SWOT Analysis - Assignment Example

External and internal factors that may affect Catering and Ballroom Rental’s growth are therefore discussed forthwith. As a local catering company which serves both private clients and businesses in Doeuvreville and its surrounding towns, Sumptuous Cuisine Catering enjoys a longer term of experience which dates back to 2005. This experience has seen Sumptuous Cuisine Catering run catering kitchens and create itself a niche in setting logistics for upscale events within the region and providing fulltime catering services.

This seven year experience has seen Sumptuous Cuisine Catering to create its domain in the perennially competitive market. Likewise, the wide variety of services that make up Sumptuous Cuisine Catering’s services include an array of breakfast cuisines, event staff and managers (logisticians), dinners, lunches, alcoholic and nonalcoholic beverages, appetizers, space and floral designs, musicians and DJs, decor, furniture rentals and event equipment hiring services, among others. This shows the ingenious dexterity that Sumptuous Cuisine Catering employed in crafting its business plan since the plan fully diversifies risks that come with highly specialization of operations.

Sumptuous Cuisine Catering’s factoring of its strengths is also underscored by the cash reserves it not only has, but also plans to use to expand its operations. The same commitment to a tenable working plan is exemplified by the company intending to improve its gross margins to soar above previous levels as a way of preparing for extension. The company anticipates that due to this action, the loyalty of already existing clients is likely to be strengthened. Likewise, the volume of top line sales is bound to grow to more than double by the end of 2012.

From the same move, the company expects a threefold rise in net profits, despite the high operational costs that are equally anticipated. Other factors that serve as Sumptuous Cuisine Catering’s source of strength include management expertise that exceed clients’ expectation, balanced expert opinions, optimal sense of professional showmanship and protection of the clients’ interests. Should the company continue to envision these values in its expansion plan, then the company is bound to continue benefitting (Anyim, 59).

Despite the intricate expansion plan that Sumptuous Cuisine Catering has, it still has not managed to extricate itself from some weaknesses. Particularly, the protracted chain of operations and the plan to expand mean that the company will sustain extra operational expenses. The need to pay an increased number of employees, open and rent new premises and increase and diversify its operations, translate into high employee turnover and other forms of expenditure. The fact that Sumptuous Cuisine Catering will only have utilized the ballroom on 40% of days at the end of the oncoming three years is also a form of weakness.

There are several opportunities that come with the Sumptuous Cuisine Catering plan. For instance, by extending its services to cover outdoor services such parties, banquets and business holidays, the company will have realized increased volume of sales by extending itself in the market. This diversification and extension makes up for the proneness of the market to economic cycles. Sumptuous Cuisine Catering is therefore bound to benefit from the market, given that the American market for