H.J. Heinz Co.: The Administration of Policy (C) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of H.J. Heinz Co.: The Administration of Policy (C)
Presents a condensation of the audit committee's recommendations for organizational and policy changes to help prevent a recurrence of improper income transferal practices used at the H.J. Heinz Co.
Swot Analysis of "H.J. Heinz Co.: The Administration of Policy (C)" written by Kenneth E. Goodpaster, Richard J. Post includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that H.j Heinz facing as an external strategic factors. Some of the topics covered in H.J. Heinz Co.: The Administration of Policy (C) case study are - Strategic Management Strategies, Boards, Ethics, Government, Motivating people, Organizational structure, Social responsibility and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the H.J. Heinz Co.: The Administration of Policy (C) casestudy better are - – supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, increasing energy prices,
cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of H.J. Heinz Co.: The Administration of Policy (C)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in H.J. Heinz Co.: The Administration of Policy (C) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the H.j Heinz, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which H.j Heinz 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 H.J. Heinz Co.: The Administration of Policy (C) can be done for the following purposes –
1. Strategic planning using facts provided in H.J. Heinz Co.: The Administration of Policy (C) case study
2. Improving business portfolio management of H.j Heinz
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of H.j Heinz
Strengths H.J. Heinz Co.: The Administration of Policy (C) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of H.j Heinz in H.J. Heinz Co.: The Administration of Policy (C) Harvard Business Review case study are -
Ability to lead change in Leadership & Managing People field
– H.j Heinz 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 H.j Heinz in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– H.j Heinz is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– H.j Heinz has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled H.j Heinz to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- H.j Heinz 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 H.j Heinz is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in H.J. Heinz Co.: The Administration of Policy (C) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– H.j Heinz 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 Kenneth E. Goodpaster, Richard J. Post 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.
Low bargaining power of suppliers
– Suppliers of H.j Heinz in the sector have low bargaining power. H.J. Heinz Co.: The Administration of Policy (C) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps H.j Heinz to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– H.j Heinz is one of the most innovative firm in sector. Manager in H.J. Heinz Co.: The Administration of Policy (C) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– H.j Heinz has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in H.J. Heinz Co.: The Administration of Policy (C) 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.
Ability to recruit top talent
– H.j Heinz is one of the leading recruiters in the industry. Managers in the H.J. Heinz Co.: The Administration of Policy (C) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– H.j Heinz 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 H.J. Heinz Co.: The Administration of Policy (C) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– H.j Heinz 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 H.J. Heinz Co.: The Administration of Policy (C) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For H.j Heinz digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. H.j Heinz 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.
Weaknesses H.J. Heinz Co.: The Administration of Policy (C) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of H.J. Heinz Co.: The Administration of Policy (C) are -
Low market penetration in new markets
– Outside its home market of H.j Heinz, firm in the HBR case study H.J. Heinz Co.: The Administration of Policy (C) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study H.J. Heinz Co.: The Administration of Policy (C), it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Lack of clear differentiation of H.j Heinz products
– To increase the profitability and margins on the products, H.j Heinz needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study H.J. Heinz Co.: The Administration of Policy (C) 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 H.J. Heinz Co.: The Administration of Policy (C) can leverage the sales team experience to cultivate customer relationships as H.j Heinz is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study H.J. Heinz Co.: The Administration of Policy (C) 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 H.j Heinz 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at H.j Heinz has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Products dominated business model
– Even though H.j Heinz 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 - H.J. Heinz Co.: The Administration of Policy (C) should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, H.j Heinz is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study H.J. Heinz Co.: The Administration of Policy (C) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 H.j Heinz supply chain. Even after few cautionary changes mentioned in the HBR case study - H.J. Heinz Co.: The Administration of Policy (C), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left H.j Heinz vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, H.j Heinz has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. H.j Heinz even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Increasing silos among functional specialists
– The organizational structure of H.j Heinz is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. H.j Heinz needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help H.j Heinz to focus more on services rather than just following the product oriented approach.
Opportunities H.J. Heinz Co.: The Administration of Policy (C) | 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 H.J. Heinz Co.: The Administration of Policy (C) are -
Better consumer reach
– The expansion of the 5G network will help H.j Heinz to increase its market reach. H.j Heinz 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, H.j Heinz is facing challenges because of the dominance of functional experts in the organization. H.J. Heinz Co.: The Administration of Policy (C) 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.
Creating value in data economy
– The success of analytics program of H.j Heinz has opened avenues for new revenue streams for the organization in the industry. This can help H.j Heinz to build a more holistic ecosystem as suggested in the H.J. Heinz Co.: The Administration of Policy (C) case study. H.j Heinz can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for H.j Heinz 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, H.j Heinz can use these opportunities to build new business models that can help the communities that H.j Heinz operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Using analytics as competitive advantage
– H.j Heinz 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 H.J. Heinz Co.: The Administration of Policy (C) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help H.j Heinz to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– H.j Heinz can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. H.J. Heinz Co.: The Administration of Policy (C) 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, H.j Heinz 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, H.J. Heinz Co.: The Administration of Policy (C), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. H.j Heinz can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for H.j Heinz 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 H.j Heinz to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– H.j Heinz 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.
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 H.j Heinz 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. H.j Heinz can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats H.J. Heinz Co.: The Administration of Policy (C) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study H.J. Heinz Co.: The Administration of Policy (C) are -
Stagnating economy with rate increase
– H.j Heinz 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 H.j Heinz in the Leadership & Managing People sector and impact the bottomline of the organization.
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 H.j Heinz business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study H.J. Heinz Co.: The Administration of Policy (C), H.j Heinz may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, H.j Heinz 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 H.J. Heinz Co.: The Administration of Policy (C) .
Shortening product life cycle
– it is one of the major threat that H.j Heinz is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– H.j Heinz 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 Leadership & Managing People industry regulations.
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.
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.
High dependence on third party suppliers
– H.j Heinz 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 H.j Heinz in the Leadership & Managing People industry. The Leadership & Managing People 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 Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. H.j Heinz can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of H.j Heinz
– 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 H.j Heinz.
Weighted SWOT Analysis of H.J. Heinz Co.: The Administration of Policy (C) 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 H.J. Heinz Co.: The Administration of Policy (C) 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 H.J. Heinz Co.: The Administration of Policy (C) 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 H.J. Heinz Co.: The Administration of Policy (C) 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 H.J. Heinz Co.: The Administration of Policy (C) 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 H.j Heinz needs to make to build a sustainable competitive advantage.
