Java Culture SWOT Analysis

Analysts Java Culture Coffee Bar SWOT

SWOT Analysis is a planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats. The SWOT analysis provides information that is helpful in matching the firm’s resources and capabilities to the competitive environment in which it operates.

Strengths

Java Culture is located near the University of Oregon campus, which is a great location because the location is popular with different varieties of people from age to personalities.

A customer can come and escape from their daily stresses of life to relax with friends or even catch up on their favorite book. Java Culture give free books out daily they are different ones for customers to be lost in a world of Culture. Java Culture is a successful company. It sells coffee, other beverages and snacks. For being a new, company this Java Culture in coffee sales alone between 2001 and 2003 has a sales increase by 73,584 dollars. In total sales alone between 2001 and 2003 sales increased by 122,640 dollars.

Java Culture is striving to maintain a 65% gross profit margin with reasonable operating expenses. In the same period, net profits grow from 100,000 to 125,000 dollars.

Weakness

Sales slightly decrease during the school vacation period, with that said this company is striving to focus most of its business on the faculty and students of the University around the corner. The other part whom they are to focus business on are the local businesses around them which is they hope to strive for a big business boom even on weekends when office buildings are closed.

They are located on the bottom of an office building, which is set up for all the equipment but lacks in visibility for the streets nearby. Their ideal plan is to have two employees taking orders while one employee is preparing the orders. A great portion of their profits will be turned around to the employees and getting new customers in the store, which is where it leaves no room for this company to improve or make new drinks.

Opportunities

The company expects to grow in revenue sales from 584,000 in PAYOFF to 706,000 in PAYOFF.

Food cost assume at 25% for coffee beverages and 50% for retail beans and pastries. Java Culture has a great opportunity to beat out the competition as in Cutbacks with its close to campus and business sales points. This company can also have excellent prices and serve the best brewing coffee and pastries if they pay attention to the prices of their competitors. Another opportunity is for this coffee bar to be set up more like a relaxing place to come and have a nice cup of coffee get some studding done or even catch up with friends, make this coffee shop a home away from home.

Even though it is in a business building if it is a quite place for people to come and focus on life at hand then it will not be like a Cutbacks a place to do business or study. This will attract the students and faculty of the University all year round. A thing that will catch those readers is the free books and magazines to read in the coffee shop and if they changed each week, the clientele will increase

Threats

The threats around the coffee bar are not the average coffee shops even though Cutbacks Take 35% of the neighboring market customers due to their great tasting rinks and that they sales more then your average pastry.

Those whom buy their coffee or other items from Cutbacks are those who like to pay the over price beverages and tend to not like change. The Cafe© Roam is a company where students and faculty can choose to go to get a great tasting beverage and something to eat more then Just a pastry. The Cafe© Roam is a place where a customer can have a business meeting and order lunch, the customers may also want to get the meal to go and study at home or in the office. Cafe© Roam attracts 25% of the neighboring customers.

I-JOY Bookstore caters about 10% of the remaining customers also shared with other establishments. This bookstore focuses on mainly those customers looking to read or study in a quite place. They attract the customers whom need a place to study or grade papers while drinking their favorite drink or snack on something to SOOT is a great way to analysis business to see if that business is worth eat.

Making into a business. Java Culture is a great idea for a coffee shop even though next to a Cutbacks and a Cafe© this company could attract those whom like the sweet hometown coffee shops.