Assessment 6: SWOT & TOWS

School of Business Administration and Accountancy, University of Baguio

STRAM 1:

Introduction

The purpose of this paper is to construct a SWOT analysis to Mang Inasal’s

operation to meet its objectives. The analysis will determine if the business has well-

defined strength, weaknesses, opportunities and threats so we can develop

responses to the said variables.

Strengths are internal resources and qualities that distinguish a company

from its competitors. On the other hand, weaknesses are factors that a

company lacks where competitors have a competitive advantage against them.

Table No 1. The Internal Factors Evaluation Matrix for Mang Inasal

Strength Weight Rating Weighte

s d

Score

1. Highly recognized company brand 0.06 3 .18

2. Availability of in-house and third-party 0.06 4 .24

online delivery service

 3. Reasonable prices and affordable 0.06 3 .18

deals

4. High employee satisfaction 0.05 3 .15

5. Located in a commercial area with 0.05 4 .2

heavy

concentration of people

6. 24 hours of service 0.05 3 .15

7. Great customer service 0.05 3 .15

8. Efficient management for inventory 0.05 3 .15

9. Restaurant sanitation and crew 0.04 4 .16

hygiene

10. Healthy and nutritional menu items 0.03 4 .12

Table No 2. The Internal Factors Evaluation Matrix for Mang Inasal

Weakness Weight Rating Weighte

es d

Score

1. Absence of marketing strategies 0.07 3 .21

2. Limited floor space 0.07 3 .21

3. Absence of drive thru and al fresco 0.06 3 .18

 dining

4. Slow development from the 0.05 2 .1

management

5. Weak online presence 0.05 4 .2

6. Unstylish interior design 0.05 2 .1

7. Lack of personnel manual 0.04 1 .04

8. Problems with employee shift 0.04 2 .08

scheduling

9. Few seasonal menu items 0.04 1 .04

10. Lack of automation used in kitchen 0.03 4 .12

procedures

TOTAL 1.00 2.96

Accordingly, the weight assigned to a given factor in Strengths indicates the

relative importance of the factor. In this case, all strengths are given 4-6% weight

multiplied to the ranking of three (3) to four (4) based on the level of importance by

Mang Inasal, summing up with a total weighted score of 1.68. With the equally highest

ranking of four (4) as strengths are success factors for Mang Inasal’s business growth.

With these strengths identified, there are still weakening factors to its business

ventures. From its IFE Matrix, the most weakening factors of the company include the

absence of marketing strategies and its limited floor space with both 7% weight.

Secondarily, with a weight of 6% is the absence of drive thru and al fresco dining. These
became in demand for restaurants to have because of the indoor dine-in restrictions

brought by the pandemic. With a 1.28 total weighted score for its weaknesses, it is

evident that Mang Inasal should come up with solutions to minimize its impact to the

business’ success. Overall, the total weighted score when the Strengths and

Weaknesses are added together in the IFE Matrix is 2.96.

External Factor Evaluation (EFE) Matrix is an analytical technique related to

SWOT analysis. It evaluates the external position of the organization or its strategic

intents through its opportunities and threats.

Table No 3. The External Factors Evaluation Matrix for Mang Inasal

OPPORTUNITIES WEIGHT RATING WEIGHTED

(1-4) SCORE

1. Loyal returning customers 0.07 4 0.28

2. Boost social media engagement 0.07 2 0.14

3. Good Manufacturing Practice 0.06 4 0.24

(GMP) and Hazard Analysis

Critical Control

Point (HACCP) certifications

4. Introduction of new menu items and 0.06 3 0.18

deals

5. Improvement of restaurant ambience 0.05 2 0.1

6. Increase positive reviews from 0.04 4 0.16

 customers

7. Application of environmentally friendly 0.04 3 0.12

practices

8. Employment of senior citizens and 0.04 2 0.08

persons with disabilities (PWDs)

9. Presence of reliable suppliers 0.04 4 0.16

10. Set up a play corner for children 0.03 1 0.03

Table No 4. The External Factors Evaluation Matrix for Mang Inasal

THREATS WEIGHT RATING WEIGHTED

(1-4) SCORE

1. Slow recovering economy 0.08 3 0.24

2. Changes in consumer behavior and 0.06 3 0.18

trends

3. Uncontrollable competition in the 0.06 4 0.24

restaurant industry

4. Inconsistent COVID-19 restrictions 0.06 3 0.18

due

to new variants

5. Rising operational costs such as rent, 0.05 3 0.15

supplies, and wages

 6. Issues about new regulations from 0.04 3 0.12

the

government

7. Labor shortage 0.04 3 0.12

8. Loss of potential customers due to 0.04 2 0.08

limited parking space

9. Fortuitous event such as typhoons or 0.04 3 0.12

fire that could disrupt operations

10. Unautomated tracking systems 0.03 2 0.06

TOTAL 1.00 2.98

Accordingly, the weight assigned to a given factor indicates the response of

Mang Inasal to that corresponding opportunity or threat. In this case, all opportunities

vary but each plays a crucial factor for business expansion, continuity, and profitability.

Hence, weighted score is the result of weight multiplied by rating. The total weighted

score is the sum of all individual weighted scores in the matrices. The rating ranges

from 1-4. Four (4) being the superior response to one (1) having the poor response of

Mang Inasal. 2.5 is the total average score or the means from the matrix ratings 1-4.

In this case, opportunities and threats incorporate the EFE Matrix of Mang Inasal.

It has a 2.98 total weighted score which means the external evaluation indicates that the

company’s strategies are above average in being well-designed to respond to the

threats with its opportunities, considering its various segments. Still, the strategic
implementation of Mang Inasal has threats that come with trends related to the quick-

service restaurant industry such as against its competitors.

The SWOT Analysis Application

SWOT analysis stands for Strength, Weakness, Opportunities and Threats for a

particular organization. In this case, SWOT analysis can help in formulating a strategy

for Mang Inasal and can also help in analyzing its internal environment namely:

Strengths and Weakness (SW) and its external environment: Opportunities and Threats

(OT).

Strength and Opportunity (SO) Strategies

1. SO1 With Mang Inasal’s mass appeal, it should invest more in

expanding its market by strategizing an advertising plan that can

re-introduce the brand to all audiences (S1, S2, S5, S8, O1, O2,

O5, O6).

2. SO2 Pursue the image of being inclusive with its customers and

employees, while being sustainable with its operational

procedures (S4, S7, S9, S10, O3, O7, O8, O10).

3. SO3 Aside from the healthy items, diversify the menu more by

offering value meals and limited-edition deals that are relevant to

 social media trends to target specific customers regularly (S3, S6,

S10, O1, O2, O4, O6, O9, O10).

Weakness and Opportunity (WO) Strategies

1. WO1 Renovate the establishment to improve its façade and

maximize all spaces through a strategic interior design (W2, W3,

W6, W10, O5, O10).

2. WO2 Start funding social media promotions to retain loyal

customers and boost sales (W1, W4, W5, W9, O1, O2, O4, O6,

O9).

3. WO3 Improve working and employment conditions to increase

efficiency with regards to service (W4, W7, W8, W10, O3, O6,

O7, O8).

Strengths and Threats (ST) Strategies

1. ST1 Decrease prices by offering discount vouchers and promo

packages to connect with audiences by their demographics,

interests, and behaviors (S1, S2, S3, S4, S5, S6, S10, T1, T2,

T3, T5, T8, T9).

 2. ST2 Automate inventory tracking by employing a software

system to reduce disorganization (S7, S8, T4, T6, T7, T10).

3. ST3 Offer free skill training programs to people entering the labor

force with a term of employment in return (S1, S2, S4, S7, S9,

T7, T10).

Weaknesses and Threats (WT) Strategies

1. WT1 Manage unprofitable food items by discontinuing their

production (W1, W4, W9, T1, T2, T3, T10).

2. WT2 Operate at peak hours only instead of being open for 24

hours everyday (W1, W7, W8, W10, T1, T5, T6, T7).

3. WT3 Consider getting a loan to finance the business through debt

or equity (W2, W3, W5, W6, T4, T8, T9 T10).

Conclusion

Mang Inasal, a quick service restaurant type of entity, was used in this analysis

as the subject for evaluation regarding their process of formulating and implementing

its projects to meet the entity’s overall objectives. Throughout the process of making this
paper, Mang Inasal’s quality- control policies, strength and weakness as an entity, and

sustainability of the entity’s competitive advantage were highlighted for analysis as

these were few of the factors being impacted with the massive change that the entity

has experienced recently.

We able to utilize SWOT analysis to further come up with the results that were

gathered during the data collection. SWOT Strategy that was made based on the results

of both the IFE and EFE Matrices.

With these said, the study concluded that the Mang Inasal was able to keep up

with the massive changes without compromising their quality and customer service as

presented in the SWOT analysis. It was also seen through the results shown on the

analysis that although Mang Inasal is considered above average in having well-design

strategies that would respond to threats through their opportunities, it appeared that the

entity is yet to come up with solutions that would reduce the risks that would exhibit

Mang Inasal’s weaknesses. If solutions will not further arise, this may have an impact

with Mang Inasal’s strength as a quick-service restaurant.

As for the quality control procedures, it can be concluded that Mang Inasal has

been consistent with implementing policies to ensure the delicious taste of their meals,

great service to their customers, and guaranteed safety in their restaurant. This

consistency is considered as one of the biggest strengths of Mang Inasal because this

is also the reason why their customers patronized them again. However, it is important
for them to note that innovation is still vital to minimize their weaknesses.

Mang Inasal has salvaged its business through the strong social media presence

brought to them by the online users. This has given them free marketing. Hence, the

entity must be able to sustain the said presence for them to be able to continuously gain

from it. The most recommended strategies that Mang Insal may apply to sustain their

competitive advantage is SWOT analysis. As they have expanded to another target

market, with the quality that their entity has been known for, it should not be hard for

them to be able to reach further growth in their industry.