Perdue Farms Inc.: Antibiotic Use in Hatcheries SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Perdue Farms Inc.: Antibiotic Use in Hatcheries
With increasing attention from consumers surrounding food safety and public health, it comes at no surprise that Perdue Farms is considering eliminating antibiotic use in its poultry operations. Perdue is positioned to receive positive responses from reducing antibiotic usage, but the question of feasibility in implementation remains as the producer had previously failed to phase-out antibiotics. From this case, students will structure argumentative thought around causes of CSR strategies and how CSR impacts business operations
Swot Analysis of "Perdue Farms Inc.: Antibiotic Use in Hatcheries" written by Andrew Hoffman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Perdue Antibiotic facing as an external strategic factors. Some of the topics covered in Perdue Farms Inc.: Antibiotic Use in Hatcheries case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Perdue Farms Inc.: Antibiotic Use in Hatcheries casestudy better are - – cloud computing is disrupting traditional business models, technology disruption, wage bills are increasing, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China,
central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Perdue Farms Inc.: Antibiotic Use in Hatcheries
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Perdue Farms Inc.: Antibiotic Use in Hatcheries case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Perdue Antibiotic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Perdue Antibiotic 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 Perdue Farms Inc.: Antibiotic Use in Hatcheries can be done for the following purposes –
1. Strategic planning using facts provided in Perdue Farms Inc.: Antibiotic Use in Hatcheries case study
2. Improving business portfolio management of Perdue Antibiotic
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 Perdue Antibiotic
Strengths Perdue Farms Inc.: Antibiotic Use in Hatcheries | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Perdue Antibiotic in Perdue Farms Inc.: Antibiotic Use in Hatcheries Harvard Business Review case study are -
Ability to recruit top talent
– Perdue Antibiotic is one of the leading recruiters in the industry. Managers in the Perdue Farms Inc.: Antibiotic Use in Hatcheries are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Strategy & Execution field
– Perdue Antibiotic 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 Perdue Antibiotic in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Perdue Antibiotic is present in almost all the verticals within the industry. This has provided firm in Perdue Farms Inc.: Antibiotic Use in Hatcheries 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Perdue Antibiotic digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Perdue Antibiotic 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.
Innovation driven organization
– Perdue Antibiotic is one of the most innovative firm in sector. Manager in Perdue Farms Inc.: Antibiotic Use in Hatcheries Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Perdue Antibiotic in the sector have low bargaining power. Perdue Farms Inc.: Antibiotic Use in Hatcheries has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Perdue Antibiotic to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Perdue Antibiotic 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.
Organizational Resilience of Perdue Antibiotic
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Perdue Antibiotic does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Perdue Antibiotic has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Perdue Antibiotic 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.
Training and development
– Perdue Antibiotic has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Perdue Farms Inc.: Antibiotic Use in Hatcheries 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.
Operational resilience
– The operational resilience strategy in the Perdue Farms Inc.: Antibiotic Use in Hatcheries 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.
Learning organization
- Perdue Antibiotic 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 Perdue Antibiotic is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Perdue Farms Inc.: Antibiotic Use in Hatcheries Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Perdue Farms Inc.: Antibiotic Use in Hatcheries | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Perdue Farms Inc.: Antibiotic Use in Hatcheries are -
Lack of clear differentiation of Perdue Antibiotic products
– To increase the profitability and margins on the products, Perdue Antibiotic needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Perdue Farms Inc.: Antibiotic Use in Hatcheries, in the dynamic environment Perdue Antibiotic has struggled to respond to the nimble upstart competition. Perdue Antibiotic has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Perdue Farms Inc.: Antibiotic Use in Hatcheries HBR case study mentions - Perdue Antibiotic 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.
Slow decision making process
– As mentioned earlier in the report, Perdue Antibiotic has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Perdue Antibiotic even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Interest costs
– Compare to the competition, Perdue Antibiotic 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.
Skills based hiring
– The stress on hiring functional specialists at Perdue Antibiotic 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 Perdue Farms Inc.: Antibiotic Use in Hatcheries 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 Perdue Antibiotic 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Perdue Farms Inc.: Antibiotic Use in Hatcheries, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Perdue Antibiotic is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Perdue Farms Inc.: Antibiotic Use in Hatcheries can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Perdue Antibiotic 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Perdue Antibiotic 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.
Opportunities Perdue Farms Inc.: Antibiotic Use in Hatcheries | 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 Perdue Farms Inc.: Antibiotic Use in Hatcheries are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Perdue Antibiotic is facing challenges because of the dominance of functional experts in the organization. Perdue Farms Inc.: Antibiotic Use in Hatcheries 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.
Buying journey improvements
– Perdue Antibiotic can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Perdue Farms Inc.: Antibiotic Use in Hatcheries suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Perdue Antibiotic can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Perdue Antibiotic has opened avenues for new revenue streams for the organization in the industry. This can help Perdue Antibiotic to build a more holistic ecosystem as suggested in the Perdue Farms Inc.: Antibiotic Use in Hatcheries case study. Perdue Antibiotic 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 Strategy & Execution industry, but it has also influenced the consumer preferences. Perdue Antibiotic can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Perdue Antibiotic 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.
Better consumer reach
– The expansion of the 5G network will help Perdue Antibiotic to increase its market reach. Perdue Antibiotic 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.
Learning at scale
– Online learning technologies has now opened space for Perdue Antibiotic 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Perdue Antibiotic 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.
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. Perdue Antibiotic can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Perdue Antibiotic 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. Perdue Antibiotic 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.
Using analytics as competitive advantage
– Perdue Antibiotic 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 Perdue Farms Inc.: Antibiotic Use in Hatcheries - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Perdue Antibiotic to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Perdue Antibiotic 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 Perdue Farms Inc.: Antibiotic Use in Hatcheries External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Perdue Farms Inc.: Antibiotic Use in Hatcheries are -
Stagnating economy with rate increase
– Perdue Antibiotic 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.
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. Perdue Antibiotic 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.
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. Perdue Antibiotic can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Perdue Antibiotic business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Perdue Antibiotic 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. Perdue Antibiotic can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Perdue Farms Inc.: Antibiotic Use in Hatcheries, Perdue Antibiotic 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Perdue Antibiotic 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
– Perdue Antibiotic 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Perdue Antibiotic in the Strategy & Execution industry. The Strategy & Execution 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.
Increasing wage structure of Perdue Antibiotic
– 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 Perdue Antibiotic.
Consumer confidence and its impact on Perdue Antibiotic 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 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.
Weighted SWOT Analysis of Perdue Farms Inc.: Antibiotic Use in Hatcheries 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 Perdue Farms Inc.: Antibiotic Use in Hatcheries 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 Perdue Farms Inc.: Antibiotic Use in Hatcheries 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 Perdue Farms Inc.: Antibiotic Use in Hatcheries 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 Perdue Farms Inc.: Antibiotic Use in Hatcheries 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 Perdue Antibiotic needs to make to build a sustainable competitive advantage.
