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Define SWOT Analysis: A Complete Guide To Conducting A SWOT Analysis For Your Business

Butcher Shop Growth Tips October 11, 2021
By: Andrew
Define SWOT Analysis: A Complete Guide To Conducting A SWOT Analysis For Your Business

SWOT Analysis Guide: Strength Weakness Opportunity Threat Analysis For Meat Department Managers

Do you know if your company is vulnerable to a competitive threat or if your customers are responding to a current trend? Let Chine and Feather help you make the most of your customers and opportunities with our detailed SWOT analysis guide.

SWOT Analysis Definition

SWOT Analysis is a way to start with a blank slate and figure out what your company needs to focus on in order to be successful. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The process of turning weaknesses into strengths is difficult, but the benefits of doing so are tremendous.

A SWOT analysis is a common business tool to identify organizational weaknesses and assess the current business climate. The goal is often to determine organizational weaknesses and areas of opportunity for the business.

What will SWOT analysis achieve?

SWOT analysis is one of the most basic analysis tools in business. It is used to look at an organization or company’s strengths, weaknesses, opportunities, and threats. SWOT analysis is important because it helps to assess your company’s vulnerabilities and strengths. It is also used to identify potential areas for improvement. A SWOT analysis will generate ideas for how you can use your company’s strengths to overcome your weaknesses or develop your opportunities to make your company stronger.

How Do You Write a Good SWOT Analysis?

Writing a SWOT analysis is a vital step in the process of figuring out your company’s strengths and weaknesses. In order to write a good SWOT analysis, you need to take a step back and get a good understanding of the strengths and weaknesses of your company so that you can accurately identify the areas you need to focus on. The strengths of your company will largely come from your company’s mission and what your overall values are. The weaknesses of your company will largely come from the external market, including competition and threats. After identifying your company’s strengths and weaknesses, you should take a step back and create a list of the three most important areas that your company must focus on.

Who Should Do A SWOT Analysis?

The SWOT Analysis is a business planning strategy used to analyze the Strengths, Weaknesses, Opportunities and Threats in your company. A SWOT Analysis can help you determine where your company excels and what needs improvement. Every business should take time for an internal SWOT analysis at least once a business year. Doing so will allow you to evaluate where your company is doing well and make sure you’re headed in the right direction. It will also give you a chance to see how much your company has grown over time and set goals for yourself and your team moving forward into the upcoming business year.

Define SWOT Analysis In Marketing

Marketing is all about making choices. That’s why it’s important to gather as much information as possible when planning your marketing strategy. A SWOT analysis can help you identify your strengths, weaknesses, opportunities and threats before finalizing your plan for growth.

Strengths are the characteristics that make your company unique in the market. They are also the reasons customers will continue to buy from you. If you do not have any current strengths, brainstorm ideas to strengthen your business in order to attract new customers.

Weaknesses are areas of opportunity that can be improved. These are often related to your processes but can be related to a broader business component.

Your marketing opportunities are the areas where you can potentially get more customers and sales. For example, let’s say that your blog has a website conversion rate of 5%. That means that out of every 100 visitors to your site, you will convert 5 of them into paying customers. If you want to increase this number, you have two options: either increase the number of visitors or decrease the drop-off rate at each stage of the process. You can do this by highlighting key steps in your sales funnel with ads or calls-to-action. The goal is to make a strategic, measurable plan to reduce drop-offs at each stage of the marketing funnel.

A marketing threat is a situation in which a competitor uses a marketing strategy to take away some of your business. A threat may be technical, economic or political. The first step to preventing threats from becoming realities is to identify them as early as possible and develop strategies for dealing with them. This article will discuss the main types of threats and offer tips on how to deal with each one.

Define SWOT Analysis and Johari Window

SWOT analysis is a method of assessing the strengths, weaknesses, opportunities and threats involved in a project or in a business venture. It is an important strategic planning tool that helps companies develop strategies to strengthen their competitive position, cope with risk factors and make better decisions.

The Johari Window is a self-analysis model that helps people find out about themselves and how they are perceived by others. It uses four different perspectives – what we think of ourselves, what others think of us, what we choose to reveal about ourselves and what we hide from view – to build a complete picture of who we are and how we relate to others in our organization

How to Do a SWOT Analysis: A Brief Introduction To Conducting A SWOT

Whether you are performing a personal swot analysis, or including it as a part of your fundamental analysis for your business goals, the method to conduct a swot analysis is going to be similar.

A SWOT analysis is one of the simplest and most powerful analytical techniques you can use. It looks at the strengths, weaknesses, opportunities and threats that face your business. Strengths and weaknesses are internal to your business and opportunities and threats are external. A good SWOT analysis considers all four areas in detail. You may ask why it is important to consider all four elements when analyzing a company’s strategic position? The answer is simple: If you don’t consider all four areas, there will be blind spots in your understanding of your strategic position which could damper your goal planning and the success of your business.

How to Use a SWOT Analysis

At its most basic, a SWOT analysis is an exercise to help you understand how your organization can use its strengths and weaknesses to better address the opportunities and challenges it faces. What is a SWOT Analysis? A SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis is a business strategy tool used to evaluate company’s internal and external environments. It identifies four main factors that drive organizations—that drive organizations forward or hold them back: their Strengths and Weaknesses as well as their Opportunities and Threats. By objectively assessing these, businesses can get a better understanding of the health of their business and create actionable and obtainable goals to increase their chances at being successful.

What Are Threats in a SWOT?

Threats, in their most simple form, are external factors in the business’s environment that could hinder it from achieving its goals. The most obvious threats are usually if a new business has moved into your territory. A comprehensive businesses analysis will include any competition that threatens your sales potential. Other threats include:

Meat & Seafood Market Competition

Anyone in the meat industry has most likely experienced this. You are working at a mom and pop shop or a supermarket, then, suddenly, a competing market is breaking ground a quarter of a mile (.4 KM) down the road. Don’t let this type of competition be the threat. Never forget about the ever changing efforts of your existing competition. It is easy to discount some of the players, but you need to be careful because a lot of saavy business owners will enhance their current retail footprint and meat is an attractive package to many.

Talent & Bench Strength

2021 and 2022 has proven to be a difficult market landscape for hiring good talent. We are all feeling it in our shops and markets. Sure, we all have a few good people keeping the shop up and running, but the rest of the help is most likely thin and difficult to come by, or of poor quality. Don’t overlook your current talent situation if you are conducting a SWOT. Are you paying your good performers enough and making sure they are engaged? Are you giving appropriate corrective action to your dead weight? Any way you look at it, your talent pool is going to be an integral part to your growth plan going into 2022.

Market Entry

Are you entering a saturated market? Have you had to “race to the bottom” in order to attract customers away from other businesses? If you are a stand alone shop, it is incredibly important that you do your market research. Large companies can sustain themselves in saturated retail environments. They may be able to leverage sales from some of the other departments to keep themselves competitive. Most of the time, the standalone shops cannot compete in this environment.

Prices

Customers are voting with their dollars. How are you presenting your prices? Are they in line with the current market competition? Are they well structured? Are you attracting the right kind of customer? Conducting a comprehensive business analysis is going to help you to determine your pricing structure. Butcher shops and meat departments can usually fit into the follow categories for pricing:

  • Value Based Pricing can actually mean two different things. Value based pricing is a strategy that sets your price based on what you are offering in terms of value. The idea behind it is to offer more value for the same money, thus making your product or service appear better than the competition’s. According to this strategy, if you can make your customers see how much better their lives will be with your product/service, it won’t matter what price you charge them. You will have already sold them.

  • I think another way to interpret value based pricing is to look at it as commodity pricing. Has this item penetrated the available market to the point where the only available pricing strategy is in line with all other competitors? A commodity is a generic term used to describe a raw material or primary agricultural product that can be bought and sold, such as oil, corn, pork bellies, etc.

Cost

The cost of doing business and the threat it presents to your success as a business owner or operator is one of the biggest topics you must be concerned about. Understanding where costs come from, how they can be reduced, and how to deal with them when they increase will help you become a successful entrepreneur. In 2021 we saw astronomical increases in prices at the grocery store. Although we could see our basket sizes grow, we saw our transaction counts shrink. A fundamental analysis of our costs will see that they grew in many areas of meat operation. From cyber security threats, to the cost of hay, we saw meat prices raise across the board. Saavy operators were able to keep up with the ongoing price changes, but, if you were not diligent, you may have let your costs get out of control and not adjusted your pricing strategy. It is important to review your costs when you conduct a SWOT analysis.

Processes

Poor business processes can quickly sink a business, and good business processes can only help sustain the success of your company. Poor business processes will cause your company to lose money, employee time, resources and energy, which could have been invested in better areas of the business. Poor business processes could include tasks that are redundant or unnecessary, or ones that take too long to do. Redundant tasks mean you are duplicating work without realizing it. Unnecessary tasks are those that aren’t needed at all. Tasks taking too much time are also considered poor process because they are a mis-allocation of employee resources. For example, choosing to tray pack bulk chicken in house instead of buying already tray-packed chicken.

Supply

Supply chain vulnerabilities are not uncommon. Supply chains are complex, multi-national networks that can be disrupted by natural disasters, terrorism, and even cyber warfare. Businesses need to understand how supply chain disruptions could impact their company’s bottom line in order to develop proper risk management strategies. One of the main tactics organizations can take to mitigate supply chain risks is creating a comprehensive plan that addresses all potential threats.

Customer Service

Right here, folks, this is the number one weakness most of you are going to face in your threatscape. The biggest problem: most operators think their team gives wonderful customer service. Does your team really give great customer service? Many department leads and operators or there early during the day and leave before a brunt of the customer interactions happen. Customer service is one of the biggest assumptions we make about our organization. The truth is, it is mostly quite murky at best. Are your team members giving excellent customer service 10 minutes prior to close when they are trying to bang out the last bit of closing tasks, storing the seafood, and washing out the counter? Are they giving great customer service when you are down 3 guys and the poor clerk has to help all the customers, cut and wrap meat (not his job), and do an entire crews worth of cleaning?

What Are Some Good Customer Service Habits?

  • Be Genuine
  • Be Kind
  • Believe in What You Sell
  • Learn Your Customers
  • Plan Ahead
  • Be Ready To Make Decisions
  • Listen And Ask Questions
  • Give A Clear Message
  • Be A Problem Solver

Weather

When conducting your business analysis, it is good idea to look back to the past for any random outliers. I know from personal experience that inclimate weather can play a role in causing poor sales performance. Maybe your business usually sees a spike in business each summer because of a local festival but poor weather caused a smaller turnout than expected. Take a look at the weather to see how it affects your businesses growth potential.

Natural Disasters

Eloborating on the previous point, hurricanes, tornados, earthquakes, and the like can have an extreme impact on your sales potential. Even events like Covid-19 can be fit into this category. The point is, people often stress your supply chain lead in relation to natural disasters. Although some natural disasters are predictable (think hurricane landing) but some are not so predictable. For example, earthquakes and Covid-19 are natural disasters that are difficult to predict.

Quality

Companies that produce products with poor quality are at risk of being outperformed by competitors that offer high-quality products. The first risk of producing poor quality products is the possibility of customers choosing to spend their money on a competitor. Customers are more likely to purchase a product if it satisfies their needs and expectations, and poor quality products often negatively affect the user experience. If customers don’t like your product they will look for an alternative.

Brand Perceptions

Brand perception is an opinion that you have about a company. It can be either positive or negative. Your brand perception of companies affects your decisions on which brands to purchase, as well as how much you are willing to pay for their products or services. When people have a positive perception of a company, they are more likely to buy the product or service. This is because they believe it stands for something good and trustworthy– qualities that make them feel good about themselves.

Customer Needs

The needs of customers can vary widely. Customers have different needs depending on the country they live in, the culture they come from, andtheir personal preferences. For example, customers in China might prefer to buy a product that is made domestically because it will be closer tothem and easier for them to return if necessary. Alternatively, a customer in France might prefer to buy a product because it has the name of adesigner on it and they want to keep up with fashion trends. Some customers only eat seafood, while some customers do not eat pork. Also, don’tdiscount the growing trend of plant-based meats and hybrid-meats.

Financial Conditions

The financial condition of a company is important for its success. It can also be the most difficult to observe, as it is often hidden below the surface and not easily observable through limited company performance data. Financial conditions can be affected by a myriad of factors such as changes in economic conditions, volatile market prices and increasing competition. Reducing debt and improving profitability will help improve the businesses financial condition and allow it to succeed.

Information Threats

Cybersecurity threats and risks pose a significant threat to businesses of all sizes. A business that fails to address these risks and take the necessary precautions they may face devastating consequences such as data breach and identity theft. Newer and more sophisticated cybersecurity breaches are the greatest risk businesses face in this area, with some estimates stating that up to 90% of cyber-attacks occur through email, social media, fake ads or apps, and other types of phishing scams.

Lack of Innovation

Innovations are the lifeblood of any successful business. Without this key ingredient, even the most well-run enterprise will eventually crumble under their weight. Yet, in recent years, it seems that innovation has not been a priority for larger corporations in America. This hesitance to innovate is evident in the current crop of smartphones. While there has been some deviation between brands, overall they all share many of the same features and functions that have gone unchanged for several years.

What Are Strengths In a SWOT Analysis?

Talent

If your team is full of tallent this may be one of your first strengths. I know I have worked on some teams with an abundance of talent. Having knowledgable, skilled, and efficient team members can help your meat and seafood operation flourish. Teams with a good talent pool can communicate more effectively, Also, training new employees takes less time because there is more efficient teaching structure.

Product and Business Knowledge

Meat is a trade and industry that you must cut your teeth in. Those with good business sense can do well, but the reality is that the most successful meat and seafood operators have usually lived through some tough times to get where they are at. No matter how many times a novice department manager or lead looks at the previous years Thanksgivings, it ultimately comes down to experience at each location to be fully prepared for those large business surges. It also helps to stay up on current trends and be able to clearly communicate to your customers and stakeholders the ins and outs of your business.

Productivity

I have been in a shop where this was one of our biggest weaknesses. The team was comfortable to say the least. The only thing that worked full time on most of the employees were their mouthes. On the flip side, having a productive team that has processes in place and knows how to follow them will always be an advantage to your team, department, or meat store. Always the best feeling to see an employee come in and just get to work without needing further instruction.

Efficiency

If your meat shop is running efficiently you will see the benefits. Maximizing your time and energy is the key to making everyone happy: yourstaff, higher level support employees, and your customers. If you find yourself doing repetitive tasks that can be minimized and done moreefficiently, then I implore you to make it happen. There are 100’s of companies out there that will package chicken for you. Why waste your timedoing it in house?

Ask yourself: is this a production bottleneck? In meat departments, wrapping stations one of the biggest bottlenecks. Maybe investing in an auto wrapper is the way to go. On the flip side, selling meat out of a full service meat case gives you a great opportunity to talk about the products with the customers which can enhance the experience for all parties.

Scale

As any small business owner knows, the key to success is to grow. And with that growth comes new challenges. As your company continues to grow,you must be able to execute your product or service with the same levels of quality and customer service in order to maintain customers.

Unfortunately, this is not always possible. If you find yourself struggling with these issues, it may be time to consider whether or not yourcompany can scale with your company’s growth.

Speed

The rate at which the world is moving, and how it is moving with it, has made the idea of speed a necessity in both business and in life. Though we may not always be able to control how fast we go, we can control how much time and effort we put into what we do and that translates into our success.

Change

In a world that is constantly changing, it’s important that businesses are able to keep up with the changes and make necessary adjustments quickly. Adaptability is an important trait of a successful business because it enables them to capitalize on opportunities without being too rigid. With different generations of consumers coming into play, it’s important for businesses to adopt new strategies in order to remain relevancy.

Innovation

Innovation is a cornerstone of any good business. It allows a company to stand out from the crowd and attract new customers. Companies that embrace innovation have much higher growth rates than companies who do not. Innovation can also see your company grow in unexpected ways. In fact, innovators have been responsible for creating over 80% of all new jobs around the world. Innovation is an important factor in almost every industry, but it’s especially critical in tough economic times or when a company is facing fierce competition from competitors.

Business Capabilities

The most successful businesses are those that can adjust to changing market conditions, and produce products or services that customers want.These companies have the capabilities to launch new products, services, R&D initiatives, acquisitions and labor-saving technologies. Capabilitiesare what set apart good companies from great ones.

The big difference between these organizations is their ability to identify opportunities for growth and change based on the needs of themarketplace. A company with a high level of business capabilities is able to respond quickly when changes occur in its industry. It also has anadvantage over competitors because it can develop new solutions to difficult problems or issues that are beyond the scope of much less prepared businesses.

Distinction: The Ability To Do Something Unique

Your business has to be unique if you want it to stand out in a crowd of similar businesses. If your business isn’t unique, it won’t last long. The truth is that most people don’t care about your company or what you do. They only care about themselves and their problems. Your goal is to show them how they can solve their problems through your services or products, but first you have to get them interested in what you have to offer.

Bargaining Power: Always an unfair advantage

In economics, bargaining power is a measure of the relative negotiating strength of participants in a transaction. Bargaining power determines the ultimate share of a surplus obtained through a transaction.

Bargaining power can be affected by:

  1. Differences in objective characteristics such as price and quality; and/or,
  2. Information differences such as private information and asymmetric information. Because it creates an unequal relationship between two parties, bargaining power is also referred to as leverage or negotiation advantage. The concept has been applied to labor-management negotiations since Adam Smith’s time.

Finances

In the world of business, there are many people who struggle financially, and it can be a real problem. Every year there are thousands of small businesses that fail due to poor financial management. In fact, about 50% of small business owners do not have a formal budget in place at all. This is a huge mistake because without a budget you can’t properly control your finances, and it will lead to some serious problems down the line.

Location

When people think of retail, they often think online shopping. However, there are still many instances where the best option is to go to a store and purchase an item in person.

There are two main benefits of having a physical retail location:

  1. Drive foot traffic to your website or social media pages through discoverability on Google search. If customers can’t find you online, then they won’t visit your business site. This increases customer acquisition cost for e-commerce companies significantly.

  2. Create an immersive experience that encourages customers to take action after browsing pages. Lead them down a sales funnel to either take advantage of their fear of missing out to get them to participate in a promotional deal to bring them in to your retail locations.

Brand

A brand kit is a collection of visual elements that help to create an identity for your company. It can include logos, colors, fonts, photography styles and other visual cues to give customers a sense of what you’re all about. It’s important that all marketing materials are aligned with the brand strategy so they complement each other. A cohesive design system will make it easier for your company to maintain its look over time. Brand kits are becoming increasingly popular in today’s transformation-based economy because brands are shifting from one-off designs to systems-based marketing experiences.

Quality: Is Your Service Or Product High Quality?

If your business doesn’t have a quality product or service, it won’t sell. And if it doesn’t sell, you can say goodbye to having any success whatsoever in this world. The truth is that no matter how great of an idea you think you have, if your product or service isn’t up to par with what people already know about the market, then they will walk away from it in an instant. That being said, there are tons of businesses out there that don’t have a quality product or service and still manage to attract low hanging fruits. But these clients are usually low quality and not willing to fully invest in your product or services.

Barriers To Entry

Barriers to entry are anything that makes it harder for new people to enter your market. By doing so, you create an advantage over your competitors because they have to overcome these barriers. The best way to implement this is by using tactics that increase the difficulty of entering a market without increasing the difficulty of leaving it. This means making sure the barriers are created in places where there are no exit strategies for competitors. A great example of this would be creating a product or service with a patent on it. It’s hard to leave the market if you can’t sell your product or service. The existence of a patent is a powerful tool for protecting your idea against competitors and copycats.

Technology

Many businesses make the mistake of jumping on the bandwagon when it comes to technology. They invest in new online tools and websites because everyone else is doing it, but they don’t pay attention to how these technologies are affecting their business. The truth is that no two businesses are alike, even if they do work in the same industry. When choosing technology for your business, you should ask yourself what will help you achieve your goals. Is this tool going to help me reach my audience? Will it help me create content or improve my production process? The only way you can answer these questions is by conducting a thorough swot analysis and updating your goals.

Infrastructure

Some companies feel that infrastructure is holding them back. They have to wait for their IT department to fix things or are not given enough resources to run the business efficiently. That’s simply not true! A company can’t succeed if they do not have a solid foundation. This includes all the parts of the company, including its team, processes, customer experience, and products. If any one of these pieces isn’t functioning at its best then the whole business will suffer, no matter how much money it has in the bank or how many people are on staff. The trick is figuring out the right balance for your business. Conducting a thorough business analysis and also performing a comprehensive SWOT will help you figure out your business goals and how your infrastructure can help achieve them.

Relational Capital

Relational capital is a key driver of company performance. It refers to the relationships an individual has with others in the organization, how they are managed, and their impact on that person’s career. The relational capital framework was developed by Fons Trompenaars in collaboration with Charles Hampden-Turner and describes relational capital as follows: Relational Capital can be understood as the sum total of one’s social assets - one’s network of social relationships and contacts that derive from them.

Reputation

Reputation is an essential part of any business, but it has become more important than ever before. A study by IBM found that 69% of consumers said positive online reviews influenced their buying decisions. On the other hand, 56% stated they were less likely to buy from a company with negative reviews. The same study also showed that companies with strong reputations are given an advantage over competitors who don’t have the same reputation at the time of purchase.

Diversification

Diversification is the number one way for businesses to grow their audience and brand. It’s also one of the most important things you should do before starting your business. Diversification helps brands grow by expanding their content portfolio, offering more value to different audiences, and getting more people interested in their brand. For example, if you were an online magazine you could write for a variety of different niches like technology, health, finance etc. instead of just focusing on one area. This would make your business more appealing to new readers who are interested in that particular niche and give greater options to your existing client base.

Positioning

Business positioning is the process of identifying your company’s unique value proposition to customers, and then creating a strategy that provides an advantage over competitors. A strong business position allows you to create a brand identity, which can be communicated across multiple touchpoints. This makes it easier for people to form an opinion about your business.

Network Effects

Business positioning is the process of identifying your company’s unique value proposition to customers, and then creating a strategy that provides an advantage over competitors. A strong business position allows you to create a brand identity, which can be communicated across multiple touchpoints. This makes it easier for people to form an opinion about your business.

Customer Service

Customer service is an integral part of every business. The customer service industry continues to grow at a rapid rate, and will be worth $1 trillion by 2022. What’s more, companies with exceptional customer service generate loyal customers who spread the word about their positive experiences and return for future purchases. That’s why many businesses invest in improving their customer service. If you want to make your customer satisfaction strategy more effective, start by looking at how your competitors handle things. Use their strengths as inspiration for improving your own processes and creating a better experience for your customers.

Customer Experience

The customer experience is an important aspect of modern business. It’s more than just having a great product, it’s about the entire life cycle that your customers go through when they use your product or service. With that in mind, you should be thinking carefully about every single interaction your customers have with your business. This includes everything from their first interactions with you to after they buy your products. The goal is to make them feel like they made the right choice when they chose to purchase from you over anyone else.

Resilience: Is Your Business Resilient?

Business resilience can be defined as the ability to withstand disturbances in business operations. Business disruption is a broad term that encompasses any unexpected change or event which prevents an organization from achieving its goals, negatively affecting its reputation and/or jeopardizing its future. Disruption could be caused by external factors such as natural disasters, war, terrorist attacks or specific legislation; internal factors like cyber-attacks or system failures; or human error including fraud, theft or loss of data.

As you can see, conducting a SWOT analysis is not difficult at all. It’s easy to overlook the importance of analyzing your internal strengths and weaknesses while trying to grow your department. When you take the time to create an honest SWOT analysis, you will be able to identify problems before they get out of control and increase your chances of success.

Need helping conducting a SWOT Analysis? Drop me a line and I will be happy to host a quick meeting to discuss your project!

Andrew M McCall

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