Yalla Momos: Expansion Dilemmas of a Small Business SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Yalla Momos: Expansion Dilemmas of a Small Business
In 2015, the owner and the founder of a restaurant business in Dubai was concerned about the company's future expansion and growth. Although it was doing well in terms of profitability, a financial forecast was required for the following year, particularly in light of tough competition in the restaurant business in Dubai. The authors Anupam Mehta and Vimi Jham are affiliated with Institute of Management Technology, Dubai.
Swot Analysis of "Yalla Momos: Expansion Dilemmas of a Small Business" written by Anupam Mehta, Vimi Jham includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dubai Restaurant facing as an external strategic factors. Some of the topics covered in Yalla Momos: Expansion Dilemmas of a Small Business case study are - Strategic Management Strategies, Budgeting, Costs, Financial analysis, Performance measurement and Global Business.
Some of the macro environment factors that can be used to understand the Yalla Momos: Expansion Dilemmas of a Small Business casestudy better are - – there is backlash against globalization, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, wage bills are increasing, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels,
supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Yalla Momos: Expansion Dilemmas of a Small Business
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Yalla Momos: Expansion Dilemmas of a Small Business case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dubai Restaurant, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dubai Restaurant operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Yalla Momos: Expansion Dilemmas of a Small Business can be done for the following purposes –
1. Strategic planning using facts provided in Yalla Momos: Expansion Dilemmas of a Small Business case study
2. Improving business portfolio management of Dubai Restaurant
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Dubai Restaurant
Strengths Yalla Momos: Expansion Dilemmas of a Small Business | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dubai Restaurant in Yalla Momos: Expansion Dilemmas of a Small Business Harvard Business Review case study are -
Organizational Resilience of Dubai Restaurant
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Dubai Restaurant does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Dubai Restaurant has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Yalla Momos: Expansion Dilemmas of a Small Business HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Dubai Restaurant digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Dubai Restaurant 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.
Successful track record of launching new products
– Dubai Restaurant has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Dubai Restaurant has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Analytics focus
– Dubai Restaurant 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 Anupam Mehta, Vimi Jham 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.
High brand equity
– Dubai Restaurant has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Dubai Restaurant to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Dubai Restaurant is one of the leading recruiters in the industry. Managers in the Yalla Momos: Expansion Dilemmas of a Small Business are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Dubai Restaurant has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Yalla Momos: Expansion Dilemmas of a Small Business 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.
Cross disciplinary teams
– Horizontal connected teams at the Dubai Restaurant are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Effective Research and Development (R&D)
– Dubai Restaurant has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Yalla Momos: Expansion Dilemmas of a Small Business - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Dubai Restaurant is present in almost all the verticals within the industry. This has provided firm in Yalla Momos: Expansion Dilemmas of a Small Business 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 Global Business industry
– Yalla Momos: Expansion Dilemmas of a Small Business firm has clearly differentiated products in the market place. This has enabled Dubai Restaurant to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Dubai Restaurant to invest into research and development (R&D) and innovation.
Weaknesses Yalla Momos: Expansion Dilemmas of a Small Business | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Yalla Momos: Expansion Dilemmas of a Small Business are -
Aligning sales with marketing
– It come across in the case study Yalla Momos: Expansion Dilemmas of a Small Business 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 Yalla Momos: Expansion Dilemmas of a Small Business can leverage the sales team experience to cultivate customer relationships as Dubai Restaurant is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Dubai Restaurant is dominated by functional specialists. It is not different from other players in the Global Business segment. Dubai Restaurant needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Dubai Restaurant to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Yalla Momos: Expansion Dilemmas of a Small Business, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Skills based hiring
– The stress on hiring functional specialists at Dubai Restaurant 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 decision making process
– As mentioned earlier in the report, Dubai Restaurant 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. Dubai Restaurant 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Dubai Restaurant is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Yalla Momos: Expansion Dilemmas of a Small Business can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Yalla Momos: Expansion Dilemmas of a Small Business 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 Dubai Restaurant has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Yalla Momos: Expansion Dilemmas of a Small Business, it seems that the employees of Dubai Restaurant 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.
Capital Spending Reduction
– Even during the low interest decade, Dubai Restaurant has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High cash cycle compare to competitors
Dubai Restaurant 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.
Interest costs
– Compare to the competition, Dubai Restaurant 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.
Opportunities Yalla Momos: Expansion Dilemmas of a Small Business | 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 Yalla Momos: Expansion Dilemmas of a Small Business 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, Dubai Restaurant can use these opportunities to build new business models that can help the communities that Dubai Restaurant operates in. Secondly it can use opportunities from government spending in Global Business sector.
Using analytics as competitive advantage
– Dubai Restaurant has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Yalla Momos: Expansion Dilemmas of a Small Business - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Dubai Restaurant to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Dubai Restaurant can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Dubai Restaurant 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.
Leveraging digital technologies
– Dubai Restaurant can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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 Dubai Restaurant in the consumer business. Now Dubai Restaurant can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Dubai Restaurant can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Dubai Restaurant can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Dubai Restaurant can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Dubai Restaurant has opened avenues for new revenue streams for the organization in the industry. This can help Dubai Restaurant to build a more holistic ecosystem as suggested in the Yalla Momos: Expansion Dilemmas of a Small Business case study. Dubai Restaurant can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Dubai Restaurant can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Yalla Momos: Expansion Dilemmas of a Small Business 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Dubai Restaurant is facing challenges because of the dominance of functional experts in the organization. Yalla Momos: Expansion Dilemmas of a Small Business 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
– Dubai Restaurant can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Learning at scale
– Online learning technologies has now opened space for Dubai Restaurant to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Threats Yalla Momos: Expansion Dilemmas of a Small Business External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Yalla Momos: Expansion Dilemmas of a Small Business are -
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Dubai Restaurant needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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. Dubai Restaurant will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Dubai Restaurant can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Yalla Momos: Expansion Dilemmas of a Small Business .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Yalla Momos: Expansion Dilemmas of a Small Business, Dubai Restaurant may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Increasing wage structure of Dubai Restaurant
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Dubai Restaurant.
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 Dubai Restaurant business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Dubai Restaurant is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Dubai Restaurant demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Regulatory challenges
– Dubai Restaurant 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 Global Business industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Dubai Restaurant in the Global Business industry. The Global Business 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.
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 Dubai Restaurant.
High dependence on third party suppliers
– Dubai Restaurant 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.
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 Dubai Restaurant in the Global Business sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Yalla Momos: Expansion Dilemmas of a Small Business 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 Yalla Momos: Expansion Dilemmas of a Small Business 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 Yalla Momos: Expansion Dilemmas of a Small Business 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 Yalla Momos: Expansion Dilemmas of a Small Business 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 Yalla Momos: Expansion Dilemmas of a Small Business 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 Dubai Restaurant needs to make to build a sustainable competitive advantage.