Management Term Paper on SWOT Analysis of Custom Coffee and Chocolate Business

SWOT Analysis of Custom Coffee and Chocolate Business

Globally, coffee drinking has grown to the widest spread habit.  Research shows that in US alone, 100 million liters of coffee is consumed daily (Fields, 2011).  With such a market demand, many people have been motivated to start coffee businesses.  My decision to engage in a coffee and chocolate business was influenced by this large market share.  However, the Custom Coffee and Chocolate business is facing a few challenges includes stiff competition.  Currently, there are two employees working at the café near the university where majority of the customers are students, staff, faculty, and residents in the neighborhood.  The two, Bonnie Brewer and Stacy Kim, were former students at the school.

At the café, our mission is to provide an ample and fun environment for the university fraternity by serving quality snacks and coffee, offering extra services and making the clients’ experience memorable. For our mission, we have set goals for this business that we plan to achieve in five years.  Our first goal is to offer the most delicious coffee and chocolate.  Our second goal is to ultimate convenience and comfort to our customers.  Our third goal is to be the best choice to our clients for relaxation and enjoyment.

By accomplishing these goals, the Custom Coffee & Chocolate will succeed.  Providing the most delicious snacks and coffee will increase the number of customers that we receive.  There will be more reference to our products, which will in turn increase our revenue.  Consequently, we will be in a position to grow the business capacity.  Our second goal is essential for retention of these customers.  The market we are targeting is keener on convenience and comfort.  Business will be able to retain the customers it has been able to attract, by revamping our café’s setup to accommodating this aspect.  We plan to achieve our third goal of being the destination of choice to boost our brand.  By promoting the brand, we will be able to open cafés successfully near other universities.  Therefore, boosting the brand will propagate us to growth.

We have core competencies that will help us reach out goal.  One of them is to ensure that we are always the first to offer something new to our customers.  Providing something different after some time will keep the customers excited.  The other competency that we need to have is lower prices than others.  It will be necessary to keep our competitive advantage high.  Finally, we need to have a continuous supply of high quality of coffee and other products that we are offering.  Steady supply of quality products will safeguard the customers’ trust.

SWOT Analysis

Assessing the Custom Coffee & Chocolate business using SWOT analysis reveals a number of strengths, weaknesses, opportunities and Threats (Josephson & Trilling-Josephson, 2009). 


The strengths are the positive aspects of a business that can be controlled to propel the business to success (Josephson & Trilling-Josephson, 2009).  The first strength is in the skills of our staff, Brewer and Kim.  They both studied business management and marketing at the university.  They also worked in other companies for several.  Their knowledge is essential in this business.  Our second strength lies in our business area near the school.  Given that Kim and Brewer were students here, they have a better understand of our customers.  The location provides the convenience to our customers.  Third, our strength is also in the comfortable facilities we have for our customers.  It encourages the customers to stick around and have a good time.


However, there are weaknesses in Custom Coffee & Chocolate that may slow the growth of the business (Josephson & Trilling-Josephson, 2009).  One of these weaknesses is in the menu’s lack of variety.  Limitation to coffee and chocolate may not be enough to sustain the interest of the customers.  The other weakness of the business is in management.  Kim and Brewer had not been able to manage the finances of the business such that they had no savings at the time when the company needed expansion.  It also shows that the company was not making profit.


There are opportunities that the business can utilize to enhance its profitability (Josephson & Trilling-Josephson, 2009).  A significant number of customers present an opportunity to expand the list of foods and include other services.  It will boost the revenue.  There is also an opportunity to have café serve a place for entertainment and meeting.  Majority of the customers are students.  They are mostly enticed by entertainment and socializing.  There is also an opportunity for the business in online marketing.  Providing wireless connectivity and online availability through the website will increase public knowledge of the café’s menu and services.


The company is facing with threats.  The presence of other cafés and restaurants near it may threaten the business.  The other businesses may copy their way of operation and outcompete Custom Coffee and Chocolate.  Currently, we are not able to handle high demand.  It may cause loss of customers.  The current price is a threat to the business because it is not making profit for the company.  Increasing the price may scare the customers and collapse the business (Fields, 2011). 


Fields, E. (2011).  The essentials of finance and accounting for nonfinancial managers.  New York: American Management Association.

Josephson, B., & Trilling-Josephson, T. (2009).  Cafe Society: The wrong place for the right people.  Urbana: University of Illinois Press.