Ben & Jerry's: Preserving Mission & Brand Within Unilever SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Ben & Jerry's: Preserving Mission & Brand Within Unilever
In the months after Ben & Jerry's was acquired by Unilever, Ben & Jerry's head social mission faces challenges and opportunities unique in the company's history, including: how to manage employee morale; whether to include synthetic ingredients to meet consumer preferences; how to preserve the company's tradition of speaking out on public issues; and how to maintain the company's distinctive brand image. Also, depicts an innovative corporate governance model with an external board comprising former Ben & Jerry's executives to advise the new CEO on managing the company's distinctive brand and values.
Swot Analysis of "Ben & Jerry's: Preserving Mission & Brand Within Unilever" written by James E. Austin, James Quinn includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jerry's Ben facing as an external strategic factors. Some of the topics covered in Ben & Jerry's: Preserving Mission & Brand Within Unilever case study are - Strategic Management Strategies, Corporate governance, Innovation, Mergers & acquisitions, Motivating people, Organizational culture, Social enterprise and Organizational Development.
Some of the macro environment factors that can be used to understand the Ben & Jerry's: Preserving Mission & Brand Within Unilever casestudy better are - – increasing energy prices, increasing commodity prices, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China,
digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Ben & Jerry's: Preserving Mission & Brand Within Unilever
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ben & Jerry's: Preserving Mission & Brand Within Unilever case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jerry's Ben, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jerry's Ben operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Ben & Jerry's: Preserving Mission & Brand Within Unilever can be done for the following purposes –
1. Strategic planning using facts provided in Ben & Jerry's: Preserving Mission & Brand Within Unilever case study
2. Improving business portfolio management of Jerry's Ben
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jerry's Ben
Strengths Ben & Jerry's: Preserving Mission & Brand Within Unilever | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jerry's Ben in Ben & Jerry's: Preserving Mission & Brand Within Unilever Harvard Business Review case study are -
Highly skilled collaborators
– Jerry's Ben has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Ben & Jerry's: Preserving Mission & Brand Within Unilever HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Jerry's Ben is one of the most innovative firm in sector. Manager in Ben & Jerry's: Preserving Mission & Brand Within Unilever Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Jerry's Ben is present in almost all the verticals within the industry. This has provided firm in Ben & Jerry's: Preserving Mission & Brand Within Unilever case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Training and development
– Jerry's Ben has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ben & Jerry's: Preserving Mission & Brand Within Unilever Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High switching costs
– The high switching costs that Jerry's Ben has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Superior customer experience
– The customer experience strategy of Jerry's Ben in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Jerry's Ben has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jerry's Ben to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Organizational Development field
– Jerry's Ben is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Jerry's Ben in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Jerry's Ben in the sector have low bargaining power. Ben & Jerry's: Preserving Mission & Brand Within Unilever has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jerry's Ben to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Jerry's Ben is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Jerry's Ben is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by James E. Austin, James Quinn can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Jerry's Ben digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jerry's Ben has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses Ben & Jerry's: Preserving Mission & Brand Within Unilever | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ben & Jerry's: Preserving Mission & Brand Within Unilever are -
High bargaining power of channel partners
– Because of the regulatory requirements, James E. Austin, James Quinn suggests that, Jerry's Ben is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow to strategic competitive environment developments
– As Ben & Jerry's: Preserving Mission & Brand Within Unilever HBR case study mentions - Jerry's Ben takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Interest costs
– Compare to the competition, Jerry's Ben has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Workers concerns about automation
– As automation is fast increasing in the segment, Jerry's Ben needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow decision making process
– As mentioned earlier in the report, Jerry's Ben has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Jerry's Ben even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Jerry's Ben is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ben & Jerry's: Preserving Mission & Brand Within Unilever can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Ben & Jerry's: Preserving Mission & Brand Within Unilever, is just above the industry average. Jerry's Ben needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Jerry's Ben supply chain. Even after few cautionary changes mentioned in the HBR case study - Ben & Jerry's: Preserving Mission & Brand Within Unilever, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jerry's Ben vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Jerry's Ben has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of Jerry's Ben products
– To increase the profitability and margins on the products, Jerry's Ben needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Ben & Jerry's: Preserving Mission & Brand Within Unilever, it seems that the employees of Jerry's Ben don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Opportunities Ben & Jerry's: Preserving Mission & Brand Within Unilever | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Ben & Jerry's: Preserving Mission & Brand Within Unilever are -
Leveraging digital technologies
– Jerry's Ben can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Jerry's Ben in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Jerry's Ben can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Jerry's Ben can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Jerry's Ben can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Jerry's Ben can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Organizational Development segment.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Jerry's Ben in the consumer business. Now Jerry's Ben can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Jerry's Ben can develop new processes and procedures in Organizational Development industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Jerry's Ben to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Creating value in data economy
– The success of analytics program of Jerry's Ben has opened avenues for new revenue streams for the organization in the industry. This can help Jerry's Ben to build a more holistic ecosystem as suggested in the Ben & Jerry's: Preserving Mission & Brand Within Unilever case study. Jerry's Ben can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Jerry's Ben to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Manufacturing automation
– Jerry's Ben can use the latest technology developments to improve its manufacturing and designing process in Organizational Development segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Jerry's Ben can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jerry's Ben to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Jerry's Ben to hire the very best people irrespective of their geographical location.
Threats Ben & Jerry's: Preserving Mission & Brand Within Unilever External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ben & Jerry's: Preserving Mission & Brand Within Unilever are -
Regulatory challenges
– Jerry's Ben needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Organizational Development industry regulations.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Jerry's Ben in the Organizational Development sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Jerry's Ben can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Jerry's Ben.
Shortening product life cycle
– it is one of the major threat that Jerry's Ben is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Jerry's Ben business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jerry's Ben can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Ben & Jerry's: Preserving Mission & Brand Within Unilever .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jerry's Ben in the Organizational Development industry. The Organizational Development industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Technology acceleration in Forth Industrial Revolution
– Jerry's Ben has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Jerry's Ben needs to keep up with the evolution of technology in the Organizational Development sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing wage structure of Jerry's Ben
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Jerry's Ben.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Jerry's Ben with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Jerry's Ben will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of Ben & Jerry's: Preserving Mission & Brand Within Unilever Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Ben & Jerry's: Preserving Mission & Brand Within Unilever needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Ben & Jerry's: Preserving Mission & Brand Within Unilever is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Ben & Jerry's: Preserving Mission & Brand Within Unilever is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Ben & Jerry's: Preserving Mission & Brand Within Unilever is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Jerry's Ben needs to make to build a sustainable competitive advantage.