The Morning Star Company: Self-Management at Work SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Morning Star Company: Self-Management at Work
Morning Star, a collection of affiliated companies, had grown steadily since 1970 when Chris Rufer, president and founder, started the business hauling tomatoes to processing plants in a truck. The company's main products continued to be tomato-based, including a 40% share in the tomato paste and diced tomato market in 2013. Different from traditional manufacturing companies, Morning Star relied on self-management to execute the work in any part of the organization. The company was built on individual freedom, with the expectation that employees would take responsibility for holding their peers accountable and address performance failures directly. The case explores how the company can establish a compensation model that fairly compensates employees for their performance and provides a broad incentive to hold others accountable, while being consistent with self-management. This case includes color exhibits.
Swot Analysis of "The Morning Star Company: Self-Management at Work" written by Francesca Gino, Bradley R. Staats includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tomato Morning facing as an external strategic factors. Some of the topics covered in The Morning Star Company: Self-Management at Work case study are - Strategic Management Strategies, Competitive strategy, Executive compensation, Manufacturing, Marketing, Motivating people, Personnel policies, Workspaces and Organizational Development.
Some of the macro environment factors that can be used to understand the The Morning Star Company: Self-Management at Work casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion,
supply chains are disrupted by pandemic , geopolitical disruptions, etc
Introduction to SWOT Analysis of The Morning Star Company: Self-Management at Work
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Morning Star Company: Self-Management at Work case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tomato Morning, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tomato Morning 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 The Morning Star Company: Self-Management at Work can be done for the following purposes –
1. Strategic planning using facts provided in The Morning Star Company: Self-Management at Work case study
2. Improving business portfolio management of Tomato Morning
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 Tomato Morning
Strengths The Morning Star Company: Self-Management at Work | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tomato Morning in The Morning Star Company: Self-Management at Work Harvard Business Review case study are -
Successful track record of launching new products
– Tomato Morning has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tomato Morning has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High brand equity
– Tomato Morning has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tomato Morning to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Tomato Morning is present in almost all the verticals within the industry. This has provided firm in The Morning Star Company: Self-Management at Work 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.
Ability to recruit top talent
– Tomato Morning is one of the leading recruiters in the industry. Managers in the The Morning Star Company: Self-Management at Work are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Tomato Morning 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 Francesca Gino, Bradley R. Staats 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.
Learning organization
- Tomato Morning is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Tomato Morning is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Morning Star Company: Self-Management at Work Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Tomato Morning 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 The Morning Star Company: Self-Management at Work HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Organizational Development field
– Tomato Morning 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 Tomato Morning in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Organizational Development industry
– The Morning Star Company: Self-Management at Work firm has clearly differentiated products in the market place. This has enabled Tomato Morning to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Tomato Morning to invest into research and development (R&D) and innovation.
Strong track record of project management
– Tomato Morning is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Tomato Morning has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Morning Star Company: Self-Management at Work 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.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Tomato Morning digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tomato Morning 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 The Morning Star Company: Self-Management at Work | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Morning Star Company: Self-Management at Work are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The Morning Star Company: Self-Management at Work HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Tomato Morning has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Tomato Morning 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.
Capital Spending Reduction
– Even during the low interest decade, Tomato Morning has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Low market penetration in new markets
– Outside its home market of Tomato Morning, firm in the HBR case study The Morning Star Company: Self-Management at Work needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Tomato Morning is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Tomato Morning needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tomato Morning to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Tomato Morning 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.
High cash cycle compare to competitors
Tomato Morning 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.
Aligning sales with marketing
– It come across in the case study The Morning Star Company: Self-Management at Work that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case The Morning Star Company: Self-Management at Work can leverage the sales team experience to cultivate customer relationships as Tomato Morning is planning to shift buying processes online.
Need for greater diversity
– Tomato Morning has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High operating costs
– Compare to the competitors, firm in the HBR case study The Morning Star Company: Self-Management at Work has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Tomato Morning 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Morning Star Company: Self-Management at Work, in the dynamic environment Tomato Morning has struggled to respond to the nimble upstart competition. Tomato Morning has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities The Morning Star Company: Self-Management at Work | 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 The Morning Star Company: Self-Management at Work are -
Developing new processes and practices
– Tomato Morning 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.
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. Tomato Morning can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Tomato Morning 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. Tomato Morning 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.
Manufacturing automation
– Tomato Morning 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Tomato Morning is facing challenges because of the dominance of functional experts in the organization. The Morning Star Company: Self-Management at Work case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tomato Morning 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 Tomato Morning to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Tomato Morning 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.
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 Tomato Morning 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.
Buying journey improvements
– Tomato Morning can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Morning Star Company: Self-Management at Work suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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 Tomato Morning in the consumer business. Now Tomato Morning can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Tomato Morning to increase its market reach. Tomato Morning will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Learning at scale
– Online learning technologies has now opened space for Tomato Morning 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.
Using analytics as competitive advantage
– Tomato Morning has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study The Morning Star Company: Self-Management at Work - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tomato Morning to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats The Morning Star Company: Self-Management at Work External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Morning Star Company: Self-Management at Work are -
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 Tomato Morning business can come under increasing regulations regarding data privacy, data security, etc.
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 Tomato Morning.
Increasing wage structure of Tomato Morning
– 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 Tomato Morning.
Technology acceleration in Forth Industrial Revolution
– Tomato Morning has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Tomato Morning 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.
Shortening product life cycle
– it is one of the major threat that Tomato Morning is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Tomato Morning can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Tomato Morning can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Consumer confidence and its impact on Tomato Morning demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
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 Tomato Morning in the Organizational Development sector and impact the bottomline of the organization.
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. Tomato Morning 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High dependence on third party suppliers
– Tomato Morning high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Weighted SWOT Analysis of The Morning Star Company: Self-Management at Work 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 The Morning Star Company: Self-Management at Work 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 The Morning Star Company: Self-Management at Work 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 The Morning Star Company: Self-Management at Work 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 The Morning Star Company: Self-Management at Work 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 Tomato Morning needs to make to build a sustainable competitive advantage.