Bimbo Group and Papalote Museo del Nino, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Bimbo Group and Papalote Museo del Nino, Spanish Version

In the early 1990s, the Mexican Grupo Bimbo was a leader in the world food industry, operating in 16 countries. In November 1993, Papalote Children's Museum (Papalote Museo del Nino) was created in Mexico City. This civil society organization intended to contribute to children's intellectual and emotional development through interactive and educational games and experiments. Shortly after its creation, the museum entered into a collaborative agreement with Bimbo, and the company agreed to sponsor several exhibitions in exchange for brand exposure on museum premises. Eventually, both parties jointly developed new activities such as the Public School Sponsoring Program, which covered the expenses for low-income children's visits to Papalote Children's Museum. Through sponsorships, the company contributed to several museum programs, such as the "Mobile Papalote"--a traveling version of the museum touring other regions in the country.

Authors :: Carlos Romero, Angel Maass

Topics :: Strategy & Execution

Tags :: Generational issues, Joint ventures, Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Bimbo Group and Papalote Museo del Nino, Spanish Version" written by Carlos Romero, Angel Maass includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Papalote Museum facing as an external strategic factors. Some of the topics covered in Bimbo Group and Papalote Museo del Nino, Spanish Version case study are - Strategic Management Strategies, Generational issues, Joint ventures, Social enterprise, Social responsibility and Strategy & Execution.

Some of the macro environment factors that can be used to understand the Bimbo Group and Papalote Museo del Nino, Spanish Version casestudy better are - – technology disruption, supply chains are disrupted by pandemic , there is backlash against globalization, cloud computing is disrupting traditional business models, increasing energy prices, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, increasing household debt because of falling income levels, etc

---

---

---

---

Introduction to SWOT Analysis of Bimbo Group and Papalote Museo del Nino, Spanish Version

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bimbo Group and Papalote Museo del Nino, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Papalote Museum, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Papalote Museum 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 Bimbo Group and Papalote Museo del Nino, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Bimbo Group and Papalote Museo del Nino, Spanish Version case study
2. Improving business portfolio management of Papalote Museum
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Papalote Museum

---

Strengths Bimbo Group and Papalote Museo del Nino, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Papalote Museum in Bimbo Group and Papalote Museo del Nino, Spanish Version Harvard Business Review case study are -

Highly skilled collaborators

– Papalote Museum 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 Bimbo Group and Papalote Museo del Nino, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Ability to lead change in Strategy & Execution field

– Papalote Museum 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 Papalote Museum in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Cross disciplinary teams

– Horizontal connected teams at the Papalote Museum are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.

Digital Transformation in Strategy & Execution segment

- digital transformation varies from industry to industry. For Papalote Museum digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Papalote Museum 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.

Successful track record of launching new products

– Papalote Museum has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Papalote Museum 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.

Effective Research and Development (R&D)

– Papalote Museum 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 Bimbo Group and Papalote Museo del Nino, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Diverse revenue streams

– Papalote Museum is present in almost all the verticals within the industry. This has provided firm in Bimbo Group and Papalote Museo del Nino, Spanish Version 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

– Papalote Museum is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Operational resilience

– The operational resilience strategy in the Bimbo Group and Papalote Museo del Nino, Spanish Version 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.

Training and development

– Papalote Museum has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Bimbo Group and Papalote Museo del Nino, Spanish Version Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

High brand equity

– Papalote Museum has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Papalote Museum to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Analytics focus

– Papalote Museum 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 Carlos Romero, Angel Maass 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.

---

---

Weaknesses Bimbo Group and Papalote Museo del Nino, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Bimbo Group and Papalote Museo del Nino, Spanish Version are -

Lack of clear differentiation of Papalote Museum products

– To increase the profitability and margins on the products, Papalote Museum needs to provide more differentiated products than what it is currently offering in the marketplace.

Low market penetration in new markets

– Outside its home market of Papalote Museum, firm in the HBR case study Bimbo Group and Papalote Museo del Nino, Spanish Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Slow to strategic competitive environment developments

– As Bimbo Group and Papalote Museo del Nino, Spanish Version HBR case study mentions - Papalote Museum takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

Capital Spending Reduction

– Even during the low interest decade, Papalote Museum 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.

Skills based hiring

– The stress on hiring functional specialists at Papalote Museum 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 operating costs

– Compare to the competitors, firm in the HBR case study Bimbo Group and Papalote Museo del Nino, Spanish Version 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 Papalote Museum 's lucrative customers.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Bimbo Group and Papalote Museo del Nino, Spanish Version 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 Papalote Museum has relatively successful track record of launching new products.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Papalote Museum is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Bimbo Group and Papalote Museo del Nino, Spanish Version 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, Papalote Museum 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.

Aligning sales with marketing

– It come across in the case study Bimbo Group and Papalote Museo del Nino, Spanish Version 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 Bimbo Group and Papalote Museo del Nino, Spanish Version can leverage the sales team experience to cultivate customer relationships as Papalote Museum is planning to shift buying processes online.

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 Papalote Museum supply chain. Even after few cautionary changes mentioned in the HBR case study - Bimbo Group and Papalote Museo del Nino, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Papalote Museum vulnerable to further global disruptions in South East Asia.

---

Opportunities Bimbo Group and Papalote Museo del Nino, Spanish Version | 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 Bimbo Group and Papalote Museo del Nino, Spanish Version are -

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Papalote Museum 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. Papalote Museum 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.

Learning at scale

– Online learning technologies has now opened space for Papalote Museum 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Papalote Museum 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.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Papalote Museum can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Papalote Museum can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Better consumer reach

– The expansion of the 5G network will help Papalote Museum to increase its market reach. Papalote Museum 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.

Using analytics as competitive advantage

– Papalote Museum 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 Bimbo Group and Papalote Museo del Nino, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Papalote Museum to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Papalote Museum can use these opportunities to build new business models that can help the communities that Papalote Museum operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.

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 Papalote Museum in the consumer business. Now Papalote Museum can target international markets with far fewer capital restrictions requirements than the existing system.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Papalote Museum in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.

Loyalty marketing

– Papalote Museum has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Papalote Museum 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, Bimbo Group and Papalote Museo del Nino, Spanish Version, 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 Papalote Museum 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 Papalote Museum to hire the very best people irrespective of their geographical location.

---

Threats Bimbo Group and Papalote Museo del Nino, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Bimbo Group and Papalote Museo del Nino, Spanish Version are -

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

– Papalote Museum 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Bimbo Group and Papalote Museo del Nino, Spanish Version, Papalote Museum may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .

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 Papalote Museum in the Strategy & Execution sector and impact the bottomline of the organization.

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 Papalote Museum.

Regulatory challenges

– Papalote Museum 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 Strategy & Execution industry regulations.

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 Papalote Museum business can come under increasing regulations regarding data privacy, data security, etc.

Environmental challenges

– Papalote Museum 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. Papalote Museum can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.

Increasing wage structure of Papalote Museum

– 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 Papalote Museum.

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.

Technology acceleration in Forth Industrial Revolution

– Papalote Museum has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Papalote Museum needs to keep up with the evolution of technology in the Strategy & Execution 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.

Consumer confidence and its impact on Papalote Museum 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.

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. Papalote Museum will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

---

Weighted SWOT Analysis of Bimbo Group and Papalote Museo del Nino, Spanish Version 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 Bimbo Group and Papalote Museo del Nino, Spanish Version 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 Bimbo Group and Papalote Museo del Nino, Spanish Version 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 Bimbo Group and Papalote Museo del Nino, Spanish Version 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 Bimbo Group and Papalote Museo del Nino, Spanish Version 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 Papalote Museum needs to make to build a sustainable competitive advantage.

--- ---