Case Study Description of Kanpur Confectioneries Private Limited (A)
Mr. Alok Kumar Gupta is required to decide his company's response to a proposal for becoming a sub-contractor to A - One Confectioneries Privte Limited (APL) a large national player in the biscuit industry with aspirations to be a leader in every region. The case describes the details of the proposal, history of KCPL, a biscuit manufacturing company, and the impact of competition on its performance. It also describes the experience of alliance with another company in the industry. It presents the aspirations of the founders in becoming a leading national player in the industry. The advantages to the company are in getting assured return on investment and access to APL's manufacturing expertise. The disadvantages are a possible loss of independence in decision making, dilution of company's own brand, and family prestige.
Swot Analysis of "Kanpur Confectioneries Private Limited (A)" written by Mukund Dixit, Vandana Dixit includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Confectioneries Biscuit facing as an external strategic factors. Some of the topics covered in Kanpur Confectioneries Private Limited (A) case study are - Strategic Management Strategies, and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Kanpur Confectioneries Private Limited (A) casestudy better are - – increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, technology disruption, increasing household debt because of falling income levels, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies,
cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Kanpur Confectioneries Private Limited (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Kanpur Confectioneries Private Limited (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Confectioneries Biscuit, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Confectioneries Biscuit 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 Kanpur Confectioneries Private Limited (A) can be done for the following purposes –
1. Strategic planning using facts provided in Kanpur Confectioneries Private Limited (A) case study
2. Improving business portfolio management of Confectioneries Biscuit
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 Confectioneries Biscuit
Strengths Kanpur Confectioneries Private Limited (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Confectioneries Biscuit in Kanpur Confectioneries Private Limited (A) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Confectioneries Biscuit in the sector have low bargaining power. Kanpur Confectioneries Private Limited (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Confectioneries Biscuit to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Confectioneries Biscuit has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Confectioneries Biscuit to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Confectioneries Biscuit has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Confectioneries Biscuit 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.
High switching costs
– The high switching costs that Confectioneries Biscuit 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.
Training and development
– Confectioneries Biscuit has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Kanpur Confectioneries Private Limited (A) 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.
Cross disciplinary teams
– Horizontal connected teams at the Confectioneries Biscuit 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.
Ability to lead change in Innovation & Entrepreneurship field
– Confectioneries Biscuit 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 Confectioneries Biscuit in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Kanpur Confectioneries Private Limited (A) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Highly skilled collaborators
– Confectioneries Biscuit 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 Kanpur Confectioneries Private Limited (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Confectioneries Biscuit is present in almost all the verticals within the industry. This has provided firm in Kanpur Confectioneries Private Limited (A) 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.
Ability to recruit top talent
– Confectioneries Biscuit is one of the leading recruiters in the industry. Managers in the Kanpur Confectioneries Private Limited (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Confectioneries Biscuit in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Kanpur Confectioneries Private Limited (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Kanpur Confectioneries Private Limited (A) are -
High operating costs
– Compare to the competitors, firm in the HBR case study Kanpur Confectioneries Private Limited (A) 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 Confectioneries Biscuit 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Kanpur Confectioneries Private Limited (A), it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Kanpur Confectioneries Private Limited (A), it seems that the employees of Confectioneries Biscuit 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.
Aligning sales with marketing
– It come across in the case study Kanpur Confectioneries Private Limited (A) 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 Kanpur Confectioneries Private Limited (A) can leverage the sales team experience to cultivate customer relationships as Confectioneries Biscuit 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 Kanpur Confectioneries Private Limited (A) 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 Confectioneries Biscuit has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Kanpur Confectioneries Private Limited (A) HBR case study mentions - Confectioneries Biscuit 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.
Low market penetration in new markets
– Outside its home market of Confectioneries Biscuit, firm in the HBR case study Kanpur Confectioneries Private Limited (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Kanpur Confectioneries Private Limited (A), in the dynamic environment Confectioneries Biscuit has struggled to respond to the nimble upstart competition. Confectioneries Biscuit has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Confectioneries Biscuit is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Confectioneries Biscuit needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Confectioneries Biscuit to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Confectioneries Biscuit 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 - Kanpur Confectioneries Private Limited (A) should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Kanpur Confectioneries Private Limited (A), is just above the industry average. Confectioneries Biscuit 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.
Opportunities Kanpur Confectioneries Private Limited (A) | 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 Kanpur Confectioneries Private Limited (A) are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Confectioneries Biscuit 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.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Confectioneries Biscuit to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Leveraging digital technologies
– Confectioneries Biscuit 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.
Better consumer reach
– The expansion of the 5G network will help Confectioneries Biscuit to increase its market reach. Confectioneries Biscuit 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.
Developing new processes and practices
– Confectioneries Biscuit 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, Confectioneries Biscuit can use these opportunities to build new business models that can help the communities that Confectioneries Biscuit operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Confectioneries Biscuit is facing challenges because of the dominance of functional experts in the organization. Kanpur Confectioneries Private Limited (A) 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.
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 Confectioneries Biscuit in the consumer business. Now Confectioneries Biscuit 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 Confectioneries Biscuit 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Confectioneries Biscuit 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.
Building a culture of innovation
– managers at Confectioneries Biscuit 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.
Manufacturing automation
– Confectioneries Biscuit 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.
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. Confectioneries Biscuit 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. Confectioneries Biscuit 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.
Threats Kanpur Confectioneries Private Limited (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Kanpur Confectioneries Private Limited (A) are -
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Confectioneries Biscuit with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Kanpur Confectioneries Private Limited (A), Confectioneries Biscuit 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 .
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. Confectioneries Biscuit 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.
High dependence on third party suppliers
– Confectioneries Biscuit 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Confectioneries Biscuit 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 Kanpur Confectioneries Private Limited (A) .
Technology acceleration in Forth Industrial Revolution
– Confectioneries Biscuit has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Confectioneries Biscuit needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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 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. Confectioneries Biscuit needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Regulatory challenges
– Confectioneries Biscuit 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 Innovation & Entrepreneurship industry regulations.
Stagnating economy with rate increase
– Confectioneries Biscuit 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.
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 Confectioneries Biscuit in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Increasing wage structure of Confectioneries Biscuit
– 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 Confectioneries Biscuit.
Shortening product life cycle
– it is one of the major threat that Confectioneries Biscuit is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Kanpur Confectioneries Private Limited (A) 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 Kanpur Confectioneries Private Limited (A) 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 Kanpur Confectioneries Private Limited (A) 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 Kanpur Confectioneries Private Limited (A) 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 Kanpur Confectioneries Private Limited (A) 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 Confectioneries Biscuit needs to make to build a sustainable competitive advantage.
