing, and controlling.
E - Entrepreneur
Involves with awaiting and motivating and to adopt excessive changes of the organization.
I - Integrator
Known as team builders of an organization. Mainly concentrates about managing between persons,
department, and supplier client alliance to function the organization as a collection.
This could be introduced as the word made from initial letters of other words to appraise the
subscription of each member of a team in various fields. The main conception of this particular
framework (PAEI Framework) is that none of the managers individually cannot meet the overall
necessities of a corporation. Therefore, to deal with the percent complexity, the company should
come up with a team of managers where governance will be taken place and the relationships
between these roles does not always have to be one on one.
Furthermore, the bellow description will demonstrate the PAEI roles of Hayleys Company.
However, the analysis which has performed up to this point could be determined; that Hayleys
Company holds the place of the initial stage of the CMM (Capability Maturity Model) and this will be
analytically presented in the following section.
Defined Level - This level mainly involved with a number of named or identified processes were the
company has mainly concentrated to achieve the targeted markets by providing services both locally
and internationally providing customers and the management experiencing the technological
advancements and has moved towards the managed level.
Managed Level - Hayleys have taken measures for the management of their projects and
development processes with the involvement of past information and technological development and
this has promoted the company towards the optimized level.
As mentioned under Core Competencies, Hayleys have confirmed their business stability by
covering a vast range of business sectors such as Fiber, Hand Protection, Purification,
Transportation, Agri products, Plantations, Knitted Fabrics, Agri Inputs, Consumer Products, Industry
Inputs, Power and Energy, Investments and Services, Resorts, Aviation and Destination
Management Services, both locally and internationally providing 100% maintained quality and
standard as required for their customers.
The trust worthy services and products comprising with 132 years of business sector experience,
along with a consolidated turnover of Rs.32.4bn in 2008/2009 with an increase of 4.7% from the
previous year. Therefore, a new investment opportunity in the international market continues further.
The involvement of investors on innovating new environmentally harmless products under projects
have involved mainly with the increase of the income internationally, locally and the competency of
the company. Technological development on the other hand have involved mainly with the growth.
Innovative Information Communication Technologies and Information Systems such as Customer
Relationship Management system, Executive Information Systems and Organizational Growth
Evaluation systems have involved the organization to reaching the optimized level of the Capability
Maturity Level (CMM).
Furthermore, the following will demonstrate the information strategy and business strategy move of
the organization.
Technology Engineering
Introduction of various technological products which could increase productivity and the production
for the company
Purchasing
To leverage the international purchasing power creation among local environmental friendly products
in the international markets.
Production
To increase efficiency of production to fulfill the necessity of the consumer locally and globally.
Information Technology
Highly web base systems which involves with cost saving, high customer satisfying and timely
information.
Finance
Deduct unnecessary expenditure
Environment
Introduction of Environmentally safe products.
ICT Services
A Web based service (E- Commerce) for customers where they can communicate, and make
necessary transactions.
CRM, EIS and ES and e-mail services catering to most sectors in the group, and a group wide
system for data communication.
Conclusion.
Finally, after a thorough study about Ensuring Organizational existence with ICT/ IS and its
involvement for strategic Development in Hayleys Company, it is clear that the strategic
management and the involvement of ICT and IS such as CRM, EIS, and ES etc. have been
effectively used to compete with the varying markets strategically both locally and Internationally by
providing 100% efficient and customer friendly services (Further suggestions, on implementing
Content Management Systems would increase work efficiency). Proper implementation of services
along with R&D (Research and Development) in properly identified business sectors the company
has involved with 2.6 percent of export income for Srilanka's.