Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children
In response to growing concern about childhood obesity, in February 2006 the Council of Better Business Bureaus (CBBB) announced an initiative to examine its self-regulatory program on children's advertising. The existing program was a voluntary cross-industry program that monitored advertisements directed to children. However, the program did not stipulate which products companies could or could not advertise to children. In response to calls for action on childhood obesity, the CBBB was considering a number of approaches, including revising children's advertising guidelines, but staying within the basic parameters of the current program. Alternatively, the CBBB was considering launching a new self-regulatory program in which participating firms would constrain the amount of their children-targeted advertising of less-nutritious products. It was widely believed that children's food advertising was a major contributor to childhood obesity, and within the food-advertising category, considerable attention was directed to advertisements of children's presweetened cereals. The major ready-to-eat (RTE) cereal manufacturers, such as Kellogg's and General Mills, were supporters of the CBBB self-regulation programs and were invited to participate in the CBBB initiative. Each manufacturer had been taking different individual approaches to address the concerns of childhood obesity. The case discussion focuses on what actions General Mills should take with respect to the CBBB initiative and on its own.
Authors :: Felix Oberholzer-Gee, Dennis Yao, Britta Kelley, Lizzie Gomez
Swot Analysis of "Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children" written by Felix Oberholzer-Gee, Dennis Yao, Britta Kelley, Lizzie Gomez includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cbbb Obesity facing as an external strategic factors. Some of the topics covered in Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children case study are - Strategic Management Strategies, Marketing, Regulation, Strategy and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children casestudy better are - – central banks are concerned over increasing inflation, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, technology disruption, increasing household debt because of falling income levels,
increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cbbb Obesity, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cbbb Obesity 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 Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children can be done for the following purposes –
1. Strategic planning using facts provided in Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children case study
2. Improving business portfolio management of Cbbb Obesity
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 Cbbb Obesity
Strengths Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cbbb Obesity in Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children Harvard Business Review case study are -
Sustainable margins compare to other players in Sales & Marketing industry
– Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children firm has clearly differentiated products in the market place. This has enabled Cbbb Obesity to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Cbbb Obesity to invest into research and development (R&D) and innovation.
High brand equity
– Cbbb Obesity has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cbbb Obesity to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Sales & Marketing field
– Cbbb Obesity 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 Cbbb Obesity in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Cbbb Obesity is one of the most innovative firm in sector. Manager in Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children 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
– Cbbb Obesity is present in almost all the verticals within the industry. This has provided firm in Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children 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.
Strong track record of project management
– Cbbb Obesity is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Cbbb Obesity 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 Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children - 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 Cbbb Obesity in the sector have low bargaining power. Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cbbb Obesity to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Cbbb Obesity digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cbbb Obesity 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.
Learning organization
- Cbbb Obesity 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 Cbbb Obesity is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Cbbb Obesity 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.
Operational resilience
– The operational resilience strategy in the Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children 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.
Weaknesses Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children 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 Cbbb Obesity has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children 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 Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children can leverage the sales team experience to cultivate customer relationships as Cbbb Obesity is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cbbb Obesity is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Cbbb Obesity 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.
Increasing silos among functional specialists
– The organizational structure of Cbbb Obesity is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Cbbb Obesity needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cbbb Obesity to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Cbbb Obesity 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.
Need for greater diversity
– Cbbb Obesity 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.
Lack of clear differentiation of Cbbb Obesity products
– To increase the profitability and margins on the products, Cbbb Obesity needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Cbbb Obesity 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children, it seems that the employees of Cbbb Obesity 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.
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 Cbbb Obesity supply chain. Even after few cautionary changes mentioned in the HBR case study - Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cbbb Obesity vulnerable to further global disruptions in South East Asia.
Opportunities Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children | 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 Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cbbb Obesity is facing challenges because of the dominance of functional experts in the organization. Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Cbbb Obesity 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. Cbbb Obesity 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
– Cbbb Obesity can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cbbb Obesity 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, Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cbbb Obesity 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 Cbbb Obesity 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, Cbbb Obesity can use these opportunities to build new business models that can help the communities that Cbbb Obesity operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cbbb Obesity 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.
Better consumer reach
– The expansion of the 5G network will help Cbbb Obesity to increase its market reach. Cbbb Obesity 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cbbb Obesity 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.
Leveraging digital technologies
– Cbbb Obesity 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.
Building a culture of innovation
– managers at Cbbb Obesity 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.
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. Cbbb Obesity can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Cbbb Obesity 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.
Threats Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children are -
Shortening product life cycle
– it is one of the major threat that Cbbb Obesity is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cbbb Obesity 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.
Regulatory challenges
– Cbbb Obesity 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.
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. Cbbb Obesity needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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 Cbbb Obesity 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, Cbbb Obesity 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 Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children .
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. Cbbb Obesity 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.
Increasing wage structure of Cbbb Obesity
– 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 Cbbb Obesity.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children, Cbbb Obesity 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.
Environmental challenges
– Cbbb Obesity 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. Cbbb Obesity can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Stagnating economy with rate increase
– Cbbb Obesity 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.
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 Cbbb Obesity.
Weighted SWOT Analysis of Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children 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 Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children 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 Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children 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 Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children 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 Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children 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 Cbbb Obesity needs to make to build a sustainable competitive advantage.
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