4.1 Read the report

You are now going to read a SWOT analysis report, in order to see the end result of using the SWOT framework to analyse a case study.

Figure 4 A SWOT analysis of the bakery chain Greggs plc

The SWOT analysis report you will examine is of the British bakery chain, Greggs plc. This report was written by a first year business and management student, Sarah, in 2024 (Olatunji, 2024). Sarah gathered the information for her analysis from the assigned case study article and a few other sources. She wrote the report in response to this assignment question:

Assignment question

Using a SWOT analysis, critically examine the internal and external environment of Greggs, a UK bakery chain as described in the case study by Gill (2023). Finish your analysis by providing recommendations to Greggs about the important issues it needs to address and the actions it needs to take for business success.

Word count: 900 words

Activity 2

Read through Sarah’s SWOT analysis of Greggs plc, and then answer the questions which follow.

Sarah’s SWOT analysis

SWOT ANALYSIS OF GREGGS

Introduction

A SWOT analysis is a strategic planning method for evaluating a company’s strengths, weaknesses, opportunities, and threats (Dess et al., 2020). It is an effective framework for critically assessing a company’s internal and external environments to discover crucial aspects that may influence its performance and future success. The aim of this analysis is to use the SWOT framework to assess Greggs’ internal and external environments based on the case study (Gill, 2023). The analysis will also use tutor feedback on the previous tutor-marked assignment (TMA) 01 to improve the case study reading and analytical abilities displayed in that assessment.

Table 2 SWOT Analysis of Greggs

Strengths Weaknesses
  • Strong brand recognition and cult status among consumers
  • Extensive network of over 2,300 stores across the UK
  • Successful shift towards food-to-go and plant-based offerings
  • Wide variety of customers
  • Ability to adapt recipes and products to meet changing consumer demands
  • Perceived as a less premium offering compared to competitors like Pret A Manger
  • Reliance on the UK market, with limited international presence
  • High-fat products
  • Not good coffee
Opportunities Threats
  • Social media influencers
  • Demand for plant-based baked goods
  • Opportunity for growth in South of England and other English-speaking countries
  • Increased competition from other food-to-go chains and retailers
  • Potential vulnerability to government regulations on unhealthy foods
  • Potential changes in consumer preferences towards healthier or more premium options
  • Disruptions in supply chain or manufacturing operations
(Source: Gill, 2023)

SWOT ANALYSIS

Strengths

Greggs has a number of strengths. Its primary assets are its remarkable brand awareness and cult status among customers. The firm has effectively developed a national reputation, with the case study identifying Greggs as ‘a national treasure’ (Gill, 2023), which has been imprinted in the ‘national psyche’ (Gill, 2023). This brand appeal has enabled Greggs to attract a diversified customer base, ranging from tradespeople to the ‘moneyed classes’ (Gill, 2023), proving the company’s broad market reach. Another major strength is Greggs’ enormous network of 2,300 outlets across the United Kingdom. This widespread retail presence has allowed the corporation to service customers more easily, with the case study emphasising large lines of customers waiting to be served even in a tiny town like Godalming (Gill, 2023). Greggs’ capacity to change its product offerings has also been a crucial asset, as indicated by its successful transition to food-to-go and plant-based options (Gill, 2023). This agility has enabled Greggs to remain relevant and suit evolving customer tastes (Euromonitor, 2023).

Weaknesses

However, Greggs does have several major weaknesses. The company’s dependence on the UK market, along with its small overseas footprint, leaves it susceptible to domestic market shifts (Gill, 2023). Furthermore, Greggs’ perceived position as a less premium product than rivals such as Pret A Manger (Gill, 2023) may restrict its attractiveness to some customer demographics looking for a more upmarket experience (Mintel, 2022). Other weaknesses of the company include high-fat food which may not appeal to health-conscious customers and the low-quality coffee which may reduce the number customers who want to buy good-quality coffee.

Opportunities

Despite its weaknesses, Greggs has several opportunities that it could explore. Looking at the outside world, Greggs has assorted options to pursue. The company’s comparatively small presence in some locations, such as the south of England, gives prospects for future growth (Gill, 2023). Another development opportunity is to target additional travel-related outlets, such as train stations and airports. Furthermore, the case study reveals that Greggs is investigating international development, potentially in English-speaking areas such as Australia, which might open new growth opportunities (Gill, 2023). This overseas growth may help Greggs diversify its income sources and minimise its dependency on the UK market (IBISWorld, 2023). It could promote its products through social media influencers and offer plant-based baked products to cater for a wide range of customers.

Threats

However, Greggs faces several challenges, including rising rivalry from other food-to-go restaurants and shops (Gill, 2023). Consumer choices for healthier or more premium products may potentially threaten the company’s established offers. Equally, the government regulation on unhealthy food is a threat to its popular product as noted by Gill (2023) that ‘bakery products, by their nature, don’t start from a great place’. Furthermore, interruptions in the supply chain or production processes may impair Greggs’ capacity to satisfy consumer demand (Gill, 2023). The company’s dependence on a limited product portfolio renders it susceptible to such disruptions (Euromonitor, 2023).

Conclusion

In conclusion, the SWOT analysis identifies Greggs’ primary strengths as famous brand awareness and a large UK shop network, as well as prospects for worldwide development and premium appeal. To achieve long-term success, the corporation must address its dependency on the local market while also enhancing the health profile of its goods.

Recommendations

According to the SWOT analysis, one important concern Greggs must solve is its small worldwide footprint. While the firm has had significant success in the UK market, its focus on the home market exposes it to changes in the local environment (Gill, 2023). To address this, Greggs should carefully examine expanding into overseas markets, especially in English-speaking nations with cultural commonalities that are likely to respond to its product offers (Tan, 2023; IBISWorld, 2023). Another important problem is that Greggs is perceived as a less premium option than rivals such as Pret A Manger (Gill, 2023; Mintel, 2022). To solve this, the corporation should prioritise improving product quality and customer service to appeal to a wealthier client category. This may include adding more luxury menu items, improving shop atmosphere, and highlighting the brand’s legacy and workmanship (Euromonitor, 2023). It is recommended that Greggs must continue to change its product line to meet changing customer desires for healthier alternatives (Gill, 2023). While the firm has made success in this regard, it should continue to decrease sugar, fat, and salt levels in its goods while retaining the flavour and quality that consumers demand (Gill, 2023; Euromonitor, 2023).

References

Dess, G.G., McNamara, G., Eisner, A.B., and Lee, S.H. (2020) Strategic management: text and cases. 9th edn. McGraw-Hill Education.

Euromonitor (2023) ‘Bakery and cereals in the United Kingdom’, Euromonitor International.

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).

IBISWorld (2023) ‘Bakery Cafes in the UK’, IBISWorld.

Mintel (2022) ‘Eating Out Review – UK’, September. Mintel Group Ltd.

Tan, K. (2023) Personal interview.

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: 14 April 2024).

(Adapted from text written by Open University Student Sarah Olatunji, 2024)

Now answer these questions on the material you’ve just read. Add your answers to the box below:

  1. How is the report structured?
  2. What information is included in the introduction?
  3. What is the purpose of the conclusion?
  4. Where are the recommendations?
  5. How many recommendations are made?
(A text entry box would appear here, but your browser does not support it.)

Answer

  1. The text is organised into eight sections with headings. The sections include an introduction, the SWOT table in note forms, the four areas of SWOT, a conclusion and recommendations. There is also a list of references used at the end.
  2. The introduction includes a brief definition of SWOT (strengths, weaknesses, opportunities and threats) and what it is used for. It tells the reader what the analysis is about by signposting through the final two sentences.
  3. The conclusion summarises the key points made in the SWOT analysis.
  4. The recommendations come after the conclusion.
  5. Three recommendations are made in response to the weaknesses and threats: to expand its market to English-speaking nations with cultural commonalities like Australia, to offer premium quality products and to provide healthier food options.

Discussion

You have seen a full SWOT analysis discussing issues at Greggs. Sarah uses this analysis to propose solutions to problems at the company in 2024. Having identified the issues through a SWOT analysis, she makes recommendations for the company that could be used to make decisions and address the identified problems.

A note on referencing

You will have seen that Sarah has written a list of references at the end of her text, which link to in-text references. This is because her text is an academic assignment for a university course. When writing at university you are required to list any sources you use for your assignment (usually texts that you read) at the end of your text. This shows the tutor where your information comes from. You are also required to include in-text references, which show precisely where pieces of information in your text come from. Here is one example from Sarah’s report:

In-text reference:

The firm has effectively developed a national reputation, with the case study identifying Greggs as ‘a national treasure’ (Gill, 2023).

End-of-text reference:

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).

You will see that the in-text reference includes the name of the organisation and the date, while the end-of-text reference includes the full information for finding the source. Usually an in-text reference will include the author’s name; however, when there is no specified author, the name of the organisation can be used.

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