From Banker to Baker: Enjoy Life Foods SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of From Banker to Baker: Enjoy Life Foods
Having started Enjoy Life Foods with a classmate at the Kellogg School in the business plan writing class, Scott Mandell had grown from a business plan , Mandell was ready for the next step, a move onto the national stage with Whole Foods. He estimated product promotion would cost several thousand dollars more than revenues in the first year. If sales fell short of his plan, his losses would soar. If sales forecasts were met, the company would achieve profitability in the time period Mandell promised to investors. In the meeting with Whole Foods representative, Mandell spoke about the uniqueness of the hypoallergenic snacks and presented the company's ability to grow sales. When he finished his sales pitch, the Whole Foods representative told him he liked the product, but had no room for it on the shelves. Mandell was put on the spot and needed to think quickly. He might not get another chance to convince the Whole Foods representative to make room for Enjoy Life Foods. He had just seconds to think of a response before the representative walked out the door for another meeting. What could Mandell say to make the representative see the value in taking a chance on Enjoy Life Foods? What creative solutions to the "shelf space" dilemma could he offer?
Authors :: Cheryl Mayberry-McKissack, Ava Greenwell, Tracey Robinson-English
Swot Analysis of "From Banker to Baker: Enjoy Life Foods" written by Cheryl Mayberry-McKissack, Ava Greenwell, Tracey Robinson-English includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mandell Foods facing as an external strategic factors. Some of the topics covered in From Banker to Baker: Enjoy Life Foods case study are - Strategic Management Strategies, Marketing, Sales and Sales & Marketing.
Some of the macro environment factors that can be used to understand the From Banker to Baker: Enjoy Life Foods casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, technology disruption,
supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of From Banker to Baker: Enjoy Life Foods
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in From Banker to Baker: Enjoy Life Foods case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mandell Foods, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mandell Foods 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 From Banker to Baker: Enjoy Life Foods can be done for the following purposes –
1. Strategic planning using facts provided in From Banker to Baker: Enjoy Life Foods case study
2. Improving business portfolio management of Mandell Foods
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mandell Foods
Strengths From Banker to Baker: Enjoy Life Foods | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mandell Foods in From Banker to Baker: Enjoy Life Foods Harvard Business Review case study are -
Ability to recruit top talent
– Mandell Foods is one of the leading recruiters in the industry. Managers in the From Banker to Baker: Enjoy Life Foods are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Mandell Foods 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 Mandell Foods is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in From Banker to Baker: Enjoy Life Foods Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Mandell Foods is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Mandell Foods 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 From Banker to Baker: Enjoy Life Foods HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Mandell Foods
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mandell Foods does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Mandell Foods has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study From Banker to Baker: Enjoy Life Foods - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the From Banker to Baker: Enjoy Life Foods Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
High switching costs
– The high switching costs that Mandell Foods 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 Mandell Foods in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Mandell Foods in the sector have low bargaining power. From Banker to Baker: Enjoy Life Foods has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mandell Foods to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Mandell Foods has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mandell Foods to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Mandell Foods has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mandell Foods 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.
Weaknesses From Banker to Baker: Enjoy Life Foods | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of From Banker to Baker: Enjoy Life Foods are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study From Banker to Baker: Enjoy Life Foods, is just above the industry average. Mandell Foods 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.
Capital Spending Reduction
– Even during the low interest decade, Mandell Foods 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.
High operating costs
– Compare to the competitors, firm in the HBR case study From Banker to Baker: Enjoy Life Foods 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 Mandell Foods 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mandell Foods is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study From Banker to Baker: Enjoy Life Foods can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Mandell Foods has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - From Banker to Baker: Enjoy Life Foods should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Cheryl Mayberry-McKissack, Ava Greenwell, Tracey Robinson-English suggests that, Mandell Foods 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.
High cash cycle compare to competitors
Mandell Foods 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.
No frontier risks strategy
– After analyzing the HBR case study From Banker to Baker: Enjoy Life Foods, it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Skills based hiring
– The stress on hiring functional specialists at Mandell Foods has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
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 Mandell Foods supply chain. Even after few cautionary changes mentioned in the HBR case study - From Banker to Baker: Enjoy Life Foods, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mandell Foods vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Mandell Foods 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.
Opportunities From Banker to Baker: Enjoy Life Foods | 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 From Banker to Baker: Enjoy Life Foods are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mandell Foods can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, From Banker to Baker: Enjoy Life Foods, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Mandell Foods 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 Mandell Foods 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.
Learning at scale
– Online learning technologies has now opened space for Mandell Foods 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.
Developing new processes and practices
– Mandell Foods can develop new processes and procedures in Sales & Marketing 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.
Better consumer reach
– The expansion of the 5G network will help Mandell Foods to increase its market reach. Mandell Foods 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mandell Foods 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 Mandell Foods to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mandell Foods can use these opportunities to build new business models that can help the communities that Mandell Foods operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mandell Foods in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Mandell Foods has opened avenues for new revenue streams for the organization in the industry. This can help Mandell Foods to build a more holistic ecosystem as suggested in the From Banker to Baker: Enjoy Life Foods case study. Mandell Foods can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Mandell Foods in the consumer business. Now Mandell Foods can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Mandell Foods 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 From Banker to Baker: Enjoy Life Foods - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mandell Foods to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mandell Foods is facing challenges because of the dominance of functional experts in the organization. From Banker to Baker: Enjoy Life Foods 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.
Threats From Banker to Baker: Enjoy Life Foods External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study From Banker to Baker: Enjoy Life Foods are -
Environmental challenges
– Mandell Foods needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Mandell Foods can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Regulatory challenges
– Mandell Foods 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 Sales & Marketing industry regulations.
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. Mandell Foods 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.
Technology acceleration in Forth Industrial Revolution
– Mandell Foods has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Mandell Foods needs to keep up with the evolution of technology in the Sales & Marketing 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.
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.
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 Mandell Foods.
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 Mandell Foods in the Sales & Marketing sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Mandell Foods 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mandell Foods 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 From Banker to Baker: Enjoy Life Foods .
Shortening product life cycle
– it is one of the major threat that Mandell Foods is facing in Sales & Marketing 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 Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mandell Foods can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Mandell Foods needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Weighted SWOT Analysis of From Banker to Baker: Enjoy Life Foods 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 From Banker to Baker: Enjoy Life Foods 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 From Banker to Baker: Enjoy Life Foods 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 From Banker to Baker: Enjoy Life Foods 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 From Banker to Baker: Enjoy Life Foods 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 Mandell Foods needs to make to build a sustainable competitive advantage.
