Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version
Molino Canuelas was a vertically integrated food company with a management system that allowed it to innovate and grow systematically. With sales of $2 billion in 2016, the firm not only produced flour, vegetable oil and packaged food products; it also owned a port terminal, a packaging plat and an Agribusiness Services Division to support over 8,000 agricultural producers. CEO and Chairman Aldo Navilli, who had run the company since 1986 and had developed its management system, wanted to ensure that as the company grew and expanded, it would maintain its culture and working style. The company was exporting to 32 countries and had manufacturing plants in Brazil and Uruguay. As it continued its international expansion, should it follow the same vertical integration strategy in other countries or should it develop its retail business through partnerships or alliances?
Authors :: Jose B. Alvarez, Mariana Cal, Fernanda Miguel
Swot Analysis of "Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version" written by Jose B. Alvarez, Mariana Cal, Fernanda Miguel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Canuelas Molino facing as an external strategic factors. Some of the topics covered in Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version case study are - Strategic Management Strategies, International business, Mergers & acquisitions, Product development and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version casestudy better are - – increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, there is backlash against globalization, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion,
increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Canuelas Molino, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Canuelas Molino 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 Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version case study
2. Improving business portfolio management of Canuelas Molino
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Canuelas Molino
Strengths Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Canuelas Molino in Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version Harvard Business Review case study are -
Strong track record of project management
– Canuelas Molino is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Canuelas Molino is one of the most innovative firm in sector. Manager in Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version firm has clearly differentiated products in the market place. This has enabled Canuelas Molino to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Canuelas Molino to invest into research and development (R&D) and innovation.
Analytics focus
– Canuelas Molino 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 Jose B. Alvarez, Mariana Cal, Fernanda Miguel 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.
Learning organization
- Canuelas Molino 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 Canuelas Molino is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Canuelas Molino digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Canuelas Molino 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.
Low bargaining power of suppliers
– Suppliers of Canuelas Molino in the sector have low bargaining power. Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Canuelas Molino to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Canuelas Molino has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Canuelas Molino 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.
Organizational Resilience of Canuelas Molino
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Canuelas Molino does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Canuelas Molino 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 Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Canuelas Molino 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 Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Canuelas Molino is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Canuelas Molino is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Canuelas Molino needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Canuelas Molino to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Canuelas Molino 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. Canuelas Molino 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.
Need for greater diversity
– Canuelas Molino 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.
Capital Spending Reduction
– Even during the low interest decade, Canuelas Molino 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 operating costs
– Compare to the competitors, firm in the HBR case study Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version 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 Canuelas Molino 's lucrative customers.
Slow to strategic competitive environment developments
– As Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version HBR case study mentions - Canuelas Molino 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.
Interest costs
– Compare to the competition, Canuelas Molino 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 Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version, in the dynamic environment Canuelas Molino has struggled to respond to the nimble upstart competition. Canuelas Molino 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 Canuelas Molino products
– To increase the profitability and margins on the products, Canuelas Molino needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Canuelas Molino supply chain. Even after few cautionary changes mentioned in the HBR case study - Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Canuelas Molino vulnerable to further global disruptions in South East Asia.
Opportunities Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version | 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 Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version are -
Manufacturing automation
– Canuelas Molino can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Canuelas Molino is facing challenges because of the dominance of functional experts in the organization. Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version 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.
Better consumer reach
– The expansion of the 5G network will help Canuelas Molino to increase its market reach. Canuelas Molino 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Canuelas Molino in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Canuelas Molino can develop new processes and procedures in Finance & Accounting 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Canuelas Molino 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 Canuelas Molino to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Canuelas Molino can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Canuelas Molino in the consumer business. Now Canuelas Molino can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Canuelas Molino can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version 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.
Using analytics as competitive advantage
– Canuelas Molino 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 Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Canuelas Molino to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Canuelas Molino 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Canuelas Molino can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Canuelas Molino 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, Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Canuelas Molino with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Canuelas Molino
– 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 Canuelas Molino.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Canuelas Molino can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Canuelas Molino in the Finance & Accounting sector and impact the bottomline of the organization.
Environmental challenges
– Canuelas Molino 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. Canuelas Molino can take advantage of this fund but it will also bring new competitors in the Finance & Accounting 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 Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version, Canuelas Molino may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Technology acceleration in Forth Industrial Revolution
– Canuelas Molino has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Canuelas Molino needs to keep up with the evolution of technology in the Finance & Accounting 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Canuelas Molino 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 Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version .
High dependence on third party suppliers
– Canuelas Molino 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.
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.
Consumer confidence and its impact on Canuelas Molino 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Canuelas Molino in the Finance & Accounting industry. The Finance & Accounting 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 Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version 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 Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version 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 Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version 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 Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version 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 Molino Canuelas: Serving Customers from Seed Development to the Kitchen Table, Spanish Version 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 Canuelas Molino needs to make to build a sustainable competitive advantage.
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