Swot Analysis on Frick’s Quality Meats

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Growth without direction poses a threat to Frick’s because it makes the company vulnerable to potential takeover. Another threat would be an increase in domestic competition. Large corporations are always searching for companies that can provide their products at the lowest cost. To compete, Frick’s would have to continue to lower their costs, decreasing their profits, or they would have to give up the contract with the large corporations, which would cut roughly 80% of their current business. An additional threat is Frick’s lack of inclination to keep up with competitive wages. Frick’s has forced out their experienced, higher paid meat cutters to hire cheaper labor off the street. The company now has a high turnover rate due to their wages not being competitive with other production-type positions in the area. Furthermore, the quality of Frick’s products has decreased due to the lack of buy-in from these inexperienced, lower-wage employees. Part of the reason for the lower wages is the downturn in the economy. Another reason is poor management that believes the goal should be maximizing profits, even if this is at the expense of the employees’ pay and the quality of the product.

Frick’s has the potential to be a great company that stays in business for many years to come. There are many strengths for them to draw on, and many opportunities to capitalize on. If the company’s management team can find a way to resolve their weaknesses and mitigate the threats to them, they can return to the diverse and successful company they were a decade ago.