SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats.
A SWOT analysis is a process that an organization undertakes to identify its internal strengths and weaknesses, and it’s external opportunities and threats. The internal business factors are the elements inside the business that the business has control over.
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The external business factors are the elements outside the business that the business has no control over. These elements can be positive or negative to the business depending on the business’s response to them.
The strengths include tangible and intangible features controlled by the business whilst the weaknesses include elements that detract from the business’s ability to reach their goals. Weaknesses are areas that
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These Franchisees can give the business a bad reputation and divert from the brand image.
Another weakness would have been the high risk factor for the Franchisor as they rely on the Franchisee to make the business a success.
Opportunities
Menu items could be revamped to increase sales as customer’s demands change. Another opportunity would be to start delivering food to homes that would also increase sales as there are many customers who are happy to pay extra for the convenience factor.
McDonald’s had the opportunity to expand the business. Ray Kroc had this in mind when he told Mac and Dick that there would be thousands of McDonalds all over the world. They are now a global company.
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The restaurant image could be upgraded to look more like a café style restaurant where people have the choice of sitting and eating. This is also an opportunity that came to life as today McDonald’s have provided seating
1. Franchisees gain numerous advantage when they purchase a franchise. First, while a franchisee may be opening a new store, it is part of an already established business and system. This means a franchisee has access to turnkey operations, allowing an increased speed to establishing and growing the business. Franchisees also get support for management and training activities, as well as financial assistance. Going hand in hand with this, a franchise already has an established brand name, quality of goods and service which have been standardized across the franchisor’s larger company, and national advertising programs from franchisors. Franchises also have large-volume, centralized buying power. A franchise has proven products, and
Schlosser tells us about how many companies expand their businesses by selling franchises. Selling franchises has been successful for many companies such as McDonald’s, Subway, and many others were able to expand using this route. In fact, some fast food companies open up some many franchises, that whenever the same restaurant is opened close to another one, that managers complain of losing business. Another thing the books informs us on is that when a franchise doesn’t work out then the fast food company has no choice than to close that area. Subway does this very often and is called “The worst franchise in America”. Next, the book talks about economics. There is a lot of risk taking when it comes to being a franchisee for a fast food restaurant. People who would like to become future franchisees can spend almost 1.5 million dollars just to become one. Before purchasing a franchise, people have to consider whether or not it will be worth the money, because if it doesn’t work out there is no way that
The franchiser can attain rapid growth for the chain by sign- ing up many franchisees in many different locations.
The significance of strengthening and developing each individual store is huge, because this is crucial for the company as a whole and it derive its future.
* Opportunities - Opportunities are offered by the environment within which the sandwich/snack bar operates. These situations may rise when the sandwich/snack bar are taking benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable. The sandwich/snack bar is able to achieve competitive advantage by making use of their given opportunities. However in occasions like this the sandwich/snack bar must be careful and recognize the opportunities and grasp them
•They are the most famous and one of the few outlets available in area and footfalls are generally heavy due to these•The places are usually visited very frequently by local people, students, etcPromotion•The joints rely on word of mouth publicity•There is no promotion done through ads for these joints. The promotion at maximum is limited to local newspaperSUGGESTIONS•McDonalds could increase the number of items served on its menu. Currently there are only 6 vegetarian and 6 non-vegetarian items served on the menu. It is also evident from the survey that many people feel that the variety of menu available is average and could be improved. Some of the customers prefer something new every time they visit. These potential customers could be targeted by increasing the number of items in the menu.
Internal Factors: Internal factors are the factors within the company, which affects the success and operation of business. The company can control these factors. Effective internal management is the key to the successful business.
SWOT Analysis is a simple but useful framework for analyzing your organization's strengths and weaknesses, and the opportunities and threats that the company face. It helps you focus on your strengths, minimize threats, and take the greatest possible advantage of opportunities available to you will giving you the opportunity to ward off possible threats from external sources.
Focusing on more of a diverse food menu alone can generate more foot traffic . People may avoid The Dive due to the lack of food options since we are more well known as a drinking spot. We are legally recognized as a “Drinking Place” and/or a “Limited-Service Restaurant” (Industry 722410 or 722211). We can offer more choices to eat such as sandwiches and full dishes. Fully switching to lunch, dinner, and late night specific menus will help increase popularity. We will keep the same pub-style options for the current regular customers, but offer lunch and dinner choices for the new clients.
It has its advantages and disadvantages to franchise the business. It is a careful decision to make for anyone to invest a lot of money into a franchise and everyone should be comparing pros and cons.
The process of SWOT analysis is a universal method widely approached in corporations to scan the internal and external environment so that companies can deploy relevant countermeasures to make improvements. It contains four elements, they are strengths, weaknesses, opportunities, and threats (Helms & Nixon, 2010).
SWOT analysis covers the strengths, weaknesses, opportunities & threats which a company is facing in its internal & external environment. Strengths & weaknesses fall under the internal environment of the company and opportunities & threats fall under the
Franchisors are increasingly having to be more and more selective in the adoption of franchisees with factors such as economic climate and the potential difficulty with growth playing key factors in the decision making process. It is not simply an ability to grow which creates a successful Franchise and nor is it the desire of any franchisor to adopt every potential franchisee. Franchisors are becoming more and more scrutinising as the global economy declines. There is a general understanding within any franchised
SWOT analysis is a useful tool for understanding and decision-making for all sorts of situations in business and organization. SWOT analysis can be classified into internal and external factors affecting a company. The Strengths and Weaknesses of the SWOT analysis represent the internal factors that influence the viability of the company. While the Opportunities and Threats, on the other hand, are the external factors that may affect the company's performances. A SWOT analysis provides more understanding of the organization in relation to its internal and external environment so that manager can formulate better strategy in pursuit of its mission.
SWOT stands for strengths, weaknesses, opportunities, and threats (Ferrell and Hartline, 2014, p. 39). A SWOT analysis evaluates both the internal factors (strengths and weaknesses) and external factors (opportunities and threats) that create advantages and disadvantages to a company when serving its customers (p. 39). A SWOT analysis is extremely beneficial in helping a company determine areas of improvement (p. 39). Internal factors examine the actual company being analyzed while external factors examine the external market (customers and competition) (p. 85).