General Mills and the Hawthorne Huddle (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of General Mills and the Hawthorne Huddle (A)
Examines the role of General Mills in the formation and leadership of the Hawthorne Huddle. The Huddle was in the Hawthorne neighborhood in Northern Minneapolis, which in 1997 was plagued with high crime and poverty. The Huddle served as a forum, held the first Thursday of every month. Its goal was to improve the livability of the Hawthorne neighborhood by pooling the resources, experiences, and perspectives of residents, educators, law enforcement, business and social service professionals, elected officials, and members of the faith community. It discussed, and focused on solving, problems affecting the community. In late 2002, it faced the retirement of its leader, Reatha King, former president and now chair of the General Mills Foundation, who was revered throughout the community. General Mills and the Huddle were focused on developing a transition plan and new leadership model for the Huddle.
Authors :: Diana Barrett, Sheila McCarthy Leddy
Topics :: Leadership & Managing People
Tags :: Social enterprise, Social responsibility, Succession planning, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "General Mills and the Hawthorne Huddle (A)" written by Diana Barrett, Sheila McCarthy Leddy includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Huddle Hawthorne facing as an external strategic factors. Some of the topics covered in General Mills and the Hawthorne Huddle (A) case study are - Strategic Management Strategies, Social enterprise, Social responsibility, Succession planning and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the General Mills and the Hawthorne Huddle (A) casestudy better are - – increasing energy prices, technology disruption, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, increasing transportation and logistics costs, supply chains are disrupted by pandemic ,
wage bills are increasing, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of General Mills and the Hawthorne Huddle (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in General Mills and the Hawthorne Huddle (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Huddle Hawthorne, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Huddle Hawthorne 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 General Mills and the Hawthorne Huddle (A) can be done for the following purposes –
1. Strategic planning using facts provided in General Mills and the Hawthorne Huddle (A) case study
2. Improving business portfolio management of Huddle Hawthorne
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 Huddle Hawthorne
Strengths General Mills and the Hawthorne Huddle (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Huddle Hawthorne in General Mills and the Hawthorne Huddle (A) Harvard Business Review case study are -
Ability to recruit top talent
– Huddle Hawthorne is one of the leading recruiters in the industry. Managers in the General Mills and the Hawthorne Huddle (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Leadership & Managing People industry
– General Mills and the Hawthorne Huddle (A) firm has clearly differentiated products in the market place. This has enabled Huddle Hawthorne to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Huddle Hawthorne to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Huddle Hawthorne is present in almost all the verticals within the industry. This has provided firm in General Mills and the Hawthorne Huddle (A) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Training and development
– Huddle Hawthorne has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in General Mills and the Hawthorne Huddle (A) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Innovation driven organization
– Huddle Hawthorne is one of the most innovative firm in sector. Manager in General Mills and the Hawthorne Huddle (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Huddle Hawthorne 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 General Mills and the Hawthorne Huddle (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Huddle Hawthorne 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.
Cross disciplinary teams
– Horizontal connected teams at the Huddle Hawthorne 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.
Low bargaining power of suppliers
– Suppliers of Huddle Hawthorne in the sector have low bargaining power. General Mills and the Hawthorne Huddle (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Huddle Hawthorne to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Huddle Hawthorne has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Huddle Hawthorne to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Huddle Hawthorne 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 General Mills and the Hawthorne Huddle (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Huddle Hawthorne in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses General Mills and the Hawthorne Huddle (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of General Mills and the Hawthorne Huddle (A) are -
High operating costs
– Compare to the competitors, firm in the HBR case study General Mills and the Hawthorne Huddle (A) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Huddle Hawthorne 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Huddle Hawthorne 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.
No frontier risks strategy
– After analyzing the HBR case study General Mills and the Hawthorne Huddle (A), 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study General Mills and the Hawthorne Huddle (A), it seems that the employees of Huddle Hawthorne 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Huddle Hawthorne is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study General Mills and the Hawthorne Huddle (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Huddle Hawthorne 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 General Mills and the Hawthorne Huddle (A), in the dynamic environment Huddle Hawthorne has struggled to respond to the nimble upstart competition. Huddle Hawthorne has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Huddle Hawthorne 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 bargaining power of channel partners
– Because of the regulatory requirements, Diana Barrett, Sheila McCarthy Leddy suggests that, Huddle Hawthorne 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.
Need for greater diversity
– Huddle Hawthorne has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow decision making process
– As mentioned earlier in the report, Huddle Hawthorne 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. Huddle Hawthorne 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.
Opportunities General Mills and the Hawthorne Huddle (A) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study General Mills and the Hawthorne Huddle (A) are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Huddle Hawthorne 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, General Mills and the Hawthorne Huddle (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Huddle Hawthorne can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Huddle Hawthorne has opened avenues for new revenue streams for the organization in the industry. This can help Huddle Hawthorne to build a more holistic ecosystem as suggested in the General Mills and the Hawthorne Huddle (A) case study. Huddle Hawthorne can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Huddle Hawthorne in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Huddle Hawthorne 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.
Building a culture of innovation
– managers at Huddle Hawthorne 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
– Huddle Hawthorne 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.
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. Huddle Hawthorne can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Huddle Hawthorne 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Huddle Hawthorne is facing challenges because of the dominance of functional experts in the organization. General Mills and the Hawthorne Huddle (A) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Using analytics as competitive advantage
– Huddle Hawthorne 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 General Mills and the Hawthorne Huddle (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Huddle Hawthorne to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Huddle Hawthorne 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Huddle Hawthorne 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 Huddle Hawthorne to hire the very best people irrespective of their geographical location.
Threats General Mills and the Hawthorne Huddle (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study General Mills and the Hawthorne Huddle (A) are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Huddle Hawthorne 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.
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 Huddle Hawthorne.
Stagnating economy with rate increase
– Huddle Hawthorne 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.
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. Huddle Hawthorne 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 Huddle Hawthorne business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Huddle Hawthorne 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 Huddle Hawthorne is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Huddle Hawthorne
– 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 Huddle Hawthorne.
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. Huddle Hawthorne needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Consumer confidence and its impact on Huddle Hawthorne 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.
Environmental challenges
– Huddle Hawthorne 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. Huddle Hawthorne can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Regulatory challenges
– Huddle Hawthorne 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study General Mills and the Hawthorne Huddle (A), Huddle Hawthorne 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 .
Weighted SWOT Analysis of General Mills and the Hawthorne Huddle (A) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study General Mills and the Hawthorne Huddle (A) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study General Mills and the Hawthorne Huddle (A) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study General Mills and the Hawthorne Huddle (A) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of General Mills and the Hawthorne Huddle (A) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Huddle Hawthorne needs to make to build a sustainable competitive advantage.