SWOT Analysis For School Tuck Shop

QUESTION 1
Dear Gian
I offer you information on the 9 business functions and how you can use this in running the tuckshop
successfully.
 Business functions differ according to the size of the enterprise.
 A small business, like the tuck shop may combine the functions as they do not have enough staff or
staff with the necessary skills to adequately perform all functions. If it is a very small business, one
person may even carry out all the functions.
The 9 Business functions comprise the following (NB: some are combined):
(1) General management and Risk Management.

a. Management is about people.
b. Managers make decisions all the time and need to take accountability for their decision which will
affect the running of the business.
As the owner of the tuckshop, with limited resources, most activities of the other functions will be
combined into one. You are responsible to set up the enterprises' vision, goals and objectives.
Therefore, you will combine the planning, organising, leading and control elements. You will need to
continuously try to motivate employees, lead by example and create a successful team.
(2) Marketing
Marketing is very expensive and small campaigns do not always reach the full target audience. As a
small enterprise, you will be responsible for the pricing, distribution and marketing of the product. You
will need to understand what the customers desire and ensure the correct marketing mix to boost
sales.
(3) Human Resources

This involves the employment of skilled and unskilled labour. The tuck shop is small and therefore
human resources have few issues to resolve as there is a small number of employees.
(4) Purchasing & Production

These functions will be combined. You will have to ensure quality products are manufactured and if
sourcing goods from suppliers that the safety of the product is ensured. Maintain relationships with
suppliers to ensure suitable quality and quantity at the lowest possible prices are acquired. Responsible
for stock management is important to ensure you do not run out of goods in the tuck shop.
(5) Administration
a. The administrative function is responsible for gathering data, processing data, information storing
and distribution. The administration function supports all other business functions.
b. The administration function of a small enterprise is often neglected, and it is difficult to access
information. Large data storage and processing systems are expensive to buy.
The tuck shop must make use of the technology employed (the App) to assist with structuring activities
and analysing information.
(6) Financing
a. The main function of the finance department is to ensure that the business makes a profit and to
allocate funds to other functions. To do this Finance needs to:
 source the funding.
 plan so that the finances are spent in the most efficient way.
 monitor and control the cash flow and the spending of money by the different functions.
 allocate the necessary funds to the different functions.
 find the best investments to earn interest.
 Prepare financial statements and report to the shareholders.
(7) Public relations

a. Business cannot exist in isolation. It must build good relations with the public.
b. The reasons why good public relations are important include the following:
 Suppliers will continue to provide good prices and good service.
 Customers will stay loyal and continue to buy from the business.
 Financial institutions will support loans and funding.
 Employees will remain loyal to the business and work hard.
 An ongoing brand awareness is created in the community.
 Future customers and employees will be attracted to the company.
As the owner of the tuck shop, you will need to build an image and reputation with the school, the
students, teachers and parents.
BELOW IS A SWOT ANALYSIS FOR THE SCHOOL TUCK SHOP THAT WILL ASSIST YOU IN AN ENVIRONMENT
SCAN
Strengths
Opportunities
Captive market secured by a contract with
the school – no other competition at 1) Market the use of the App - efficient ordering
school. and distribution of products - less cash usage
and more convenient. Also improves the wait
1) Great location for the shop with seating time for food and speeds up on-site purchases.
areas – it is easily accessible by the Easy to manage and load stock and pricing.
students.
2) Improve the variety and prices of products by
2) The tuck shop employees are working with more suppliers of goods (cakes,
knowledgeable about the products and sandwiches etc)
are very helpful – efficient customer
service. 3) Introduce loyalty program to encourage more
buying – for example every third weekly order
3) Use of the App has uplifted the will receive a free cold drink/chocolate
ordering process and makes it
convenient for parents and students to 4) Stimulate entrepreneurship by hosting s
use. Online transaction tracking and student market day with a revenue sharing
monitoring for parents. Students and model – where budding cooks can offer
parents can pre-order meals, which products on sale and the proceeds are shared
makes for better planning within the 5) Promote healthier eating by using slogans on
tuck shop. Pre-orders allow the tuck packaging or reinforce healthy eating using the
shop owner, to implement contingency App
plans in order to not run out of stock
and healthy items. 6) Use environment friendly package to
demonstrate commitment to sustainability.
Threats
Weaknesses
1) Product inventory challenges – items 1) If prices are too high, or customer service
may run out and students that missed levels drop, the school may request new
out are disillusioned. tenders for the tuck shop and the contract may
2) Unhealthy food be lost.
3) Increase in fuel prices means increase 2) Move towards healthier eating may drive
in price of goods, which affects the students away from the tuck shop.
affordability of products to students.
4) Long lines during break time creates the 3) Food delivery services through Apps may deter
perception of poor customer service. the use of the tuck shop
5) Not enough variety to cater for the
4) Prices of raw materials and prepacked foods
needs of all students (Health, religion
vary with fuel price and availability of items. If
etc)
less suppliers, then prices will be higher.
Increased fuel price will also impact the price
of good sold in the tuck shop
Trust that you find the above information useful and beneficial .

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QUESTION 1

 Business functions differ according to the size of the enterprise.

(1) General management and Risk Management.

(3) Human Resources

(4) Purchasing & Production

(7) Public relations

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