Cheesecake Factory Swot Analysis

Assignment 1: Identify Your Competitive Advantage
Professor
Oct. 27 2013

The SWOT Analysis which is also called SWOT Matrix, This analysis is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involves a business venture. Albert Humphrey is credited for the creation of this technique. The Cheesecake Factory is an very successful company. In my research I found two companies that have conducted SWOT analysis on the Cheesecake Factory. The Cheesecake Factory is a company that operates in the U.S. and the headquarters is in Calabasas Hill, California. There are 109 upscale casual dining restaurants under the brand. On the Datamoniter report the company recorded revenues of 1,177.60
million during the year 2006. When marketline conducted an analysis the recorded revenues raised to 1,757.6 million during the financial year December 2011. The net profit number grew from $ 87.5 million in 2006 to $ 95.7 million in 2011. When the strong marketing position enables the company to launch new upscale dining restaurants concepts. Strengths of the company will be strong market position, affractive locations, and menu offers. Being an established leader in strong market positions. The varied one of the fasted growing menu categories in the U.S. restaurant industry. A leading player in the industry operating The Cheesecake Factory band, Grand Lux Café brand, and Rocksugar Pan Asian Kitchen Brand. The strong market presence in the American market gives the company a competitive edge with an established brand image and provides the company with market penetration opportunities. (marketline, 2011). Menu offers extensive items over 200, that includes pizza, steaks, appetizers, burgers, chicken, salads, seafood, specialty items, omelets, and sandwiches. The Grand Lux Café offers 150 items with made to order dessert. The two bakery production faculties produces over 50 varieties of cheesecake and other bakes desserts. The company maintain to update the menus twice a year to stay up to date with the changing consumer dining preferences and trends. “The company adds values to its menu offerings by serving large at moderate prices, which gives it a value for money image” (data monitor, 2006) also included on the menu is the price which helps them stay competitive. The company locate themselves in attractive, above average income households. It locations that traffic is very high, in areas as shopping outlets and malls. Quality locations help the company to attract high volume of customer traffic, so therefore they never had to close a restaurant down with the Cheesecake Factory having an site selection software program that is based on the economic and demographic variables of its successful existing restaurant helps find new locations for future restaurants. The securities and exchange commission launched an informal inquiry into the company’s stock option granting practices in August 2006.(Datamonitor, 2006). Two shareholder complained of “ alleging breach of duty and unjust enrichment related to the company’s option granting practices”. The weak internal controls landed the company in a situation where it faces intense regulatory and public scruting. Management initiatives, launch of new restaurant concept, and growing foodservice sector are the opportunities in the company.
In 2006, several initiatives were launched. The first was kitchen management system (KMS) that allows for automated order routing and helps the balance the cookline. The first launch concept was a Cheesecake Factory broad- based Asian Cuisine that launched in 2007 with in 2011 they enter into a licensing agreement with Kuwait-based Alshaya group. Alshaya group will build and operate Cheesecake Factories in the middle east with this agreement it also provides the opportunity to expand into other markets including central and eastern Europe, Russia, Middle East, Turkey and North Africa. According to national restaurant Association (NRA), restaurant industry sales are expected to reach $ 5.1 % over 2005 (DataMonitor, 2006). The company in positioned to benefit from the grow food service sector. The full service restaurants sales are expects to grow 5.2% in disposable income in 2006. In 2010 the expected growth was 3.6%. The Restaurants are expected to continue to be strong contributors to the recovery of the U.S economy. Sale are driven by expended menu choices and added takeout
options. Negative publicity, stringent regulations, and intense competition fall in the category of threats. Their have been complaints from customers of food poisoning. Five customers in Illinois taken to hospital after consuming spinach and cheese dip. The dish was removed form menu. The company is subject to a number of food, drug and cosmetic act and the newly enacted federal food safety modernization act (MarketLine, 2011). Federal and State laws govern the company’s operations and its relationships with the staff members, including matters such as minimum wages, breaks overtime, fringe benefits, safety, working condition and citizenship or work authorization requirements.

References
Cheesecake Factory Incorporated (The) SWOT Analysis (2012). Cheese Factory Incorporated (The) SWOT Analysis 1-8
Cheesecake Factory Incorporated (The) SWOT Analysis (2007). Cheese Factory Incorporated (The) SWOT Analysis 1