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 - – challanges to central banks by blockchain based private currencies, increasing commodity prices, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google,
increasing household debt because of falling income levels, there is increasing trade war between United States & China, 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 -
Ability to recruit top talent
– Cervejaria Brahma is one of the leading recruiters in the industry. Managers in the Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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.
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.
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.
Organizational Resilience of Cervejaria Brahma
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cervejaria Brahma 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 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.
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.
Effective Research and Development (R&D)
– Cervejaria Brahma 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 Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
Analytics focus
– Cervejaria Brahma 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 R. Jeffrey Ellis 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing firm has clearly differentiated products in the market place. This has enabled Cervejaria Brahma to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Cervejaria Brahma to invest into research and development (R&D) and innovation.
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 -
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.
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.
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.
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.
Aligning sales with marketing
– It come across in the case study Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing 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 Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing can leverage the sales team experience to cultivate customer relationships as Cervejaria Brahma is planning to shift buying processes online.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cervejaria Brahma is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Cervejaria Brahma, firm in the HBR case study Grupo Garantia (D) Cervejaria Brahma SA: Beer Brewing and Marketing needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
Capital Spending Reduction
– Even during the low interest decade, Cervejaria Brahma has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
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 -
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.
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 Cervejaria Brahma in the consumer business. Now Cervejaria Brahma can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Cervejaria Brahma 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 Finance & Accounting segment.
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.
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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cervejaria Brahma can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Cervejaria Brahma can develop new processes and procedures in Finance & Accounting 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cervejaria Brahma 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.
Leveraging digital technologies
– Cervejaria Brahma 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.
Loyalty marketing
– Cervejaria Brahma 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.
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.
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.
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 -
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.
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.
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.
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 Cervejaria Brahma.
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.
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.
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.
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.
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.
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.
Increasing wage structure of Cervejaria Brahma
– 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 Cervejaria Brahma.
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.
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.
