Asia Division Business Unit Strategy Management Plan
Introduction
This is a strategic analysis is to find out whether the Asia Division Business Unit should be entering the cosmetic industry. The analysis considers what the alternative approach for it being in the cosmetic industry, and recommends the kind of alternative the organization should follow. The kind of recommendation focuses on the increase in the organization’s corporate auditing using the following goals: analyzing the short-term income, the risk of the company and leveraging the current assets. When the company wants to enter into the cosmetic industry, the current strategic option should be considered. This kind of analysis is not going to consider the other means by which the New Asia Division Business Unit can achieve its corporate goals. The analysis will focus on the cosmetic opportunity in the industry.
SWOT Analysis of Biotech and the cosmetic industry
The name of the beauty and cosmetic industry is New Asia Division. It has good brands in its portfolio. New Asia Division sells its goods through its own name ‘Asia Division’ as known with various brands like new beauty, smooth skin. it also does the body therapy and has the body shop where it shows off all the products it has.
Strengths in the SWOT analysis of New Asia Division
Asia New Division is one of the largest cosmetic companies in the industry in the United States of America and in the world. The New Asia Division is a company that is focusing on the beauty products, unlike other companies that are focusing on the cosmetics and personal care. For this reason, it has made the New Asia Division be a successful cosmetic company in the industry.
There is a continuous R & D. in the cosmetic sector, production is not the only way to go, the company has to get involved in Dermatology, skin care, hair care, sun protection, cosmetology and any other biotech. The continuous R & D experiments are what New Asia Division do to ensure there is safety on what they manufacture and offer to their customers and also keep on trying on the new cosmetic products.
The products that are being produced by New Asia Division are of high quality that is why customers repurchase their products again and again. Also, the marketing communications are integrated. The nature of their products is natural and organic. The products are 100% organic and natural.
Weakness in the SWOT analysis of New Asia Division
There are too many subdivisions and this has brought issues to the company. The company is well known to be bulky and slow naturally due to its divisions it possesses. The management of employees has issues because the employees are too many. Net revenues are lower – Higher interests in R&D, natural procedures and in addition the enormous costs of dissemination imply that the net revenues of the New Asia Division are a bit lower when contrasted with competitors. Be that as it may, despite the fact that this has been a shortcoming, the R&D has likewise made New Asia Division one of the best brands the shortcoming must be taken with a spot of salt.
Opportunities in SWOT analysis in New Asia Division
Market potential – The market capability of individual care and magnificence things is just going to increment. The world is a clam and all over immature economies are creating and getting to be more up to date showcases. Investigating these more up to date markets will give better deals down the line to New Asia Division at that point remaining in the same immersed markets.
Interest in natural beauty care products – As Peta and other animal rights activists are getting to be dynamic, the interest for natural beautifiers is on the ascent. This request is a positive sign for any semblance of New Asia Division which has utilized the natural technique for R&D since the start.
Threats in SWOT analysis in New Asia Division
Dynamic nature of beauty care products industry – With consistent updating being requested in the makeup business, staying aware of the occasions is at last extremely troublesome. You can't keep everybody glad on the double and that is by all accounts the problem. In addition, the opposition wouldn't stay silent and they keep concocting brilliant strategies of their own. Subsequently, the dynamic idea of the beauty care products industry keeps the brand on its toss.
Cash crunch – A brand like New Asia Division which has such a significant number of sub-brands needs to separate the money it acquires into a wide range of fragments. Thus, if the economy drops then it faces an enormous issue. Economy issues are continually existing in some nation, because of which, money inflow from that nation stops. This causes issues in the general income and working capital administration ends up troublesome. Be that as it may, the economy all in all is poor including the European nations and also Asian nations. This has caused money smash for the organization and threat looms if the economy drops.
PESTLE Analysis of New Asia Division
Political analysis-this includes the policies and the rules that are imposed by the government in the New Asia Division have been working. As a manufacturing organization in Asia, so mostly the policies of the government in most Asian countries impacts the organization very much hence affecting its performance. With the advent of going international, the political factors have played a positive role in the cosmetic industry like New Asia Division.
Economic Factors — this includes the exchange rates of India. Apart from the traits concerning the economic factors, the prices for the products also are essential. The price of the products changes from place to place depending on the GDP of India.
Social factors — this entails the trend in the society technically. The modern society is always interested in fashion and in the products New Asia Division products. The pressure of the social trend plays a good role in the business unit hence making more sales.
Technological Factors — it has played an important role in ensuring that the company succeeds in its business. The technological attribution of the company such as innovation and the trust has played the role. The technology has given the opportunity for New Asia Division to innovate the trendy products to its customers.
A Porter’s Five Forces Analysis of New Asia Division
Rivalry among other firms
In the cosmetic industry, so many organizations like Proctor and Gamble, Avon and Shiseido forces New Asia Division into the rivalry in the present business of skin care and cosmetic products. These competitors try to raise the market share by keeping on implementing a new approach. New Asia Division has to enhance the quality without stopping in order for the company to survive in the cosmetic industry.
Potential entrants
This can be considered the low participation of potential entrants into the cosmetic industry. There is a market for companies like Avon, Proctor, and Gamble, as well as New Asia Division. This shows there will be no more threats or there will be a little threat from small business.
Potential Developments of Substitutes
The reason why people need cosmetic in the world is aging. As a leader in cosmetic and the beauty sector, New Asia Division is not shaken by any substitute that comes into the market.
Bargaining Power of Suppliers
New Asia Division is a huge plant that has a large capacity of producing millions of units every year, therefore the supplier cannot impose threats to the organization.
Bargaining Power of Customers
There is high bargaining power due to many organizations producing cosmetics. This is a threat to the New Asia Division.
Goals
Through education and research, the SDSS will come up with national standards of skin care in the setting of dermatology. The company will facilitate the open communication among the employees. This will ensure the type of services offered is of high quality and there is increase in production and sales.
Innovation will be achieved in the long run of the company in order to maintain the good relationship between the company and the consumers.
Reach the target market by ensuring the product is available to every individual who needs it. This can be done by ensuring that the market fashion shows are done which will spearhead the products of the company.
The company will ensure that the unique needs of the customers are achieved. This will foster the research and innovation in the company.
