Strengths

Weaknesses

(1) Current ratio increased by 3%

(1) Debt Ratio (d

(2) Inventory turnover increased

asset ratio) incre

from 50.98 to 73.58

from 89.65% to

(3) Days sales in inventory

91.07%

improved from 7.16 days to 4.96

(2) Unable to me

days

current demands

(4) Acquisition of new equipment

the creditors

for operations

(3) Store is only

(5) Morale of employees are

available in selec

pleasant

spots

(6) Companys cash increased by

(4) Branch stores

60.88%

to be more spaci

(7) Availability of alternative

(5) Net income

payments increase customer

decreased by 67

attractions

(6) Figaro has

(8) Branch manager position

troublesome in o

requires a MBA degree

services
(7) Operating

expenses increas
Opportunities
(1) Booming industry of Business

SO Strategies
(1)Hiring of employees

4.37%
WO Strategies

(1)Focus more

Process Outsourcing (BPO)

become more effective

sales of gre

(2) Annual domestic consumption

when outsourcing human

bean coffe

of green bean coffee is increasing

at the rate of approximately three
percent (3%) per year
(3) World consumption continues
to grow one to two percent per
annum.

labor. (S5,O1)
(2)Acquire businesses with
green bean suppliers for
use in production (S2,O2)
(3)Continue to employ
potential applicants with
good morale. (S5,O6)

as to meet

demands o
creditors.

(W1,W2,O2
(2)Expansion

market thr

(4) Potential big export production

(4) Invest on green bean

establishin

of Robust coffee in international

farming production (S6,O2)

(5)Present availability of

branches

market.
(5) 2015 ASEAN integration
causes expansion of market to
foreigners
(6) Unemployment rate in
Philippines decreased to 6% in
the fourth quarter of 2014 from
6.70% in the third quarter of
2014.
(7) Expansion of market globally
through access of business
website.
(8) Variety of flavors and
ingredient options available to
market keeps sales high over the
forecast period.
(9)The Department of Agriculture
(DA) supports the mocha trend
with a P192 million budget for
coffee and the implementation of
Cacao Agribusiness Zones
Development (CAZD), both
aiming to boost coffee and cocoa
production.

alternative payments
through access of business
website (S7,O7)
(6)Produce more Robust coffee
and other kinds of coffee
bean in the 2015 ASEAN
integration for bigger
market consumption of
coffee worldwide.
(S3,O3,O4,O5)

worldwide.
(W3,O3)
(3)Update
business

website to

access of t
different

products/s

s for intere
online

consumers
(W6,O7)
(4)Conduct
business

outsourcin

less operat

expense m

for the Pro

Plant and

Equipment

well as Sal
(W7,O1)

Threats
(1) Availability of coffee

ST Strategies
(1)Usage of new equipment for

WT Strategies
(1)Change of

beverages in milk tea shops offers

producing innovative

suppliers o

variety of choices than coffee

products or improvement of

coffee bea

shops do.
(2) Coffee farming is shifting
slowly to Mindanao, pushed by
the rising cost of land in
traditional coffee-producing
provinces like Cavite.
(3) Threat of health consensus
about the negative health effects
of coffee than other beverages.
(4) Low supply production at
25,000 tons of coffee annually in
meeting increase in demand for
about 3% to 5% population rate in

coffee quality. (S4,T1)

(2)Coffee production
formulation of coffee beans
into coffee should be wellproduced by the newly
equipment acquired.
(S4,T2)
(3)Orient employees on how
coffee benefits health in
many ways in order to
inform the
customers/consumers of
coffee. (S5,T3)
(4)Offering convenient type of

Philippines.

payments to fellow Filipinos

(5) Growing establishments of

purchasing local-based

foreign coffee shops competing

coffee shops like payment

with the local-based coffee shops.

(6) Trend in consumption in
instant coffee with cheaper prices
than coffee made coffee beans.
(7) Unproductive coffee trees and
poor technology utilization.

thru cell phone load. (S7,T5)

(5)With the help of newly
developed equipment,
production of coffee bean
and utilization of facilities
can be maintained. (S4.T7)

the reduct

expenses a

cheap cost

(W1,W2,O2
(2)Manageme
operating

expenses t
capital

expenditur

accordance

technology

utilization.

(W7,O7)
(3)Offer differ

flavours/pr

nces for ea
newly

established

coffee bran

nationwide

(W3,T1)
(4)Creation of

website for

product/se

concerns a

improveme
such.

(W6,T3,T6)

Strengths, Weaknesses, Opportunities,

Threats (SWOT) Matrix

Presented above is the matrix for the Strengths, Weaknesses,

Opportunities, and Threats (SWOT) Analysis of the Figaro Coffee Company.
The matrix shows the data given in the earlier matrices (IFE and EFE) in
relative to factors affecting the company. It is important for the firm to
identify the internal and external factors so as to help the managers develop
alternative strategies the company might use in the future.
It is an important matching tool which helps to develop four types of
strategies: Strengths-Opportunities (SO) which uses a firms internal
strengths to take advantage of the external opportunities, WeaknessesOpportunities (WO) which improves internal weaknesses by taking
advantage of external opportunities, Strength-Threats (ST) which uses a
firms strengths with the aim of finding solution to external threats, and
Weaknesses-Threats (WT) which are defensive tactics to reduce impact on
internal weaknesses and avoiding external threats.