Analytics for Sustainable Products: The Case of Sustainable Beef SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Analytics for Sustainable Products: The Case of Sustainable Beef
Beef production is not sustainable, but it can and should be. Large scale commercial beef farming imposes tremendous negative impacts on the environment by polluting the air, water, and soil. In contrast, sustainable farming uses responsible practices that protect the environment for future generations. But, are consumers really interested in sustainable beef? When consuming sustainable beef products, most reactions by consumers are: they taste great; they are produced without destroying the environment or threatening public health; and their sales support responsible farmers who choose to use sound agricultural practices. Thus, if a sustainable farm wanted to promote one of its beef products, and it had to choose between "grass-fed", "pasture-raised" or "organic" beef, which one would it choose, at what cost, and at what risk? Such a decision is difficult without knowing analytics. So, can business analytics be used to evaluate such a business decision? This case is about making hard decisions involving sustainability products, for which business analytics can play a significant role. The intent is also to educate the reader about sustainability and sustainable beef. The case introduces an entrepreneurial start-up that consistently and successfully promotes sustainable farming, and it's their emphasis on sustainability that makes the company unique and successful. The decisions involve the sustainability "stamps" assigned to beef products. One may recognize some of these stamps, such as the "organic" brand. The farm in the case produces a variety of sustainable products, but it is thinking about a marketing campaign to promote one of its product stamps. But, which one? That is a hard decision, and it is where business analytics can play a role. Before we launch into the "meat" of the case, some background on sustainability and sustainable beef would be useful.
Swot Analysis of "Analytics for Sustainable Products: The Case of Sustainable Beef" written by Dennis F.X. Mathaisel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Beef Sustainable facing as an external strategic factors. Some of the topics covered in Analytics for Sustainable Products: The Case of Sustainable Beef case study are - Strategic Management Strategies, Forecasting, Pricing, Risk management, Sustainability and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Analytics for Sustainable Products: The Case of Sustainable Beef casestudy better are - – increasing energy prices, challanges to central banks by blockchain based private currencies, wage bills are increasing, 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%, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs,
increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Analytics for Sustainable Products: The Case of Sustainable Beef
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Analytics for Sustainable Products: The Case of Sustainable Beef case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Beef Sustainable, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Beef Sustainable 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 Analytics for Sustainable Products: The Case of Sustainable Beef can be done for the following purposes –
1. Strategic planning using facts provided in Analytics for Sustainable Products: The Case of Sustainable Beef case study
2. Improving business portfolio management of Beef Sustainable
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 Beef Sustainable
Strengths Analytics for Sustainable Products: The Case of Sustainable Beef | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Beef Sustainable in Analytics for Sustainable Products: The Case of Sustainable Beef Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Beef Sustainable in the sector have low bargaining power. Analytics for Sustainable Products: The Case of Sustainable Beef has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Beef Sustainable to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Beef Sustainable 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 Analytics for Sustainable Products: The Case of Sustainable Beef - 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
– Beef Sustainable is one of the leading recruiters in the industry. Managers in the Analytics for Sustainable Products: The Case of Sustainable Beef are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Innovation & Entrepreneurship field
– Beef Sustainable 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 Beef Sustainable in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Beef Sustainable 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Beef Sustainable digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Beef Sustainable 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.
Operational resilience
– The operational resilience strategy in the Analytics for Sustainable Products: The Case of Sustainable Beef 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.
Learning organization
- Beef Sustainable 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 Beef Sustainable is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Analytics for Sustainable Products: The Case of Sustainable Beef Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Beef Sustainable is present in almost all the verticals within the industry. This has provided firm in Analytics for Sustainable Products: The Case of Sustainable Beef 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 Innovation & Entrepreneurship industry
– Analytics for Sustainable Products: The Case of Sustainable Beef firm has clearly differentiated products in the market place. This has enabled Beef Sustainable to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Beef Sustainable to invest into research and development (R&D) and innovation.
Training and development
– Beef Sustainable has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Analytics for Sustainable Products: The Case of Sustainable Beef 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.
Analytics focus
– Beef Sustainable 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 Dennis F.X. Mathaisel 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.
Weaknesses Analytics for Sustainable Products: The Case of Sustainable Beef | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Analytics for Sustainable Products: The Case of Sustainable Beef are -
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 Beef Sustainable supply chain. Even after few cautionary changes mentioned in the HBR case study - Analytics for Sustainable Products: The Case of Sustainable Beef, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Beef Sustainable vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Beef Sustainable 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Analytics for Sustainable Products: The Case of Sustainable Beef 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 Beef Sustainable 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Analytics for Sustainable Products: The Case of Sustainable Beef 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 Beef Sustainable has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Analytics for Sustainable Products: The Case of Sustainable Beef, 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Analytics for Sustainable Products: The Case of Sustainable Beef, it seems that the employees of Beef Sustainable 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.
Increasing silos among functional specialists
– The organizational structure of Beef Sustainable is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Beef Sustainable needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Beef Sustainable to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Beef Sustainable 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. Beef Sustainable 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, Beef Sustainable is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Analytics for Sustainable Products: The Case of Sustainable Beef can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Beef Sustainable products
– To increase the profitability and margins on the products, Beef Sustainable needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Beef Sustainable 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.
Opportunities Analytics for Sustainable Products: The Case of Sustainable Beef | 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 Analytics for Sustainable Products: The Case of Sustainable Beef are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Beef Sustainable can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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 Beef Sustainable 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 Beef Sustainable 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 Beef Sustainable to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Beef Sustainable 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, Analytics for Sustainable Products: The Case of Sustainable Beef, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Beef Sustainable can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Analytics for Sustainable Products: The Case of Sustainable Beef 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Beef Sustainable can use these opportunities to build new business models that can help the communities that Beef Sustainable operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
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. Beef Sustainable can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Beef Sustainable 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 Analytics for Sustainable Products: The Case of Sustainable Beef - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Beef Sustainable 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 Beef Sustainable can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Beef Sustainable 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.
Building a culture of innovation
– managers at Beef Sustainable 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.
Creating value in data economy
– The success of analytics program of Beef Sustainable has opened avenues for new revenue streams for the organization in the industry. This can help Beef Sustainable to build a more holistic ecosystem as suggested in the Analytics for Sustainable Products: The Case of Sustainable Beef case study. Beef Sustainable can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Beef Sustainable 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.
Threats Analytics for Sustainable Products: The Case of Sustainable Beef External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Analytics for Sustainable Products: The Case of Sustainable Beef are -
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.
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. Beef Sustainable 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.
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. Beef Sustainable needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Beef Sustainable 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 Analytics for Sustainable Products: The Case of Sustainable Beef .
Consumer confidence and its impact on Beef Sustainable 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.
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 Beef Sustainable business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Beef Sustainable is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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.
Technology acceleration in Forth Industrial Revolution
– Beef Sustainable has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Beef Sustainable needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Beef Sustainable with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Beef Sustainable 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.
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. Beef Sustainable can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Beef Sustainable
– 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 Beef Sustainable.
Weighted SWOT Analysis of Analytics for Sustainable Products: The Case of Sustainable Beef 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 Analytics for Sustainable Products: The Case of Sustainable Beef 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 Analytics for Sustainable Products: The Case of Sustainable Beef 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 Analytics for Sustainable Products: The Case of Sustainable Beef 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 Analytics for Sustainable Products: The Case of Sustainable Beef 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 Beef Sustainable needs to make to build a sustainable competitive advantage.