Maple Leaf Foods, Inc. (A): The Listeriosis Crisis SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Maple Leaf Foods, Inc. (A): The Listeriosis Crisis
The chief executive officer of Maple Leaf Foods, Inc., a food processing company employing 23,000 people in more than 50 locations, has just been advised that a deadly outbreak of Listeriosis has been linked to products shipped from a Maple Leaf Foods plant and that there have been several fatalities and many more severe illnesses linked to this contamination. He must decide what to do immediately, within the next few days, and in the longer term to deal with the problem and the effect that the negative publicity will almost certainly have on the company.
Swot Analysis of "Maple Leaf Foods, Inc. (A): The Listeriosis Crisis" written by Jeffrey Gandz includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Leaf Maple facing as an external strategic factors. Some of the topics covered in Maple Leaf Foods, Inc. (A): The Listeriosis Crisis case study are - Strategic Management Strategies, Crisis management, Leadership, Manufacturing, Organizational culture, Risk management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Maple Leaf Foods, Inc. (A): The Listeriosis Crisis casestudy better are - – supply chains are disrupted by pandemic , wage bills are increasing, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models,
geopolitical disruptions, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Maple Leaf Foods, Inc. (A): The Listeriosis Crisis
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Maple Leaf Foods, Inc. (A): The Listeriosis Crisis case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Leaf Maple, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Leaf Maple 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 Maple Leaf Foods, Inc. (A): The Listeriosis Crisis can be done for the following purposes –
1. Strategic planning using facts provided in Maple Leaf Foods, Inc. (A): The Listeriosis Crisis case study
2. Improving business portfolio management of Leaf Maple
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 Leaf Maple
Strengths Maple Leaf Foods, Inc. (A): The Listeriosis Crisis | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Leaf Maple in Maple Leaf Foods, Inc. (A): The Listeriosis Crisis Harvard Business Review case study are -
Ability to recruit top talent
– Leaf Maple is one of the leading recruiters in the industry. Managers in the Maple Leaf Foods, Inc. (A): The Listeriosis Crisis are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Leaf Maple digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Leaf Maple 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Maple Leaf Foods, Inc. (A): The Listeriosis Crisis firm has clearly differentiated products in the market place. This has enabled Leaf Maple to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Leaf Maple to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Leaf Maple 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 Maple Leaf Foods, Inc. (A): The Listeriosis Crisis - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Leaf Maple 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.
Learning organization
- Leaf Maple 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 Leaf Maple is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Maple Leaf Foods, Inc. (A): The Listeriosis Crisis Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Leadership & Managing People field
– Leaf Maple 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 Leaf Maple in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Leaf Maple in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Leaf Maple is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Maple Leaf Foods, Inc. (A): The Listeriosis Crisis 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
– Leaf Maple 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 Jeffrey Gandz 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.
Training and development
– Leaf Maple has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Maple Leaf Foods, Inc. (A): The Listeriosis Crisis 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.
Weaknesses Maple Leaf Foods, Inc. (A): The Listeriosis Crisis | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Maple Leaf Foods, Inc. (A): The Listeriosis Crisis are -
Low market penetration in new markets
– Outside its home market of Leaf Maple, firm in the HBR case study Maple Leaf Foods, Inc. (A): The Listeriosis Crisis needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Maple Leaf Foods, Inc. (A): The Listeriosis Crisis 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 Leaf Maple 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Leaf Maple is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Leaf Maple needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Leaf Maple to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Maple Leaf Foods, Inc. (A): The Listeriosis Crisis, in the dynamic environment Leaf Maple has struggled to respond to the nimble upstart competition. Leaf Maple has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Leaf Maple supply chain. Even after few cautionary changes mentioned in the HBR case study - Maple Leaf Foods, Inc. (A): The Listeriosis Crisis, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Leaf Maple vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Leaf Maple 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.
Interest costs
– Compare to the competition, Leaf Maple has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High cash cycle compare to competitors
Leaf Maple 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, Leaf Maple 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.
Lack of clear differentiation of Leaf Maple products
– To increase the profitability and margins on the products, Leaf Maple needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Leaf Maple 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.
Opportunities Maple Leaf Foods, Inc. (A): The Listeriosis Crisis | 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 Maple Leaf Foods, Inc. (A): The Listeriosis Crisis are -
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. Leaf Maple can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Leaf Maple can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Leaf Maple to increase its market reach. Leaf Maple 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.
Learning at scale
– Online learning technologies has now opened space for Leaf Maple 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Leaf Maple is facing challenges because of the dominance of functional experts in the organization. Maple Leaf Foods, Inc. (A): The Listeriosis Crisis 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Leaf Maple can use these opportunities to build new business models that can help the communities that Leaf Maple operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Manufacturing automation
– Leaf Maple 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.
Leveraging digital technologies
– Leaf Maple 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.
Developing new processes and practices
– Leaf Maple 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.
Creating value in data economy
– The success of analytics program of Leaf Maple has opened avenues for new revenue streams for the organization in the industry. This can help Leaf Maple to build a more holistic ecosystem as suggested in the Maple Leaf Foods, Inc. (A): The Listeriosis Crisis case study. Leaf Maple can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Leaf Maple can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Leaf Maple can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Maple Leaf Foods, Inc. (A): The Listeriosis Crisis 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, Leaf Maple 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, Maple Leaf Foods, Inc. (A): The Listeriosis Crisis, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Maple Leaf Foods, Inc. (A): The Listeriosis Crisis External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Maple Leaf Foods, Inc. (A): The Listeriosis Crisis are -
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. Leaf Maple can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Leaf Maple has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Leaf Maple 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.
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.
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 Leaf Maple business can come under increasing regulations regarding data privacy, data security, etc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Leaf Maple needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Leaf Maple with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Leaf Maple 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.
High dependence on third party suppliers
– Leaf Maple 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.
Consumer confidence and its impact on Leaf Maple 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.
Stagnating economy with rate increase
– Leaf Maple 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 Leaf Maple is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Leaf Maple in the Leadership & Managing People sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Leaf Maple 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 Maple Leaf Foods, Inc. (A): The Listeriosis Crisis .
Weighted SWOT Analysis of Maple Leaf Foods, Inc. (A): The Listeriosis Crisis 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 Maple Leaf Foods, Inc. (A): The Listeriosis Crisis 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 Maple Leaf Foods, Inc. (A): The Listeriosis Crisis 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 Maple Leaf Foods, Inc. (A): The Listeriosis Crisis 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 Maple Leaf Foods, Inc. (A): The Listeriosis Crisis 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 Leaf Maple needs to make to build a sustainable competitive advantage.