PAC Resources, Inc., SWOT Analysis
Prepared by:
Marina Bolocan UCO - 457122
Ana Gelishvili UCO - 457127
Tatiana Terinte UCO - 457129
Alexis Lugo UCO - 459017
1
CONTENT
I. INTRODUCTION …………………………………………………………………………….2
II. SWOT ANALYSIS …………………………………………………………………………..2
III. CONCLUSION AND RECOMMENDATIONS ...………………………………………..4
IV. REFERENCES ……………………………………………………………………………...5
2
I. INTRODUCTION
PAC Resources is a small manufacturing company located in a mid-sized city in the upper
Midwest. PAC manufactures high-quality specialty components for the computer industry. The
company was founded in 1994 by current CEO, David Dukakis. PAC employs 835 full-time
workers.
The latest downturn in the industry affected the company, especially its sales, that have
decreased. At the same time the company goes through the period of employees’ dissatisfaction.
Considering the created situation, the company is looking for the solutions to overcome the
difficulties it is facing, especially to improve its management system.
II. SWOT ANALYSIS
In order to define the overall situation of the company and recommend solutions there is a need
to make a SWOT analysis.
The following SWOT analysis captures the key strengths and weaknesses within the company
and describes the opportunities and threats facing PAC.
STRENGTHS
1. Focusing on delivering high-quality products - The quality of the products is granted by
ISO Certificate, that allows the company to maintain its position in the market.
2. Active wellness program - that is providing employees with free immunizations and
voluntary health-risk assessments. PAC reimburses employees for 50 % of the cost of
weight loss and smoking cessation programs. PAC also maintains an employee assistance
program.
3. Training programs and employees’ development - The company is organizing training
seminars, in-house training (informing employees about current news, sexual harassment
and safety procedures). Tuition reimbursement available for college-level courses that are
related to the employee’s job. At the same time, the company is organizing trainings for
management, in order to ensure improvement of people’s skills, consistent implementation
of PAC policies across department lines.
4. Compensation and Benefit Programs:
· Offering fully paid health coverage to all full-time employees.
· Paid time off is available as paid vacation time and sick leave.
WEAKNESSES
1. Poor management that caused the movement of the employees within the organization.
Poor management was reflected in the inconsistently enforcing policies, lack of
communication with employees and little cooperation across functional areas. Some of the
employees feel that their work is not supported and appreciated by management and that
there is little feedback on progress toward goals.
3
2. Unfair practices - Using unfair practices regarding job changes and lack of encouraging
innovation and creativity. HR management has divisive style – unequal attitude towards
employees, having favorites, abrasive behavior and unfair attitude.
3. Merit bonus plan - Unequal sharing of benefits and compensation. Using merit bonus plan
is perceived as an expensive giveaway that creates employee anxiety.
OPPORTUNITIES
1. Increasing customer base - The company started being orientated to Canadian and
European markets.
2. Technological advancements - Continuous dynamics of the high-tech industry that made
the company increase the level of education of the employees and starting look for a costsaving
strategy, that required a 10% reduction in labor costs.
3. Conducting a job-hazards analysis - in order to develop a cost-saving risk allocation plan.
4. Implementing trainings – in order to improve the company’s performance management
system, ensure the employees’ development and enhancing their competences and abilities
that can lead to company’s profits increase.
5. Creating a blog in the company’s intranet - where staff could share information about
their successes and failures on various projects, in order to increase information exchange
with employees working off-site – became a source of ideas and information sharing.
6. Improving the interview exit process - Departing employees are encouraged to talk
informally about the career at PAC in order to better understand the employee's’ ideas,
management style, their level of satisfaction etc.
THREATS
1. Small customer base - in the United States and Asia. Heavy reliance on one customer –
sales of finished products are down for this customer and cutbacks are expected. Over 80%
of PAC’s sales come from building original specialty components for one manufacturer.
2. Lack of experience managing layoff process – layoff of newly hired employees will
seriously harm the company’s reputation in the community and make recruiting difficult
when the economy gets better. Hiring freeze can lead to loss of talent and retaining the
knowledge of long-time employees4
.
3. Union Organizers - that can affect company’s activity. Union can impose labor
regulations and workplace rules making the company lose control over the employees2
.
PAC wants to remain non-union and is willing to listen to employees and address their
concerns.
4. Legal issues – complaint of one of the ex-employee about sexual harassment, complaint of
an employee that was fired in front of the whole shop.
4
5. Relationships between management and workers – lack of communication and little
cooperation between areas within the company can affect its overall functioning
III. CONCLUSION AND RECOMMENDATIONS
The company has come to the point where it is experiencing many difficulties, mostly in the
Human Resources area. Among them, the most affecting problems are: poor leadership, lack of
communication between managers and employees, using unfair practices that lead to employees
dissatisfaction, lack of motivation to achieve the company’s goals and reduce their performance.
All these factors contribute to the company’s decline. However, the SWOT Analysis revealed
that the company has strong points as a well-established company that provides qualitative
products and is able to capitalize easily on the opportunities that it has at the moment, such as
increasing customer base, implementing training programs, in order to improve its current
situation.
First of all, the company has to deal with the problems mentioned in the e-mail and improve the
merit bonus plan that can increase employees’ satisfaction and their competitiveness. The
company has to cultivate strong leadership, that is the key point in achieving company’s goals
and its success. Management has to implement organizational justice, distributive and procedural
one, in order to ensure the fairness in the workplace that can increase employees’ satisfaction and
motivation. Employees have to know that they are treated fairly in their jobs and how it
influences other work-related variables3
.
Overall, the company needs to concentrate on improving its current situation and all the
transformations that should take place will ensure the company’s long-term success.
5
IV. REFERENCES
1. PAC Resources, Inc.: A case study in HR Practices;
2. The Disadvantages of Union Membership From an Employer's Perspective, Sam Ashe-
Edmunds,
http://smallbusiness.chron.com/disadvantages-union-membership-employers-perspective-
33242.html;
3. Employee turnover: Bad attitude or poor management? Naresh Khatri, Pawan Budhwar,
Chong Tze Fern, p.9,
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.569.4082&rep=rep1&type=pdf
4. Employment Downsizing and its Alternatives, SHRM Foundation’s Effective Practice
Guidelines Series, Strategies for Long-Term Succes, Wayne F. Cascio,
https://www.shrm.org/about/foundation/products/documents/downsizing%20epg-
%20final.pdf