Answer to Question #304235 in English for Jen

Question

In the United States approximately 450,000 black-owned businesses took a 41% decline compared to a 17% decline of white-owned businesses experienced. Recently, increased focus has been given in support of black-owned businesses in light of the civil unrest and global pandemic. Your first client is a black-owned business that wants to position their company to obtain capital to propel its aggressive growth strategy. To help get the team started, your manager would like you to create a SWOT analysis that considers the current state of black-owned businesses in this economy, as described above. Your response should outline the strengths, weaknesses, opportunities, and threats for black-owned businesses looking to secure capital, while also navigating the challenges for black-owned startup

Also, include an example scenario for how black owned startups can use one strength to mitigate a potential threat and an example scenario for how black owned startups can use one opportunity to overcome a potential weakness.

Answer 1

Strengths of the Black-owned Companies

A strong brand name for industrial tools which has helped it in improving sales and revenues. Diversified business operations with presence in almost all types’ industrial equipment, power tools, hand tools, engineered fastening systems and related accessories. A wide range of product portfolio providing tools and solutions that make life easier. High emphasis on sustainability have driven revenue and operating income. The strategic acquisition has given it a presence in mid-price point power tools in China for Asian and Southeast Asian markets expansion. A slowdown in GDP growth rates in various emerging markets around the world and the currency volatility brand which has been growing organically at above-market

Weaknesses of Black-owned Companies

High dependence on US market for revenues. Very high unfunded pension obligations which has led to degradation of credit ratings by agencies.

Opportunities of Black-owned Companies

Potential to grow in markets outside US especially emerging markets

Growth potential of consumer electronic market

Acquisitions to expand into new product lines

Threats of Black-owned Companies

 Growth of players in Professional power tool segment is a big threat since it has been unable to penetrate this market. Stringent environmental rules could hamper growth in the industrial equipment segment.

Black owned company should invest in black market segment.