Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa
Set during the 2002 Southern Africa food crisis the case describes the design and implementation of a humanitarian logistics operation for the distribution of food donations in the Southern Africa Development Community (SADC). This complex operation affected by severe droughts, economic downturn, poor access to recipients and the HIV pandemic, takes an unexpected turn when Zambia rejects the donations upon finding traces of genetically modified organisms (GMO). This forces agencies to redesign their assistance strategy and challenges the ongoing plans with new bottlenecks, costs, and delays. In the end the operations succeeds in light of the coordination support provided by the implementing agency, World Food Program (WFP).
Swot Analysis of "Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa" written by Rolando Tomasini, Luk Van Wassenhove includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Food Donations facing as an external strategic factors. Some of the topics covered in Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa casestudy better are - – technology disruption, there is backlash against globalization, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion,
central banks are concerned over increasing inflation, increasing commodity prices, etc
Introduction to SWOT Analysis of Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Food Donations, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Food Donations 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 Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa can be done for the following purposes –
1. Strategic planning using facts provided in Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa case study
2. Improving business portfolio management of Food Donations
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 Food Donations
Strengths Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Food Donations in Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa Harvard Business Review case study are -
Ability to recruit top talent
– Food Donations is one of the leading recruiters in the industry. Managers in the Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa 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)
– Food Donations 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 Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Leadership & Managing People industry
– Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa firm has clearly differentiated products in the market place. This has enabled Food Donations to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Food Donations to invest into research and development (R&D) and innovation.
High brand equity
– Food Donations has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Food Donations to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Food Donations is one of the most innovative firm in sector. Manager in Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Food Donations 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.
Ability to lead change in Leadership & Managing People field
– Food Donations 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 Food Donations 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 Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa 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.
Strong track record of project management
– Food Donations is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Food Donations in the sector have low bargaining power. Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Food Donations to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Food Donations digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Food Donations 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.
Superior customer experience
– The customer experience strategy of Food Donations in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa are -
Skills based hiring
– The stress on hiring functional specialists at Food Donations 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.
High cash cycle compare to competitors
Food Donations 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, Food Donations 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.
Products dominated business model
– Even though Food Donations 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 - Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Food Donations 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa, in the dynamic environment Food Donations has struggled to respond to the nimble upstart competition. Food Donations 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 Food Donations is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Food Donations needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Food Donations to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa, 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.
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 Food Donations supply chain. Even after few cautionary changes mentioned in the HBR case study - Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Food Donations vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Food Donations needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Lack of clear differentiation of Food Donations products
– To increase the profitability and margins on the products, Food Donations needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa | 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 Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa are -
Developing new processes and practices
– Food Donations can develop new processes and procedures in Leadership & Managing People 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.
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 Food Donations 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Food Donations can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Food Donations can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Food Donations 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. Food Donations 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.
Leveraging digital technologies
– Food Donations 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.
Building a culture of innovation
– managers at Food Donations 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 Leadership & Managing People segment.
Manufacturing automation
– Food Donations can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Food Donations can use these opportunities to build new business models that can help the communities that Food Donations operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Learning at scale
– Online learning technologies has now opened space for Food Donations 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.
Creating value in data economy
– The success of analytics program of Food Donations has opened avenues for new revenue streams for the organization in the industry. This can help Food Donations to build a more holistic ecosystem as suggested in the Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa case study. Food Donations can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Food Donations 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 Food Donations to hire the very best people irrespective of their geographical location.
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. Food Donations can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa are -
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. Food Donations 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 Food Donations business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Food Donations with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Food Donations in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa, Food Donations 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 wage structure of Food Donations
– 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 Food Donations.
Shortening product life cycle
– it is one of the major threat that Food Donations is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Food Donations 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Food Donations 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 Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa .
Technology acceleration in Forth Industrial Revolution
– Food Donations has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Food Donations needs to keep up with the evolution of technology in the Leadership & Managing People 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. Food Donations needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Food Donations 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.
Weighted SWOT Analysis of Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa 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 Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa 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 Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa 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 Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa 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 Genetically Modified Food Donations and the Cost of Neutrality: Logistics Response to the 2002 Food Crisis in Southern Africa 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 Food Donations needs to make to build a sustainable competitive advantage.
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