Swot Analysis of "Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B)" written by James K. Sebenius, Ellen Knebel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Frey Talley facing as an external strategic factors. Some of the topics covered in Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) case study are - Strategic Management Strategies, Entrepreneurship, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , increasing energy prices, wage bills are increasing,
cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Frey Talley, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Frey Talley 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 Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) can be done for the following purposes –
1. Strategic planning using facts provided in Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) case study
2. Improving business portfolio management of Frey Talley
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 Frey Talley
Strengths Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Frey Talley in Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) Harvard Business Review case study are -
Innovation driven organization
– Frey Talley is one of the most innovative firm in sector. Manager in Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) 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 Frey Talley in the sector have low bargaining power. Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Frey Talley to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Frey Talley 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.
Learning organization
- Frey Talley 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 Frey Talley is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Frey Talley in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Frey Talley
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Frey Talley does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Frey Talley is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by James K. Sebenius, Ellen Knebel can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to lead change in Strategy & Execution field
– Frey Talley 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 Frey Talley in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Frey Talley has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Frey Talley 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
– Frey Talley has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) firm has clearly differentiated products in the market place. This has enabled Frey Talley to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Frey Talley to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Frey Talley 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.
Weaknesses Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) 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 Frey Talley has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, James K. Sebenius, Ellen Knebel suggests that, Frey Talley 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.
Skills based hiring
– The stress on hiring functional specialists at Frey Talley 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Frey Talley is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Frey Talley 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) 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 Frey Talley 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B), is just above the industry average. Frey Talley 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.
Low market penetration in new markets
– Outside its home market of Frey Talley, firm in the HBR case study Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Frey Talley 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. Frey Talley 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.
Slow to strategic competitive environment developments
– As Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) HBR case study mentions - Frey Talley 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.
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 Frey Talley supply chain. Even after few cautionary changes mentioned in the HBR case study - Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Frey Talley vulnerable to further global disruptions in South East Asia.
Opportunities Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) | 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 Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Frey Talley can use these opportunities to build new business models that can help the communities that Frey Talley operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Better consumer reach
– The expansion of the 5G network will help Frey Talley to increase its market reach. Frey Talley 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.
Creating value in data economy
– The success of analytics program of Frey Talley has opened avenues for new revenue streams for the organization in the industry. This can help Frey Talley to build a more holistic ecosystem as suggested in the Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) case study. Frey Talley can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Frey Talley can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Frey Talley can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) 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
– Frey Talley 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Frey Talley 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 Frey Talley to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Frey Talley 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.
Building a culture of innovation
– managers at Frey Talley 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.
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. Frey Talley can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Frey Talley can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Frey Talley 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. Frey Talley 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.
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 Frey Talley in the consumer business. Now Frey Talley can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) are -
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 Frey Talley in the Strategy & Execution sector and impact the bottomline of the organization.
Environmental challenges
– Frey Talley 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. Frey Talley can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
High dependence on third party suppliers
– Frey Talley 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.
Increasing wage structure of Frey Talley
– 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 Frey Talley.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Frey Talley with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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. Frey Talley 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.
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 Frey Talley business can come under increasing regulations regarding data privacy, data security, etc.
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 Frey Talley.
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. Frey Talley can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Frey Talley 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 Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) .
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.
Technology acceleration in Forth Industrial Revolution
– Frey Talley has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Frey Talley 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.
Weighted SWOT Analysis of Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) 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 Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) 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 Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) 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 Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) 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 Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart (B) 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 Frey Talley needs to make to build a sustainable competitive advantage.
