A SWOT analysis was carried out to analyse the strengths, weakness, opportunities and threats of Southcorp.
Southcorp faced many losses after it divided into 6 divisions. They put aside their beer business and broke into 6 new divisions. I think that their attitude of trying out new things is a plus point about them. They did not fear to start new divisions since they had been in the beverages business for about 153 years. They tried out areas like water heaters that had nothing got to do with beverages.
Besides that, they also knew when to stop a particular division before it causes too many losses for the company. They sold two businesses in 1999 and combined the water heaters business with the air pollution equipments. They renamed this division into appliances and packaging. Furthermore, they realized that their water heaters business in the US was not giving them good results. They lost big contracts too. To solve it, they shut down their plant in Reno, Nevada. Besides that, they had to decide whether or not to continue their water heater business in the United States.
I think that their ability to strike back or rather recover from losses very fast has managed to bring Southcorp to greater heights. They were able to pick themselves up after every problem they encountered and clear any obstacles they encountered. They did not give up after suffering any setbacks. Their undeterred determination is a big strength of Southcorp. This is proven by the fact that Southcorp is in the top 50 company list and has provided jobs for 6000 people.
The weakness of Southcorp is that after they divested into 6 divisions, they suffered many losses in all their different divisions except for the wine business. They suffered losses from around 1993 to 2000. They realized that only wine, besides the water heaters business, was the one that was giving the company the most profits after they divested off their last business, which was the packaging business....