Swot Analysis of "Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing" written by R. Jeffrey Ellis includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cervejaria Brahma facing as an external strategic factors. Some of the topics covered in Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing case study are - Strategic Management Strategies, Economy, Emerging markets, Globalization, Joint ventures and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, there is backlash against globalization, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing,
increasing transportation and logistics costs, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cervejaria Brahma, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cervejaria Brahma 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 Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing can be done for the following purposes –
1. Strategic planning using facts provided in Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing case study
2. Improving business portfolio management of Cervejaria Brahma
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cervejaria Brahma
Strengths Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cervejaria Brahma in Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing 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.
Diverse revenue streams
– Cervejaria Brahma is present in almost all the verticals within the industry. This has provided firm in Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing 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.
Low bargaining power of suppliers
– Suppliers of Cervejaria Brahma in the sector have low bargaining power. Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cervejaria Brahma to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Cervejaria Brahma in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Cervejaria Brahma has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cervejaria Brahma has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Training and development
– Cervejaria Brahma has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Cervejaria Brahma digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cervejaria Brahma 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.
Ability to lead change in Finance & Accounting field
– Cervejaria Brahma 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 Cervejaria Brahma in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Cervejaria Brahma is one of the most innovative firm in sector. Manager in Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Cervejaria Brahma 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.
Learning organization
- Cervejaria Brahma 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 Cervejaria Brahma is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Cervejaria Brahma is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing are -
Slow to strategic competitive environment developments
– As Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing HBR case study mentions - Cervejaria Brahma 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.
High cash cycle compare to competitors
Cervejaria Brahma has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Cervejaria Brahma supply chain. Even after few cautionary changes mentioned in the HBR case study - Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cervejaria Brahma vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Cervejaria Brahma 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.
High bargaining power of channel partners
– Because of the regulatory requirements, R. Jeffrey Ellis suggests that, Cervejaria Brahma 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 Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing, in the dynamic environment Cervejaria Brahma has struggled to respond to the nimble upstart competition. Cervejaria Brahma has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing 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 Cervejaria Brahma has relatively successful track record of launching new products.
Lack of clear differentiation of Cervejaria Brahma products
– To increase the profitability and margins on the products, Cervejaria Brahma needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Cervejaria Brahma is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Cervejaria Brahma needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cervejaria Brahma 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 Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing, it seems that the employees of Cervejaria Brahma 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.
No frontier risks strategy
– After analyzing the HBR case study Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.
Opportunities Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing | 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 Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cervejaria Brahma 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, Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Cervejaria Brahma has opened avenues for new revenue streams for the organization in the industry. This can help Cervejaria Brahma to build a more holistic ecosystem as suggested in the Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing case study. Cervejaria Brahma can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Cervejaria Brahma can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Cervejaria Brahma 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.
Using analytics as competitive advantage
– Cervejaria Brahma 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 Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cervejaria Brahma to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cervejaria Brahma in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cervejaria Brahma 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 Cervejaria Brahma to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cervejaria Brahma can use these opportunities to build new business models that can help the communities that Cervejaria Brahma operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cervejaria Brahma is facing challenges because of the dominance of functional experts in the organization. Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing 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.
Manufacturing automation
– Cervejaria Brahma can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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 Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Cervejaria Brahma 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. Cervejaria Brahma 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.
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 Cervejaria Brahma 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.
Better consumer reach
– The expansion of the 5G network will help Cervejaria Brahma to increase its market reach. Cervejaria Brahma 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 Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing are -
Regulatory challenges
– Cervejaria Brahma 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 Finance & Accounting industry regulations.
Stagnating economy with rate increase
– Cervejaria Brahma 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cervejaria Brahma with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cervejaria Brahma in the Finance & Accounting industry. The Finance & Accounting 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.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cervejaria Brahma can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Cervejaria Brahma 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 dependence on third party suppliers
– Cervejaria Brahma 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.
Shortening product life cycle
– it is one of the major threat that Cervejaria Brahma is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Cervejaria Brahma 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. Cervejaria Brahma can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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 Cervejaria Brahma in the Finance & Accounting sector and impact the bottomline 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. Cervejaria Brahma 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 Cervejaria Brahma business can come under increasing regulations regarding data privacy, data security, etc.
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. Cervejaria Brahma needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing 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 Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing 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 Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing 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 Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing 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 Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing 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 Cervejaria Brahma needs to make to build a sustainable competitive advantage.