SWOT Analysis
STRENGTHS
- Eco-friendly solar panels, rain water tanks- reduced operational costs
- Unique concept of café
- Customer service
- Location
- In house roasting coffee beans
- Quick Simple meals
- Phone and web app ordering systems
- Fresh local produce
- Vegie patch- self sustaining
- Diversified growth strategies
- Expand to more locations
- Increase operational hours
- Develop menu based on local suggestions
- Catering for local business
- Coffee truck- tradesmen, or local events
- Franchise
Summary:
The strengths of the business range from straightforward things including the location, customer service, the menu and the unique concept of the café itself. Other strengths are found deeper into the business. These include the ecofriendly aspect; this is the solar panels and rain water tanks that will reduce the operational costs of running the business. Also the food used will be fresh local produce, including the café itself which will have a vegie patch to be self-sustaining and in house roasting of coffee beans.
A major strength that comes with the business is the ability for the café to grow and franchise. These opportunities include; expand to more locations, increase operational hours, develop the menu, catering for local businesses and a coffee truck that provides portable access for those unable to come into the café itself. Finally strength of the café is the phone and web app ordering systems, this also adds to the uniqueness of the business. This strength will allow for people to easily pre-order their coffee before arriving at the café to cut waiting times.
WEAKNESSES
- Competition - number of surrounding cafes
- Selected seasonal produce for food to be served
- Perceptions of animals around eating areas (hygiene)
- Waiting times between breakfast and lunch (foot traffic)
- No hot food options
- Waste of food stock at end of day- waste can go to vegie patch
Summary
Organisations should take into considerations of potential weaknesses when generating a strategic plan for their new business. Weaknesses outline what internal competencies that the organisation lacks that could reduce the possibility of the success for the business.
Businesses can then create strategies to overcome or reduce the identified weaknesses to ensure that success of the business. In regards to our business there are potential weaknesses that could factor in to our success. For instance, there are multiple cafes and restaurants that operate within a 5km radius from our location. Customers may not pick our cafe since they may be loyal to the other cafes.
Our menu is based on quick, easy and healthy food options that don’t include any hot foods, which could not include potential customers who are looking for large meal options. Our menu is dependant on local fruit and vegetable produce due to our fresh and health nature of our business.
Our business can be affected by weather patterns that could hinder the prices and availability of produce for our food items. In regards to food we can also run the risk of over producing food that could lead to waste or under producing food products for our customers. The business is pet friendly to allow local communities to be able to included within our cafe, however we also run the risk of pushing other customers away that dislike pets and find pets a hygiene problem. Cafes also run the risk of heavy foot traffic during high peak periods such as breakfast and lunch, but the times in between are slow in the amount of customer walk ins.
OPPORTUNITIES
- High foot traffic
- Wide target market within area
- Rise in suppliers for local produce
- Redevelopment and local expansions around area
- Linking with other non-direct businesses for joint ventures
Summary:
There has been five main external opportunities that the group believes will help drive the business forward, some of these are. Being situated on the Swan River with residential apartments and business complexes will involve a high amount of foot traffic. With also being located in Applecross the target market will be a wide target market due to the demographic of the area.
Having such a distinct café allows the business to reach local produce and suppliers supplying organic foods. The business believes that the future in Applecross, will involve re-development and local expansions that will help bring in new customers to the Café. The café will also involve itself with non-direct businesses for joint venture.
THREATS
- Rival Café imitations
- Weather conditions affecting surroundings roads (Wet weather)
- Council restrictions- rezoned areas for commercial and retail use
- Increased competition
- Weather factors affecting suppliers produce
- Change in food inspection regulations
- Economic downturn
- Parking availability
Summary:
The threats for our business include those that the business its self cannot control. Some of the threats include rival cafe imitations as this cafe is different and more eco friendly in comparison to other typical cafes. Our business is located on the Swan River and stormy conditions usually result the level of the water to rise and affect the surrounding roads such as the Mitchell Freeway. A restriction from the council is a threat as the area could be rezoned as an area for retail or commercial use.
The popularity of small cafes and the health industry is increasing and this can result in competition of surrounding cafes. Trying to keep the cafe ‘alive’ and ongoing will be a struggle with the increase of other similar businesses. Studies have shown that climate change impacts the production of coffee.
Increased temperatures due to climate change decrease the quality of coffee as well as the changes in rainfall patterns. In the long term this will be a big threat as coffee is a main product. Another threat is economic down turn; this could affect supply, employment and business profits. Parking availability is also a threat.