Swot Analysis Of Jumping Beans

Introduction Jumping Beans

Simon Grantham owns a coffee outlet "Jumping beans". He expands it to 28 'non smoking' outlets in South Asia. All these were located in the prime city centre. He started his business with the help of Zak Igrabimov who has 51% of the business of Simon in return for providing 30% of the start up funds. The rest is divided to Simon 39%, friends and family 10%.

Zak Igrabimov Visited UK and settled there permanently. He started his business there and explored it to many field. He builds an empire operating whole range of markets and had good reputation. Thus, Simon came to him with his proposal, which he accepted. Simon wanted to establish a chain of retail outlets of coffee. He had originally been in merchant banking but always wanted to run his own business. Zak had agreed to his proposal.

Each store Managers were encouraged to make their outlet their own. Simon liked to visit the store as much as possible, gathering information on each one. Simon was very popular with all the staff in the stores and was seen as very committed to the business. He introduced many flavours of coffees. He also proposed non-smoking outlets.

Zak wanted his business to go public. Therefore, he wants more profit and lot more outlets. So, he asked Simon to grow his business faster and profits as well. To shape his thinking Simon organised a meeting of his senior staff. Margaret, the Marketing Manager puts his views not to change the existing type of business. She suggests opening more outlets. Whereas Sandhia the assistant of Margaret thinks to introduce fair-trade into their business.

The Operational Manager of jumping beans Mr. Joss Ackerley suggests keeping the problem of absenteeism and labouring turnover under control. He complains that they lack strategies and have no clear policies. Joss also focuses on IT sector and describes some of its application. Later on Mark Havershall, the Finance Manager of the business, focus out on the topic. He talks about their achievements. He also focuses on the variation between the different stores in terms of performance. He also supports Mr. Joss view to invest in IT sector.

Sandhia Supports to invest more in business because the business is changing rapidly. Simon then wondered that he spent too much time on the ground without thinking strategically. He realises the importance of change in the business and started thinking about that.

EXTERNAL ANALYSIS:

In order to find out all the opportunities and the threats that the Jumping Beans is facing from the external environment, an analysis of the external environment has to be done.

Opportunities:

Better than Competitor:

The location of retail stores of Jumping Beans also provides them with an advantage of competition. They are located in very areas where people meet each other; it can be a tourist place.

They also have a very good market reputation to support their sales.

Geographical Location:

The location of the there retail stores of Jumping beans is very prime. They are located in the main tourist spot and in the city centre where the friends and colleagues came to meet each other. This is the reason why they are flooded with orders from customers.

Customer perception:

Jumping beans have an advantage of positive customer perception. More and more of the customers are now shifting to the consumption of their coffee and doughnuts. According to the figures, 36% of customers say that Jumping beans coffee is delicious and 39% customers are in the favour of Jumping beans doughnuts. According to the Mintel report (February, 2005) Consumer expenditure has raised from 592.51 billion in 1999 to 800.07 billion in 2005 and was projected to grow about 971.73 billion by 2009.Therefore, Jumping Beans should try to make consumer more in percentage.

Quality of Coffee:

The quality of the Coffee and doughnuts manufactured by Jumping beans has played a major role in contributing to their success path. More improvement in these can help to grow it faster.

Funding on Advertisement:

Jumping Beans can fun more on Advertisements. According to the figures, they have only spent Ј120,000 on advertisement. More advertisement can help to develop there business more.

Increase Non-smoking outlets:

They should increase non-smoking outlets. They have only 10 non-smoking outlets, and the figure says that customers are female more than male (customer Male Female ratio is 40:60). Women are mainly non-smoker, which help them to develop there business.

Threats:

Absenteeism Problem:

Jumping beans should have to reduce the problem of absenteeism. The problem of absenteeism can reduce their productivity and can increase their financial and Administrative cost.

Health Trends:

Nowadays, people are becoming more and more health conscious. The products with rich Nicotine and Caffeine contents are now facing a declining demand, as people now prefer sugar free products or the products with low Nicotine and Caffeine content. Coffee drinking has been also linked to high blood pressure, insomnia, and even heart disease. Coffee is products, which have a dominant position in terms of taste but at the same time loose customers because of its high hazardous content.

In 2001, the food standard Agency (FAS) advised pregnant woman to limit their intake of caffeine to less than 300 mg per day. This may be associated to low birth weight and even miscarriage. (Mintel Report, February, 2005)

Changing Market:

As Sandhia says, Jumping Beans must have to adopt himself to the changing environment and could always consider franchising. It includes former independents, and from licensing, in which branded chains take on the responsibility for cafes within outlet such as grocery superstores, department store etc. (Mintel Report, Feb. 2005).

Coffee Market:

There is now a threat of increasing competition in the coffee industry as more and more of the international coffee brands are coming up as manufacturers of high quality coffee.

High Price:

Jumping beans should change the price of