Snow Brand Milk Products (A): Assessing the Possibility for Revitalization SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Snow Brand Milk Products (A): Assessing the Possibility for Revitalization

This three-case series, set internationally (Japan) explores corporate responsibility and brand rebuilding in the face of a serious crisis. Suitable for MBA, executive education, and undergraduate students, it depicts a consumer advocate's decision-making process as she considers whether to help the company restore its reputation. In spring 2002, leading consumer activist Nobuko Hiwasa was invited to join the Japanese company Snow Brand Milk Products' board of directors. The CEO wanted her to assist in SBM's revitalization efforts, which were being implemented in the wake of two recent scandals-contaminated milk and beef mislabeling-that had almost brought down the venerable company. Hiwasa had to decide whether to take on this Herculean task. Was the company sincere in wanting to reform and revitalize? Would she be accepted as an equal among the board members, and would her views and suggestions be given serious consideration? Was the request publicity-driven? How would fellow consumer advocates view her if she accepted the position? This case details the history of Snow Brand Milk Products and the missteps and scandals that plagued it in the 1990s and early part of the decade that followed, and includes Nobuko Hiwasa's decision making process as she considers whether to join the board of a company that has been badly tainted by scandal.

Authors :: Jenny Mead, Regina Wolfe, Paul R. Lawrence, Akira Saito

Topics :: Global Business

Tags :: Crisis management, Ethics, Health, International business, Leadership, Manufacturing, Public relations, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Snow Brand Milk Products (A): Assessing the Possibility for Revitalization" written by Jenny Mead, Regina Wolfe, Paul R. Lawrence, Akira Saito includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Milk Snow facing as an external strategic factors. Some of the topics covered in Snow Brand Milk Products (A): Assessing the Possibility for Revitalization case study are - Strategic Management Strategies, Crisis management, Ethics, Health, International business, Leadership, Manufacturing, Public relations, Social responsibility and Global Business.

Some of the macro environment factors that can be used to understand the Snow Brand Milk Products (A): Assessing the Possibility for Revitalization casestudy better are - – technology disruption, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, there is backlash against globalization, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, etc

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Introduction to SWOT Analysis of Snow Brand Milk Products (A): Assessing the Possibility for Revitalization

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Snow Brand Milk Products (A): Assessing the Possibility for Revitalization case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Milk Snow, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Milk Snow 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Snow Brand Milk Products (A): Assessing the Possibility for Revitalization can be done for the following purposes –
1. Strategic planning using facts provided in Snow Brand Milk Products (A): Assessing the Possibility for Revitalization case study
2. Improving business portfolio management of Milk Snow
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 Milk Snow

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Strengths Snow Brand Milk Products (A): Assessing the Possibility for Revitalization | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Milk Snow in Snow Brand Milk Products (A): Assessing the Possibility for Revitalization Harvard Business Review case study are -

Cross disciplinary teams

– Horizontal connected teams at the Milk Snow 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.

Low bargaining power of suppliers

– Suppliers of Milk Snow in the sector have low bargaining power. Snow Brand Milk Products (A): Assessing the Possibility for Revitalization has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Milk Snow to manage not only supply disruptions but also source products at highly competitive prices.

Ability to recruit top talent

– Milk Snow is one of the leading recruiters in the industry. Managers in the Snow Brand Milk Products (A): Assessing the Possibility for Revitalization 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 Global Business field

– Milk Snow 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 Milk Snow 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 Milk Snow 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.

Digital Transformation in Global Business segment

- digital transformation varies from industry to industry. For Milk Snow digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Milk Snow 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.

Successful track record of launching new products

– Milk Snow has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Milk Snow 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.

Superior customer experience

– The customer experience strategy of Milk Snow in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Diverse revenue streams

– Milk Snow is present in almost all the verticals within the industry. This has provided firm in Snow Brand Milk Products (A): Assessing the Possibility for Revitalization 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.

Learning organization

- Milk Snow 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 Milk Snow is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Snow Brand Milk Products (A): Assessing the Possibility for Revitalization Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Effective Research and Development (R&D)

– Milk Snow 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 Snow Brand Milk Products (A): Assessing the Possibility for Revitalization - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Analytics focus

– Milk Snow 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 Jenny Mead, Regina Wolfe, Paul R. Lawrence, Akira Saito 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.

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Weaknesses Snow Brand Milk Products (A): Assessing the Possibility for Revitalization | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Snow Brand Milk Products (A): Assessing the Possibility for Revitalization are -

Slow to strategic competitive environment developments

– As Snow Brand Milk Products (A): Assessing the Possibility for Revitalization HBR case study mentions - Milk Snow 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.

Products dominated business model

– Even though Milk Snow 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 - Snow Brand Milk Products (A): Assessing the Possibility for Revitalization should strive to include more intangible value offerings along with its core products and services.

Skills based hiring

– The stress on hiring functional specialists at Milk Snow 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.

Low market penetration in new markets

– Outside its home market of Milk Snow, firm in the HBR case study Snow Brand Milk Products (A): Assessing the Possibility for Revitalization needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Need for greater diversity

– Milk Snow 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 operating costs

– Compare to the competitors, firm in the HBR case study Snow Brand Milk Products (A): Assessing the Possibility for Revitalization 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 Milk Snow 's lucrative customers.

Interest costs

– Compare to the competition, Milk Snow 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.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Snow Brand Milk Products (A): Assessing the Possibility for Revitalization, it seems that the employees of Milk Snow 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Snow Brand Milk Products (A): Assessing the Possibility for Revitalization, is just above the industry average. Milk Snow 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.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Snow Brand Milk Products (A): Assessing the Possibility for Revitalization 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 Milk Snow has relatively successful track record of launching new products.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Milk Snow is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Snow Brand Milk Products (A): Assessing the Possibility for Revitalization can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

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Opportunities Snow Brand Milk Products (A): Assessing the Possibility for Revitalization | 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 Snow Brand Milk Products (A): Assessing the Possibility for Revitalization are -

Redefining models of collaboration and team work

– As explained in the weaknesses section, Milk Snow is facing challenges because of the dominance of functional experts in the organization. Snow Brand Milk Products (A): Assessing the Possibility for Revitalization 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.

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. Milk Snow 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. Milk Snow 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Milk Snow 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

– Milk Snow 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Milk Snow 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.

Using analytics as competitive advantage

– Milk Snow 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 Snow Brand Milk Products (A): Assessing the Possibility for Revitalization - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Milk Snow to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Milk Snow 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 Milk Snow 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 Global Business industry, but it has also influenced the consumer preferences. Milk Snow can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Better consumer reach

– The expansion of the 5G network will help Milk Snow to increase its market reach. Milk Snow 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.

Buying journey improvements

– Milk Snow can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Snow Brand Milk Products (A): Assessing the Possibility for Revitalization 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.

Developing new processes and practices

– Milk Snow 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.

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 Milk Snow in the consumer business. Now Milk Snow can target international markets with far fewer capital restrictions requirements than the existing system.

Learning at scale

– Online learning technologies has now opened space for Milk Snow 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.

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Threats Snow Brand Milk Products (A): Assessing the Possibility for Revitalization External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Snow Brand Milk Products (A): Assessing the Possibility for Revitalization are -

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Milk Snow 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.

Environmental challenges

– Milk Snow 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. Milk Snow can take advantage of this fund but it will also bring new competitors in the Global Business industry.

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. Milk Snow 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.

Regulatory challenges

– Milk Snow 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.

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. Milk Snow needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Snow Brand Milk Products (A): Assessing the Possibility for Revitalization, Milk Snow may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .

Stagnating economy with rate increase

– Milk Snow 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.

High dependence on third party suppliers

– Milk Snow 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.

Increasing wage structure of Milk Snow

– 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 Milk Snow.

Shortening product life cycle

– it is one of the major threat that Milk Snow is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Milk Snow 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 Snow Brand Milk Products (A): Assessing the Possibility for Revitalization .

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.

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.

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Weighted SWOT Analysis of Snow Brand Milk Products (A): Assessing the Possibility for Revitalization 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 Snow Brand Milk Products (A): Assessing the Possibility for Revitalization 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 Snow Brand Milk Products (A): Assessing the Possibility for Revitalization 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 Snow Brand Milk Products (A): Assessing the Possibility for Revitalization 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 Snow Brand Milk Products (A): Assessing the Possibility for Revitalization 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 Milk Snow needs to make to build a sustainable competitive advantage.

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