Y U Ranch: Strategy and Sustainability in Cattle Ranching (C) 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 (C)
This is a supplement to Y U Ranch: Strategy and Sustainability in Cattle Ranching (A) and (B), products 9B09M080 and 9B09M081 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 (C)" 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 (C) 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 (C) casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Y U Ranch: Strategy and Sustainability in Cattle Ranching (C)
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 (C) 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 (C) can be done for the following purposes –
1. Strategic planning using facts provided in Y U Ranch: Strategy and Sustainability in Cattle Ranching (C) 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 (C) | 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 (C) Harvard Business Review case study are -
Ability to recruit top talent
– Ranching Ranch is one of the leading recruiters in the industry. Managers in the Y U Ranch: Strategy and Sustainability in Cattle Ranching (C) 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 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 (C) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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 (C) 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.
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.
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 (C) 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Y U Ranch: Strategy and Sustainability in Cattle Ranching (C) firm has clearly differentiated products in the market place. This has enabled Ranching Ranch to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Ranching Ranch to invest into research and development (R&D) and innovation.
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.
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.
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 (C) 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.
Ability to lead change in Leadership & Managing People field
– Ranching Ranch 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 Ranching Ranch in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Ranching Ranch 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 Ranching Ranch is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Y U Ranch: Strategy and Sustainability in Cattle Ranching (C) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Y U Ranch: Strategy and Sustainability in Cattle Ranching (C) | 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 (C) are -
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.
Interest costs
– Compare to the competition, Ranching Ranch 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 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 (C) 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.
Skills based hiring
– The stress on hiring functional specialists at Ranching Ranch 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.
Slow decision making process
– As mentioned earlier in the report, Ranching Ranch 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. Ranching Ranch 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.
Need for greater diversity
– Ranching Ranch 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.
Capital Spending Reduction
– Even during the low interest decade, Ranching Ranch 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.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ranching Ranch is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Y U Ranch: Strategy and Sustainability in Cattle Ranching (C) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
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.
Opportunities Y U Ranch: Strategy and Sustainability in Cattle Ranching (C) | 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 (C) are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Ranching Ranch can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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.
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.
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 (C) - 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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ranching Ranch 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, Y U Ranch: Strategy and Sustainability in Cattle Ranching (C), 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 Ranching Ranch can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 (C) 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.
Better consumer reach
– The expansion of the 5G network will help Ranching Ranch to increase its market reach. Ranching Ranch 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.
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.
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.
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 (C) 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.
Learning at scale
– Online learning technologies has now opened space for Ranching Ranch 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.
Threats Y U Ranch: Strategy and Sustainability in Cattle Ranching (C) 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 (C) 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. 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ranching Ranch with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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 Ranching Ranch business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Y U Ranch: Strategy and Sustainability in Cattle Ranching (C), Ranching Ranch 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 .
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.
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.
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.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ranching Ranch 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.
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.
Shortening product life cycle
– it is one of the major threat that Ranching Ranch is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Y U Ranch: Strategy and Sustainability in Cattle Ranching (C) 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 (C) 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 (C) 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 (C) 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 (C) 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.