Staff: Staff is reasonably well rewarded and there is a bonus linked to performance but there is no formal appraisal programme. They have received excellent training in food safety provision which they are very good and very proud of. Skills: The company has insufficient management skills overall and is lacking in team leadership skills at supervisory level. In particular the company needs an injection of marketing and sales skills to help it compete more effectively. Shared Values: The values of the company are largely expressed informally and the focus is on producing quality products and there is little mention of meeting customer need. 2.1 Core competencies, Key Success Factors. A value chain analysis of Picasso’s and the food industry reveals a range of core activities and linkages which provide the key to the company’s performance and which are fundamental to providing a competitive advantage. Core Competencies: (The things Picasso’s is good at, ideally better that the competition and difficult to replicate) l Producer of quality products: This is inadequate going forward. The company needs to consider selecting and building a range of core competencies that will sustain competitive advantage in its chosen markets. The Key Success Factors (Critical activities the business needs to undertake to be successful) l Persuading consumers and customers of the value of its products and services as appropriate. l Enabling and motivating employees to deliver superior performance. l Being the most informed player about their niche markets and the most responsive to consumer and trade customer drivers of change. Page 9
3.0 SWOT Analysis POSITIVE NEGATIVE STRENGTHS WEAKNESSES Access to a market Low level presence in foodservice sector Scale economies (Ireland terms) Quality products Picasso brand Latent potential Weak margins New product development Dependency on two big customers Limited marketing resource No formal strategy and systematic business plan Structure Systems and processes Skills set “Ramp up Selling” Culture Mature product portfolio Inadequate presence outside Ireland/ OPPORTUNITIES THREATS Food service sector Consumer international demand patterns Retail consolidation converging. High quality value added products Buyer power New innovative products and service and Competitive intensity, domestic and international technologies. Adventurous consumer Food safety regulations Convenient, easy meal solution Cost of energy Healthy food, personal health, well-being. Exchange rates v £ Low fat, salt, sugar. Process automation and systems Shift to value shopping – smart shopper advent technology Organic food Substitute products Weigh less products Globalisation ICT Strong economy Biotechnology Page 10 EXTERNAL FACTORS INTERNAL FACTORS
1.5 Summary Key Issues.
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