MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer
Accompanied by product #PON334.A two-party, multi-issue negotiation between a farmer and a neighbor over the sale or lease of part of the neighbor's land A Vermont farmer somewhat interested in the possibility of expanding activities has considered going into maple syrup production, wood cutting, or increasing the farmer's cow herd. The farmer's neighbor is a person from Boston who only comes up on occasional weekends and holidays and is currently interested in selling or leasing at least part of the property. In preliminary discussions, the two have differed significantly on their assessments of the land owned by the Bostonian, but have agreed to meet and discuss the situation further. This is a role play case.
Swot Analysis of "MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer" written by Roger Fisher, Andrew Clarkson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Farmer Farmer's facing as an external strategic factors. Some of the topics covered in MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer casestudy better are - – increasing transportation and logistics costs, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings,
increasing energy prices, wage bills are increasing, etc
Introduction to SWOT Analysis of MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Farmer Farmer's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Farmer Farmer's 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 MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer can be done for the following purposes –
1. Strategic planning using facts provided in MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer case study
2. Improving business portfolio management of Farmer Farmer's
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 Farmer Farmer's
Strengths MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Farmer Farmer's in MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer Harvard Business Review case study are -
Diverse revenue streams
– Farmer Farmer's is present in almost all the verticals within the industry. This has provided firm in MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer 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.
Sustainable margins compare to other players in Strategy & Execution industry
– MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer firm has clearly differentiated products in the market place. This has enabled Farmer Farmer's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Farmer Farmer's to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Farmer Farmer's 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 MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Farmer Farmer's 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 MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Farmer Farmer's is one of the leading recruiters in the industry. Managers in the MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer 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
– Farmer Farmer's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Farmer Farmer's 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.
High switching costs
– The high switching costs that Farmer Farmer's 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.
Low bargaining power of suppliers
– Suppliers of Farmer Farmer's in the sector have low bargaining power. MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Farmer Farmer's to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Farmer Farmer's is one of the most innovative firm in sector. Manager in MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Strategy & Execution field
– Farmer Farmer's 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 Farmer Farmer's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Farmer Farmer's 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 Roger Fisher, Andrew Clarkson 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.
Operational resilience
– The operational resilience strategy in the MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer 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.
Weaknesses MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer are -
High operating costs
– Compare to the competitors, firm in the HBR case study MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer 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 Farmer Farmer's 's lucrative customers.
Need for greater diversity
– Farmer Farmer's 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.
Slow to strategic competitive environment developments
– As MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer HBR case study mentions - Farmer Farmer's 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.
Products dominated business model
– Even though Farmer Farmer's 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 - MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Farmer Farmer's, firm in the HBR case study MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Farmer Farmer's 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.
High cash cycle compare to competitors
Farmer Farmer's 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Farmer Farmer's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer, is just above the industry average. Farmer Farmer's 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.
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 Farmer Farmer's supply chain. Even after few cautionary changes mentioned in the HBR case study - MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Farmer Farmer's vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer 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 MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer can leverage the sales team experience to cultivate customer relationships as Farmer Farmer's is planning to shift buying processes online.
Opportunities MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer | 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 MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Farmer Farmer's is facing challenges because of the dominance of functional experts in the organization. MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Farmer Farmer's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Farmer Farmer's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Farmer Farmer's to increase its market reach. Farmer Farmer's 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.
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. Farmer Farmer's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Farmer Farmer's can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Manufacturing automation
– Farmer Farmer's 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Farmer Farmer's 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, MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Farmer Farmer's has opened avenues for new revenue streams for the organization in the industry. This can help Farmer Farmer's to build a more holistic ecosystem as suggested in the MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer case study. Farmer Farmer's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Farmer Farmer's 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.
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 Farmer Farmer's in the consumer business. Now Farmer Farmer's can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Farmer Farmer's 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Farmer Farmer's 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.
Threats MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer are -
Technology acceleration in Forth Industrial Revolution
– Farmer Farmer's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Farmer Farmer's 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.
Stagnating economy with rate increase
– Farmer Farmer's 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Farmer Farmer's in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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.
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 Farmer Farmer's in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing wage structure of Farmer Farmer's
– 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 Farmer Farmer's.
Consumer confidence and its impact on Farmer Farmer's 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Farmer Farmer's 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 MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer .
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 Farmer Farmer's business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Farmer Farmer's 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.
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. Farmer Farmer's 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.
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 Farmer Farmer's.
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. Farmer Farmer's needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer 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 MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer 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 MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer 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 MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer 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 MOUNTAIN VIEW FARM - Confidential Instructions for the Farmer 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 Farmer Farmer's needs to make to build a sustainable competitive advantage.