Swot Analysis on Frick’s Quality Meats

SWOT Analysis

MGMT 3310

SWOT Analysis

     This SWOT Analysis will be conducted on Frick’s Quality Meats. Frick’s is the largest, independently-owned meat processing plant in the United States. It is currently owned and operated by the fifth generation Frick. Frick’s employs about 200 personnel ranging from production to clerical to truck drivers, and their products are available in 26 states.

       Frick’s strengths consist of broad market coverage, manufacturing competencies, R&D skills, and brand-name reputation. The broad market coverage encompasses various products such as smoked bone-in and boneless ham, turkey, bologna, various types of sausages, beef brisket, corned beef, bacon, cheese, and dog bones. These products are labeled under roughly 30 companies besides the Frick’s label. Their manufacturing competencies are a result of six generations with Food Science and Processing degrees. This knowledge has allowed Frick’s to create multiple manufacturing processes that consistently ensures quality products. The plant’s design and layout prevent cross-contamination, resulting in zero product recalls during my 10 years of employment there. In 2002, two college graduates from the University of Missouri were hired to head the research and development of new-to-Frick’s products. This resulted in 52 new products brought to fruition. Frick’s is known around the Midwest as a quality product. This positive brand-name reputation allowed for Wal-Mart and Owens, also known as Bob Evans, to contact Frick’s to produce meats for them. When the company became the largest independently-owned meat plant, M.E. Frick was invited to meet the President of the United States. Although Frick’s has several strengths, there are many opportunities still available to them.

     There are always opportunities available to companies to expand their business or increase their existing capabilities. One opportunity would be for Frick’s to widen their product range. This could be done by expanding the items they produce to include spiral-cut hams, and maple- and apple-cured hams and bacon. Frick’s could also enter new related product lines such as manufacturing beef jerky, summer sausage, and rawhide chews for dogs. Additionally, they could enter new related product businesses such as cold storage. During the holiday rush, Frick’s pays a company to store their excess products in old mining caves. If Frick’s could find their own mining caves and set up cold storage in them, they would not have to pay a company around the holidays. They could also offer their cold storage services throughout their off-season, which could increase their profits. Frick’s has failed to capitalize on some of these opportunities, which can be considered one of their weaknesses.

     From 2003-2004, Frick’s expanded, building a $16 million state-of-the-art facility. After this expansion, Frick’s was so desperate for business that they “sold-out” to big businesses, like Wal-Mart and Owens. In doing so, they disregarded their smaller accounts and the needs of those accounts. The products that Wal-Mart and Owens demanded were so specific that Frick’s stopped expanding their product lines, thus halting the realization of their opportunities. This also led to the loss of customer goodwill with their smaller accounts. For example, Krakow Store had been doing business with Frick’s for nearly 100 years. Once Frick’s started working with the major corporations, and decreased their customer service for the smaller accounts, Krakow Store decided to go with another company that would value their business and loyalty. Additionally, there has been a decline in R&D since the two college graduates hired in 2002 left the company. Their leaving was also a result of Frick’s conducting business with Wal-Mart and Owens. Once again, due to the limitations these two companies put on the product lines, the R&D department felt their services were better spent working at other organizations. Since then, Frick’s has not been able to fill the R&D positions with qualified, innovative people that can take them to the next level. This growth without direction is a threat to the company.