Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values
Juchheim Co. Ltd. was a confectionery family firm located in Japan. The chief executive officer and owner faced two important issues related to the future success of the firm: managing succession into the next generation and determining the company's expansion strategy in the overseas market. Under the Japanese tradition of patriarchal primogeniture, the owner's eldest son was the heir apparent and would take over the company. However, the market scenario had changed; new demographic and economic conditions had brought challenges that the company had never faced before. Vanessa M. Strike is affiliated with University of British Columbia.
Swot Analysis of "Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values" written by Venessa M. Strike, Takao Kawamoto includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Juchheim Failthful facing as an external strategic factors. Some of the topics covered in Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values case study are - Strategic Management Strategies, Organizational culture, Succession planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google,
supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Juchheim Failthful, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Juchheim Failthful 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 Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values can be done for the following purposes –
1. Strategic planning using facts provided in Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values case study
2. Improving business portfolio management of Juchheim Failthful
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 Juchheim Failthful
Strengths Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Juchheim Failthful in Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Juchheim Failthful digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Juchheim Failthful 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.
Cross disciplinary teams
– Horizontal connected teams at the Juchheim Failthful 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.
Ability to lead change in Strategy & Execution field
– Juchheim Failthful 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 Juchheim Failthful in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Juchheim Failthful 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 Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values - 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 Juchheim Failthful in the sector have low bargaining power. Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Juchheim Failthful to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Juchheim Failthful has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values 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
– Juchheim Failthful has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Juchheim Failthful to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Juchheim Failthful 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 Juchheim Failthful is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Juchheim Failthful 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.
Successful track record of launching new products
– Juchheim Failthful has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Juchheim Failthful 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.
Ability to recruit top talent
– Juchheim Failthful is one of the leading recruiters in the industry. Managers in the Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Juchheim Failthful is one of the most innovative firm in sector. Manager in Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values, it seems that the employees of Juchheim Failthful 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.
Interest costs
– Compare to the competition, Juchheim Failthful 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.
Lack of clear differentiation of Juchheim Failthful products
– To increase the profitability and margins on the products, Juchheim Failthful 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 Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values, is just above the industry average. Juchheim Failthful 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Juchheim Failthful is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values 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 Juchheim Failthful 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Juchheim Failthful, firm in the HBR case study Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Juchheim Failthful 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. Juchheim Failthful 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.
Aligning sales with marketing
– It come across in the case study Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values 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 Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values can leverage the sales team experience to cultivate customer relationships as Juchheim Failthful is planning to shift buying processes online.
Products dominated business model
– Even though Juchheim Failthful has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Venessa M. Strike, Takao Kawamoto suggests that, Juchheim Failthful 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.
Opportunities Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values | 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 Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values are -
Buying journey improvements
– Juchheim Failthful can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values 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.
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. Juchheim Failthful can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Juchheim Failthful 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 Juchheim Failthful to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Juchheim Failthful 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.
Manufacturing automation
– Juchheim Failthful 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Juchheim Failthful can use these opportunities to build new business models that can help the communities that Juchheim Failthful operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Loyalty marketing
– Juchheim Failthful 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.
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 Juchheim Failthful 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.
Leveraging digital technologies
– Juchheim Failthful 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Juchheim Failthful can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Juchheim Failthful 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.
Building a culture of innovation
– managers at Juchheim Failthful 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.
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. Juchheim Failthful 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. Juchheim Failthful 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.
Threats Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values are -
Regulatory challenges
– Juchheim Failthful 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Juchheim Failthful 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.
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 Juchheim Failthful business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Juchheim Failthful 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.
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 Juchheim Failthful in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Juchheim Failthful 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 Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values .
Technology acceleration in Forth Industrial Revolution
– Juchheim Failthful has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Juchheim Failthful 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.
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. Juchheim Failthful can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Juchheim Failthful 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values, Juchheim Failthful 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 .
Increasing wage structure of Juchheim Failthful
– 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 Juchheim Failthful.
Shortening product life cycle
– it is one of the major threat that Juchheim Failthful is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values 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 Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values 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 Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values 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 Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values 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 Juchheim: The Failthful Pursuit of Flavour, Culture and Family Values 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 Juchheim Failthful needs to make to build a sustainable competitive advantage.
