Stacey Tile Company1. SWOT Analysis of Stacey Tile Company Strengths:+ Competitive advantage: Location of headquarters - within a 500km radius representing 60% of the US floor and wall tile market (its largest asset)+/- a kiln operating tunnel+ good production manager with over 10 years of experience in the company (Mr. Henley)+/- Mr. Gilbert's financial capacity+ Mr. Gilbert's experience+/- Mr. Gilbert's motivation+/- glazing equipment ¼ of productionWeaknesses: no fans; wooden floor (dust) no improvements to the factory building low number of trained workers high level of debts (including mortgage) -/+ no MIS (inventories); visual inspection for production planning+/- glazing equipment ¼ of productionOpportunities:+/- growing market for wall tiles – strong demand+ higher prices for wall tiles+ production of high quality wall tiles - differentiation/specialization+ higher barrier to entry for wall tiles – higher marginsThreats: high competition, low price for floor tiles, low barrier to entry for floor tiles, extensive advertising for substitutes (glass, linoleum and cork)2 . Stacey Tile's mission To focus production on high quality/colorful coatings To focus sales efforts on tilers. How will its MISSION be achieved? To take advantage of the growing impact of housing on tile sales – Summer 1987 Low barriers to entry into the segment of floor tiles compared to wall tile segment (Use of more expensive equipment, more skilled labor and more skillful management of resources) Unlike wholesalers, tilers do not seek quantity discounts and favor low prices strategyGilbert's intentions: Hiring competent workers and managers to improve quality Obtain a higher selling price by going directly to tilers Adopt a 2% discount/payment in 15 days policy Purchase raw materials at the lowest possible cost (like competitors) Develop a strong management team3 . Mr. Gilbert (Fayol) Analysis:Planning:Mr. Gilbert's plans include completely modernizing the company so that it can operate efficiently, resulting in high quality products being sold. He changes his plans as he goes along (e.g. April letter asking to invest in a second tunnel kiln); From a staffing point of view, it plans to have a competent production manager - Mr. Henley maintained - and six good and capable foremen; It plans to sell directly to tilers. The glazing machines are expected to be installed by the first week of September. It plans to purchase daily raw materialsOrganisation:Mr. Gilbert is a good organizer. It intends to eliminate dust in the air, reduce production errors, through better workforce training and eliminate debris