A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A)
This case refers the store of a Chinese restaurant chain purchased by an American Food Industry Holding. Regardless of his successful career in the company, Juan Antonio can't reach and understanding with the Chinese workers. Besides, they enjoy special perks inside the company because they are the cooks and the success of the business depends mostly of them. Rank wise they are directly under a specific director for the Chinese workers and the Group's Operation Manager.The conflict develops when Jan, head of the kitchen of the restaurant managed by Juan Antonio, disappears and the second head of the kitching tells him that Jan took his vacations because his mother is sick. In view of this, company promotes the second chef and hired a new cook. However, a month goes back and Jan returns to work as if nothing had happened, ignoring Juan Antonio's warnings that he doesn't work there anymore. When the director of Operations informs him that he has been transferred to another restaurant, half an hour away from Madrid Jan confronts the second cook and the police is forced to step in and arrest him.Although the situation seems to have been solved, the next day more than 100 Chinese cooks go on a wild strike and the chain was forced to close more than 14 restaurants. They demanded that his workmate be reinstated, the Spanish Operation Manager fired and the salaries rose.
Authors :: Lourdes Susaeta Erburu, Arboledas Pin, R. Jose
Swot Analysis of "A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A)" written by Lourdes Susaeta Erburu, Arboledas Pin, R. Jose includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jan Juan facing as an external strategic factors. Some of the topics covered in A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) case study are - Strategic Management Strategies, Personnel policies, Psychology and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) casestudy better are - – increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation,
there is backlash against globalization, increasing energy prices, etc
Introduction to SWOT Analysis of A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jan Juan, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jan Juan 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 A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) can be done for the following purposes –
1. Strategic planning using facts provided in A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) case study
2. Improving business portfolio management of Jan Juan
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 Jan Juan
Strengths A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jan Juan in A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) Harvard Business Review case study are -
Highly skilled collaborators
– Jan Juan 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 A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) 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 Jan Juan digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jan Juan 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.
Successful track record of launching new products
– Jan Juan has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jan Juan has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Operational resilience
– The operational resilience strategy in the A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) 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.
Innovation driven organization
– Jan Juan is one of the most innovative firm in sector. Manager in A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Jan Juan is one of the leading recruiters in the industry. Managers in the A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Jan Juan 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 Jan Juan is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Jan Juan is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Jan Juan are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– Jan Juan has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Organizational Resilience of Jan Juan
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Jan Juan does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Jan Juan 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 A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) are -
Increasing silos among functional specialists
– The organizational structure of Jan Juan is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Jan Juan needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jan Juan to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Jan Juan 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 A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) 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 Jan Juan has relatively successful track record of launching new products.
High cash cycle compare to competitors
Jan Juan 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.
Need for greater diversity
– Jan Juan 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, Jan Juan is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Jan Juan 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. Jan Juan 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A), is just above the industry average. Jan Juan 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.
Low market penetration in new markets
– Outside its home market of Jan Juan, firm in the HBR case study A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) HBR case study mentions - Jan Juan 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.
High operating costs
– Compare to the competitors, firm in the HBR case study A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Jan Juan 's lucrative customers.
Opportunities A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) are -
Developing new processes and practices
– Jan Juan 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.
Loyalty marketing
– Jan Juan 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.
Better consumer reach
– The expansion of the 5G network will help Jan Juan to increase its market reach. Jan Juan 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.
Building a culture of innovation
– managers at Jan Juan 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jan Juan can use these opportunities to build new business models that can help the communities that Jan Juan operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Jan Juan 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jan Juan can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Jan Juan 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 A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jan Juan 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 Jan Juan has opened avenues for new revenue streams for the organization in the industry. This can help Jan Juan to build a more holistic ecosystem as suggested in the A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) case study. Jan Juan can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jan Juan 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 Jan Juan to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jan Juan 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, A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Jan Juan can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Jan Juan can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) are -
Environmental challenges
– Jan Juan 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. Jan Juan can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A), Jan Juan 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 .
Stagnating economy with rate increase
– Jan Juan 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.
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.
Technology acceleration in Forth Industrial Revolution
– Jan Juan has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Jan Juan 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.
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. Jan Juan 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.
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. Jan Juan needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Jan Juan business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Jan Juan 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.
Regulatory challenges
– Jan Juan 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jan Juan 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jan Juan 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 A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) .
High dependence on third party suppliers
– Jan Juan 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.
Weighted SWOT Analysis of A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of A Cross Cultural Crash and Labor Conflict: SA?i nA?ng Restaurant (A) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Jan Juan needs to make to build a sustainable competitive advantage.
