Case Study Description of Marine Stewardship Council
In April 1999, John Gummer, chairman of the Marine Stewardship Council (MSC), an independent, global nonprofit organization, was charged with implementing an eco-labeling program for seafood products harvested in a sustainable manner. Through the program, MSC hoped to harness consumer purchasing power and thereby reverse the decline in the world's fisheries. This case describes traditional approaches to environmental problems and recent innovative strategies, provides examples of eco-labeling for a variety of products, and explores consumer attitudes toward the environment and consumer purchase behavior. Recent crises--the dolphin-safe tuna controversy and the swordfish boycott--provide evidence of the level of public interest that MSC's broad eco-labeling plan could tap into in the council's effort to reverse the decline in the world's fisheries. Because both of the earlier campaigns were tangible and focused on specific issues, it wasn't clear to Gummer that consumers would respond the same way to a more general label applied to all seafood products. Gummer wonders how the council could get customers to start shopping for labeled products and how the MSC should approach the industry to get seafood producers, processors, and retailers all on board.
Authors :: Sonya Grier, Susan Masserang, Jonathan Tinter
Swot Analysis of "Marine Stewardship Council" written by Sonya Grier, Susan Masserang, Jonathan Tinter includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gummer Labeling facing as an external strategic factors. Some of the topics covered in Marine Stewardship Council case study are - Strategic Management Strategies, Joint ventures, Sustainability and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Marine Stewardship Council casestudy better are - – increasing government debt because of Covid-19 spendings, geopolitical disruptions, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, technology disruption, competitive advantages are harder to sustain because of technology dispersion,
central banks are concerned over increasing inflation, increasing commodity prices, etc
Introduction to SWOT Analysis of Marine Stewardship Council
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Marine Stewardship Council case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gummer Labeling, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gummer Labeling 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 Marine Stewardship Council can be done for the following purposes –
1. Strategic planning using facts provided in Marine Stewardship Council case study
2. Improving business portfolio management of Gummer Labeling
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 Gummer Labeling
Strengths Marine Stewardship Council | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gummer Labeling in Marine Stewardship Council Harvard Business Review case study are -
Training and development
– Gummer Labeling has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Marine Stewardship Council 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.
Analytics focus
– Gummer Labeling 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 Sonya Grier, Susan Masserang, Jonathan Tinter 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.
Highly skilled collaborators
– Gummer Labeling 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 Marine Stewardship Council HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Gummer Labeling 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 Gummer Labeling is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Marine Stewardship Council Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Gummer Labeling is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Gummer Labeling
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Gummer Labeling does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Gummer Labeling digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gummer Labeling 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.
Effective Research and Development (R&D)
– Gummer Labeling 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 Marine Stewardship Council - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Gummer Labeling in the sector have low bargaining power. Marine Stewardship Council has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Gummer Labeling to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Gummer Labeling has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gummer Labeling to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Gummer Labeling is one of the most innovative firm in sector. Manager in Marine Stewardship Council Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Gummer Labeling is one of the leading recruiters in the industry. Managers in the Marine Stewardship Council are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Marine Stewardship Council | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Marine Stewardship Council are -
High bargaining power of channel partners
– Because of the regulatory requirements, Sonya Grier, Susan Masserang, Jonathan Tinter suggests that, Gummer Labeling 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 operating costs
– Compare to the competitors, firm in the HBR case study Marine Stewardship Council 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 Gummer Labeling 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Marine Stewardship Council, in the dynamic environment Gummer Labeling has struggled to respond to the nimble upstart competition. Gummer Labeling has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Gummer Labeling is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Marine Stewardship Council can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Gummer Labeling 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Gummer Labeling 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.
Increasing silos among functional specialists
– The organizational structure of Gummer Labeling is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Gummer Labeling needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gummer Labeling to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Gummer Labeling 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 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 Gummer Labeling supply chain. Even after few cautionary changes mentioned in the HBR case study - Marine Stewardship Council, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Gummer Labeling vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Gummer Labeling 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 - Marine Stewardship Council should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Marine Stewardship Council, is just above the industry average. Gummer Labeling 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.
Opportunities Marine Stewardship Council | 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 Marine Stewardship Council are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Gummer Labeling 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, Marine Stewardship Council, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Gummer Labeling to increase its market reach. Gummer Labeling 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Gummer Labeling can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Gummer Labeling can use these opportunities to build new business models that can help the communities that Gummer Labeling operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Gummer Labeling is facing challenges because of the dominance of functional experts in the organization. Marine Stewardship Council 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 Gummer Labeling 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 Gummer Labeling to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gummer Labeling can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Creating value in data economy
– The success of analytics program of Gummer Labeling has opened avenues for new revenue streams for the organization in the industry. This can help Gummer Labeling to build a more holistic ecosystem as suggested in the Marine Stewardship Council case study. Gummer Labeling can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Gummer Labeling 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 Gummer Labeling 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 Sales & Marketing segment.
Leveraging digital technologies
– Gummer Labeling 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.
Learning at scale
– Online learning technologies has now opened space for Gummer Labeling 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.
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 Gummer Labeling in the consumer business. Now Gummer Labeling can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Marine Stewardship Council External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Marine Stewardship Council are -
Shortening product life cycle
– it is one of the major threat that Gummer Labeling is facing in Sales & Marketing 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 Gummer Labeling business can come under increasing regulations regarding data privacy, data security, etc.
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. Gummer Labeling needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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 Gummer Labeling in the Sales & Marketing sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Gummer Labeling in the Sales & Marketing industry. The Sales & Marketing 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.
Consumer confidence and its impact on Gummer Labeling 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.
Technology acceleration in Forth Industrial Revolution
– Gummer Labeling has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Gummer Labeling 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.
Increasing wage structure of Gummer Labeling
– 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 Gummer Labeling.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Marine Stewardship Council, Gummer Labeling may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gummer Labeling with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Gummer Labeling 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.
Stagnating economy with rate increase
– Gummer Labeling 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.
Weighted SWOT Analysis of Marine Stewardship Council 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 Marine Stewardship Council 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 Marine Stewardship Council 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 Marine Stewardship Council 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 Marine Stewardship Council 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 Gummer Labeling needs to make to build a sustainable competitive advantage.
