Eat Me: The World on Small Plates SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Eat Me: The World on Small Plates
As Serena Shamash opened the doors to her newly renovated restaurant, the last thing she was expecting to see was two inches of water covering the floor of the bar. Yet, this was just another day in the life of an entrepreneur. She had overcome many obstacles over the emotionally charged three years it took to give birth to her business dream - Eat Me, The World on Small PlatesA?. Now that she had achieved this goal, what was next? Her main preoccupation recently was how to extract herself from the day-to-day operations of the restaurant in order to start the next phase of her business. Eat Me was expected to reach operating breakeven at the end of the year, a major milestone in its short life. Did Eat Me still require her full attention? Or was it time to move beyond the first unit and consider scaling up? What about launching a new concept? She had already started developing new ideas and was getting anxious not to get stuck in the daily grind of this industry. But how would she decide on which direction to pursue? Learning objectives: Entrepreneurial careers, starting a restaurant, affinity financing, managing growth in a service industry, managing relationships while starting a company, setting strategy, creating a value proposition in the restaurant industry, personnel management, key success factors in hospitality.
Swot Analysis of "Eat Me: The World on Small Plates" written by Benoit Leleux, Vikas Menon, Garrett DeCock, Hoi Wah Ma includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Eat Restaurant facing as an external strategic factors. Some of the topics covered in Eat Me: The World on Small Plates case study are - Strategic Management Strategies, Entrepreneurship, Leadership and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Eat Me: The World on Small Plates casestudy better are - – supply chains are disrupted by pandemic , increasing commodity prices, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, technology disruption, challanges to central banks by blockchain based private currencies, there is backlash against globalization,
banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Eat Me: The World on Small Plates
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Eat Me: The World on Small Plates case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Eat Restaurant, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Eat Restaurant 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 Eat Me: The World on Small Plates can be done for the following purposes –
1. Strategic planning using facts provided in Eat Me: The World on Small Plates case study
2. Improving business portfolio management of Eat Restaurant
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 Eat Restaurant
Strengths Eat Me: The World on Small Plates | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Eat Restaurant in Eat Me: The World on Small Plates Harvard Business Review case study are -
High brand equity
– Eat Restaurant has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Eat Restaurant to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Eat Restaurant 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 Eat Restaurant
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Eat Restaurant does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Eat Restaurant in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Eat Restaurant 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 Eat Me: The World on Small Plates - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Eat Restaurant 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 Eat Me: The World on Small Plates HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Eat Restaurant is present in almost all the verticals within the industry. This has provided firm in Eat Me: The World on Small Plates 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.
Low bargaining power of suppliers
– Suppliers of Eat Restaurant in the sector have low bargaining power. Eat Me: The World on Small Plates has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Eat Restaurant to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Eat Restaurant is one of the leading recruiters in the industry. Managers in the Eat Me: The World on Small Plates are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Eat Restaurant has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Eat Restaurant 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.
Innovation driven organization
– Eat Restaurant is one of the most innovative firm in sector. Manager in Eat Me: The World on Small Plates Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Strategy & Execution industry
– Eat Me: The World on Small Plates firm has clearly differentiated products in the market place. This has enabled Eat Restaurant to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Eat Restaurant to invest into research and development (R&D) and innovation.
Weaknesses Eat Me: The World on Small Plates | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Eat Me: The World on Small Plates are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Eat Me: The World on Small Plates, in the dynamic environment Eat Restaurant has struggled to respond to the nimble upstart competition. Eat Restaurant has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Eat Restaurant is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Eat Restaurant needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Eat Restaurant to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Eat Restaurant is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Eat Me: The World on Small Plates 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Eat Me: The World on Small Plates 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 Eat Restaurant has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Eat Me: The World on Small Plates, is just above the industry average. Eat Restaurant 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.
Capital Spending Reduction
– Even during the low interest decade, Eat Restaurant 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.
Need for greater diversity
– Eat Restaurant has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Aligning sales with marketing
– It come across in the case study Eat Me: The World on Small Plates 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 Eat Me: The World on Small Plates can leverage the sales team experience to cultivate customer relationships as Eat Restaurant is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Eat Restaurant 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.
Lack of clear differentiation of Eat Restaurant products
– To increase the profitability and margins on the products, Eat Restaurant needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Eat Restaurant supply chain. Even after few cautionary changes mentioned in the HBR case study - Eat Me: The World on Small Plates, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Eat Restaurant vulnerable to further global disruptions in South East Asia.
Opportunities Eat Me: The World on Small Plates | 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 Eat Me: The World on Small Plates are -
Manufacturing automation
– Eat Restaurant 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Eat Restaurant 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.
Developing new processes and practices
– Eat Restaurant 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.
Better consumer reach
– The expansion of the 5G network will help Eat Restaurant to increase its market reach. Eat Restaurant 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 Eat Restaurant 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Eat Restaurant 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, Eat Me: The World on Small Plates, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Eat Restaurant can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Eat Me: The World on Small Plates 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Eat Restaurant 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 Eat Restaurant to hire the very best people irrespective of their geographical location.
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. Eat Restaurant 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. Eat Restaurant 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Eat Restaurant is facing challenges because of the dominance of functional experts in the organization. Eat Me: The World on Small Plates 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.
Leveraging digital technologies
– Eat Restaurant 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.
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. Eat Restaurant can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Eat Restaurant 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 Eat Me: The World on Small Plates - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Eat Restaurant to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Eat Me: The World on Small Plates External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Eat Me: The World on Small Plates are -
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. Eat Restaurant needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Eat Restaurant.
Environmental challenges
– Eat Restaurant 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. Eat Restaurant can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Consumer confidence and its impact on Eat Restaurant 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 Eat Me: The World on Small Plates, Eat Restaurant 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 Eat Restaurant with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Eat Restaurant can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Eat Restaurant is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Eat Restaurant will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Eat Restaurant 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 Eat Me: The World on Small Plates .
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 Eat Restaurant business can come under increasing regulations regarding data privacy, data security, etc.
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 Eat Restaurant in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing wage structure of Eat Restaurant
– 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 Eat Restaurant.
Weighted SWOT Analysis of Eat Me: The World on Small Plates 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 Eat Me: The World on Small Plates 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 Eat Me: The World on Small Plates 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 Eat Me: The World on Small Plates 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 Eat Me: The World on Small Plates 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 Eat Restaurant needs to make to build a sustainable competitive advantage.
