Weldon Hand Tools Case study

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Weldon Hand Tools Case study Introduction

SWOT refers to Strengths, Weakness, Opportunities and Threats. This helps in determining the internal factors affecting the operations of an organization. On the other hand, PESTLE stands for Political, Environment, Social, Technological, Legal and Economic factors that affect the operations of an organization. In addition to this, SWOT helps to identify the strengths and weaknesses of an organization whereas PESTLE helps to identify the external factors that affect the business positively or negatively. This study provides SWOT and PESTLE analysis of Weldon Hand Tools that affects the company’s operational process as well as its image in the market.

Weldon Hand Tools Case Study

Company Name

Weldon Hand Tools

Type of industry

Hand tool manufacturer

Headquarters

Kings Road, Street Number 114, UK

Sales/Revenue

£93 million

Area Served

Across the country

Number of Stores

87 Stores

Competition

Alferd Herbed

USP

Operational tools and manufacturing tools with affordable rate

Target Group

People with different industries who seeks their interest for different types of tools

Products

Operational tools

Website

www.weldonnhandtool.net

Weldon Hand Tools SWOT Analysis

Strengths

  • Largest hand tool manufacturers
  • Less number of workers manufactures 98000 units
  • Possess good design layouts

Weakness

  • Inefficient export sales
  • Lack of capital
  • Lack of technology

Opportunities

  • It would be able to serve maximum customers
  • More number of tools would be manufactured with less expense
  • Manufacturing of new products with good designing techniques

Threats

  • Unable to provide services globally
  • The company would not be able to provide proper services to employees
  • Unable to perform proper operations

Analysis

As per the case study of Weldon Hand Tools, it has been observed that around 7 workers are able to produce 98000 units per week. It could be stated as the strength of the company that minimum number of workers are able to manufacture a greater number of products. Moreover, it has further been observed that the Weldon hand Tools is one of the leading tool manufacturing companies in the UK. Thus, it is able to serve maximum number of customers throughout the nation. Further, by serving the maximum number of customers the company would be able to expand its business as well. Additionally, as per the case study of Weldon Hand Tools, it has been observed that the company possesses good designing techniques for manufacturing of new products. The design layout is based on the manufacturing process and as per the case study of Weldon Hand Tools; it has been found that the company uses smoothing planes for manufacturing new tools. On the other hand as per the case study of Weldon Hand Tools, the company possess inefficient export sales and thus is unable to serve the global customers. Moreover, as per the case of Weldon Hand Tools, it has been observed that there is lack of capital in the company. This has resulted in inefficiency for the company in meeting the demands of employees. As per the views of Hasle et al. (2019), a company is run by its employees and therefore the company needs to give priority to its employees in order to have a productive outcome. The company is unable to provide better facilities to its employees. This has affected in their production outcomes thereby creating a negative impact on the company’s image in the market. In addition to this, as per the case study of Weldon hand Tools, it has been analysed that the company does not possess proper technology that has affected its operations. This has further reflected on the production quality and volume. Due to lack of technology, the company is unable to make proper plans with respect to the demands of the customers.

Weldon Hand Tools PESTLE Analysis

Political

  • Trading issues due to Brexit

Environmental

  • Government focuses at effective protection of environment

Social

  • Changing demands of customers
  • Multicultural population

Technological

  • UK is served highly as technological driven economy

Legal

  • Minimum wages to workers

Economical

  • Inflation rate decreased to 1.80% from the year 2018 (Ons.gov.uk, 2019)

Analysis

As per the case study of Weldon Hand Tools, it has been observed that the company lacks capital and therefore export of products costs high prices. Due to the Brexit issue has resulted in an increase in the cost of resources. Thus, it becomes difficult for Weldon hand Tools to purchase resources at high prices due to lack of capital. In addition to this, the UK government focuses on providing a sustainable environment to its citizens. Thus, Weldon Hand Tools has focused on the manufacturing processes in order to have sustainable production. Moreover, as per the case study of Weldon Hand Tools, it has been observed that the company employs smoothing manufacturing process for manufacturing of tools. As per the views of customers, the demands of the customers change frequently and thus, it becomes difficult for the company to gather information regarding the needs of the customers. This creates a negative impact on customers as well as the sales volume of the company. Additionally, there are customers from multicultural backgrounds who possess a varied range of demands. Thus, it becomes a challenge for Weldon hand Tools to employ creative ideas for incorporation of creative techniques to manufacture the tools. As per the conceptual viewpoint of Tidd and Bessant (2018), the UK has been claimed to serve as high technology driven nation that is beneficial for the industries of the UK. Thus, this would be beneficial for Weldon Hand Tools for employing high end technologies in order to manage their operations. This would help the company for planning its operations storing data in a better way. Apart from this, as per Employment Act 2002 the employees of an organization are required to pay minimum wages as well as facilities (Legislation.gov.uk, 2019). However, as per the case study of Weldon Hand Tools, the company is lack of capital and therefore is not able to serve its employees with better facilities. Thus, Weldon Hand Tools Company required paying its employees with minimum wages and better facilities so that they would be able to produce productive outcome. In addition to this, it has been observed that the inflation rate in the UK is decreased to 1.80% from the year 2018 (Ons.gov.uk, 2019). This has given an opportunity to Weldon Hand Tools to afford better resources for manufacturing tools. This would help the company to gain the trust of the customers thereby would be able to attract more customers with excellence of their products. Therefore, the company would be able to acquire a good image in the marketplace as well as would acquire an opportunity enhance their sales volume. This would thereby be beneficial for the company to maximize their profits.

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References

Hasle, P., Seim, R. and Refslund, B., (2019). From employee representation to problem-solving: Mainstreaming OHS management. Economic and Industrial Democracy40(3), pp.662-681.

Legislation.gov.uk (2019). Legislation.gov.uk. Available at: http://www.legislation.gov.uk/ukpga/2002/22/contents&sa=D&ust=1567518302187000&usg=AFQjCNHSQlO4piELS0xuwIPaOf56fEYxHQ, [Accessed on: 29 August 2019].

Ons.gov.uk (2019). Consumer price inflation, UK: April 2019. Available at: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/april2019&sa=D&ust=1567518585963000&usg=AFQjCNELbtI_xD290Z9BjKpFcJ6n7B7ceg, [Accessed on: 31 August 2019].

Tidd, J. and Bessant, J.R., (2018). Managing innovation: integrating technological, market and organizational change. Hoboken: John Wiley & Sons.

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