Case Study Description of Ratnagiri Alphonso Orchard: Bayesian Decision Analysis
In late 2012, the owner of the Ratnagiri Alphonso Orchard considered whether or not to purchase information from a climatology firm regarding the probability of unseasonable rains that could have damaged some or all of his family's mango harvest. The owner needed to decide whether or not he should lease the orchard to a fruit merchant or keep the orchard for his family to harvest, despite the possibility of rain. Would the climatology firm have provided helpful information, or should he have made an independent decision? Regardless of whether he purchased information from the climatology firm, what was the best informed decision he could have made?
Swot Analysis of "Ratnagiri Alphonso Orchard: Bayesian Decision Analysis" written by Debdatta Pal includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Orchard Climatology facing as an external strategic factors. Some of the topics covered in Ratnagiri Alphonso Orchard: Bayesian Decision Analysis case study are - Strategic Management Strategies, Entrepreneurship, International business, Managing uncertainty, Risk management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Ratnagiri Alphonso Orchard: Bayesian Decision Analysis casestudy better are - – increasing commodity prices, technology disruption, geopolitical disruptions, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings,
increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Ratnagiri Alphonso Orchard: Bayesian Decision Analysis
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ratnagiri Alphonso Orchard: Bayesian Decision Analysis case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Orchard Climatology, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Orchard Climatology 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 Ratnagiri Alphonso Orchard: Bayesian Decision Analysis can be done for the following purposes –
1. Strategic planning using facts provided in Ratnagiri Alphonso Orchard: Bayesian Decision Analysis case study
2. Improving business portfolio management of Orchard Climatology
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 Orchard Climatology
Strengths Ratnagiri Alphonso Orchard: Bayesian Decision Analysis | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Orchard Climatology in Ratnagiri Alphonso Orchard: Bayesian Decision Analysis Harvard Business Review case study are -
High switching costs
– The high switching costs that Orchard Climatology 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.
High brand equity
– Orchard Climatology has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Orchard Climatology to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Orchard Climatology 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 Ratnagiri Alphonso Orchard: Bayesian Decision Analysis - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Orchard Climatology 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 Orchard Climatology is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Ratnagiri Alphonso Orchard: Bayesian Decision Analysis Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Orchard Climatology is one of the most innovative firm in sector. Manager in Ratnagiri Alphonso Orchard: Bayesian Decision Analysis Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Leadership & Managing People industry
– Ratnagiri Alphonso Orchard: Bayesian Decision Analysis firm has clearly differentiated products in the market place. This has enabled Orchard Climatology to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Orchard Climatology to invest into research and development (R&D) and innovation.
Strong track record of project management
– Orchard Climatology is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Leadership & Managing People field
– Orchard Climatology 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 Orchard Climatology in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Orchard Climatology in the sector have low bargaining power. Ratnagiri Alphonso Orchard: Bayesian Decision Analysis has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Orchard Climatology to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Orchard Climatology in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Ratnagiri Alphonso Orchard: Bayesian Decision Analysis 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.
Training and development
– Orchard Climatology has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ratnagiri Alphonso Orchard: Bayesian Decision Analysis 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 Ratnagiri Alphonso Orchard: Bayesian Decision Analysis | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ratnagiri Alphonso Orchard: Bayesian Decision Analysis are -
Increasing silos among functional specialists
– The organizational structure of Orchard Climatology is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Orchard Climatology needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Orchard Climatology to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Ratnagiri Alphonso Orchard: Bayesian Decision Analysis 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 Orchard Climatology 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Orchard Climatology 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
Orchard Climatology 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.
Lack of clear differentiation of Orchard Climatology products
– To increase the profitability and margins on the products, Orchard Climatology needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Orchard Climatology 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.
Slow to strategic competitive environment developments
– As Ratnagiri Alphonso Orchard: Bayesian Decision Analysis HBR case study mentions - Orchard Climatology takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Ratnagiri Alphonso Orchard: Bayesian Decision Analysis, it seems that the employees of Orchard Climatology 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.
Need for greater diversity
– Orchard Climatology 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 to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Orchard Climatology is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ratnagiri Alphonso Orchard: Bayesian Decision Analysis can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Ratnagiri Alphonso Orchard: Bayesian Decision Analysis, is just above the industry average. Orchard Climatology needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Opportunities Ratnagiri Alphonso Orchard: Bayesian Decision Analysis | 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 Ratnagiri Alphonso Orchard: Bayesian Decision Analysis are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Orchard Climatology can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Orchard Climatology 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.
Creating value in data economy
– The success of analytics program of Orchard Climatology has opened avenues for new revenue streams for the organization in the industry. This can help Orchard Climatology to build a more holistic ecosystem as suggested in the Ratnagiri Alphonso Orchard: Bayesian Decision Analysis case study. Orchard Climatology can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Orchard Climatology 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.
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. Orchard Climatology can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Orchard Climatology 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, Ratnagiri Alphonso Orchard: Bayesian Decision Analysis, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Orchard Climatology 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.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Orchard Climatology in the consumer business. Now Orchard Climatology can target international markets with far fewer capital restrictions requirements than the existing system.
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. Orchard Climatology can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Orchard Climatology has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Learning at scale
– Online learning technologies has now opened space for Orchard Climatology 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, Orchard Climatology is facing challenges because of the dominance of functional experts in the organization. Ratnagiri Alphonso Orchard: Bayesian Decision Analysis 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.
Building a culture of innovation
– managers at Orchard Climatology 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.
Threats Ratnagiri Alphonso Orchard: Bayesian Decision Analysis External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ratnagiri Alphonso Orchard: Bayesian Decision Analysis are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Orchard Climatology with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Orchard Climatology 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.
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 Orchard Climatology in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Orchard Climatology needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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. Orchard Climatology can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Orchard Climatology 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 Ratnagiri Alphonso Orchard: Bayesian Decision Analysis .
Increasing wage structure of Orchard Climatology
– 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 Orchard Climatology.
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.
Environmental challenges
– Orchard Climatology 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. Orchard Climatology can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Shortening product life cycle
– it is one of the major threat that Orchard Climatology is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Orchard Climatology has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Orchard Climatology 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Ratnagiri Alphonso Orchard: Bayesian Decision Analysis, Orchard Climatology 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 .
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 Orchard Climatology.
Weighted SWOT Analysis of Ratnagiri Alphonso Orchard: Bayesian Decision Analysis 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 Ratnagiri Alphonso Orchard: Bayesian Decision Analysis 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 Ratnagiri Alphonso Orchard: Bayesian Decision Analysis 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 Ratnagiri Alphonso Orchard: Bayesian Decision Analysis 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 Ratnagiri Alphonso Orchard: Bayesian Decision Analysis 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 Orchard Climatology needs to make to build a sustainable competitive advantage.
