According to the book of O.K.

Mbura called Entrepreneurship Development and Management in

Tanzania of 2013 defined SWOT analysis as "Is a simple planning tool used by businesses,
organizations, or individuals to und0perstand their current situation. It helps them know what
they are doing well, where they need to improve, and what external factors may help or hurt
them."

SWOT stands for:

S – Strengths
W – Weaknesses
O – Opportunities
T – Threats
It is used to make better decisions for the future.
Also the book of L.K.kinunda called Entry and performance barriers of 2000 analyzed objectives
of SWOT Analysis as following

Objectives of SWOT Analysis

The main goals of SWOT analysis are:

1. To know the strengths

It helps a business understand what it is doing well. For example, having good customer service
or a good location.

2. To identify weaknesses

It shows the areas where a business is not doing well, like poor marketing or old equipment.

3. To find opportunities

It helps discover new chances to grow or make more money. For example, using social media or
starting food delivery.

4. To be aware of threats

It helps a business prepare for problems that may come, like new competitors or price increases.
This research was done by choosing a small restaurant business called Delicious Restaurant,
located in Mbeya City. The study involved talking to the owner-manager to understand how the
business is performing right now. A SWOT analysis was done to identify:

Strengths – What the restaurant is doing well

Weaknesses – The areas where the restaurant has problems or needs to improve

Opportunities – The chances the restaurant has to grow and do better

Threats – Problems or risks that may affect the restaurant in the future

SWOT analysis is helpful for making plans to improve and succeed in business.

2. Business Background

Delicious Restaurant is a small local restaurant that sells both traditional and fast food. It serves
people who eat at the restaurant and also those who take food to go (takeaway). The restaurant
mostly attracts people from nearby offices, schools, and markets. It is known for having
affordable meals, good service, and a clean environment. The owner is directly involved in
managing the restaurant.

3. SWOT Analysis

A. Strengths (What the restaurant is doing well)

1. Good Location

The restaurant is located near a main road and market area. Many people pass by or work nearby,
so they can easily stop for a quick meal. Being in a busy area increases the number of daily
customers.

2. Affordable Prices
The food prices are low compared to other nearby restaurants. Many people, including students,
workers, and local residents, choose Delicious Restaurant because they can eat without spending
too much money.

3. Friendly and Experienced Staff

The restaurant workers, including the owner, are friendly, polite, and know how to handle
customers. This makes customers feel respected and happy, so they keep coming back.

4. Regular and Loyal Customers

There are many returning customers who trust the food and service. These loyal customers also
recommend the restaurant to friends and family, which helps the business grow without spending
much on advertising.

B. Weaknesses (Things that need improvement)

1. Small Dining Area

The restaurant has limited space inside. Only a few customers can sit and eat at one time. During
busy hours, some people leave because there’s no place to sit, which means lost sales.

2. Old Kitchen Equipment

The cooking machines and tools (like stoves and fridges) are old and sometimes break down.

This slows down food preparation and may affect food quality or delay customer orders.

3. No Online Presence or Social Media

The restaurant does not use platforms like Facebook, Instagram, or WhatsApp to promote its
food or communicate with customers. Many people now look for food online or use delivery
apps, so the restaurant is missing out on many potential customers.

4. Cash Payments Only

The restaurant only accepts cash. It does not accept mobile money (like M-Pesa, Airtel Money)
or card payments. This is a problem for people who don’t carry cash or prefer digital payments,
especially young and working customers.

C. Opportunities (Chances to grow and improve)

1. More People Moving to Mbeya City

Mbeya is growing. More people are coming to the city for work, school, and business. This
means there are more possible customers who will need food every day.

2. Using Social Media and Online Marketing

If the restaurant starts posting pictures of meals and menus on Facebook or Instagram, it could
reach many more people. Customers can be informed about daily specials or promotions easily
through phones.

3. Offering Food Delivery Services

The restaurant can grow by joining delivery apps or hiring someone to deliver food. This helps
people who are too busy to come to the restaurant but still want to eat its food.

4. Buying Ingredients from Local Farmers

Working directly with farmers in the area can help reduce costs of food supplies. It can also
guarantee fresh and healthy ingredients, which customers appreciate.

D. Threats (Problems the restaurant may face)

1. Rising Food Prices

The cost of ingredients like meat, vegetables, and cooking oil keeps going up. If prices go too
high, the restaurant may need to increase its prices, and some customers might stop coming.

2. New Competitors

More restaurants and food vendors are opening in the area. This increases competition and may
reduce the number of customers at Delicious Restaurant.
3. Unreliable Electricity

Power cuts happen often in Mbeya. When there is no electricity, fridges stop working and food
can spoil. Cooking also becomes hard if electric appliances are not working.

4. Government Health and Safety Rules

If the government introduces new health regulations, the restaurant might need to spend money
on upgrades (e.g., better kitchen, cleaner toilets, safety training).Failing to follow the rules could
lead to fines or even closure.

Conclusion

In conclusion, Delicious Restaurant is a small but strong business in Mbeya City. It has many
good qualities that attract customers, like friendly service and affordable food. However, there
are also problems that must be solved. If the restaurant makes smart changes — such as
improving its space, using social media, and accepting mobile payments — it can grow and serve
even more customers in the future.
 REFERENCES

O. K. Mbura, Entrepreneurship Development and, Management in Tanzania of 2013.

L. K. Knunda, Entry and performance barriers

R. Moshi, Delicious restaurant manager(07188217660)