Strategic Plan, Part Ii Swott Analysis Free Essays

Strategic Plan, Part II: SWOTT Analysis BUS/475 SWOTT Analysis Today’s business world is one of many challenges; challenges with our Federal Government encroaching upon the business world with regulatory changes and restrictions, challenges with an ever-changing economic climate that seems to swing in either direction and challenges with both political parties that engage in meaningless finger-pointing, rather than looking for solutions. Having a Strategic Plan in place is important to ensure that any business has a successful start to their business life. Companies need to develop strategic plans that include performing a SWOTT analysis to establish how the business will survive in these tough economic times. We will write a custom essay sample on Strategic Plan, Part Ii: Swott Analysis or any similar topic only for you Order Now A SWOTT analysis is defined as a situation analysis of an organization’s internal Strength and Weaknesses, external Opportunities, Threats and Trends faced by the company, are closely examined to chart a strategy for survival of the company, (Business Dictionary, 2011). By focusing on leadership, the legal and regulatory climate, global economic climate, technological advances, innovation, processes and systems trends, a company can determine what changes need to be made to survive. Below is a SWOTT analysis for an all online loan origination system called The Loan Doctor, LLC. Strengths The Loan Doctor’s fully integrated online format is similar to the questionnaire system that Turbo Tax uses in their software system; each â€Å"yes† or â€Å"no† response sets up a new set of questions or responses for the next series of questions or responses; in the end, the system gets the right response it requires to make a decision to approve or deny the loan application. The Loan Doctor, LLC recognizes the past inefficiencies, breakdowns in communication, confusion over the fees being charged and the interest rate being charged on the loan program and eliminates the confusing loan process that most people do not understand and most mortgage professionals have trouble explaining. The Loan Doctor, LLC also recognizes the general public’s frustration in dealing with personnel that are not as educated about the mortgage loan guidelines and process as they should be, rustration with rates changing at the last minute or fees that come up at the last minute. The Loan Doctor eliminates the need for undertrained personnel that can sometimes cause confusion of the information on the loan application, or failed follow-through by personnel; The Loan Doctor eliminates the human error factor altogether. This online structure allows for management to oversee each function or phase of the process. This structure also allows for minimal accounting and supervision. The Loan Doctor’s ongoing and increasing database will position the business to operate in high volume by being able to accumulate data and service their ongoing database for future refinance or streamlined needs. Weaknesses Older people of our population prefer to work face-to-face with a â€Å"live body† in person, rather than working on an online system where they cannot ask questions during the process. Because of the lack of a one-on-one interaction, many customers may feel like a â€Å"number† rather than a person; in today’s â€Å"entitled† society, many people like to feel important, with an online format, these same people may view this online format as â€Å"cold† and impersonal. Our location, or lack of a physical location, would be seen as a weakness. Other mortgage companies could try to capitalize on this format, claiming the exact cold and impersonal touches linked with this kind of all online origination system. Opportunities Legal, regulatory, compliance and RESPA requirements will have to be met with an internal â€Å"check balances† system that oversees these areas to ensure all files are met with RESPA, MDIA or HVCC requirements, and that files meet HMDA requirements for post-closing auditing. The online system would be considered innovative by most as it would eliminate the need for a Loan Officer or a Loan processor, skipping by both of these job elements going directly to Underwriting for loan approval; competition from other mortgage companies would attempt to discredit an all online origination system. There is an opportunity to reach customers in all areas of the country, once all compliance and licensing requirements are met, to originate and sell loans in other states using this same online internet system. Threats As stated above, other â€Å"mortgage shops† would attempt to discredit an all online origination system by pointing out the lack of a â€Å"live body† person to point questions to. To counter this, The Loan Doctor will employ knowledgeable mortgage professionals to handle questions in an online chat forum that walks the client through any questions they might have; these mortgage professionals would be paid per diem, per helped client. They would be fully trained on the software The Loan Doctor uses. These threats would be from the older portion of our population that likes face-to-face interaction vs. an online system where they cannot ask questions during the process. Competitors will have the ability to differentiate themselves in their processes vs. ur online process that won’t have sales-people to close the deal. To counter this, The Loan Doctor will need to offer the lowest fees and rates to be competitive to help offset any uneasy clients due to lack of human-to-human contact. Other threats include changes in laws or regulatory environments that could affect business in certain regions. To counter this, The Loan Doctor would need to have a strong compliance manager in place to oversee and regulate any changes, in any region, so the sake of closing the transaction for the client and for The Loan Doctor. Trends As our population continues to grow into the internet age, more and more people are becoming computer and internet savvy; the younger population would gravitate to an all online mortgage company as most simply do not have time to take out of their day to visit a loan officer in person (if the loan officer is available), or most do not like the feeling of being â€Å"sold† into a loan or lender. Internet mortgage leads continue to increase as many people would rather be anonymous and try and get as much information as they can before â€Å"showing their cards† to the lender. The Lending Tree is still one of the most popular online lead origination systems on the internet; The Lending Tree, in its â€Å"hay-day† proposed the lowest rate from the best four lenders that would offer their lowest fees and rates to get your business. The model at Lending Tree touted that â€Å"with Lending Tree; when banks compete, you win† and they sold the consumer on the premise that they would receive four offers within fifteen minutes (The Lending Tree 2012); the problem with Lending Tree is that they sold your information to other lead rigination systems and before the consumer knew what was going on, they were being contacted by 12-15 competitors. In closing, a full-time online loan origination system eliminating human error, tacky or opinionated sales people, unreliable or untrustworthy mortgage employees and files that seems to â€Å"sit on peoples desks† are virtually eliminated in an all online, error-free environment that will only rely an form ally trained Underwriters and IT personnel to track and push the file through approval, through Underwriting, through to Clear to Close, to loan docs and finally through the funding process to close the loan. The current economy has left the general public wary of trusting just about any bank or lender out there right now; with Wall Street bailouts, automobile manufacturer bailouts and politicians that seem to engage in finger-pointing rather than finding solutions, the general public is left to themselves to try and figure out what the best option is for them. Most would like to remain anonymous until they feel they have uncovered the best deal, before they are willing to expose themselves of â€Å"show their cards† to a company or system the no longer trust; an full-time online origination system, allows them to do just that; remain anonymous, while gaining information, before they are willing to commit or buy. References The Lending Tree (2012). When banks compete, you win, retrieved from http://www. lendingtree. com/ WebFinance, Inc. (2012). SWOT Analysis, retrieved from Businessdictionary. com: http://www. businessdictionary. com/definition/SWOT-analysis. html#ixzz26fyPzeXb How to cite Strategic Plan, Part Ii: Swott Analysis, Papers Strategic Plan, Part II SWOTT Analysis Free Essays Applying the SHOOT to Pewter’s Accounting Services will help identify economic, legal, regulatory forces that affect business. This analysis will not only allow the business to Identify strength but weaknesses In Its Industry. Understanding the weaknesses of the industry will also allow to strategies for different opportunities. We will write a custom essay sample on Strategic Plan, Part II: SWOTT Analysis or any similar topic only for you Order Now By identifying threats and trends we can make bold predictions to take advantage of opportunities and changes before they come to fruition. We will be Identifying seven different forces and trends that affect business. Economic Economic trends play a major role in all businesses. This is a major factor that an accounting services business will have to force to make predictions and adjustments. Based on trends the company may anticipate hiring more or less employees. A positive strength for Peters Accounting Services is that regardless of a good or bad economic year individuals still have to file state and federal taxes. Business will still ay quarterly taxes and need help with bookkeeping as well as annual filing of taxes for the state and federal government as well. Threats of a poor economy can tend to not impact this industry too much because it is a constant need. An opportunity for this business lies during an economic upswing new businesses are being created meaning the need for an accounting services will be used frequently. Being able to offer year round services will help fight the Idea of seasonal work that tax prepares and consultants have to compete with. Legal and Regulatory In order to be a reputable company the Pewter’s Accounting Services should be quipped with Certified Public Accountants. A CPA is an Individual who has taken the time to take a series of four rigorous exams that have to be completed in an 18- month period (CPA Review, 2013). Accountants can don’t have to be Spa’s but there is an extra allure and makes your information reputable compared to the latter. Accountants are required to take 20 hours of continued education, which Is also referred to as CE credits this allows them to stay updated on new laws and regulations for the upcoming year (CPA Review, 2013). Despite the requirement this is not enough time for an individual to gather and retain much of the information. A lot of time and hours with the organization will need to be dedicated to ensure that all individuals aiding in filing taxes is up to date. Supply Chain and Technology Pewter’s Accounting Services will have to take advantage of new technology available to a mass market. This external factor can be seen as both a strength and weakness. There is one major factor that gains an accounting services business. During tax 1 OFF referrals and networking efforts throughout the year. During this time the company can impress new clients and existing clients by providing the newest or most efficient accounting software to help the customers file their taxes electronically. The accounting services will also provide its customers access remotely via a secured online site providing the clients access to their financial information from anywhere in the world. This can provide issues of security because we are dealing with sensitive information that can be used in a malicious fashion if intercepted. Adjusting to Change and Competitive analysis Pewter’s Accounting Services will have its headquarters in the San Fernando Valley. A quick yelp search of accountants near the North Hollywood area provides a list of 109 efferent companies that offer accounting services (Yelp, 2014). The last census of North Hollywood estimated that there was over 160 thousand residence, which has only grown in the last 10 years. Despite the large number of competition in the area there are plenty of clients to go around especially when there are new adults entering the workforce every year. Working on referrals will be our strength. Individuals and business owner tend to refer a good CPA when possible. Seasonal business can be lost to conglomerates like H R Block who specialize in short form tax solutions at high prices. They however have big advertisement dollars that will need us to think outside the box to get business. They prepare taxes for 1 in every 7 filed returns in the United States (H R Block, 2013). This leads to staying competitive not necessarily with H R Block but with other single owner or partnership offices and that is by having our tax prepares go through the training provided by H R Block. This will give us up to date technician and trends with the industry while also allowing us to make modifications to our own strategies. Strategy Internal factors will include a structured strategy for the company. The strength of strategy will be more control of day-to-day operations. The beginning phase will be consist of building a clientele base by Joining the Los Angels Latino Chamber of Commerce along with other organizations in the area. This will help build the reputation for the firm. Keeping the staff small will be a must to keep overhead low. Location will not be cheap but will be a necessary evil when trying to attract walk in business. Pricing will be key as well. The company cannot price too low or too high. The companies’ long-term plan is to also higher licensed representatives that can give financial advice as well. This phase of the strategy will help earn more trust in the community as well as build market share by reinvesting customers tax returns and also offering tax right off by setting up individual retirement accounts. Processes systems In order to retain and increase the customer base follow up process need to be in place. Email’s, Addresses, and phone number records need to be maintained and scrubbed before outbound calls are made according to the telephone consumer protection act if we are making sales calls (FCC, 2014). Most of our outbound calls will are that will be adopted by the company to standout from other companies. Our systems will also have reminders and will also send out emails periodically to give our customers industry updates. The systems for internal control will all need password verifications to view customer data. Accessing of this data will ensure that we can keep customer information safe to help fight identity theft. Goals Accounting is a very stable form of earning a living. The goal for Pewter’s Accounting Service is to become a leader in the community. Surviving the first couple of years will not be easy, but consistency pays off in the end. Visibility will be important as individuals flock towards others that make a difference and are accessible. Despite the treat of losing customers it is inevitable to suffer attrition, but staying ahead of market trends will be required to avoid huge dips in production. Branching out to being more than Just a seasonal service will also be key. Hiring Spa’s and accountants that can assist with other daily activities like payroll, bookkeeping, and advising will help bring in income year round. Conclusion The SHOOT analysis assisted in identifying key objectives and obstacles that a new business can face, but over come. The art of planning cannot be understated as we deiced there is internal and external factors that impact business. Perception of the world around the business is a key component of this analysis. How to cite Strategic Plan, Part II: SWOTT Analysis, Papers