Business & Finance

With AutoEdge contemplating relocating the manufacturing operations back to the United States now is a good time for a detailed SWOT analysis. A SWOT analysis is a strategic planning technique used to help an organization identify the Strengths, Weaknesses, Opportunities, and Threats related to project planning. AutoEdge wants to be successful and make a sound decision and how we analyze situations and choose to react is essential. Few tools of analysis are more useful than that of SWOT. It should allow us to overcome challenges and determine what lead to pursue in our upcoming moving back to the United States.

Strengths and Weaknesses refer to internal factors, which means resources and experience that is readily available to you. The main areas include financial resources, which includes investment opportunities and funding. Another area is physical resource, which is the issue AutoEdge is dealing with, that includes location and facilities and equipment. Another resource that is included is human resource, which would include employees and our target audience. The last area of inclusion is that of natural forms of resources, trademarks, patents and copyrights. It also includes current processes like employee programs and software systems.

Opportunities and Threats are external factors, which means generally factors that we cannot control. Our lack of control does not effect our need to try and understand as much of these trends, both market and economic. To try and understand the political, environmental and economic regulations that may arise. Another external factor that AutoEdge should try and comprehend is the relationship that we have with our suppliers and partners. Lastly, the external factor that AutoEdge should take note of is funding.

After completing a proper SWOT analysis, either a recommendation or strategy is given upon completion. It should leverage the strengths and opportunities to overcome weaknesses and threats. With that said, after I completed the SWOT analysis, I would recommend AutoEdge to move the manufacturing operation back to the United States. The strength of the move would be for AutoEdge to have the opportunity to rebrand after the recent recall issue and market an American made product again. The opportunity would exist for AutoEdge to supplant their reputation from the three main auto manufacturers as a premiere parts supplier that makes a quality product. It would also eliminate any tariff concerns that may arise in the political landscape. The weakness that AutoEdge has at the moment is in regards to the recall, the move would help in moving past that with the customers. The threat would be for our competitors to take advantage of a perceived lower quality product being made overseas and shrink our market share. I would strongly recommend this move of operations back to the United States.

Response 2:

In order for AutoEdge to make the determination whether to keep the plant in South Korea or relocate it to the United States a large amount of research needs to be done.  A successful business is founded on sound decisions, the way we analyze situations and choose to react is vital to success. When trying to assess the way ahead, few tools are more useful than the SWOT analysis. SWOT stands for strengths, weaknesses, opportunities, and threats; the SWOT analysis is a planning process that will allow our company to make tough decisions with a relative amount of certainty.

When conducting a SWOT analysis, it is sometimes easier if you recognize that strengths and weaknesses are generally factors that are internal to the company, while opportunities and threats tend to be external factors, meaning they are not within the control of the company. Let’s start by examining some typical examples of internal factors, which include:

Financial resources (funding, sources of income, investment opportunities)

Physical resources (location, facilities, equipment)

Human resources (employees, volunteers, target audiences)

Access to natural resources, trademarks, patents and copyrights

Current processes (employee programs, department hierarchies, software systems)

What are some strengths and weaknesses for AutoEdge? Strengths: AutoEdge is a large company which can bring a considerable amount of financial resources to bear on a situation. The sheer size of the company can be used to leverage lower prices for resources, by buying in bulk and just by being a large consumer. AutoEdge has access to physical resources like equipment that may be able to be shipped from South Korea. There is a large target audience for car parts in the United States. AutoEdge is an American owned company that already has a headquarters established with a management hierarchy in place. The company is already familiar with US trademarks, patents and manufacturing techniques.

Weaknesses: Company size can be a strength to a point, but when discussing moving from an overseas location one needs to consider sunk costs that revolve around large facilities, and equipment that may be designed specifically to operate in the host country. There is also the cost of finding or creating suitable facilities in the United States. As far as human resources are concerned what is the cost of an employee in South Korea compared to the United States, not just in dollars but in benefits like healthcare and retirement.

Typical examples of external factors include:

Market trends (new products and technology, shifts in audience needs)

Economic trends (local, national and international financial trends)

Funding (donations, legislature and other sources)


Relationships with suppliers and partners

Political, environmental and economic regulations

Opportunities and threats that AutoEdge my face in deciding whether or not to move the plant. Recent tariffs that have been imposed on products being shipped into the united states could be a threat to revenue if the plant were to be kept in South Korea, while it may be an opportunity to increase customer base if the plant is moved back to the United States. There is also an opportunity to take advantage of tax reductions and at the same time establish a positive relationship with American consumers.

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