Case Study Description of Wingreens Farms: Sustainable Growth
In 2016, the managing director of Wingreens Farms, a social enterprise based in India, was considering the company's future. Wingreens Farms partnered with rural Indian farmers living in poverty to produce and sell homemade processed foods, including salsas, dipping sauces, hummus, garlic butter, breads, teas, organic fresh pickled sprouts, microgreens, and wheatgrass. This small company had a unique, sustainable, and profitable business model with a managed sales turnover worth ?160 million (US$2.4 million) in 2016. However, the managing director wondered whether Wingreens Farms could eventually transition from a small, personalized, family-owned company to a large systems- and process-driven organization. Could the company retain its commitment to ethical values and its handmade, labour-intensive production methods if it began competing against factory-produced, cheaper products from large, organized companies? Rajeev Kumra is affiliated with Indian Institute of Management Lucknow. Anjali Malik is affiliated with Bhavan's College Campus. Smitha Girija is affiliated with IILM Institute for Higher Education.
Swot Analysis of "Wingreens Farms: Sustainable Growth" written by Rajeev Kumra, Anjali Malik, Smitha Girija includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wingreens Farms facing as an external strategic factors. Some of the topics covered in Wingreens Farms: Sustainable Growth case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Wingreens Farms: Sustainable Growth casestudy better are - – central banks are concerned over increasing inflation, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, 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 commodity prices, there is backlash against globalization, etc
Introduction to SWOT Analysis of Wingreens Farms: Sustainable Growth
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Wingreens Farms: Sustainable Growth case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wingreens Farms, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wingreens Farms 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 Wingreens Farms: Sustainable Growth can be done for the following purposes –
1. Strategic planning using facts provided in Wingreens Farms: Sustainable Growth case study
2. Improving business portfolio management of Wingreens Farms
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Wingreens Farms
Strengths Wingreens Farms: Sustainable Growth | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wingreens Farms in Wingreens Farms: Sustainable Growth Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Wingreens Farms in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Wingreens Farms in the sector have low bargaining power. Wingreens Farms: Sustainable Growth has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Wingreens Farms to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Wingreens Farms is one of the most innovative firm in sector. Manager in Wingreens Farms: Sustainable Growth Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Leadership & Managing People industry
– Wingreens Farms: Sustainable Growth firm has clearly differentiated products in the market place. This has enabled Wingreens Farms to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Wingreens Farms to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Wingreens Farms 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.
Successful track record of launching new products
– Wingreens Farms has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Wingreens Farms 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.
Operational resilience
– The operational resilience strategy in the Wingreens Farms: Sustainable Growth 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 recruit top talent
– Wingreens Farms is one of the leading recruiters in the industry. Managers in the Wingreens Farms: Sustainable Growth are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Wingreens Farms 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 Wingreens Farms: Sustainable Growth - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Wingreens Farms 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 Wingreens Farms is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Wingreens Farms: Sustainable Growth Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Wingreens Farms 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.
Highly skilled collaborators
– Wingreens Farms 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 Wingreens Farms: Sustainable Growth HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Wingreens Farms: Sustainable Growth | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Wingreens Farms: Sustainable Growth are -
Lack of clear differentiation of Wingreens Farms products
– To increase the profitability and margins on the products, Wingreens Farms needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Wingreens Farms, firm in the HBR case study Wingreens Farms: Sustainable Growth needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Wingreens Farms is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Wingreens Farms: Sustainable Growth can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Wingreens Farms: Sustainable Growth 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 Wingreens Farms: Sustainable Growth can leverage the sales team experience to cultivate customer relationships as Wingreens Farms is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Wingreens Farms: Sustainable Growth, it seems that the employees of Wingreens Farms 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Wingreens Farms: Sustainable Growth, is just above the industry average. Wingreens Farms 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 star products
– The top 2 products and services of the firm as mentioned in the Wingreens Farms: Sustainable Growth 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 Wingreens Farms has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Wingreens Farms 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. Wingreens Farms 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.
Interest costs
– Compare to the competition, Wingreens Farms 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Wingreens Farms: Sustainable Growth, in the dynamic environment Wingreens Farms has struggled to respond to the nimble upstart competition. Wingreens Farms has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Wingreens Farms 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 - Wingreens Farms: Sustainable Growth should strive to include more intangible value offerings along with its core products and services.
Opportunities Wingreens Farms: Sustainable Growth | 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 Wingreens Farms: Sustainable Growth 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 Wingreens Farms to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Creating value in data economy
– The success of analytics program of Wingreens Farms has opened avenues for new revenue streams for the organization in the industry. This can help Wingreens Farms to build a more holistic ecosystem as suggested in the Wingreens Farms: Sustainable Growth case study. Wingreens Farms can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Wingreens Farms 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 Leadership & Managing People segment.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Wingreens Farms 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, Wingreens Farms: Sustainable Growth, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Wingreens Farms 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.
Better consumer reach
– The expansion of the 5G network will help Wingreens Farms to increase its market reach. Wingreens Farms 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.
Buying journey improvements
– Wingreens Farms can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Wingreens Farms: Sustainable Growth 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.
Developing new processes and practices
– Wingreens Farms can develop new processes and procedures in Leadership & Managing People 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
– Wingreens Farms can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Loyalty marketing
– Wingreens Farms 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Wingreens Farms can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wingreens Farms is facing challenges because of the dominance of functional experts in the organization. Wingreens Farms: Sustainable Growth 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Wingreens Farms in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Threats Wingreens Farms: Sustainable Growth External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Wingreens Farms: Sustainable Growth are -
Stagnating economy with rate increase
– Wingreens Farms can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
High dependence on third party suppliers
– Wingreens Farms 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.
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 Wingreens Farms.
Environmental challenges
– Wingreens Farms 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. Wingreens Farms can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Wingreens Farms: Sustainable Growth, Wingreens Farms may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wingreens Farms 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 Wingreens Farms: Sustainable Growth .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Wingreens Farms with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Wingreens Farms business can come under increasing regulations regarding data privacy, data security, etc.
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 Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Wingreens Farms can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Wingreens Farms is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Wingreens Farms needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Wingreens Farms has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Wingreens Farms needs to keep up with the evolution of technology in the Leadership & Managing People 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 Wingreens Farms: Sustainable Growth 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 Wingreens Farms: Sustainable Growth 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 Wingreens Farms: Sustainable Growth 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 Wingreens Farms: Sustainable Growth 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 Wingreens Farms: Sustainable Growth 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 Wingreens Farms needs to make to build a sustainable competitive advantage.
