DO & CO: Gourmet Entertainment SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of DO & CO: Gourmet Entertainment
This case is about a global catering, restaurant, and hospitality company, DO & CO, growing geographically with its existing businesses while also adding new brands to its portfolio. The company had $1 billion in revenues in 2015 from its three divisions: airline catering; international event catering; and restaurants, lounges, hotels, and retail. DO & CO had limitless opportunities to grow along three dimensions. It had operations in only 10 countries, while its competitors in airline catering were active in up to 50 countries. Thus, geographic expansion was one of the key growth options. DO & CO could also offer more to its existing clients in existing markets, providing vertical growth opportunities. It could also pursue an added-value approach by bringing new formats to existing markets. The last avenue of growth was more opportunistic and came from acquiring new brands in existing or new markets. However, the company had a policy of promoting from within, particularly with its chefs, and it took time to develop the necessary talent. Now DO & CO faced a decision: What type of growth should it pursue, and at what pace?
Swot Analysis of "DO & CO: Gourmet Entertainment" written by Juan Alcacer, Esel Cekin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Catering Existing facing as an external strategic factors. Some of the topics covered in DO & CO: Gourmet Entertainment case study are - Strategic Management Strategies, Competition, Globalization, Growth strategy, Leading teams, Supply chain, Talent management and Strategy & Execution.
Some of the macro environment factors that can be used to understand the DO & CO: Gourmet Entertainment casestudy better are - – technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, talent flight as more people leaving formal jobs, there is backlash against globalization, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion,
increasing commodity prices, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of DO & CO: Gourmet Entertainment
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in DO & CO: Gourmet Entertainment case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Catering Existing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Catering Existing 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 DO & CO: Gourmet Entertainment can be done for the following purposes –
1. Strategic planning using facts provided in DO & CO: Gourmet Entertainment case study
2. Improving business portfolio management of Catering Existing
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 Catering Existing
Strengths DO & CO: Gourmet Entertainment | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Catering Existing in DO & CO: Gourmet Entertainment Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Catering Existing are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Catering Existing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Catering Existing 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.
Sustainable margins compare to other players in Strategy & Execution industry
– DO & CO: Gourmet Entertainment firm has clearly differentiated products in the market place. This has enabled Catering Existing to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Catering Existing to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Catering Existing in the sector have low bargaining power. DO & CO: Gourmet Entertainment has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Catering Existing to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Catering Existing 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.
Strong track record of project management
– Catering Existing is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Catering Existing has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Catering Existing to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Catering Existing 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 DO & CO: Gourmet Entertainment - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Catering Existing 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 Catering Existing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in DO & CO: Gourmet Entertainment Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Catering Existing 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 DO & CO: Gourmet Entertainment HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Catering Existing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Catering Existing 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
– Catering Existing is one of the most innovative firm in sector. Manager in DO & CO: Gourmet Entertainment Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses DO & CO: Gourmet Entertainment | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of DO & CO: Gourmet Entertainment are -
High operating costs
– Compare to the competitors, firm in the HBR case study DO & CO: Gourmet Entertainment 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 Catering Existing 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Catering Existing is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Catering Existing needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Catering Existing to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study DO & CO: Gourmet Entertainment 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 DO & CO: Gourmet Entertainment can leverage the sales team experience to cultivate customer relationships as Catering Existing is planning to shift buying processes online.
High cash cycle compare to competitors
Catering Existing 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.
Low market penetration in new markets
– Outside its home market of Catering Existing, firm in the HBR case study DO & CO: Gourmet Entertainment needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Catering Existing 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.
Products dominated business model
– Even though Catering Existing 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 - DO & CO: Gourmet Entertainment should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study DO & CO: Gourmet Entertainment, it seems that the employees of Catering Existing 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 bargaining power of channel partners
– Because of the regulatory requirements, Juan Alcacer, Esel Cekin suggests that, Catering Existing 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.
Lack of clear differentiation of Catering Existing products
– To increase the profitability and margins on the products, Catering Existing 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 Catering Existing supply chain. Even after few cautionary changes mentioned in the HBR case study - DO & CO: Gourmet Entertainment, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Catering Existing vulnerable to further global disruptions in South East Asia.
Opportunities DO & CO: Gourmet Entertainment | 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 DO & CO: Gourmet Entertainment are -
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 Catering Existing in the consumer business. Now Catering Existing can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Catering Existing can use these opportunities to build new business models that can help the communities that Catering Existing operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Leveraging digital technologies
– Catering Existing 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. Catering Existing can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Catering Existing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. DO & CO: Gourmet Entertainment 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.
Manufacturing automation
– Catering Existing 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Catering Existing 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Catering Existing 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, DO & CO: Gourmet Entertainment, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Catering Existing 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. Catering Existing 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.
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 Catering Existing 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.
Creating value in data economy
– The success of analytics program of Catering Existing has opened avenues for new revenue streams for the organization in the industry. This can help Catering Existing to build a more holistic ecosystem as suggested in the DO & CO: Gourmet Entertainment case study. Catering Existing can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Catering Existing 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Catering Existing 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 Catering Existing to hire the very best people irrespective of their geographical location.
Threats DO & CO: Gourmet Entertainment External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study DO & CO: Gourmet Entertainment are -
Stagnating economy with rate increase
– Catering Existing 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.
High dependence on third party suppliers
– Catering Existing high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study DO & CO: Gourmet Entertainment, Catering Existing 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 .
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 Catering Existing.
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. Catering Existing 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.
Technology acceleration in Forth Industrial Revolution
– Catering Existing has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Catering Existing 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.
Environmental challenges
– Catering Existing 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. Catering Existing can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Catering Existing 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 DO & CO: Gourmet Entertainment .
Consumer confidence and its impact on Catering Existing 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.
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. Catering Existing needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Catering Existing business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
Weighted SWOT Analysis of DO & CO: Gourmet Entertainment 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 DO & CO: Gourmet Entertainment 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 DO & CO: Gourmet Entertainment 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 DO & CO: Gourmet Entertainment 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 DO & CO: Gourmet Entertainment 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 Catering Existing needs to make to build a sustainable competitive advantage.