please write a small introduction and than write just the opportunities and threats of a SWOT … please make 1 paragraph of minimum 6 sentences eachcite in APA format.I have provided a example of a swot table includedI have provided a overview of what has been written already in the business plan. Please look at location and area for threats and opportunities.
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EXTERNAL ENVIRONMENTAL ANALYSIS
This is a team assignment.
The paper is to
• be double-spaced
• Use appropriate heading and subheadings
Follow the order of a standard analysis
• Macro analysis (PEST)
• Micro analysis (Porter’s 5 Forces OR Porter’s 5 Forces +1, as applicable)
You are to create an environmental analysis for your project. Follow the examples is in the book. I expect you to
give this some real thought, as it will become the backbone of your entire business plan.
In the introduction, you want to address the following:
• What is the purpose of the environmental analysis? (i.e., to use the strengths of the organization to
capitalize on opportunities, diminish threats, and reduce weaknesses).
• The environmental analysis is a basis for all subsequent analyses in the business plan.
• How you got the information (e.g., information from an expert, surveys, observation)
In the macro environment section, address the PEST issues with respect to your project:
• Political and Legal
• Economic conditions
• Socio-cultural & demographics
Provide the supporting evidence – CITE!
In the micro-environment section, address Porter’s 5 (Plus 1) Forces of Competition as they pertain to your project:
• Supplier Power
• Buyer Power (or User Power)
• Power of Donors (if needed)
• Intensity of Rivalry
• Threat of Substitute Products
• Threat of New Entrants
Provide the supporting evidence – CITE!
Internal Environmental Analysis
The internal analysis provides a breakdown of the resources, capabilities and competencies of
Spoon Full coffee shop. This analysis will help identify the strengths, weaknesses, and
sustainable competitive advantages of the business.
o One storefront location in downtown Miles City with drive thru. (high traffic, by
post office, leads to highway)
o 1 espresso machine (4 shots at one time), 2 grinders, industrial Coffee Maker.
o Kitchen equipment: double oven, ice machine, mixer, hot plate, 2 microwaves, 1
industrial refrigerator, and 2 industrial freezers.
o Exclusive/local coffee bean supplier (roasted in Miles City, only coffee shop that
o Wifi: available to coffee shop customers
o Rent classroom: parties can rent classroom for $25
o Lead Barista
o Owner: Erin- experience running other successful businesses
o Amy & Anna -cross trained between both of Erin’s businesses
Create new drink combinations and successfully introduce them to customers
Exceptional customer service (friendly staff who know clients)
In house barista training
Safe Serve- certification for legally making food at retail store
House made baked goods and lunch items (all from scratch)
o Positive cash flow
o Suppliers: One local boutique coffee roaster; small batches. Two tea leaf
suppliers, one local.
o Miles City Plus – virtual punch card
o Sister company – Girl Ran Away with a Spoon
o Downtown Miles City (group for downtown businesses)
o Miles City Chamber of Commerce
Inbound logistics: Obtain roasted coffee beans from suppliers (relationship, pricing,
quality, and uniqueness of coffee supplier).
Operations: Grind coffee and use espresso machine to turn it into a delicious drink.
Steep tea. Bakers make everything from scratch in house daily.
Outbound logistics: One store front location with indoor/outdoor seating and a drive thru.
Sales: Promotion of store through sister company – Girl Ran Away with a Spoon.
Advertising through website and social media including Facebook, Instagram, and
Pinterest. Collaborative virtual punch card with other businesses in Miles City.
Occasional print and radio advertising. Art Class Offering: Receive a 10% commission
from artist. Consignment: Local artist can display work for 30% commision to Spoon Full
Service: Superior staff and customer service
Technology: Espresso machinery, Ipad used as music and POS system, bluetooth
speaker, and television mounted that can be used for events or parties.
Human resources: Erin (owner) acts as human resources, no formal process.
Administration: Erin (owner) performs administrative tasks, along with the help of
Superb customer service
○ Well trained staff
○ Led by knowledgeable business owner
Variety of drinks and baked goods offered
○ Various goods and products
Central and well placed location
○ Lots of traffic
○ Easily seen and attracts attention
Unique opportunities with the art class
○ Calm environment
The following capabilities and resources listed below can help assist Spoon Full Coffee in
finding a competitive advantage in the market.
Key Success Factors
As seen in the table below, Spoon Full scores higher than the industry and is only
slightly behind the industry leader. Spoon Full compares favorably over the local
competitor and in comparison, has developed a strong competitive advantage.
Due to Starbucks not having a location in Miles City, the comparison is unimportant but
it does serve as a positive outlook on the operations of the company. In regards to local
competitors, Spoon Full has a competitive advantage in its reputation and quality of
○ Different competitors within the market involve all the local restaurants and
stores that offer coffee services.
○ There are other shops in the area that offer something of a different experience
outside of a normal coffee shop, such as Unique Creations.
○ City Brew, which is a Montana owned and operated coffee chain since 1998, is a
○ Local shops offer similar features in the variety of drinks they provides, from hot
to cold drinks, as well as a small selection of pastries in most locations.
● Unique features:
○ The main differentiation point that Spoon Full Coffee will offer to their
customers will be the unique atmosphere that other coffee shops do not offer.
○ “A treat for the senses!”
○ Spoon Full offers beautiful art covering their walls for customers to enjoy at their
leisure, whether dropping in for a quick drink, sitting down for an afternoon
conversation or book reading.
○ Offers a “hands on” approach to the art being displayed by offering art classes in
○ Unique drink combinations also outweigh the coffee drinking experiences one
can find at local fast food chains and cheap gas station coffee.
The major competitive advantage that SpoonFull has compared to the industry
leader(Starbucks) and chief competitor(City Brew) are its reputation and overall quality of
products. As SpoonFull has a strong reputation in the Miles City community with a 4.8 star
rating on google compared to the 4.3 for City Brew.
As can be seen in the chart below, Spoon Full compares favorably with its competitor and
industry leader in quality of products and reputation.
115 North 7th St.
Miles City, MT 59301
Re: Client Commitment
Dear Ms. Erin Thormodsgard,
Thank you for working with us as we complete our required capstone project. As part of the
project, we will be working closely with you to gather information. Upon completion of our
analyses we will generate recommendations to help improve your business.
Spoon Full is a coffee shop located in Miles City Montana providing delicious espresso drinks
and baked goods to customers daily. The Company is in its third year of operation and is
experiencing success. As the company is growing you are facing some challenges with staffing,
training, expanding the menu and services in a profitable manner.
You have asked us to concentrate on two areas. First, the operations plan particularly when it
comes to hiring new personnel and training. Second, the profitability of adding additional
products and services. You would like us to determine if adding lunch items to the menu is
financially beneficial to the business. In addition, you would like us to evaluate the profitability
of the art class offerings and generate ideas of how to expand and/or improve this service.
We will provide the following items in a formal written report. In addition, we will be giving you
a presentation highlighting the findings of the report.
Executive summary & introduction
In the introduction we will reveal the value, vision, and mission statements we have
written for Spoon Full. In addition, we will identify the strengths, weaknesses,
opportunities, and threats within the industry as it relates to your business. Then recap the
overall goals and objectives of Spoon Full.
This will be a visual representation of nine key elements which create, deliver and
capture value for the business.
Products and services
We will summarize the details of current and proposed new products and services. We
will identify the competitive advantages, the need within industry, and pricing structure.
This section will include any research we have conducted related to the industry in terms
of the market size, growth, demand, and trends. We will hone in on Spoon Fulls’ target
market and determine if the new products and services in question will provide value to
your customers. Value will be determined through the analysis of product, promotion,
price, and place from the customers point of view. In addition to a competitor analysis.
The operations plan will focus on the personnel needed to accommodate for the growth of
the company. We will financially demonstrate the impact of hiring more employees. We
will also review the labor market, hiring policies, employee tasks and training methods.
Management and organization plan
Spoon full is a relatively small business so the management and organization plan will be
an exploratory measure to ensure the culture of the organization continues as you grow
the business. In addition, we will review any management positions and determine if
there is a need to create a management structure.
The financial plan will include pro forma financial statements (income-statement, balance
sheet, and statement of cash flows) that show the most likely scenario and will reflect any
recommendations we have.
Most businesses use financial ratios, in addition to benchmarking, to determine the
feasibility of a strategic option. This section will explain what those ratios are and will
provide you with specific ratios to help you make decisions.
Analysis and Strategic Options
We will discuss the pros and cons of any recommendations presented. An action plan
and/or exit strategy will be included for easy implementation.
The attached document following this letter contains a signed consent of client commitment and
statement of payment.
Spoon Full Coffee Shop – Initial Client Interview
Owner(s): Erin Thormodsgard
Location(s): 115 North 7th Street
Year Established: 2016
Services & Products: Coffee House and Bakery
Number of Employees: 3
1. How did Spoon Full come about? Give us a brief overall history.
Spoon Full was born out of the location. The building which it now resides sat empty
across from my other business Girl Ran Away With the Spoon. It came together as a
desire to add more vibrancy to our business neighborhood and something that would
compliment what we were already doing. Coffee and shopping? You can’t go wrong!
2. Do you have a mission and/or vision for Spoon Full? If not, can you tell us about the
company values, goals, and business philosophy so that we can write them for you?
Our goal with Spoon Full is to provide a modern day well-A place for people to gather, to talk,
to commune, to share, to be filled up with not only delicious locally roasted coffee and fresh
made baked goods but to be filled with love and inspiration. As well as giving them a place to
explore art in a way they may not pursue on their own through adult and youth art classes. It is
our goal to bring energy and vibrancy to our part of downtown Miles City and to provide stellar
coffee and variety of bakery goods.
3. Any challenges you face or areas of concern that you would like us to focus on in the
Strategic Business Plan? (this is the most important question)
Trying to look forward and see where the business will go from this point, and how to
accommodate for more potential employees. Figuring out a formal training system for new
employees, and when we might need to add them. Also being able to have consistent hours
in a strategic way that makes sense with the employees we have and may have.
4. Any new concepts for the business or areas of growth you would like us to explore?
We have gone back and forth with adding lunch items such as sandwiches, soups, etc. The
profitably of this is in question with the extra help and expense that it would require. I would
also like to expand more on art offerings in a way that is profitable to the business. Right now
we take a percentage of the class fees but would like to evaluate how to make this more
profitable for the time and energy to takes to organize and promote these events.
5. What is your long-term vision for the business? Where do you see it five years from
I would like to see profit margins continue to grow, and to improve the overall structure of
the business. The goal is not to be a chain like Starbucks or City Brew, but be a small
hometown coffee shop. We want to continue our reputation of supporting the community
and being a place for people to gather. Also in the future hopefully being able to extend
hours, and provide further updates to improve the business.
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