SWOT and TOWS analysis

1. SWOT analysis
Seminar for MKT1002
Elena Chatzopoulou

2. Definitions of SWOT
… An analytical tool which should be used to categorize significant
environmental factors both internal and external to the organization
(Pickton and Wright, 1998)
… Enable us to adapt a firm’s internal qualities or characteristics (strengths and
weaknesses) to the external situations (threats and opportunities)
(Hill and Westbrook, 1997)

3. SWOT should be…
• Simple and practical, as it will be communicated to several people and
everyone should understand it in order to put it in practice
• Focusing on key issues and factors, which are most likely to influence a
firm’s success
• A tool for strategy formulation, managerial decision making and action
Should be not…
• a static tool BUT a dynamic part of the business development process
• too simplistic as it could lead to damaging consequences and suggestions
 detailed investigation needed

4. SWOT table
This needs more detail
and evidence of sources
Provide more details

5. STRENGTHS WEAKNESSES
• International famous brand and logo 
strong brand awareness
• Trendy atmosphere  attracting
consumers
• Strategic locations  preferred by
consumers
• Recently bought a coffee farm in Cost
Rica  credibility, experience & power
• Training for employees  good service
• Equal treatment to employees 
productive employees
• Range of products (varieties of coffee,
selling coffee beans & equipment) 
please all the tastes, consumer
satisfaction, consumer flow
• Coffee quality is not as good as
reputation  disappointment
• Standardisation of product (not always
matching the cultural differences
worldwide)
• High prices (not for all)
• Many stores close to each other (self-
cannibalism)
OPPORTUNITIES THREATS
• New distribution channels (retailers,
restaurants, universities, etc.)  new
consumers
• New markets (e.g. Asia, South America)
 profits
• Fair trade coffee products  conceived
as an ethical brand
• Ethical values: Starbucks UK & Ireland
• Tax evasion scandal / media  unethical,
disappointment
• Celebrity boycottage (Monsanto) 
influencing consumers
• Intense competition within the coffee
market  expand to new markets
• Global crisis (low buying power)

6. TOWS matrix (Weihrich, 1982)
STRENGTHES WEAKNESSES
OPPORTUNITIES SO STRATEGIES
(e.g. new selling
channels-distributors)
WO STRATEGIES
(e.g. collaborations)
THREATS ST STRATEGIES
(e.g. new products)
WT STRATEGIES
(e.g. discontinue a
specific production
line)
Good strategy = adaptation of a firm’s internal qualities
or characteristics to the external situations
(Hill and Westbrook, 1997)

7. Group of 4 – practice
Develop an outline SWOT analysis for:
• your university OR
• your favourite coffee shop/restaurant OR
• McDonalds/Pizza Hut/Kentucky Fried Chicken
Tips:
1. Choose your team leader (to present your SWOT)
2. Start working…
3. Focus on where the organisation wants to be; how it gets there and what
may prevent it achieving objectives
4. SWOT Analysis:
Internal - Strengths & Weaknesses:
Consider its competitive advantages and critical success factors
External – Opportunities & Threats:
What are the key issues facing your organisation for the future.
How should it develop and what may constrain it?
Each group should choose
one organisation to consider

8. Suggested answers
Your college/university
Potential strengths/weaknesses:
• quality of teaching staff, of support
staff, of teaching facilities, of library
staff and stock,
• fee prices, location,
• availability of accommodation, price of
accommodation,
• range of courses offered, specific
courses offered
• employment prospects
Potential opportunities/threats:
• government funding, government
policy on grants/bursaries/loans,
• existing and new
colleges/universities: competition,
perception of the quality/desirability of
the college/university and its
competitors, range and specific
courses offered by competing
colleges/universities, costs of living at
competing colleges/universities
• economic conditions affecting
parental ability to support students

9. Your favourite coffee shop or restaurant :
Potential strengths/weaknesses: location, product quality, staff
quality/knowledge, facilities (ranging from basic requirements such as
cleanliness of toilets to added value facilities such as Wi-Fi), range of menu
offered, atmosphere, décor, reputation/image, other customers, prices
Potential opportunities/threats: existing competition quality, location, price,
staff etc., economic conditions – affecting individual ability to pay, expansion
opportunities, social trends (towards or away from coffee shops/pubs)

10. McDonalds:
Potential strengths: brand awareness, locations, range of products,
convenience, price
Potential weaknesses: quality, other customers, atmosphere, décor,
reputation/image
Potential opportunities: further global expansion, further product range
development, in recession people taking cheaper options-healthy diet
Potential threats: healthy eating awareness, anti-American feelings, increase in
direct and indirect competition including healthier options (subway, coffee
shops etc), media (Reilly, 2015), anti-globalisation lobbyists (Phelps, 2007;
PETA, 2013)

11. Thank you 

12. Heinz Weihrich, (1999) "Analyzing the competitive advantages and disadvantages of Germany with
the TOWS Matrix ‐ an alternative to Porter’s Model", European Business Review, Vol. 99 Iss: 1,
pp.9 - 22
Hill, T. and Westbrook, R. (1997) 'SWOT analysis: It's time for a product recall', Long Range
Planning, 30(1), pp. 46-52.
PETA (2013) 'McDonald's', McCruelty: I'm hatin' it website. Available at: http://www.mccruelty.com/
(Accessed: 17/3/2016).
Phelps, N. (2007) The Longest Struggle : Animal Advocacy from Pythagoras to PETA. Lantern
Books.
Pickton, D.W. and Wright, S. (1998) 'What's swot in strategic analysis?', Strategic Change, 7(2), pp.
101-109.
Reilly, J. (2015) 'Victory for Jamie Oliver in the U.S. as McDonald’s is forced to stop using ‘pink
slime’ in its burger recipe', Daily mail edn). Available at: http://www.dailymail.co.uk/news/article-
2092127/Jamie-Oliver-Victory-McDonalds-stops-using-pink-slime-burger-recipe.html. (Accessed:
17/3/2016).
Weihrich, H. (1982) 'The TOWS matrix—A tool for situational analysis', Long Range Planning,
15(2), pp. 54-66.
References

13. Internet
http://www.starbucks.co.uk/blog/from-newcastle-to-peru-three-partners-journey-of-a-lifetime/1150
http://www.laura-becca-stephen.blogspot.co.uk/
http://www.starbucks.co.uk/responsibility/sourcing/farmer-support
http://www.bbc.co.uk/news/business-19967397
http://uk.reuters.com/article/us-britain-starbucks-tax-idUKBRE89E0EX20121015
http://naturalsociety.com/rocker-neil-young-ditches-starbucks-company-joins-monsanto-reverse-vermonts-gmo-labeling-law/
http://www.forbes.com/sites/brandindex/2014/10/27/brand-perception-remains-local-despite-starbucks-global-reach/#19bf247e28eb
http://archive.fortune.com/magazines/fortune/best-companies/2013/snapshots/94.html
http://www.rankingthebrands.com/The-Brand-Rankings.aspx?rankingID=118&year=1032
http://www.telegraph.co.uk/foodanddrink/foodanddrinknews/9035439/Starbucks-to-offer-beer-and-wine.html
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8926632/Starbucks-to-open-200-drive-thrus-for-roadside-caffeine-fix.html
https://consumerist.com/2007/06/22/confessions-of-a-starbucks-barista/
http://www.rodenberg.nl/publications/publications/COSTA_COFFEE_vs_STARBUCKS.pdf
http://www.businessinsider.com/starbucks-does-better-2011-7?op=1&IR=T
http://www.aabri.com/manuscripts/131646.pdf
http://worldofcaffeine.com/2011/03/09/burned-beans-the-shame-of-starbucks/
http://www.bloomberg.com/news/articles/2014-02-13/to-stop-the-coffee-apocalypse-starbucks-buys-a-farm
http://www.un.org/esa/socdev/rwss/docs/2011/rwss2011.pdf