Strategic Plan, Part II. SWOTT Analysis

Rate this post

Strategic Plan, Part II: SWOTT Analysis



Strategic Plan, Part II: SWOT Analysis

In order to understand the effectiveness of marketing strategies employed by Greyston Bakery, it requires a deeper insight into its internal environment. Internal environment unlike external has factors controllable by the firm. In this case, the firm’s strengths, weakness, opportunities, and threats (SWOT) can easily be under control hence reaping merits of taking such measures. Greyston Bakery, like many other companies, has strengths, weakness, opportunities, and threats that affect its operations and productivity either positively or negatively.

It is important to carry out internal analysis of strengths and weaknesses, including relevant financial analysis. This helps put the company into the best level possible for growth. Analysis of strengths entails what works in favor of the business as pertains to its internal environment. It is through research that marketing trends are depicted and hence the company can use this information for its benefit. Greyston Bakery engages in research activity as it has been documented to have a great network with its third parties (Hills, 2004). This enables the company to have first-hand information pertaining to the needs of the consumers and, therefore, design products that meet these needs. Promotions and regular training of its workers remains a fundamental task.

SWOT Matrix


Internal Factors

External Factors


High profit ploughed to foundations;

High quality products;

Many channels of distribution and Vertical integration

Many promotions;

Regular training of employees since it employs individuals without employment background. Weaknesses

High debt;

Inconsistent Financial flow;

Great prices barring low income groups;

Increased working hours.


Low rates for the premium products;

Social marketing of stores;

Targeting baby boomers;

Increased coffee consumption in the global market.

S/O Strategies

Target the older generation with ads;

Increase the channels of distribution to penetrate further the global market;

Use proper inventories to help manage international business. W/O Strategies

Utilize the current low prime rate in the market;

Increase global market share.


Rigorous employment laws;

Increased unemployment;

Augmented numbers of local businesses;

Economic recession.

S/T Strategies

Advertise their products so as to counter local stores’ penetration;

To aim at controlling the manufacturing and the distribution in order to incorporate additional products that target diversified groups. W/T Strategies

Reduced prices alongside maintained quality, especially in periods of high employment;

Reduction in the time of work for employees in order to keep off law suits emanating from the labour laws.

Greyston Bakery can use various strategies to enhance product and service delivery. The company can capitalise its strength to exploit the available opportunities. The rising number of aging baby boomers can give the bakery with the opportunity to target their ads and promotions towards this group. The company can also use vertical integration to help expand its business and market niche (De Pelsmacker & Kitchen, 2004).

Greyston Bakery can enter the international market more easily because express of its food’s consumption that increases on a daily basis. The need for healthy living has also pushed the bakery’s products to the new level of demand; thus the business needs to embrace the increased opportunity to help build its brand.

However, the intrinsic threat such as inflation affects many companies and Greyston Bakery Inc. is not an exception. Additionally, consumers are also looking for cheap products; this can pose a greater threat to the purchase rates. Some competitors’ sell their products at the low end market to impress the customers is another threat for the baker company (Hills, 2004). Still there are other bakeries selling similar products, and this will probable to threaten the bakery.

Space and other Matrices

De Pelsmacker and Kitchen (2004) affirms that Greyston Bakery Inc. is a profit-oriented business. It strives to incorporate the positive societal agenda into its core business practices through emphasizing on “chronically unemployed.” They employ people with little skills and relatively poor educational background. Sometimes it employs strategies to curb the growing cases of incarceration, homelessness and drug addiction. Furthermore, the bakery focuses on sustaining the works of its non-profit affiliate such as Greyston Mandela. The company further strives with an overriding undertaking to minimize human suffering; both organizations are focused on sustainability. Most importantly, the company focuses on community development and liberation.

Core Values to Create the Desired Culture

De Pelsmacker and Kitchen (2004) notes that, when Greyston Bakery Inc. can hold onto the premium market and make it its niche, it ought to make critical choices and on how to retain the market. The current trend of introducing new products, which are perceived by the customers as of poor quality, must be discouraged. Simply because, this is not a good idea as far as brand standards are concerned. Traditionally, state of a product is perceived by consumers through variable parameters like the quality, the price, nature of competition, the class associated with the product as well as they manner in which the product is used. It, therefore, means that the bakery should uphold its exceptional position. In order to maintain this, innovative products must be part of the business to make certain the enterprise keeps its image as well as business relationships on the proper beat. The particular market place is to ensure that Greyston Bakery Inc. continues to maintain its premium status. This is achievable through becoming more innovative with its premium products that sell to a huge number of consumers. In addition to quality, price influence the value of a firms products.

In order to sustain a superior standard, the company ought to invest in the purchase of superior quality packaging materials and equipment, and continuously train its employees and build a relationship with the customers. This is one of the approaches of ensuring that the Greyston Bakery Inc. is in good terms with the society as it strives to achieve good relationships with the society.

Evaluation of Current Organizational Structure

The basic organization structure Greyston Bakery Inc. embraces in not new to management and business leadership professionals. The company’s executive will oversee its operations. It should have several headquarters with its regional managers taking charge of regional outlets. De Pelsmacker and Kitchen (2004) states that regional heads report to the executives directly. The executives are based at the headquarters of the company. The managers mangers oversee the activities of store managers who are in turn overseas of their respective retail stores. Then there are the shift supervisors and finally the baristas. The management structure at Greyston Bakery Inc. ensures that the firm takes the control of all the processes at all levels.

Economic and Legal Forces and Trends

There are several economic and legal trends the can form useful metrics for forecasting and measuring the growth of the company. The trends also affect the operation of the company. The company must meet all the legal requirements that are stipulated by the law. First are legal challenges from disgruntled employees. Employees have numerous rights in America and this makes it hard to discipline employees or terminate the contracts of unproductive employees. There are also discrimination and harassment cases, immigration audits, copyright issues, dissatisfied client law suits and others. Frequent changes in regulatory environment also pose a threat to the company. Economic challenges include economic uncertainties which make nay companies shy away from long term planning. The uncertainties affect credit market and influence consumer behaviours. The company will need break its long-term strategy into a series of short term strategies. Frequent changes in regulatory environment influences economic policies, tax, credit facilities and thus have a strong bearing on the company’s economic status. Cash flow challenges also have enormous influence. In addition the company will have to frequently invest in new technologies. However, it can benefit greatly from reducing wastages such as minimising the cost of production to increase profit margins. The financial metrics will take into account the cash flow, liquidity, long term and short term solvency, sales turnover growth, operating income, return on capital and equity.

Importance of Strategy to Greyston Bakery IncGreyston Bakery Inc.’ strategy is meant to ensure that the firm accesses and captures a wide customer base especial through the introduction of new lines of products and other products targeting low end market. Although the bakery has thrived on the high end products, their ideology of the model known as “Social Enterprise” should be encouraged to help the bakery improve its sales. This remains instrumental since it is meant to capture a wider market share and compete healthily. The entire brand experience has supported the company in extending its relationship with the clients through constant communication with its clients.

It is worth noting that moral issues can strengthen both people and the society. Greyston Bakery Inc. believes that business in the community is likely to produce a much more loyal following as compared to its competitors. This is only possible if they behave in an ethical manner by understanding the demands of the community. Since its inception the bakers has provided employment to the homeless, uneducated individuals in the society, and convicted felons (De Pelsmacker & Kitchen, 2004). The enterprise sends some of its profits to a charity foundation, which in turn benefits the entire society and other poor people in the society (Thompson, Gamble & Strickland, 2006).

For Greyston Bakery Inc. hold onto this position, it has to ensure that the product bearing its brands maintain high quality standards associated with it. It is evident that the company produces high quality products, which create good profits through sales. The company trains its employees regularly because the employ untrained people. The company ought to capitalise on its enviable brand recognition and explore new markets which offer great potential for growth. The organisation structure of this company takes a brick and motor structure, which enables it to monitor its stores closely (Hills, 2004).

To sum, carrying out the SWOT analysis on Greyston Bakery reveals that the company’s strength is anchored on research, social structure, product quality and education. It educates its employees, while carrying out research on the areas to explore, and this is likely to prove essential for their “social enterprise” approach. It will help build its brand name, and consequently the loyalty that customers have as pertains to its products. However, weaknesses of Greyston Bakery Inc. are attributed to the inability to produce and launch the declining revenue. Greyston Bakery Inc. has an opportunity of developing new products that will help the company increases its profitability.


De Pelsmacker, P. & Kitchen, J. (2004). Integrated marketing communications: a primer. New York, NY: Routledge Publishers.

Hills, G. (2004). Marketing and entrepreneurship: research ideas and opportunities, Westport, CT: Quorum Books.

Thompson, A. A., Gamble, J. E., & Strickland, A. J. (2006). Strategy: Winning in the marketplace: Core concepts, analytical tools, cases (2nd ed.). New York, NY: McGraw-Hill.