Case Study Description of Middlesex Mushrooms Limited (B)
This is a supplement of Middlesex Mushrooms Limited (A), product number 906D14, in which Tim Adlington, president and owner of Middlesex Mushrooms Limited (MML), must weight the advantages and disadvantages of forming a co-operative, as well as those of merging with Kuipers Farms Inc (Kuipers). An accident has just occurred at Kuipers, which has killed one of the owners and has incapacitated the farm. This not only puts the merger plans on hold but it may jeopardize the supplier agreement that MML and Kuipers had just finalized with a major Canadian supermarket chain. Adlington must decide how to proceed given the unfortunate situation.
Swot Analysis of "Middlesex Mushrooms Limited (B)" written by John S. Haywood-Farmer, Kara Adlington includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Kuipers Middlesex facing as an external strategic factors. Some of the topics covered in Middlesex Mushrooms Limited (B) case study are - Strategic Management Strategies, Crisis management, Organizational structure and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Middlesex Mushrooms Limited (B) casestudy better are - – technology disruption, central banks are concerned over increasing inflation, increasing transportation and logistics costs, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, geopolitical disruptions, increasing commodity prices,
cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Middlesex Mushrooms Limited (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Middlesex Mushrooms Limited (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kuipers Middlesex, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kuipers Middlesex 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 Middlesex Mushrooms Limited (B) can be done for the following purposes –
1. Strategic planning using facts provided in Middlesex Mushrooms Limited (B) case study
2. Improving business portfolio management of Kuipers Middlesex
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Kuipers Middlesex
Strengths Middlesex Mushrooms Limited (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kuipers Middlesex in Middlesex Mushrooms Limited (B) Harvard Business Review case study are -
High switching costs
– The high switching costs that Kuipers Middlesex 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.
Analytics focus
– Kuipers Middlesex 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 John S. Haywood-Farmer, Kara Adlington 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.
Ability to lead change in Innovation & Entrepreneurship field
– Kuipers Middlesex 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 Kuipers Middlesex in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Kuipers Middlesex
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Kuipers Middlesex does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Kuipers Middlesex in the sector have low bargaining power. Middlesex Mushrooms Limited (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Kuipers Middlesex to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Kuipers Middlesex is one of the leading recruiters in the industry. Managers in the Middlesex Mushrooms Limited (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Kuipers Middlesex is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Kuipers Middlesex are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Kuipers Middlesex digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Kuipers Middlesex 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.
Training and development
– Kuipers Middlesex has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Middlesex Mushrooms Limited (B) 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.
Learning organization
- Kuipers Middlesex 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 Kuipers Middlesex is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Middlesex Mushrooms Limited (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Kuipers Middlesex is one of the most innovative firm in sector. Manager in Middlesex Mushrooms Limited (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Middlesex Mushrooms Limited (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Middlesex Mushrooms Limited (B) are -
Low market penetration in new markets
– Outside its home market of Kuipers Middlesex, firm in the HBR case study Middlesex Mushrooms Limited (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Middlesex Mushrooms Limited (B) 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 Kuipers Middlesex has relatively successful track record of launching new products.
Need for greater diversity
– Kuipers Middlesex 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 bargaining power of channel partners
– Because of the regulatory requirements, John S. Haywood-Farmer, Kara Adlington suggests that, Kuipers Middlesex is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Middlesex Mushrooms Limited (B), in the dynamic environment Kuipers Middlesex has struggled to respond to the nimble upstart competition. Kuipers Middlesex has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Middlesex Mushrooms Limited (B), is just above the industry average. Kuipers Middlesex 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.
Increasing silos among functional specialists
– The organizational structure of Kuipers Middlesex is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Kuipers Middlesex needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Kuipers Middlesex to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Middlesex Mushrooms Limited (B), it seems that the employees of Kuipers Middlesex 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.
Interest costs
– Compare to the competition, Kuipers Middlesex 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.
Slow to strategic competitive environment developments
– As Middlesex Mushrooms Limited (B) HBR case study mentions - Kuipers Middlesex 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.
Lack of clear differentiation of Kuipers Middlesex products
– To increase the profitability and margins on the products, Kuipers Middlesex needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Middlesex Mushrooms Limited (B) | 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 Middlesex Mushrooms Limited (B) are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Kuipers Middlesex 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 Kuipers Middlesex to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Kuipers Middlesex 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. Kuipers Middlesex 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.
Manufacturing automation
– Kuipers Middlesex can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
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 Kuipers Middlesex in the consumer business. Now Kuipers Middlesex can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Kuipers Middlesex can develop new processes and procedures in Innovation & Entrepreneurship 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Kuipers Middlesex can use these opportunities to build new business models that can help the communities that Kuipers Middlesex operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Kuipers Middlesex 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.
Buying journey improvements
– Kuipers Middlesex can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Middlesex Mushrooms Limited (B) 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.
Loyalty marketing
– Kuipers Middlesex 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Kuipers Middlesex can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Kuipers Middlesex in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Kuipers Middlesex can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Innovation & Entrepreneurship segment.
Better consumer reach
– The expansion of the 5G network will help Kuipers Middlesex to increase its market reach. Kuipers Middlesex 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.
Threats Middlesex Mushrooms Limited (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Middlesex Mushrooms Limited (B) 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.
Shortening product life cycle
– it is one of the major threat that Kuipers Middlesex is facing in Innovation & Entrepreneurship 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 Kuipers Middlesex.
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. Kuipers Middlesex 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.
Consumer confidence and its impact on Kuipers Middlesex 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. Kuipers Middlesex needs to understand the core reasons impacting the Innovation & Entrepreneurship 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 Middlesex Mushrooms Limited (B), Kuipers Middlesex may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Kuipers Middlesex with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Kuipers Middlesex 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.
Increasing wage structure of Kuipers Middlesex
– 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 Kuipers Middlesex.
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 Kuipers Middlesex business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Kuipers Middlesex 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Kuipers Middlesex in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Weighted SWOT Analysis of Middlesex Mushrooms Limited (B) 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 Middlesex Mushrooms Limited (B) 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 Middlesex Mushrooms Limited (B) 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 Middlesex Mushrooms Limited (B) 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 Middlesex Mushrooms Limited (B) 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 Kuipers Middlesex needs to make to build a sustainable competitive advantage.