Strengths Weaknesses

(1) Current ratio increased by 3% (1) Debt Ratio (debt to

(2) Inventory turnover increased from asset ratio) increased
50.98 to 73.58 from 89.65% to 91.07%
(3) Days sales in inventory improved (2) Unable to meet the
from 7.16 days to 4.96 days current demands of the
(4) Acquisition of new equipment for creditors
operations (3) Store is only available
(5) Morale of employees are pleasant in selected spots
(6) Company’s cash increased by (4) Branch stores need to
60.88% be more spacious
(7) Availability of alternative payments (5) Net income decreased
increase customer attractions by 67.49%
(8) Branch manager position requires (6) Figaro has
a MBA degree troublesome in online
services
(7) Operating expenses
increased by 4.37%
Opportunities SO Strategies WO Strategies
(1) Booming industry of Business (1) Hiring of employees become (1) Focus more on
Process Outsourcing (BPO) more effective when sales of green
(2) Annual domestic consumption of outsourcing human labor. bean coffee so as
green bean coffee is increasing at the (S5,O1) to meet demands
rate of approximately three percent of the creditors.
(3%) per year (W1,W2,O2)
(3) World consumption continues to (2) Acquire businesses with green (2) Expansion of
grow one to two percent per annum. bean suppliers for use in market through
(4) Potential big export production of production (S2,O2) establishing
Robust coffee in international market. (3) Continue to employ potential branches
(5) 2015 ASEAN integration causes applicants with good morale. worldwide.
expansion of market to foreigners (S5,O6) (W3,O3)
(6) Unemployment rate in Philippines (4) Invest on green bean farming (3) Update business’
decreased to 6% in the fourth quarter production (S6,O2) website to gain
of 2014 from 6.70% in the third (5) Present availability of access of the
quarter of 2014. alternative payments through different
(7) Expansion of market globally access of business website products/services
through access of business website. (S7,O7) for interested
(8) Variety of flavors and ingredient (6) Produce more Robust coffee online consumers.
options available to market keeps and other kinds of coffee bean (W6,O7)
sales high over the forecast period. in the 2015 ASEAN integration (4) Conduct business
(9)The Department of Agriculture (DA) for bigger market consumption outsourcing for
supports the “mocha” trend with a of coffee worldwide. less operating
P192 million budget for coffee and the (S3,O3,O4,O5) expense made for
implementation of Cacao Agribusiness the Property, Plant
Zones Development (CAZD), both and Equipment as
aiming to boost coffee and cocoa well as Salaries.
production. (W7,O1)
Threats ST Strategies WT Strategies
(1) Availability of coffee beverages in (1) Usage of new equipment for (1) Change of
milk tea shops offers variety of choices producing innovative products suppliers of coffee
than coffee shops do. or improvement of coffee beans for the
(2) Coffee farming is shifting slowly to quality. (S4,T1) reduction of
Mindanao, pushed by the rising cost of (2) Coffee production formulation expenses at cheap
of coffee beans into coffee
land in traditional coffee-producing should be well-produced by the cost.
provinces like Cavite. newly equipment acquired. (W1,W2,O2,O4)
(3) Threat of health consensus about (S4,T2) (2) Management of
the negative health effects of coffee (3) Orient employees on how coffee operating
than other beverages. benefits health in many ways in expenses thru
(4) Low supply production at 25,000 order to inform the capital
tons of coffee annually in meeting customers/consumers of coffee. expenditures in
increase in demand for about 3% to (S5,T3) accordance to
5% population rate in Philippines. (4) Offering convenient type of technology
(5) Growing establishments of foreign payments to fellow Filipinos utilization.
coffee shops competing with the local- purchasing local-based coffee (W7,O7)
based coffee shops. shops like payment thru cell (3) Offer different
(6) Trend in consumption in instant phone load. (S7,T5) flavours/preferenc
coffee with cheaper prices than coffee (5) With the help of newly es for each newly
made coffee beans. developed equipment, established coffee
(7) Unproductive coffee trees and poor production of coffee bean and branch nationwide.
technology utilization. utilization of facilities can be (W3,T1)
maintained. (S4.T7) (4) Creation of
website for
product/service
concerns about
improvement of
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 firm’s internal strengths to take advantage
of the external opportunities, Weaknesses-Opportunities (WO) which improves internal
weaknesses by taking advantage of external opportunities, Strength-Threats (ST) which
uses a firm’s 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.