ConAgra Foods: The Next Chapter SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of ConAgra Foods: The Next Chapter
In 2005, CEO Bruce Rohde has almost completed the integration of ConAgra Foods' collection of 90 independent operating companies into a focused, value-added firm and was beginning to think about his successor. ConAgra had become the second largest food company and No. 1 food service supplier in the United States. Rohde believed that the company, with its solid portfolio of brands and history of leadership in important trends such as healthy foods, was ready to begin its next chapter as one of the great marketing companies, in league with Kraft Food or Coca-Cola. The job of the next CEO would be to unlock the enterprise value of the company in the face of continuing customer consolidation and increasingly diverse consumer requirements.
Swot Analysis of "ConAgra Foods: The Next Chapter" written by Ray A. Goldberg, Mary Shelman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Conagra Rohde facing as an external strategic factors. Some of the topics covered in ConAgra Foods: The Next Chapter case study are - Strategic Management Strategies, Change management, Competitive strategy, Leadership, Succession planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the ConAgra Foods: The Next Chapter casestudy better are - – cloud computing is disrupting traditional business models, geopolitical disruptions, technology disruption, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies,
supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of ConAgra Foods: The Next Chapter
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in ConAgra Foods: The Next Chapter case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Conagra Rohde, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Conagra Rohde 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 ConAgra Foods: The Next Chapter can be done for the following purposes –
1. Strategic planning using facts provided in ConAgra Foods: The Next Chapter case study
2. Improving business portfolio management of Conagra Rohde
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 Conagra Rohde
Strengths ConAgra Foods: The Next Chapter | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Conagra Rohde in ConAgra Foods: The Next Chapter Harvard Business Review case study are -
Innovation driven organization
– Conagra Rohde is one of the most innovative firm in sector. Manager in ConAgra Foods: The Next Chapter Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Conagra Rohde has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Conagra Rohde 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
– Conagra Rohde is one of the leading recruiters in the industry. Managers in the ConAgra Foods: The Next Chapter are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Conagra Rohde 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 Conagra Rohde is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in ConAgra Foods: The Next Chapter Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Conagra Rohde 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 ConAgra Foods: The Next Chapter - 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 Conagra Rohde in the sector have low bargaining power. ConAgra Foods: The Next Chapter has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Conagra Rohde to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Conagra Rohde has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Conagra Rohde to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Conagra Rohde in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the ConAgra Foods: The Next Chapter Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to lead change in Strategy & Execution field
– Conagra Rohde 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 Conagra Rohde in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Conagra Rohde 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 Ray A. Goldberg, Mary Shelman 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.
Diverse revenue streams
– Conagra Rohde is present in almost all the verticals within the industry. This has provided firm in ConAgra Foods: The Next Chapter 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.
Weaknesses ConAgra Foods: The Next Chapter | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ConAgra Foods: The Next Chapter are -
Lack of clear differentiation of Conagra Rohde products
– To increase the profitability and margins on the products, Conagra Rohde needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Conagra Rohde 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. Conagra Rohde 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the ConAgra Foods: The Next Chapter 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 Conagra Rohde has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study ConAgra Foods: The Next Chapter 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 Conagra Rohde 's lucrative customers.
Interest costs
– Compare to the competition, Conagra Rohde 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Conagra Rohde 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study ConAgra Foods: The Next Chapter, in the dynamic environment Conagra Rohde has struggled to respond to the nimble upstart competition. Conagra Rohde has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Conagra Rohde is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study ConAgra Foods: The Next Chapter 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 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 Conagra Rohde supply chain. Even after few cautionary changes mentioned in the HBR case study - ConAgra Foods: The Next Chapter, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Conagra Rohde vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study ConAgra Foods: The Next Chapter 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 ConAgra Foods: The Next Chapter can leverage the sales team experience to cultivate customer relationships as Conagra Rohde is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As ConAgra Foods: The Next Chapter HBR case study mentions - Conagra Rohde 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.
Opportunities ConAgra Foods: The Next Chapter | 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 ConAgra Foods: The Next Chapter are -
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 Conagra Rohde 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.
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 Conagra Rohde in the consumer business. Now Conagra Rohde can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Conagra Rohde to increase its market reach. Conagra Rohde 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.
Developing new processes and practices
– Conagra Rohde 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Conagra Rohde 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 Conagra Rohde to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Conagra Rohde 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Conagra Rohde is facing challenges because of the dominance of functional experts in the organization. ConAgra Foods: The Next Chapter 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.
Manufacturing automation
– Conagra Rohde 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.
Creating value in data economy
– The success of analytics program of Conagra Rohde has opened avenues for new revenue streams for the organization in the industry. This can help Conagra Rohde to build a more holistic ecosystem as suggested in the ConAgra Foods: The Next Chapter case study. Conagra Rohde can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Conagra Rohde 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. Conagra Rohde 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. Conagra Rohde 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.
Building a culture of innovation
– managers at Conagra Rohde 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Conagra Rohde 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.
Threats ConAgra Foods: The Next Chapter External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study ConAgra Foods: The Next Chapter are -
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 Conagra Rohde.
High dependence on third party suppliers
– Conagra Rohde 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.
Consumer confidence and its impact on Conagra Rohde 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.
Shortening product life cycle
– it is one of the major threat that Conagra Rohde 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. Conagra Rohde 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.
Stagnating economy with rate increase
– Conagra Rohde 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.
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 Conagra Rohde in the Strategy & Execution sector and impact the bottomline 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.
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. Conagra Rohde can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Conagra Rohde 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Conagra Rohde with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Conagra Rohde
– 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 Conagra Rohde.
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. Conagra Rohde needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of ConAgra Foods: The Next Chapter 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 ConAgra Foods: The Next Chapter 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 ConAgra Foods: The Next Chapter 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 ConAgra Foods: The Next Chapter 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 ConAgra Foods: The Next Chapter 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 Conagra Rohde needs to make to build a sustainable competitive advantage.
