Case Study Description of Munoz Group Faces Brexit
In 2016, MuA±oz Group, a multifaceted agribusiness company that developed, produced, packed, imported and exported citrus, flowers, grapes, juice, and ice cream, faced an unexpected new challenge in the British public's vote for the United Kingdom to exit the European Union. The outcome of the vote led to uncertainty around investment conditions, instability in the pound, growth in anti-immigrant sentiment, and other changes. This created unusual business conditions for MuA±oz Group's CEO, Alvaro MuA±oz, who had to decide how to adjust his strategy for the coming years, given that his company was headquartered in the UK - but did business all over the world.
Swot Analysis of "Munoz Group Faces Brexit" written by Forest Reinhardt, Annelena Lobb includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mua Oz facing as an external strategic factors. Some of the topics covered in Munoz Group Faces Brexit case study are - Strategic Management Strategies, Government and Global Business.
Some of the macro environment factors that can be used to understand the Munoz Group Faces Brexit casestudy better are - – increasing energy prices, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, technology disruption,
digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, etc
Introduction to SWOT Analysis of Munoz Group Faces Brexit
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Munoz Group Faces Brexit case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mua Oz, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mua Oz 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 Munoz Group Faces Brexit can be done for the following purposes –
1. Strategic planning using facts provided in Munoz Group Faces Brexit case study
2. Improving business portfolio management of Mua Oz
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 Mua Oz
Strengths Munoz Group Faces Brexit | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mua Oz in Munoz Group Faces Brexit Harvard Business Review case study are -
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Mua Oz digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mua Oz 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 Global Business industry
– Munoz Group Faces Brexit firm has clearly differentiated products in the market place. This has enabled Mua Oz to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Mua Oz to invest into research and development (R&D) and innovation.
Ability to lead change in Global Business field
– Mua Oz 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 Mua Oz in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Mua Oz 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.
High brand equity
– Mua Oz has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mua Oz to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Mua Oz 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 Mua Oz is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Munoz Group Faces Brexit Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Mua Oz 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 Munoz Group Faces Brexit HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Mua Oz has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Munoz Group Faces Brexit 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.
Effective Research and Development (R&D)
– Mua Oz 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 Munoz Group Faces Brexit - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Mua Oz
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mua Oz does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Mua Oz in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Mua Oz is present in almost all the verticals within the industry. This has provided firm in Munoz Group Faces Brexit 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 Munoz Group Faces Brexit | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Munoz Group Faces Brexit are -
High operating costs
– Compare to the competitors, firm in the HBR case study Munoz Group Faces Brexit 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 Mua Oz 's lucrative customers.
Interest costs
– Compare to the competition, Mua Oz 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.
Products dominated business model
– Even though Mua Oz 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 - Munoz Group Faces Brexit should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Munoz Group Faces Brexit, it seems that the employees of Mua Oz 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.
Lack of clear differentiation of Mua Oz products
– To increase the profitability and margins on the products, Mua Oz needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mua Oz is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Munoz Group Faces Brexit can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Munoz Group Faces Brexit HBR case study mentions - Mua Oz 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.
No frontier risks strategy
– After analyzing the HBR case study Munoz Group Faces Brexit, it seems that company is thinking about the frontier risks that can impact Global Business 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
– Mua Oz 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Munoz Group Faces Brexit 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 Mua Oz has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Mua Oz is dominated by functional specialists. It is not different from other players in the Global Business segment. Mua Oz needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mua Oz to focus more on services rather than just following the product oriented approach.
Opportunities Munoz Group Faces Brexit | 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 Munoz Group Faces Brexit are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mua Oz 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, Munoz Group Faces Brexit, 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. Mua Oz can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Mua Oz can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Munoz Group Faces Brexit 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, Mua Oz can use these opportunities to build new business models that can help the communities that Mua Oz operates in. Secondly it can use opportunities from government spending in Global Business sector.
Using analytics as competitive advantage
– Mua Oz 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 Munoz Group Faces Brexit - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mua Oz to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Mua Oz to increase its market reach. Mua Oz 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mua Oz 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Mua Oz can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Mua Oz can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Loyalty marketing
– Mua Oz has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Developing new processes and practices
– Mua Oz 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mua Oz can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Mua Oz 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.
Creating value in data economy
– The success of analytics program of Mua Oz has opened avenues for new revenue streams for the organization in the industry. This can help Mua Oz to build a more holistic ecosystem as suggested in the Munoz Group Faces Brexit case study. Mua Oz can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Munoz Group Faces Brexit External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Munoz Group Faces Brexit are -
Increasing wage structure of Mua Oz
– 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 Mua Oz.
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 Mua Oz in the Global Business sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mua Oz with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Mua Oz 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.
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. Mua Oz needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Mua Oz has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Mua Oz 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.
High dependence on third party suppliers
– Mua Oz 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.
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. Mua Oz 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.
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 Mua Oz business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mua Oz 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 Munoz Group Faces Brexit .
Stagnating economy with rate increase
– Mua Oz 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.
Shortening product life cycle
– it is one of the major threat that Mua Oz is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Munoz Group Faces Brexit 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 Munoz Group Faces Brexit 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 Munoz Group Faces Brexit 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 Munoz Group Faces Brexit 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 Munoz Group Faces Brexit 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 Mua Oz needs to make to build a sustainable competitive advantage.
