3.0 S.W.O.

T ANALYSIS

Strength

1. Product

The product offered at Secret Recipe Changlun are high in standard and quality, which

specially customized by the Secret Recipe. The product are closely monitored to

maintain their quality at their production plant and the restaurant also offers wide

selections of Secret Recipe of homemade cakes, baked desserts, beverages, fusion

foods and others. Secret Recipe also committed to continue to adhere to the standards

of preparation of all food and processing plant in the restaurant in accordance to the

regulatory guidelines including HACCP and VHM guidelines.

2. Marketing

Secret Recipe Changloon have the strength in terms of cost as well as the marketing

channels. They have utilized various methods of advertising and marketing through

internet, brochures, catalogues, flyers, newspaper and television advertisement and

others. They also offered special cakes and menus during special occasion such as

Valentine’s Day, Mother’s Day and others.

3. Brand

Secret Recipe has a strong term on brand building by creating a simple logo, corporate

color, marketing strategies, uniforms and menu layout. However, the interior design and

customer service standards different than other outlets. It has added the strength to the
Secret Recipe Changloon as they have the ownership of utilizing such a strong, unique

and distinctive brand than its competitors.

4. Customers

Secret Recipe Changloon has long list of loyal customers, which is the main

contributors to their strength. The customers are mostly students from UUM, KMK and

UniMAP. As a recognized brand, Secret Recipe Changloon has the chances to serve

bigger market especially tourist that come to Changloon.

5. Franchised System

Franchise system is advantageous for Secret Recipe Changloon as they have the rights

and access to data from the headquarters. All the modified operational systems,

purchasing systems, storing, products, services standard, marketing and others has

bring ease of operations for Secret Recipe Changloon and minimize the drawbacks.

Weakness

1. Employee Management

There are no training for new employees. It is depend on the former or existing

colleagues to pass on their knowledge and work process. The employees also rely on

the individual management styles more than the SOP or standard operating procedure

such as cleaning the outlet and serving proper food. The management also should

come regularly to monitor the employee to avoid any unethical behavior of the

employee and unhygienic food or surroundings.

2. Price

Even though the range of prices offered at Secret Recipe is affordable, but it is only

focused to serve the middle income group and higher. Lower income group may not

have the ability and chances to try the product and this will decrease the number of

customer they could acquire. There are no student price and 1Malaysia Student

Discount Card (Kad Siswa) cannot be used even though the customer are mostly

students.

3. Staff Benefits

Even though the employee gets staff discount, the staff benefit are still disappointing.

They should ensure benefits for staff such as health insurance and transportation.

Opportunities

1. Expansion of retail operations

As the Secret Recipe Changloon is the sole branch of the brand, the company have the

opportunity to open their other branch which is Secret Recipe Beyond Veggie in

Changloon. Secret Recipe Beyond Veggie is refreshing meatless dining concept from

Secret Recipe Cakes & Café Group. Their extensive menu range is inspired by all fresh

and natural products with no colouring, preservatives or MSG. Dining here is all about

healthy and delicious choices. This will give opportunity to due to high and increasing

demand from customers. It will help them to serve the market better and also increase

their profit.
2. Trends

As the trends nowadays that people love to dine out, trying new things and pamper

themselves with small affordable luxuries, Secret Recipe Changloon has the opportunity

to serve larger market and increase their profit. But as the trends is fluctuates over time,

their opportunities may become their biggest threat.

3. Increase product offerings

The regular exposure to virtual food nowadays has created the pleasure of seeing

virtual food which known as ‘food porn’. Therefore, Secret Recipe has the opportunity to

increase their product offerings in term of design and flavor to attract more customer

that likes to expose or share the pictures of food through social media.

Threats

1. Increased competitor

Changloon has witnessed many fast food restaurant that open in the area such as Fairy

Hot Bread & Cake House, Blackwood, KFC, Marrybrown and Pizza Hut. Most of the

restaurant offered their own menus that more appeal to the public. It may become a

threat to the Secret Recipe Changloon as their numbers of competitors is rising.

Conclusion

In conclusion, this SWOT analysis that identifies the Secret Recipe’s strengths,

weaknesses, opportunities and threats has help us to understand more about Secret

Recipe Changloon. This SWOT analysis is a simple yet comprehensive way of

assessing the positive and negative forces of Secret Recipe. This analysis will help us
to know what Secret Recipe should build on the strengths, weakness that they should

minimize, opportunities to be seize and threats to be counteract.

Lasly, Secret Recipe Changloon should train their staffs in term of the way of proper

communication with the customer so that they can communicate confidently and fluency

to the costumer and make them feel welcome. They also should provide training to the

new employees to stimulate the sense of responsibility towards representing the brand

name and image. Therefore, a better and clearer training should be emphasized and it

should be able to make each employee understand what the service philosophy of

Secret Recipe is.