Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett
The (A) case describes the situation of Cadbury Schweppes (CS) and its sugar confectionery business, in a state of 'satisfactory underperformance' in which past strategies and practices make it hard for new management to initiate change in this widely respected company. The (B) case shows how from 1997 to 1999 John Sunderland, the new CEO and a new divisional manager used value based management (VBM) as a vehicle for transforming respectively the company and the sugar confectionery division with strong emphasis on people and leadership practices. The (C) case describes how CS' performance management system was redesigned in line with the Managing for Value (MfV) philosophy. It illustrates the new management performance process in action in the beverages business in Spain, where the country manager is faced with major competitive challenges.
Authors :: Tomo Noda, Fares Boulos, Philippe Haspeslagh
Swot Analysis of "Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett" written by Tomo Noda, Fares Boulos, Philippe Haspeslagh includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cs Schweppes facing as an external strategic factors. Some of the topics covered in Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett case study are - Strategic Management Strategies, Compensation, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett casestudy better are - – central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, geopolitical disruptions, increasing energy prices, there is increasing trade war between United States & China,
challanges to central banks by blockchain based private currencies, technology disruption, etc
Introduction to SWOT Analysis of Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cs Schweppes, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cs Schweppes 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 Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett can be done for the following purposes –
1. Strategic planning using facts provided in Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett case study
2. Improving business portfolio management of Cs Schweppes
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 Cs Schweppes
Strengths Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cs Schweppes in Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Cs Schweppes in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Cs Schweppes 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 Tomo Noda, Fares Boulos, Philippe Haspeslagh 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.
Successful track record of launching new products
– Cs Schweppes has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cs Schweppes 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.
Learning organization
- Cs Schweppes 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 Cs Schweppes is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett 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.
Ability to lead change in Strategy & Execution field
– Cs Schweppes 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 Cs Schweppes in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Cs Schweppes
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cs Schweppes does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Cs Schweppes is present in almost all the verticals within the industry. This has provided firm in Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett 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.
High switching costs
– The high switching costs that Cs Schweppes 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett firm has clearly differentiated products in the market place. This has enabled Cs Schweppes to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Cs Schweppes to invest into research and development (R&D) and innovation.
Strong track record of project management
– Cs Schweppes is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Cs Schweppes digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cs Schweppes has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett are -
Aligning sales with marketing
– It come across in the case study Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett 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 Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett can leverage the sales team experience to cultivate customer relationships as Cs Schweppes is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Tomo Noda, Fares Boulos, Philippe Haspeslagh suggests that, Cs Schweppes 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 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 Cs Schweppes supply chain. Even after few cautionary changes mentioned in the HBR case study - Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cs Schweppes vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett HBR case study mentions - Cs Schweppes 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Cs Schweppes 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.
Low market penetration in new markets
– Outside its home market of Cs Schweppes, firm in the HBR case study Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Cs Schweppes products
– To increase the profitability and margins on the products, Cs Schweppes needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett, is just above the industry average. Cs Schweppes 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.
Interest costs
– Compare to the competition, Cs Schweppes 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett, it seems that the employees of Cs Schweppes 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 cash cycle compare to competitors
Cs Schweppes 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.
Opportunities Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett | 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 Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett are -
Leveraging digital technologies
– Cs Schweppes 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.
Developing new processes and practices
– Cs Schweppes can develop new processes and procedures in Strategy & Execution 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cs Schweppes 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 Cs Schweppes to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Cs Schweppes can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Cs Schweppes 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 Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cs Schweppes to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Cs Schweppes 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cs Schweppes can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Cs Schweppes in the consumer business. Now Cs Schweppes can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Cs Schweppes 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 Strategy & Execution segment.
Loyalty marketing
– Cs Schweppes 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.
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. Cs Schweppes 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. Cs Schweppes 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.
Creating value in data economy
– The success of analytics program of Cs Schweppes has opened avenues for new revenue streams for the organization in the industry. This can help Cs Schweppes to build a more holistic ecosystem as suggested in the Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett case study. Cs Schweppes can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Cs Schweppes can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Threats Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cs Schweppes with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cs Schweppes 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 Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett .
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 Cs Schweppes in the Strategy & Execution sector and impact the bottomline 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. Cs Schweppes needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Cs Schweppes 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.
Consumer confidence and its impact on Cs Schweppes 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett, Cs Schweppes 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 .
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cs Schweppes 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.
Environmental challenges
– Cs Schweppes 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. Cs Schweppes can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Cs Schweppes will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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 Cs Schweppes business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett 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 Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett 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 Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett 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 Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett 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 Cadbury Schweppes (A): The Strategic Dilemma of Trebor Bassett 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 Cs Schweppes needs to make to build a sustainable competitive advantage.
