Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe
Mhuri Enterprise had beaten the odds, and figured out a way to cut production costs to bring its pigs to market and make a profit. Small-scale enterprises faced a large number of financial, regulatory, and business barriers in Zimbabwe, a country where 70 percent of the population relied on agriculture as a source of income. Land reforms in 1998 had led to an increase in the number of small-to-medium enterprise farmers, but the lack of scale meant low productivity. This case study examines how Mhuri Enterprise, a cooperative pig farm that started with 30 families, restructured the value chain to cut production costs and established its own slaughterhouse facilities to circumvent monopolistic processing fees. The case offers a close look at the full range of fees and costs associated with a livestock ventures-including costs not unique to the situation in Zimbabwe.
Swot Analysis of "Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe" written by Hau Lee, Richard Chivaka includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mhuri Zimbabwe facing as an external strategic factors. Some of the topics covered in Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe case study are - Strategic Management Strategies, Economy, Emerging markets, Entrepreneurship, Marketing, Supply chain and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe casestudy better are - – talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, wage bills are increasing, increasing energy prices, supply chains are disrupted by pandemic ,
digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mhuri Zimbabwe, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mhuri Zimbabwe 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 Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe can be done for the following purposes –
1. Strategic planning using facts provided in Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe case study
2. Improving business portfolio management of Mhuri Zimbabwe
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mhuri Zimbabwe
Strengths Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mhuri Zimbabwe in Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe Harvard Business Review case study are -
High switching costs
– The high switching costs that Mhuri Zimbabwe 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.
Ability to lead change in Innovation & Entrepreneurship field
– Mhuri Zimbabwe 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 Mhuri Zimbabwe in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Mhuri Zimbabwe in the sector have low bargaining power. Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mhuri Zimbabwe to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Mhuri Zimbabwe 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 Mhuri Zimbabwe is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Mhuri Zimbabwe has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe 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.
Successful track record of launching new products
– Mhuri Zimbabwe has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mhuri Zimbabwe 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.
Highly skilled collaborators
– Mhuri Zimbabwe 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 Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Mhuri Zimbabwe
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mhuri Zimbabwe does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Mhuri Zimbabwe digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mhuri Zimbabwe 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe firm has clearly differentiated products in the market place. This has enabled Mhuri Zimbabwe to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Mhuri Zimbabwe to invest into research and development (R&D) and innovation.
High brand equity
– Mhuri Zimbabwe has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mhuri Zimbabwe to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Mhuri Zimbabwe in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe are -
Capital Spending Reduction
– Even during the low interest decade, Mhuri Zimbabwe 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.
Increasing silos among functional specialists
– The organizational structure of Mhuri Zimbabwe is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Mhuri Zimbabwe needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mhuri Zimbabwe to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Mhuri Zimbabwe 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 strategic competitive environment developments
– As Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe HBR case study mentions - Mhuri Zimbabwe 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.
Skills based hiring
– The stress on hiring functional specialists at Mhuri Zimbabwe has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mhuri Zimbabwe is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.
Need for greater diversity
– Mhuri Zimbabwe 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe, in the dynamic environment Mhuri Zimbabwe has struggled to respond to the nimble upstart competition. Mhuri Zimbabwe has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Mhuri Zimbabwe products
– To increase the profitability and margins on the products, Mhuri Zimbabwe needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Mhuri Zimbabwe 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 Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe | 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 Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe are -
Manufacturing automation
– Mhuri Zimbabwe can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
Building a culture of innovation
– managers at Mhuri Zimbabwe 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 Innovation & Entrepreneurship segment.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mhuri Zimbabwe 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, Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Mhuri Zimbabwe can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Mhuri Zimbabwe has opened avenues for new revenue streams for the organization in the industry. This can help Mhuri Zimbabwe to build a more holistic ecosystem as suggested in the Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe case study. Mhuri Zimbabwe can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Mhuri Zimbabwe 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 Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mhuri Zimbabwe to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mhuri Zimbabwe is facing challenges because of the dominance of functional experts in the organization. Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe 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.
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 Mhuri Zimbabwe 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mhuri Zimbabwe 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 Mhuri Zimbabwe to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Mhuri Zimbabwe 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Mhuri Zimbabwe can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Mhuri Zimbabwe to increase its market reach. Mhuri Zimbabwe 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.
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 Mhuri Zimbabwe in the consumer business. Now Mhuri Zimbabwe can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe are -
Environmental challenges
– Mhuri Zimbabwe 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. Mhuri Zimbabwe can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mhuri Zimbabwe with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe, Mhuri Zimbabwe may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mhuri Zimbabwe 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 Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe .
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 Mhuri Zimbabwe.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mhuri Zimbabwe 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 Mhuri Zimbabwe is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Mhuri Zimbabwe business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Mhuri Zimbabwe
– 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 Mhuri Zimbabwe.
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.
High dependence on third party suppliers
– Mhuri Zimbabwe 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mhuri Zimbabwe in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
Weighted SWOT Analysis of Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe 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 Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe 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 Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe 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 Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe 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 Mhuri Enterprise: Innovating the Value Chain of Small-Scale Pig-Farms in Zimbabwe 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 Mhuri Zimbabwe needs to make to build a sustainable competitive advantage.