Every once in a while Strengths: Weaknesses: your Editor ......SWOT ANALYSIS: Cumberland Packaging...
Transcript of Every once in a while Strengths: Weaknesses: your Editor ......SWOT ANALYSIS: Cumberland Packaging...
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3Aug 2013KNOW IT ALL PACKAGING NEWSLETTER...............................................................................................................................................................................................................................................................................................................................
SWOT ANALYSIS: Cumberland Packaging
Every once in a while your Editor has the privilege to be invited to look around an absolute gem of a box plant; Cumberland Packaging is in this small and distinguished category:
• ThebusinessisrunbythedeceptivelyshrewdsoulthatisJohnWatson,whomanagestomaintainanimpressivebalancebetweenbeingatoughtaskmasterandanencouraging,smilingboss.Hisextremeorganisationalskillsanddeepneedtoknowthedetailofeverythingpermeatethroughthebusiness–theyreallyarecommittedtogettingthingsrightfirsttime.He’sabitlikeMonicafromFriends…onlytaller,maleandwithanEssexaccent.
• TheCumberlandTeam are talented, earnest and committed...and thekitisbroadranging,largelynewandwelldeployedbyoneofthemostwelcomingandcustomer-orientedOperationsteamsyoucouldhopetomeet.ThebenefitofanOperationsDirector(theeminentlywarmandreassuringlycompetentChrisMonaghan)whousedtobeasalesman.
• Beingmorethandoublethesizeofatypicalcompetitor,theyofcourseenjoy economies of scale in purchasing…which in turn makes themmorecompetitive.
• Importantly, they like new ideas and have an excellent pedigree inimplementingthem.
• Withannualsalesof£8mthey’rebiggerthanalmostalloftheirregionalcompetitors.Intheroundthey’reinthetopfiveofUKsheetplants…andhavealltheelementsinplacetorealiseJohn’sambitiontogrowthebusinessto£15million.
Strengths:• OneoftheUK’sbiggestsheetplants• Independentandconsistentlyprofitable• Awellinvestedfactorythatisverycompetitive• AverygoodDesigndepartment• A broad manufacturing capability and hence
productrange• Useindustry-leadingAbacasoftware• Excellentfabricandinfrastructure• Animpressiverangeofaccreditations:BRC/IOP;
5Star;ISO9000;InvestorsinPeopleandRoHS.• Veryflexiblecapacity–theycanturnarounda
jobin1-3days• Havecapacityforshorttomediumrunsonthe
casemaker(theirbestsellingproduct)• Stockandserverunswell• Theyhaveareputationforbeingaggressiveand
haveplentyofcapacityuptheirsleeve• Being more than double the size of a typical
competitor, theyofcourseenjoyeconomiesofscaleinpurchasing…whichinturnmakesthemmorecompetitive
• Adedicatedtransportfleet
Weaknesses:• The website looks a little tired
anddoesnotdothemjustice• Short staffed in the sales team
(a short term issue whilst theyrecruit)
• They would like to have moreroutestomarket–currentlyonlysellviatheirdirectsalesforce
Opportunities:• Recruittofillthevacancyinthesalesteam• Setupanonlineshopforcorrugated(they’reon
thecase–viaAbaca’snewfunctionality)• Filltheirsignificantlatentcapacity• Set up more clients on contracts – with PPI
agreements to accommodate fluctuating boardcosts
Threats:• Fluctuatingpaperandboardcosts• Competitors – notably Connect
Packaging(whohavetwoex-Repsthere)andpackagingdistributors
• The economy may worsen, withpotential headwinds from theEurozoneandinflationhurtingUKconsumers’netincome
• Amajorclientmaygobustovertheinsuredlimit