abhishreshthaa

New member
Pest Analysis On Acme Brick Company : Acme Brick Company is an American manufacturer and distributor of brick and masonry-related construction products and materials. Founder, George E. Bennett (October 6, 1852–July 3, 1907), chartered the company in Alton, Illinois as the 'Acme Pressed Brick Company' on April 17, 1891. The company grew to become the largest American-owned brick manufacturer by the mid-20th century and was the first of its type to offer a 100-year limited guarantee to its customers. Acme Brick Company was acquired by Berkshire Hathaway, Inc. on August 1, 2000.


POLITICAL
One of the important strengths of the company is its reputation or strong brand image due to the long years it had stayed in the industry. Because of that, the Malaysia people have become familiar and loyal to the brand, aside from the fact that Proton had become the national car brand in the country. Due to that, the car manufacturer has a strong support or back-up from the government, which is considered as an important entity in any business environment. Above all, the company has a manufacturing capability at Tg. Malim to consolidate all models, as well as the existing tariff structure (BuildBoard n.d.).


4.2 ECONOMICAL



There are also different weaknesses which must be improved by the company in order to maintain their position in the government. First is the lack of R&D or innovation as well as lack of original products and limited products because of the inability of the company to introduce real new models, which lead them to cannibalize their screwed up line of products (BuildBoard n.d.). This is because some of the products or models of Proton were based on the model of other international leading brand. It is also important to consider that the company is lacking in international operation, due to the different factors, primarily because of huge competition in the global market. The reputation or image of the company is also facing difficulties because of the current quality issue due to active service units and low plant utilization (BuildBoard n.d.).Furthermore, company is having different human resource issue due to their inability to retain and cultivate talent. Because of all these reasons, the company is lacking in international operations. Above all, due to it’s over reliance to the government, without the strong support from the government, Proton could lose out to major players in the industry that can cause serious impact on the different supply chain (AseanAffairs 2009).


4.3 SOCIAL



The support of the government to the company is an important opportunity, because the government considers the company as their partner, therefore majority of cars needed by local and national government will be Proton. Furthermore, the company can also take advantage of the different technological developments, particularly the different Information Technology (IT) or Information System or IS which can help the company to manage their information that can help them in the decision-making process. Entering new markets will also help the company to expand their business in terms of size; therefore can help to gain more turnovers. It is also important to consider the ongoing popularity of e-commerce or online selling of goods. This will help the company to target more market in more reliable, fast and cost-effective manner. Furthermore, the changing perspective and concern of the people towards the environment also created opportunities for different automotive industry, and that is to offer different “Green” cars or hybrid cars.


4.4 TECHNOLOGICAL



The most crucial threats to be faced by the company are the global financial crisis which affects the economy of Malaysia, and affect the lifestyle and buying behavior of the consumer. As a result, as of October of 2008, new-vehicle deliveries slipped by 13% from 42,915 of last year to 37,512 units (Chrysler 2008). The changing and maturing of the technology is also another important factor to consider, together with the growing number of competitors who are entering the market, which result to the price wars. The main reason behind this situation is the AFTA which focus on reducing tariffs from zero to 5% in 15 years among the six nations through a common effective preferential tariff It planned to reduce tariffs to zero to 5% in 15 years among the six nations through a common effective preferential tariff (Ghani & Zainuddin 2008).
 
Last edited by a moderator:
Top