8.1  Arranging your analysis into paragraphs

As you will see in this section, Tommy has expanded the notes from his SWOT table (Table 6) to write the analysis and also include recommendations of his own. You will now read Tommy’s full analysis and identify what the purpose of each paragraph is.

Activity 10

Read Tommy’s SWOT analysis of the Greggs case study article. You will see that all the subheadings have been removed from the analysis except the first one (‘Introduction’). Once you have read the text, answer the questions that follow.

Tommy’s SWOT analysis of Greggs

Using SWOT to analyse Greggs’ business environment

Introduction

Founded by John Gregg as a single shop in Newcastle in 1951 (Gill, 2023), Greggs has become a popular bakery chain throughout the UK (Gill, 2023). SWOT can be used to identify the strengths, weaknesses, opportunities, and threats of an organisation, providing a summary of a company’s performance at that particular moment (The Open University, 2024). Using the SWOT framework, the report will examine the internal and external environment of Greggs and make recommendations on which issues should be addressed and opportunities exploited to ensure the business succeeds.

Table 7 SWOT table

Strengths Weaknesses
  • Over 2,300 retail outlets throughout the UK
  • Basic menu and easy to mass produce
  • Quick to imitate competition and adapt to market trends
  • Strong financial performance
  • Appeal to a wide consumer base
  • Expansion into travel shops market
  • Gradual reduction of sugar and salt in its products
  • Rate of growth not sustainable; the UK market near saturation
  • Greggs model unsuccessful in foreign markets
  • Low-quality coffee
  • High-fat products
  • Not accepting all payment methods, limiting access to certain customers
Opportunities Threats
  • Extremely popular with online community
  • Trend towards healthier eating
  • Expansion in the South
  • Expansion into the appropriate overseas market
  • Perception that Greggs is unhealthy
  • Government policy on foods contributing to poor health
  • Highly competitive food-to-go market
(Gill, 2023)

[Paragraph 2 subheading]

Greggs has a number of strengths. The main strength for Greggs is the use of a basic menu that is easy to mass produce (Gill, 2023). This enabled Greggs to meet the increasing demand during a period of growth, and supported expansion because the product range was already familiar to customers. Another strength for Greggs is the ability to imitate competitors and adapt quickly to changing market trends. This ability enables the company to get new products to market quickly in reaction to competition and shifting customer demand. This led to increased profits and a strong financial position that suggests it would be resilient to future instability and attractive to investors. With over 2,300 Greggs’ retail outlets throughout the UK (Gill, 2023) it is likely that profits will continue to remain high. Finally, new leadership in 2013 gave the business a clear identity and vision (Gill, 2023), that enabled the rapid growth of the business.

[Paragraph 3 subheading]

Despite the strengths referred to above, Greggs also has several weaknesses. The most significant weakness is that the rate of growth for the business is not sustainable, and the UK market for Greggs is possibly nearing saturation. The quality of Greggs’ coffee is considered poor and fatty food products have deterred health-conscious customers from buying food at Greggs. The failure and withdrawal from Belgium in 2008 (Gill, 2023) demonstrates that the Greggs business model may not always translate well to foreign markets. In a densely populated market, it is possible that Greggs’ strong position could be reversed as rivals imitate Greggs’ strategy.

[Paragraph 4 subheading]

Regardless of the weaknesses discussed above, there are opportunities for further development at Greggs. The first of these is the growing trend for healthier eating (Gill, 2023). It is possible that Greggs could further widen its customer base by offering an expanded range of healthy or non-meat products. This was demonstrated by the increase in profits following the launch of the Vegan sausage roll in 2019 (Gill, 2023). Popularity with social media influencers (Gill, 2023) is an opportunity to raise awareness of healthier food options and reinforce the positive aspects of the company, such as the support given to the disadvantaged. Gill (2023) states that Greggs has many possibilities for expansion because the company and product range have evolved since 2008 and may be better suited to certain foreign markets such as Australia. Finally, as the demand for healthier food grows, it has the potential to expand in the South of England because Greggs has just 40 outlets in London (Gill, 2023) to serve a city of that size.

[Paragraph 5 subheading]

Despite Greggs having several opportunities to improve the business, it should be wary of threats. The main threat to Greggs is from government legislation, as demonstrated by recent efforts to tackle rising obesity in society (Gill, 2023). It is possible that further government action could negatively impact sales by affecting the product range Greggs is able to offer. Another threat could be the perception that Greggs is unhealthy because of the growing trend towards healthier eating and ranking highly for calorific content when compared to competitors (Gill, 2023).

[Paragraph 6 subheading]

The key findings of this analysis are the ability of Greggs to mass produce a basic menu, adaptability when imitating competitors and meeting changing consumer expectations within a large number of outlets across the UK. The weaknesses identified include an unsustainable rate of growth in the UK and failed expansion into Europe. A number of opportunities were identified which included the trend amongst consumers to eat more healthily, the relationship with social media influencers and the options for further expansion. Lastly, the report has a warning about the threats facing the company: government legislation promoting healthy eating and the perception that Greggs is unhealthy as consumers’ tastes change.

[Paragraph 7 subheading]

In order to improve, Greggs needs to address the weaknesses within the organisation and exploit the external opportunities highlighted in this report. The opportunity afforded by its popularity with social media influencers can be used to counter the perception of Greggs being unhealthy. The company should explore options for expansion, both in the UK as mentioned above but also overseas in countries such as Australia, utilising market research specialists to identify a suitable location or the adjustments required to make the product range appealing to a potential target market.

Word count: 963 words

References

Gill, O. (2023) ‘Why Greggs is working. The bakery chain is making more dough than ever as it appeals to tradesmen and the moneyed classes alike. Is expansion overseas next, Oliver Gill asks its chief executive’, The Sunday Times (London, England), 6 August, p. 4. Available at: https://link-gale-com.libezproxy.open.ac.uk/apps/doc/A759744634/STND?u=tou&sid=bookmark-STND&xid=7ddd89b7 (Accessed: 14 April 2024).

The Open University (2024) ‘5.2 The SWOT framework’, LB170: Communication skills for business and management. Available at: https://learn2.open.ac.uk/mod/oucontent/view.php?id=2227089&section=2 (Accessed 23 February 2024).

(Adapted from Cartmell, 2024)

1.  Use the text box below to identify the purpose of each paragraph. (You don’t need to look at the table at the moment.) The ‘Introduction’ has already been described for you as an example.

(A text entry box would appear here, but your browser does not support it.)

Answer

There are seven paragraphs in total (not including the table). The purpose of each paragraph is as follows:

  • Paragraph 1 introduces the report.
  • Paragraph 2 analyses the strengths of Greggs.
  • Paragraph 3 analyses the weaknesses of Greggs.
  • Paragraph 4 analyses the opportunities of Greggs.
  • Paragraph 5 analyses the threats of Greggs.
  • Paragraph 6 makes conclusions based on analyses.
  • Paragraph 7 makes recommendations to Greggs.

2.  Write down a subheading for each paragraph below.

(A text entry box would appear here, but your browser does not support it.)

Answer

Suggested subheadings for the paragraphs are:

  • Paragraph 1: Introduction
  • Paragraph 2: Strengths
  • Paragraph 3: Weaknesses
  • Paragraph 4: Opportunities
  • Paragraph 5: Threats
  • Paragraph 6: Conclusion
  • Paragraph 7: Recommendations

Comment

Constructing your text using paragraphs in this way helps you to organise and group your thoughts, and it will also help your reader to understand the information in the text. Generally, a paragraph should express one main idea, which is expanded and developed within that paragraph. The subheading indicates what the section is about. In most university assignments, it is acceptable to use subheadings for signposting. Their use is also common in business module assignments. However, reports and case study analyses tend to have subheadings for sections and their use may be limited or not used at all in essays. Always read the assignment guidance carefully to see if you can use them.

OpenLearn - Business communication: writing a SWOT analysis
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