Swot_Team_Analysis

Week 4 Assignment-SWOT Analysis BUS 210 February 7, 2010 The Bronx Deli & Bakery has a number of strengths and a tremendous chance for success. The owner and manager of this restaurant has ten years of experience in the food industry, and has previously managed two other deli/bakeries in New York City. Each business that was managed by Mr. Barry Cohn in the past, reported positive feedback and results from his expertise and leadership. Zoey’s Deli & Bakery experienced a 15% increase in business, and Sherman’s Deli & Bakery was able to cut back on production cost by 16% over a four-year period. Mr. Cohn is familiar with the basic business model for this type of operation and the experience needed to manage the restaurant employees. Another important strength of this business is the variety of products offered, under one roof. The Bronx Deli & Bakery will include a bakery and coffeehouse, along with entertainment and fun, laid back atmosphere. There is no other restaurant in the immediate area offering the menu items that The Bronx Deli & Bakery will provide to customers. This business promises to produce high quality products for affordable prices. The Bronx Deli & Bakery location is also a great advantage for the business. The restaurant is located in Willow Creek, a community of twenty five thousand that has experienced continuous growth over the past ten years. This figure is grows everyday with the families who express an interest in the new housing and business rehabilitation in the Willow Creek area. This is also a prime location because the restaurant is less than one block from the State University campus, within walking distance of retail shops, as well as The Arts & Crafts Festival. The Bronx Deli & Bakery will reap the benefits of the college students walking back and forth to campus for classes, the shoppers of the multiple arts and crafts stores, and the people who participate in the Arts & Crafts Festival. The Bronx Deli & Bakery has provided a sufficient marketing analysis with great promotional and advertising ideas, such as, the 2 for 1 discounts for certain menu items during the first month of operation, and the entertainment and free food that will be offered on the day of the Grand Opening. The restaurant has also provided a thorough financial plan. There are several opportunities available to The Bronx Deli & Bakery. The business theme leaves options open for menu expansion and revision, to include different sandwich and coffee styles or flavors. There is even the possibility of developing new products. The menu is able to be adjusted, depending on the demands of the public. With the possibilities for growth provided by the increase in the State University’s faculty and student body, and the spread of the Arts & Crafts Festival’s popularity, marketing and advertising can be executed on a wider scale. There is also room to expand by offering delivery service to the University campus and surrounding businesses and residents. One of the more evident weaknesses is the absence of a professionally trained chef. In order to expand the menu or develop new products, there will need to be an experienced leader in place, who is familiar with the trends of the area and customer requests. The fact that Mr. Cohn only has experience managing up to ten employees seems to be a weakness. Management needs to be able to handle an increase in staff when the business does expand. There are no plans listed to use other sources, such as, radio or television commercials to promote the restaurant to a larger customer base, and improve chances of franchising. Having internet access to the restaurant for placing orders or checking specials, could improve sales and popularity. The Bronx Deli & Bakery places a lot of focus on “foot traffic” but there are many factors that could cause a decline in the customer base. A plan should be put into place to accommodate vehicle parking, especially since the area is developing so quickly. Apparent threats to The Bronx Deli & Bakery would be the possibility of exiting restaurants and coffee shops in the area offering the same, or similar products to its customers. These businesses most likely already have a loyal customer base, and this would make it even more difficult to “steal away” those patrons. Because the area is thriving, there are bound to be more restaurants opening in the vicinity in the near future. Therefore, The Bronx Deli & Bakery needs to stay abreast of the fresh, new trends, and any changes in the prices or products of competitors.