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Swot Analysis Of Hayleys Company Ltd Information Technology Essay

Paper Type: Free Essay Subject: Information Technology
Wordcount: 5361 words Published: 1st Jan 2015

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Hayleys Company has developed of there own strategic planning process which involves Customer Relationship Management Systems, Executive Information System , Evaluation Systems (ES) and other net based technologies. The data information gathered from these sources will be used to take strategic decisions ensuring their company’s future development existence. This document further provides analytical description under this report title “Ensuring Organizational Existence with ICT and its involvement for strategic development – Hayleys Company”.

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Hayleys is one of the leading multinational companies established (1878) in Srilanka with a team of 35,416 persons providing a variety of services covering a large business sector such as Fiber, Hand Protection, Purification, Transportation, Agri products, Plantations, Knitted Fabrics, Agri Inputs, Consumer Products, Industry Inputs, Power and Energy, Investments and Services, Resorts, Aviation and Destination Management Services both in local and international markets involving with a 2.6 percent of export income for Srilanka.

1. SWOT Analysis of Hayleys Company Ltd.

SWOT Analysis is a tool that provides valuable information to correspond resources and possibility to the environments of competitiveness that the organization operates. This Analysis model can also be used as an effective tool that can be adapted for strategy selection and decision making situations for the organization. As the first stage of performing the SWOT analysis it is necessary to identify the organization’s Strengths, Weaknesses, Opportunities and Threats where the Strengths and Weaknesses are factors that are important for analyzing the internal factors, the Opportunities and Threats to analyze the external factors. Furthermore, the internal factors are identified as the talent and the asset, which increases the values of the company, and the external factors which aren’t created because of the company, but affects the company due to the activities performed by the external forces. This mainly involves with the competitors.

1.1 The Effectiveness of SWOT in decision making for the management of Hayleys Company Ltd…

Strength mainly concentrates on the factors that the organizational management could take as decisions to improve the resources that is being utilized to improve the competitive advantage or how it could be used as a strength as an opportunity in the future.

The Factors involves strength, could be:

a novel product or a service

the expertise market enterprise

the location of the establishment

the quality of the procedures and the processes that are performed

Weaknesses are the factors that could be affect the company’s existence. Management should identify these weaknesses and must take necessary action to overcome. There could be a number of common weaknesses that could effect an organizations such as:

Less experience of marketing

Difficulties of constituting difference between products or services

(which is related to the competitors of the organization)

The Location of the establishment

Damage of the company reputation.

Opportunities involves with the new areas that the company could grow into. By adopting various opportunities the company management could easily decide how the technological development or demographical change could be involved to move in to various directions. The common opportunities for an organization could be listed as the following:

A new development of a new market such as the Internet

Improving profit by moving into lately developed market segments

Combine with strategic alliances.

Modern International Markets

Markets which are vacated by competitors who are ineffective.

Threats could be sources of danger for a company, but this could be an opportunity for another company’s existence in the commercial environment. By identifying and by making the proper decisions the management of the organization could overcome from such situations. A threat could be:

A fresh competitor in the home market

The price wars with the rivals

A rival has a distinct service or product

The superior access to the distribution channels, by their rivals.

The introduction of taxation to the products and services of the


How ever taking in to consideration about the above discussed information an analysis of SWOT representing Hayleys Company Ltd. is performed and the results are demonstrated bellow.

1.2 The categorical representation of SWOT for Hayleys Company Ltd.

1.2.1 Analysis of Company Strengths

Brand Name

Hayleys Company maintains a good picture with a globally recognized brand name over the past 132 years and this is one of the most diversified companies in Srilanka.

Business Model

The company stands with an optimized business model.

Financial Position

Globally accepted financial position with higher profit rates.

Recorded 1.3Billion Post tax profits ever from 9 months.

Strong 3Q profit growth in Haycarb Posts.

50% of dipped products attributable profits at the end of the 3rd quarter.

2.6 percent export income for Srilanka is accounted annually.


Involvement of Information Communication Technology (ICT) in a vast area of business sectors for the day-to-day information and business transactions.

Online transactions with there international partners and customers (Business to Business, Business to Customer etc.)

Analytical tools are being implemented for the ease of taking analytical and strategic decisions along with progress and business critical activities.

Implementation of special units for coordination and monitoring of company based activities.


Hayleys has captured both local and International markets maintaining relationships with industrial giants.

Penetrating to the market covering almost all the business sectors in the industry providing variety of goods for their customers.


Diversified products are available to suite different markets

1.2.2 Analysis of Company Weaknesses


The existent on the market depends on the investments made by the international industrial giants.

The company mainly depends on the overseas market in some of the product areas.

The dissemination of the company sales agents are limited only to the countries main cities.


Looking in to products the product innovation time lags.

Products are limited for certain customer types and expectations.

The products introductory are less comparatively with the organizations. (Once a new technology or a product has being invented there is no introduction about it and the customers awareness is very less)


Local customers do not have direct contact while dealing with the company.

There are limitations for online transactions (this is not effected in internationally but locally) comparatively with the other competitors.

1.2.3 Analysis of Company Opportunities


Immerging markets are identified as in mainly in the European region as well as the Asian Region


Breaking old supplier chains to reduce the costs

Introduction of the technology to the local markets and convincing them the effectiveness of the product.

Relocating its manufacturing units to reduce cost

Diversifying the industrial involvement in untouched areas where less biography.


Sharing transferring technology within the industrial framework both internationally and locally.

Implementation of new more Technology based solutions for industrial analysis will increase opportunities for the industrial expansion.

Investors and share holders

Comparing with the past and the present short term and long term achievements Hayleys have made investors and shareholders confident about the company’s future and to invest more.


Involving in to new projects and by implementing current products enables new product introduction and new inventions.

1.2.4 Analysis of Company Threats


The Current Financial crisis

The downturn of the Interest rates

The less demand over the product which are produce.

Reduction of investments

The possibility of incurring bad debts and the prospects of protracted legal proceedings without assurance of satisfaction.

Market and the suppliers

Market Saturation could be one of the main threats for the company

Lack of supplies and suppliers could effect due the less of raw materials and less work force for the production of supplies.

Dependence on business partners

Loss of markets for the existing product range


Competition among the less complex, innovative, and price effective (Tax effective) products over the market with the involvement of Information Technology.

The group depends on accurate timely information from key computer systems to enable decision making.

Therefore, taking in to consideration about the above analysis the information will effectively offer the managers to choose between numerous strategic alternatives for the frequently resulting unnecessary industrial changes.

2. The Analysis of the competitiveness of Hayleys Company Ltd.

A model that perfectly analyzes the industries competition which involves true on the adjusted rates of risks could be continually forming a cross with industries and firms. However, various studies in the economy have state as fact that industries could obtain separate bases of profitability and variations of the industrial structure.

Therefore, to analyze these variations of the industrial structure an analytical model could be used to evaluate the strategic position in the market which is being affected by five forces.

Figure (a) – Porters Five Forces model of competitive analysis

2.1 Potential Suppliers

An industry which produces a service requires a certain level of raw materials such as: labour, supplies and other components. This form of requirement directs to relationship of buyer and supplier among the firm and the industry which accomplishes the necessary materials for the creation of the product. But if the suppliers are powerful, there is a high possibility to influence the production of raw materials which could affect the company’s profit.

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Commonly considering the factors of Hayleys company’s supplies, it involves partially with international suppliers and local suppliers. About the local suppliers, it is considered that a 2/3 of goods for there business sectors such as Agri products, Fiber and knitting fabrics etc are being supplied by there own plantations and there own assisting branches. Furthermore, the establishment of long term business partnerships with the internationally reputed giants the risk and uncertainty with there suppliers are considerably in a low rate comparing with there competitors in the market.

2.2 Buyers

The influence of the customers for an industry which makes productions is known as the buyer power. When the power of buyers are considerably strong the industry which involves with the production is termed as a monopsony by the economists which is consisting with a many to one (many suppliers and one buyer) market condition. In this case the prices are being set by the buyers. But in reality only a few of the monopsonies and an asymmetry do exist among the buyers and industry which makes productions.

However, Hayleys have accompanied there buyer power along with their trust worthy services and there long term reputation in the local and the international markets. Accolades and internationally reputed standards have increased the trust which have made more investors to invest in there organization and this has enabled them to supply satisfactory products among there buyers. Information Communication Technology (ICT) on the other hand, plays a leading role for the company by providing buyers to communicate and make necessary transactions under various buyer categories by maintaining the privacy and the affability and to make necessary strategic movements.

Looking in to the overall buyer process of the organization it could be demonstrated according to the following diagram.

Hayleys Company (Head Office)

Hayleys International Agencies

Locally Registered Agents – District/ Area vice

Local Distributor (Wholesale Dealer)

Figure (b) – The buyer process of the organization

2.3 Competitive Rivals

In industries competition among firms directs the cause of dropping profits according to the traditional economic model. But it isn’t confirmed that the company are not ingenuously submissive in taking prices. However companies struggle them selves to gain a competitive advantage among the rivals of their environment varying across the industries. Therefore, to proceed along with an advantage over the rivals of the company it is possible to make various competitive movements such as change of price, increasing the differentiation or the products by implementing new features and innovations, use of creatively launched channel distribution methods and building extreme relationships with the suppliers.

Looking back at the past 132 years of industrial experience and its diversed industrial areas both in internationally and locally, Hayleys could be introduced as a top rated multinational company, which, rivalry affects in a certain levels comparing with the industrial environment in Srilanka. For example, looking in to Srilanka’s agriculture sector the higher percentage of the counties income depends on the exports of the agricultural products and this is being supported by the private and governmental organizations. Under this process the main competitors are being identifies as the other private companies such as Chemical Industries Colombo (CIC), Morison, Opex. etc which they have begun to diversify with there products for competition by introducing internationally and locally recognized products.

Assuring the quality is one of the key features when competing with the industrial rivals. Looking in to Hayleys point of view the company has achieved various quality assurance certifications which has made more easier to compete with the rivals by giving the a good picture to the public and to analyses these rival movements Information Communication Technology combined with Information Systems have been effectively used by the Company.

2.4 Threats of Substitutes

Substitute products mainly refer to the alternate products in the industry. According to the economists point of view the threat of a substitute product comes in to existence when the demand is affected with the change of the price of the substitute product. The elasticity of the price of products has made the availability of more substitute products where customers have more alternative products.

Considering about the market and the competitors in the Srilankan industry, pointing out substitute products for each and every product that the company produce is very difficult as it has spread all over the market and because of the price fluctuation effected to the products according to the current economic environment. Therefore, to overcome and to analyze about the threats of substitutes, this will be covered as a group comparing with its rival industries. For example: Hayleys is one of the main Agricultural product providers to the market and produces products such as tractors, fertilizers, seeds, and services. As there rivals Chemical Industries Colombo (CIC), BOURS Ltd. could be named as there main rivals provides the same products for a considerably low price. The best substitute is the hand tractor which they have introduced for the market which it has the same features in the tractor that the Hayleys produced and the price is comparatively lower.

2.5 Potential Entrants.

According to theory a firm must have the opportunity to enter and to exit from the market and the profit levels must be nominal always. But in the real world industrial environment industries do contain characteristics to protect firm’s high levels of profit levels of the potential market and prevent entering to the market for the newly entered rivals.

Considering about the industrial background Hayleys have limitations for penetrating the industry as new entrants. For example the Electricity industry in Srilanka is highly monopolized and there are government barriers for organizations to establish there own private electricity generating technologies to benefit themselves. Therefore, Since Hayleys are involved with the Power and Energy industry they have not directly involved as competitors for the countries monopolized industry, but they exist with the corporation of the government.

With the analysis of the companies competitiveness strategic managers will able to gain an idea about the competitive rivals of the company and by the next section it will provide an explanation how the core competence has effected the company.

3. Core Competency and the Hayleys Company

Core competency refers to something identical company posses or can perform strategically well. This a tool to adjudge the unrivaled asset that could be effectively apply to gain and to introduce value to the customers.

Figure (c) – The Core Competencies Model

The extreme capabilities of impressive relationship with there customers, promotions which effect the organization or for there products, preferable organizational structures, Information Systems (IS) and Information Communication Technology (ICT) and furthermore, manufacturing and distribution would be one of the competitive advantage also could be called blocks of core competencies. This will lead the company for the development of the core products which may or may not be directly sold to the customers, but this will be effectively used to develop different products.

Further discussions relating to core competence of Hayleys Company it provides various product types in various business sectors such as Fiber, Hand Protection, Purification, Transportation, Agri products, Plantations, Knitted Fabrics, Agri Inputs, Consumer Products, Industry Inputs, Power and Energy, Investments and Services, Resorts, Aviation and Destination Management Services and they made products and services characteristic for their company comparing with their main competitors namely, Chemical Industries Colombo (CIC) . Therefore, the bellow figures will demonstrate the competencies through the products and service areas.

Figure (d) – Services and Products of Hayleys Co.

Figure (e) – Services and Products of CIC Co.

Using that as evidence, Hayleys Co. competes with almost all the industrial areas that are available in the present industrial environment. The competition with there rivals are performed by making the necessary changes by adopting and performing Information Communication Technology, Information Systems (IS/IT) along with proper strategic planning. Partnering with the international community by providing goods for the international market is one of the best competencies for the company and it has not become an ease to penetrate the market because of the frequent introduction of divers products and services.

Segmenting the company into a number of departments and divisions have made easier with their day-to-day processes. With this it has made the organizational strategic managers and the operational managers to figure out the unexpected rival effects for the company and to make necessary strategic plans effecting values and production to more diversify within the industry. Each of those individual divisions or the sectors will be concentrating on their own survival of the industry considering as an individual which has made this process collectively a great benefit in the industry. For example looking in to the Knitting Fabric Sector it has become one of the leading industrial knitting suppliers with the co-operation with Australian partnerships and has become the best fabric material supplier for TESCO, Marks & Spencer, Woolworth and Decathlon, BHS etc. standing as a separate sector for Hayleys Company.

On the other hand while discussing about the Core Competency it is necessary to mention about the customer relationship with the involvement of Information Technology and Information Systems and how it has involved with the advancement of core competency. Interactive web pages with regular updates which provide detailed information about the company, Services, Accolades, and other customer transactions services are provided for the ease of the customers by providing equal care for regular and new customers by providing high customer security, satisfaction for each and every detail that they share.

The introduction of new technologies unique to the company gains more profit and effects with the core competence which will gain the opportunity to compete with the industrial rivals. Organizational News on 2009 revealed that Hayleys Agro Products Limited has introduced two new mechanical devices which could be reduce costs substantially in establishment of crop and which will significantly improve (15%) the harvest of rice paddy from the two cultivation seasons (Yala and Maha). Therefore, with that it is clear, that with the involvement of core competencies Hayleys Company has benefited in various areas to compete with there rivals.

4. The involvement of the Ansoff’s Product/ Market matrix for Hayleys


According to analysis Hayleys Company follows the business unit strategy process, and Ansoff’s Product/ Market matrix is the best way to adjudge the scope and the course of the development in strategy within the industrial environment. Since Hayleys company comprises with two strategic development types such as the Portfolio Strategy and the Competitive Strategy where Portfolio Strategy mentions definitely about the intention for each and every company product and combination of the market and Competitive Strategy mentions definitely about the route to approach these intentions.

4.1 Market Penetration of Hayleys Company

Penetrating the market could be introduced as selling current products in to current markets. Relating this idea with the company, Hayleys has formed with an establishment of strong interrelationship with there regular and irregular customers, suppliers, investors and shareholders (all together Stakeholders) and increasing the number of these stakeholders along with proper Customer Relationship Management was one of the great concerns and threats for the survival of the industrial environment. To overcome from issue Hayleys spreaded in a vast range of business sectors by providing better services and increasing the satisfaction for there products.

4.1.1 The Involvement of Information Communication Technology (ICT) and Information Systems (IS) to achieve market penetration of Hayleys Company.

Information Communication Technology and Information Systems plays a great role to achieve market goals for the company and this has enabled to encourage methodologies to compel and to identify the best practices for sales such as number of sales, services and inquiries made with their customers and to get an idea about the automated activities and practices made by marketing and sales which are related to the customer and the market. How ever to ease the process and to provide an accurate service the company has implemented establishments to cover the variety of sectors with the involvement of Electronic Data Interchange (EDI) or e-commerce, Executive Information Systems (EIS) and other web based technologies. The technological involvement with the supply chain has made the opportunity to supply products and goods according to the customers’ satisfaction.

4.2 Diversification of Hayleys Company

Diversification is one of the business strategies that any organization looks forward to and this could be further divided into four types such as:

Horizontal Diversification (new products in current markets)

Vertical Diversification (move in to firms employee, supplier’s or customer business)

Concentric Diversification (new product closely related to current product in new market)

Conglomerate Diversification (new product in new market)

This strategy could be identified as selling new products in to new markets. However, this is known as a strategy where it could be more risky because the tendency is towards a market were there is less or zero experience. Therefore, before adopting the diversification strategy, strategic managers of Hayleys Company should have an explicit idea about what they are expecting from this strategy and an appraisement of risks.

4.2.1 The Involvement of Information Communication Technology (ICT) and Information Systems (IS) for diversification of Hayleys Company.

Since Hayleys Company has already diversed themselves in a vast area of the business sector, penetrating the market further into more diversed fields would be more easier than they expected considering the market position, reputation, the services that they provide for the customers and the international market that they have gained. The involvement of Information Communication Technology and Information Systems has improved the opportunity to analyze, and to make necessary transactions by with there stakeholders.

According to recent NEWS released by Hayleys Company, revealed that they have supplied and have implemented (Sampath Bank established in Jaffna is one of the establishments established with this technology) over 1000 convertainers (Converted Containers) fabricated, furnished and fully equipped and catered to those who required functional space with furnished functional areas in a hurry providing the opportunity for expansion business and projects to proceed quickly and efficiently, is one of the best examples for diversification.

4.3 Product Development of Hayleys Company

Product Development refers to a strategy of growth where more of the existing products and services are provided to the same market. To adapt this strategy the company should require developments of novel accomplishments and necessitates the business to improve changed products which will attract in the markets.

4.3.1 The Involvement of Information Communication Technology (ICT) and Information Systems (IS) for diversification of Hayleys Company.

Before developing a proper product there is certain information to be gathered to make this process drive more effective and beneficial for the company. Details which involved on this process could be illustrated such as:

Information which will be more helpful to get an idea about whether there is a potential market for the idea, and if there is, giving proper estimations, demand and allocating a proper price for the product is necessary.

Financial feasibility and legal approval is another important point which is needed to be considered. This mainly analyses whether the company can afford referring to their current financial situation (Investments made by the regular investors for the company has made a crucial factor on this process) and whether it is possible to gain the necessary governmental and industrial approvements.

Therefore, looking at the involvement of Information Communication Technology (ICT) and Information Systems (IS) of the organization, along with Customer Relationship Management system (CRM) and Executive Information Systems (EIS) have made easier for strategic managers to make strategic decisions effectively on product development of the company. The implementation of Convertainers could be named as one of the example for product development which was given under diversification.

4.4 Market Development of Hayleys Company

Market development concentrate on a strategy where the company sells the same product and services in new markets. Approaching this strategy could be done in many ways, which includes,

Modern geographical markets: products could be exported to new countries.

Modern scales of products and packaging: introduction of a channel of distribution.

Diverse policies for pricing to which attracts customers or introduction of modern market segments.

With the involvement of Information Communication Technology (ICT) and Information Systems (IS), timely information has been gathered (this specially involve with the company’s e-commerce sites which have gained an opportunity to understand the movements of there potential customers) for proper strategic decisions to identify the market development areas for the company.

2009 company NEWS revealed that a home grown sustainable sourcing initiative rooted in empowering smallholder rubber farmers has resulted in Srilanka’s Dipped Products PLC (DPL) giving the world its first Fair Trade rubber gloves and as a result of this natural rubber glows with a variety of styles were supplied as DPL’s own brands as well as glows which was made in Srilanka by DPL for ‘Traidcraft’, one of the UK’s leading fair trade organization, and reaching many countries as Fair Trade gloves and have represented first in the worldwide rubber glove sector and with that it is clear that Hayleys Company always look forward for Market Development to increase their business growth.

5. Identifying the Key Roles of the Company

PAEI which stands with four main key roles namely

P – Producer

The most superior person who involve with the responsibility of driving the company toward its achievements.

A – Administrator

Involves with the organization by performing activities on organizing, systematizing, and controlling.

E – Entrepreneur

Involves with awaiting and motivating and to adopt excessive changes of the organization.

I – Integrator

Known as team builders of an organization. Mainly concentrates about managing between persons, department, and supplier client alliance to function the organization as a collection.

to make a team of successful management for an organization.

This could be introduced as the word made from initial letters of other words to appraise the subscription of each member of a team in various fields. The main conception of this particular framework (PAEI Framework) is that none of the managers individually cannot meet the overall necessities of a corporation. Therefore, to deal with the percent complexity, the company should come up with a team of managers where governance will be taken place and the relationships between these roles does not always have to be one on one.

Figure (g) – The Governance Framework of Hayleys Company

Furthermore, the bellow description will demonstrate the PAEI roles of Hayleys Company.

5.1 PAEI Roles of Hayleys Company

5.1.1 Producers of the Company

Taking in to consideration about the producers of Hayleys Company it is based on a team effort and it consists with twelve Directors including the Chairman, Chief Executive, and t


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