Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Y U Ranch: Strategy and Sustainability in Cattle Ranching (B)
This is a supplement to Y U Ranch: Strategy and Sustainability in Cattle Ranching (A), product 9B09M080 and, taken together, this case series illustrates why industrial farming has supplanted the farm-based agricultural system.
Swot Analysis of "Y U Ranch: Strategy and Sustainability in Cattle Ranching (B)" written by Pratima Bansal, Pam Laughland, Brent McKnight includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ranching Ranch facing as an external strategic factors. Some of the topics covered in Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) case study are - Strategic Management Strategies, Social responsibility, Strategy, Sustainability and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) casestudy better are - – geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, technology disruption, increasing government debt because of Covid-19 spendings,
supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Y U Ranch: Strategy and Sustainability in Cattle Ranching (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ranching Ranch, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ranching Ranch 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 Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) can be done for the following purposes –
1. Strategic planning using facts provided in Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) case study
2. Improving business portfolio management of Ranching Ranch
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 Ranching Ranch
Strengths Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ranching Ranch in Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) Harvard Business Review case study are -
High switching costs
– The high switching costs that Ranching Ranch 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.
Superior customer experience
– The customer experience strategy of Ranching Ranch in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Ranching Ranch in the sector have low bargaining power. Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ranching Ranch to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Ranching Ranch 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 Pratima Bansal, Pam Laughland, Brent McKnight 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.
Organizational Resilience of Ranching Ranch
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ranching Ranch does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Ranching Ranch has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ranching Ranch to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Ranching Ranch has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) 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.
Highly skilled collaborators
– Ranching Ranch 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 Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Ranching Ranch digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ranching Ranch 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.
Effective Research and Development (R&D)
– Ranching Ranch 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 Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) 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.
Diverse revenue streams
– Ranching Ranch is present in almost all the verticals within the industry. This has provided firm in Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) 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.
Weaknesses Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) are -
Aligning sales with marketing
– It come across in the case study Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) can leverage the sales team experience to cultivate customer relationships as Ranching Ranch is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Pratima Bansal, Pam Laughland, Brent McKnight suggests that, Ranching Ranch 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.
Low market penetration in new markets
– Outside its home market of Ranching Ranch, firm in the HBR case study Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Ranching Ranch products
– To increase the profitability and margins on the products, Ranching Ranch needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Ranching Ranch supply chain. Even after few cautionary changes mentioned in the HBR case study - Y U Ranch: Strategy and Sustainability in Cattle Ranching (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ranching Ranch vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Ranching Ranch 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Y U Ranch: Strategy and Sustainability in Cattle Ranching (B), it seems that the employees of Ranching Ranch 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.
Increasing silos among functional specialists
– The organizational structure of Ranching Ranch is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Ranching Ranch needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ranching Ranch to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Ranching Ranch has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Y U Ranch: Strategy and Sustainability in Cattle Ranching (B), is just above the industry average. Ranching Ranch 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.
High cash cycle compare to competitors
Ranching Ranch 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.
Opportunities Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) | 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 Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) are -
Using analytics as competitive advantage
– Ranching Ranch 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 Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ranching Ranch to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Ranching Ranch has opened avenues for new revenue streams for the organization in the industry. This can help Ranching Ranch to build a more holistic ecosystem as suggested in the Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) case study. Ranching Ranch can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Ranching Ranch 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.
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 Ranching Ranch in the consumer business. Now Ranching Ranch can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Ranching Ranch 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.
Buying journey improvements
– Ranching Ranch can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) 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.
Developing new processes and practices
– Ranching Ranch 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.
Leveraging digital technologies
– Ranching Ranch can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Ranching Ranch 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ranching Ranch 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ranching Ranch 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 Ranching Ranch to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ranching Ranch is facing challenges because of the dominance of functional experts in the organization. Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) 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.
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. Ranching Ranch can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) are -
Environmental challenges
– Ranching Ranch 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. Ranching Ranch can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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 Ranching Ranch in the Leadership & Managing People sector and impact the bottomline of the organization.
Consumer confidence and its impact on Ranching Ranch 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.
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. Ranching Ranch needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Regulatory challenges
– Ranching Ranch 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.
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. Ranching Ranch 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.
Technology acceleration in Forth Industrial Revolution
– Ranching Ranch has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Ranching Ranch 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 dependence on third party suppliers
– Ranching Ranch 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ranching Ranch 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 Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) .
Increasing wage structure of Ranching Ranch
– 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 Ranching Ranch.
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. Ranching Ranch can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Stagnating economy with rate increase
– Ranching Ranch 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.
Weighted SWOT Analysis of Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) 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 Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) 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 Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) 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 Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) 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 Y U Ranch: Strategy and Sustainability in Cattle Ranching (B) 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 Ranching Ranch needs to make to build a sustainable competitive advantage.
