A SWOT analysis allows a business to evaluate its internal strengths and weaknesses as well as external opportunities and threats. For a restaurant, strengths may include quality food, service, or decor. Weaknesses could be inadequate training or unreliable supplies. Opportunities exist in expanding menus, healthier options, or delivery/takeout. Threats come from competing restaurants and rising food costs. Performing a SWOT with managers helps gain different perspectives to improve the business.

1. SWOT Analysis

2. What is SWOT Analysis?
A technique that enables a group or individual to move
from everyday problems and traditional strategies to a
fresh perspective.

3. S – Strengths
W – Weaknesses
O – Opportunities
T – Threats
SWOT is an acronym for:
Internal Environment
External Environment

4. Strength
Any existing or potential resources or capability
within the organisation that provides a competitive
advantage in the market.
Example:
• Strong distribution network
• Intense Staff commitment and loyalty
• Increasing profit margin
Activity #1: Can you identify some of your
organisation’s strengths?

5. Weakness
Any existing or potential force which could
serve as a barrier to maintaining or achieving
a competitive advantage in the market.
Example:
• Lack of a clear company strategy
• Lack of training opportunities for using a new software
Activity #2: Can you think of some of your
company’s weaknesses?

6. Opportunity
Any existing or potential force in the external
environment that, if properly leveraged, could
provide a competitive advantage.
Example:
• Organisation’s geographic location
• New technology
Activity #3: Can you think of some opportunities
available to your company?

7. Threat
Any existing or potential force in the external
environment that could erode a competitive
advantage.
Example:
• A new competitor entrant
• A recession, rising interest rates, or tight credit lines
Activity #4: Can you think of some threats to your
business?

8. Aim of SWOT Analysis
1. Take advantage of strengths and
opportunities.
2. Minimise weaknesses and eliminate
threats

9. Who Needs SWOT Analysis?
A Company
• When revenue, cost and expense targets
are not being achieved;
• Market share is dropping;
• Industry conditions are unfavourable;
• Want to launch a new business venture;
etc

10. Who Needs SWOT Analysis?
A Department/Business Unit
• When the team has not met its targets;
• Customer service can be better;
• A new business unit to pursue a new
business;
• A new team leader is appointed; etc

11. Who Needs SWOT Analysis?
Job Holder
• When supervisor has issues with work
output;
• Assigned to a new job;
• New financial year – fresh targets;
• Job holder seeks to improve performance
on the job; etc.

12. A SWOT analysis is useful only when action
plans and strategies are developed from the
results
How to do SWOT Analysis?
Prepare
Action Plans
Analyse Internal
& External
Environment
Perform SWOT
Analysis and
Document
Step 1 Step 2 Step 3

13. Benefits of SWOT Analysis
• Solving problems
• Implementing change
• Developing strategies for achieving the
organisation’s objectives and mission

14. Brainstorming – key ingredient for SWOT
SWOT analysis will be useful if:
• You are thinking outside the box
• Availability of varied perspectives – group
discussion
• Liberty to say your mind
• Willingness to break away from traditional
methods
• Appetite for change

15. Some Brainstorming Rules
•
No idea is stupid,
everyone’s contribution
is valid and important
You don’t have to
agree with anyone else
Build on the ideas of others-
use initial ideas as a jumping
-off point for more ideas
Always ask questions Seek first to understand
before being understood Have fun!!!
Be open-minded
Everyone must
participate

16. Activity #5: Sample Questions
Strength Weakness
• Which strengths are unique to
the team?
• What are we good at doing?
• What are the things that had
gone well?
• What should be done better in
the future?
• What knowledge do we lack?
• Which skills do we lack?
• What system do we need to
change?

17. Activity #5: Sample Questions
Opportunities Threats
• What are the key success
enablers?
• Which additional services can
we offer?
• What new market should we
investigate?
• Barriers to progress
• What are the possible
impacts of what competitors
are doing?
• Which regulatory issue might
cause us concern?

18. SWOT Worksheet
Strengths Weaknesses

19. SWOT Worksheet
Opportunities Threats

20. Activity #6: Strategies & Action Plans
S/N What Who When Target
1
2

21. Activity #6: Strategies & Action Plans
S/N What Who When Target
3
4

22. SWOT / TOWS Matrix
TOWS
Analysis
Strengths Weaknesses
Opportunities S-O
Strategies
W-O
Strategies
Threats S-T
Strategies
W-T
Strategies

23. SWOT / TOWS Matrix
• S-O strategies pursue opportunities that
fit well the company's strengths.
• W-O strategies overcome weaknesses
to pursue opportunities.
• S-T strategies identify ways that the firm
can use its strengths to reduce its
vulnerability to external threats.
• W-T strategies make a defensive plan to
prevent the firm's weaknesses from
making it susceptible to external threats.

24. Case Study
Dell Computer used a SWOT analysis to create a strong business
strategy that has helped it become a very strong competitor in its
industry value chain. Dell identified its strengths in selling directly to
customers and in designing its computers and other products to reduce
manufacturing costs. It acknowledged the weakness of having no
relationships with local computer dealers. Dell faced threats from
competitors such as Compaq and IBM, both of which had much
stronger brand names and reputations for quality at that time. Dell
identified an opportunity by noting that its customers were becoming
more knowledgeable about computers and could specify exactly what
they wanted without having Dell salespersons answer questions or
develop configurations for them. It also saw the internet as potential
marketing tool.The results of Dell‚ SWOT analysis are:

25. Strengths
• Sell directly to consumers
• Keep costs below competitors

26. Weaknesses
• No strong relationships with computer retailers

27. Opportunities
• Consumer desire for one-stop shopping
• Consumers know what they want to buy
• Internet could be a powerful marketing tool

28. Threats
• Competitors have stronger brand names
• Competitors have strong relationships with computer
retailers

29. Strategy
• The strategy that Dell followed after doing the analysis took all for of
the SWOT elements into consideration. Dell decided to offer
customized computers built to order and sold over the phone, and
eventually, over the internet. Dell‚ strategy capitalized on its strengths
and avoiding relying on a dealer network. The brand and quality threats
posed by Compaq and IBM were lessoned by Dell‚ ability to deliver
higher perceived quality because each computer was custom made for
each buyer.

30. Restaurant - SWOT
• Your restaurant may serve the most delicious food or provide the best
table service in your area. But if you do not know the strengths and
weaknesses of your business or the opportunities and threats facing
your business, your business may suffer. As you prepare to perform
your SWOT analysis, invite your restaurant manager as well as your
chef and assistant managers to get involved so you gain more insight
from different points of view.

31. STRENGTHS
• The strengths of your restaurant lie in what you do best, whether it’s serving tasty
food, offering quality service at the table or providing decor that makes the fun of
eating at your restaurant a memorable experience.
• Other strengths may consist of your pricing structure, such as offering a lower-
priced menu than similar restaurants in your area. If you currently generate traffic
during slow times by offering special promotions, such as “buy two meals, get one
free before 5 p.m.” to get patrons in the door, that’s a strength.
• Other strengths may include serving a specific type of ethnic food not served
elsewhere in the area.

32. WEAKNESSES
• Weaknesses give you an idea of things to improve in your restaurant. For instance,
your wait staff may create a weakness for your restaurant, since you’re dependent
on them for the personal service they provide to each table.
• Another weakness may exist if you do not provide adequate employee training,
such as showing wait staff how they should attend to tables or explaining to
culinary personnel how you want food prepared and presented.
• Other weaknesses may include not getting consistent supplies that result in menu
items not being available. Relying on an outdated point-of-sale system or using
paper to keep track of ordering and stocking is a weakness, because there are
better ways of calculating your stockroom, order and financial needs.

33. OPPORTUNITIES
• Look for opportunities that help your restaurant increase its profits, such as
expanding or providing different types of food and beverages.
• Taking advantage of trends related to eating healthier may mean featuring more
organic dishes or salads on your menu. Finding ways to generate more traffic
during slow times, such as in the afternoon, may represent an opportunity for
growth.
• Selling some of your restaurant products, such as salad dressings or baked goods,
for people to buy and take home represents an opportunity. Offering delivery
services and take-out or setting up a drive-through to meet the needs of people on
the go represents another potential opportunity.

34. THREATS
• Competing restaurants located nearby represent a threat to your business,
especially if you sell similar types of food or have similar dining experiences. New
restaurants opening up in your area also represent a threat, since area diners have
more options on where to spend their dining dollars.
• Other threats consist of the potential rising price of certain foods. For instance, if
you make seafood dishes and something negative impacts the shrimp market, a
threat exists if you need to raise prices or find new suppliers, because you may lose
business.