It is impossible to make an accurate business decision without making a complete and accurate evaluation of the internal and external influences, which can affect your business.
The SWOT will help you to make the right decisions and lead you in the right direction to maximize potential gains.
By analyzing the four elements of the acronym. Knowing the positive and negative elements of each you will be able to evaluate the elements, which will help you to progress in your quests for NIRVANA.
Here are the acronyms for our example Joe’s Cafe:
Great chef, his savvy experience gives a unique advantage to thebusiness
Small staff — can change and adapt quickly to various changes: In economy as well as customers’ whims.
No training programs in place for the dining room or the kitchen.
Martha’s Joe’s wife has no previous restaurant experience
There is no other American food restaurant in Joe’s vicinity
Joe’s 60 plus parking lot is a great advantage for breakfast (to be considered)
A new Chili is opening in the next 3 months within 1/2 mile from Joe’s location.
Mama Luigi has lower their menu prices across the board by 10%
How can Joe’s cafe use this knowledge to counter-attack?
1 – Lower our own prices (might not been a good idea our prices are already low.)
2 – To offer a very low corkage fee, a choice of salad or a bowl of soup for only an additional $1.
3 – Introduce combos [lunch and dinner], the combos will offer the guests the possibility to order a dinner or lunch, for a set price with soup, salad and dessert all included.
4 – Any deal as seen fit by management.
A SWOT analysis is helpful to address questions to develop a business plan. You also need to identify your key value to drive your business. Your marketing planning will have to include your goals and the metrics by which you will measure your progress toward achieving those goals.