Sample Swot Analysis of a Onion Business

Materials
The proponent has a direct contact with the onion farmers that will supply the raw materials needed.

Machines

There is no machine available here in the country for faster drying.

Methods
There are available methods for dehydrating/ drying onions.

ManpowerThere is no need to hire professional workers.

ManagementThe owners have engaged in business and they have sufficient knowledge and training in handling a business.

Moment(Time)
The proponents are dedicated to work full time in managing the business.

The resource analysis identifies the internal strengths and weaknesses that the firm is capable of doing at the start of the business. Strengths are the factors that will contribute to the success of the prospective business. It includes money, materials, methods, manpower, management and time. On the other hand, weakness refers to the factor/s that may cause the failure of the business. In establishing this business, machines are seen to be the major weakness of the company because of its unavailability in the national market. This weakness may affect the production of dried onion. The only option seen by proponents to overcome this weakness is to acquire the machine needed in the international market but it will cost too much so they decided to use the natural sun drying. They also projected that the company can afford to acquire new drying technology after five years of successful operation.

TABLE 4. SWOT ANALYSIS (Environmental Analysis)

Factors in the Environment
Opportunities
Threats

Socio-cultural
The company has the opportunity to introduce dried onions as substitute for fresh onions. People may still choose to use fresh onions as spices in cooking rather than preserved onion.

Technology and Technical
The technology for easy drying of onion is not available in the Philippines.

Economic
High purchasing power of the target market during onion’s lean season. Low purchasing power of the target market during onion’s peak season.

Natural

Fortuitous/unforeseen events such as storm and other natural disaster may affect the production of onion.

Political
Political instability is affecting the economy.

Peace and Order
There is a peace and order in the community/ place of business.

Population Trends
Increase in population opens an opportunity for food business and increase in food businesses also means increase in the target market’s demand for dried onions.

Government ProgramThe local government is providing assistance to the onion farmers to increase their production.

Global EnvironmentIt is possible to import raw material, especially onion whenever shortage in local supply occurs.

Table 4 (Environmental analysis) identifies the external opportunities and threats that the company might face. Opportunities are factors with positive effects on the business while threats are the factors that have negative effects. After analyzing the environment, the proponents concluded that peace and order, population trends, government programs and global environment will give the company a great chance of survival. Other environmental factors such as socio-cultural, technology, economic and natural can be both an opportunity and threat for the company.

The proponents will plan, decide and act on the strategy that may use in dealing with the uncontrollable external threats.