Agricultural Revolution without a Land Revolution: the Megafarms of CP Group SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Agricultural Revolution without a Land Revolution: the Megafarms of CP Group
This case describes the megafarm model launched by the CP group as part of their efforts to ensure the safety and quality of their supply chain of agricultural products (particularly, eggs) in China while also promoting the welfare of Chinese farmers. This model was developed in close partnership with the local government, and received financing support from a local bank. The case asks students to discuss the potential for scaling this model across China.
Swot Analysis of "Agricultural Revolution without a Land Revolution: the Megafarms of CP Group" written by William C. Kirby, Nancy Hua Dai includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cp Agricultural facing as an external strategic factors. Some of the topics covered in Agricultural Revolution without a Land Revolution: the Megafarms of CP Group case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Agricultural Revolution without a Land Revolution: the Megafarms of CP Group casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, 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%, there is backlash against globalization, wage bills are increasing, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies,
talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Agricultural Revolution without a Land Revolution: the Megafarms of CP Group
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Agricultural Revolution without a Land Revolution: the Megafarms of CP Group case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cp Agricultural, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cp Agricultural 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 Agricultural Revolution without a Land Revolution: the Megafarms of CP Group can be done for the following purposes –
1. Strategic planning using facts provided in Agricultural Revolution without a Land Revolution: the Megafarms of CP Group case study
2. Improving business portfolio management of Cp Agricultural
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cp Agricultural
Strengths Agricultural Revolution without a Land Revolution: the Megafarms of CP Group | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cp Agricultural in Agricultural Revolution without a Land Revolution: the Megafarms of CP Group Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Cp Agricultural in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Global Business industry
– Agricultural Revolution without a Land Revolution: the Megafarms of CP Group firm has clearly differentiated products in the market place. This has enabled Cp Agricultural to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Cp Agricultural to invest into research and development (R&D) and innovation.
Learning organization
- Cp Agricultural 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 Cp Agricultural is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Agricultural Revolution without a Land Revolution: the Megafarms of CP Group Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Cp Agricultural in the sector have low bargaining power. Agricultural Revolution without a Land Revolution: the Megafarms of CP Group has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cp Agricultural to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Cp Agricultural is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Global Business field
– Cp Agricultural 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 Cp Agricultural in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Cp Agricultural has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cp Agricultural 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.
Training and development
– Cp Agricultural has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Agricultural Revolution without a Land Revolution: the Megafarms of CP Group 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Cp Agricultural digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cp Agricultural 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.
Effective Research and Development (R&D)
– Cp Agricultural 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 Agricultural Revolution without a Land Revolution: the Megafarms of CP Group - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Cp Agricultural 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.
Diverse revenue streams
– Cp Agricultural is present in almost all the verticals within the industry. This has provided firm in Agricultural Revolution without a Land Revolution: the Megafarms of CP Group 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.
Weaknesses Agricultural Revolution without a Land Revolution: the Megafarms of CP Group | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Agricultural Revolution without a Land Revolution: the Megafarms of CP Group are -
High operating costs
– Compare to the competitors, firm in the HBR case study Agricultural Revolution without a Land Revolution: the Megafarms of CP Group 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 Cp Agricultural 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Cp Agricultural is dominated by functional specialists. It is not different from other players in the Global Business segment. Cp Agricultural needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cp Agricultural to focus more on services rather than just following the product oriented approach.
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 Cp Agricultural supply chain. Even after few cautionary changes mentioned in the HBR case study - Agricultural Revolution without a Land Revolution: the Megafarms of CP Group, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cp Agricultural vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Agricultural Revolution without a Land Revolution: the Megafarms of CP Group, in the dynamic environment Cp Agricultural has struggled to respond to the nimble upstart competition. Cp Agricultural has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Cp Agricultural 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.
Lack of clear differentiation of Cp Agricultural products
– To increase the profitability and margins on the products, Cp Agricultural needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Agricultural Revolution without a Land Revolution: the Megafarms of CP Group, is just above the industry average. Cp Agricultural 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.
Slow decision making process
– As mentioned earlier in the report, Cp Agricultural 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. Cp Agricultural 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.
Products dominated business model
– Even though Cp Agricultural 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 - Agricultural Revolution without a Land Revolution: the Megafarms of CP Group should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Agricultural Revolution without a Land Revolution: the Megafarms of CP Group 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 Agricultural Revolution without a Land Revolution: the Megafarms of CP Group can leverage the sales team experience to cultivate customer relationships as Cp Agricultural is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Agricultural Revolution without a Land Revolution: the Megafarms of CP Group 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 Cp Agricultural has relatively successful track record of launching new products.
Opportunities Agricultural Revolution without a Land Revolution: the Megafarms of CP Group | 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 Agricultural Revolution without a Land Revolution: the Megafarms of CP Group are -
Developing new processes and practices
– Cp Agricultural can develop new processes and procedures in Global Business 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
– Cp Agricultural can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Using analytics as competitive advantage
– Cp Agricultural 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 Agricultural Revolution without a Land Revolution: the Megafarms of CP Group - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cp Agricultural to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Cp Agricultural can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Agricultural Revolution without a Land Revolution: the Megafarms of CP Group 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.
Leveraging digital technologies
– Cp Agricultural can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Cp Agricultural in the consumer business. Now Cp Agricultural can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cp Agricultural 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Cp Agricultural can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cp Agricultural can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cp Agricultural can use these opportunities to build new business models that can help the communities that Cp Agricultural operates in. Secondly it can use opportunities from government spending in Global Business sector.
Learning at scale
– Online learning technologies has now opened space for Cp Agricultural 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.
Better consumer reach
– The expansion of the 5G network will help Cp Agricultural to increase its market reach. Cp Agricultural 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.
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. Cp Agricultural can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Agricultural Revolution without a Land Revolution: the Megafarms of CP Group External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Agricultural Revolution without a Land Revolution: the Megafarms of CP Group are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cp Agricultural with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Cp Agricultural in the Global Business sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cp Agricultural 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 Agricultural Revolution without a Land Revolution: the Megafarms of CP Group .
Stagnating economy with rate increase
– Cp Agricultural 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.
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 Cp Agricultural business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Cp Agricultural 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.
Increasing wage structure of Cp Agricultural
– 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 Cp Agricultural.
Regulatory challenges
– Cp Agricultural needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Global Business industry regulations.
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. Cp Agricultural 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.
Shortening product life cycle
– it is one of the major threat that Cp Agricultural is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Cp Agricultural.
Technology acceleration in Forth Industrial Revolution
– Cp Agricultural has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Cp Agricultural needs to keep up with the evolution of technology in the Global Business 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cp Agricultural in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Weighted SWOT Analysis of Agricultural Revolution without a Land Revolution: the Megafarms of CP Group 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 Agricultural Revolution without a Land Revolution: the Megafarms of CP Group 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 Agricultural Revolution without a Land Revolution: the Megafarms of CP Group 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 Agricultural Revolution without a Land Revolution: the Megafarms of CP Group 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 Agricultural Revolution without a Land Revolution: the Megafarms of CP Group 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 Cp Agricultural needs to make to build a sustainable competitive advantage.