BK BRASIL OPERACAO (BKBR3) SWOT Analysis / TOWS Matrix / MBA Resources
Restaurants
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for BK BRASIL OPERACAO (Brazil)
Based on various researches at Oak Spring University , BK BRASIL OPERACAO is operating in a macro-environment that has been destablized by – wage bills are increasing, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, technology disruption, central banks are concerned over increasing inflation, increasing household debt because of falling income levels, increasing energy prices,
increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of BK BRASIL OPERACAO
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that BK BRASIL OPERACAO can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the BK BRASIL OPERACAO, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which BK BRASIL OPERACAO 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 BK BRASIL OPERACAO can be done for the following purposes –
1. Strategic planning of BK BRASIL OPERACAO
2. Improving business portfolio management of BK BRASIL OPERACAO
3. Assessing feasibility of the new initiative in Brazil
4. Making a Restaurants sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of BK BRASIL OPERACAO
Strengths of BK BRASIL OPERACAO | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of BK BRASIL OPERACAO are -
Sustainable margins compare to other players in Restaurants industry
– BK BRASIL OPERACAO has clearly differentiated products in the market place. This has enabled BK BRASIL OPERACAO to fetch slight price premium compare to the competitors in the Restaurants industry. The sustainable margins have also helped BK BRASIL OPERACAO to invest into research and development (R&D) and innovation.
Digital Transformation in Restaurants industry
- digital transformation varies from industry to industry. For BK BRASIL OPERACAO digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. BK BRASIL OPERACAO 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.
Ability to recruit top talent
– BK BRASIL OPERACAO is one of the leading players in the Restaurants industry in Brazil. It is in a position to attract the best talent available in Brazil. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the BK BRASIL OPERACAO 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.
Strong track record of project management in the Restaurants industry
– BK BRASIL OPERACAO is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– BK BRASIL OPERACAO 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 Restaurants industry. The technology infrastructure of Brazil is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Highly skilled collaborators
– BK BRASIL OPERACAO has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Restaurants industry. Secondly the value chain collaborators of BK BRASIL OPERACAO have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– BK BRASIL OPERACAO has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled BK BRASIL OPERACAO to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of BK BRASIL OPERACAO in Restaurants industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that BK BRASIL OPERACAO 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.
Innovation driven organization
– BK BRASIL OPERACAO is one of the most innovative firm in Restaurants sector.
Learning organization
- BK BRASIL OPERACAO 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 BK BRASIL OPERACAO is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at BK BRASIL OPERACAO emphasize – knowledge, initiative, and innovation.
Weaknesses of BK BRASIL OPERACAO | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BK BRASIL OPERACAO are -
Workers concerns about automation
– As automation is fast increasing in the Restaurants industry, BK BRASIL OPERACAO 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.
Skills based hiring in Restaurants industry
– The stress on hiring functional specialists at BK BRASIL OPERACAO 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 bargaining power of channel partners in Restaurants industry
– because of the regulatory requirements in Brazil, BK BRASIL OPERACAO 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 Restaurants industry.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, BK BRASIL OPERACAO is slow explore the new channels of communication. These new channels of communication can help BK BRASIL OPERACAO to provide better information regarding Restaurants products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee of BK BRASIL OPERACAO is just above the Restaurants industry average. It 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 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 BK BRASIL OPERACAO supply chain. Even after few cautionary changes, BK BRASIL OPERACAO is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left BK BRASIL OPERACAO vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, BK BRASIL OPERACAO has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Restaurants industry over the last five years. BK BRASIL OPERACAO 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.
Ability to respond to the competition
– As the decision making is very deliberative at BK BRASIL OPERACAO, in the dynamic environment of Restaurants industry it has struggled to respond to the nimble upstart competition. BK BRASIL OPERACAO has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of BK BRASIL OPERACAO is dominated by functional specialists. It is not different from other players in the Restaurants industry, but BK BRASIL OPERACAO needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help BK BRASIL OPERACAO to focus more on services in the Restaurants industry rather than just following the product oriented approach.
High dependence on BK BRASIL OPERACAO ‘s star products
– The top 2 products and services of BK BRASIL OPERACAO still accounts for major business revenue. This dependence on star products in Restaurants industry has resulted into insufficient focus on developing new products, even though BK BRASIL OPERACAO has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As BK BRASIL OPERACAO is one of the leading players in the Restaurants industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Restaurants industry in last five years.
BK BRASIL OPERACAO Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of BK BRASIL OPERACAO are -
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 BK BRASIL OPERACAO 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 BK BRASIL OPERACAO in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Restaurants industry, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Restaurants industry, but it has also influenced the consumer preferences. BK BRASIL OPERACAO can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for BK BRASIL OPERACAO 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 BK BRASIL OPERACAO to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, BK BRASIL OPERACAO 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.
Better consumer reach
– The expansion of the 5G network will help BK BRASIL OPERACAO to increase its market reach. BK BRASIL OPERACAO will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Learning at scale
– Online learning technologies has now opened space for BK BRASIL OPERACAO 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, BK BRASIL OPERACAO can use these opportunities to build new business models that can help the communities that BK BRASIL OPERACAO operates in. Secondly it can use opportunities from government spending in Restaurants sector.
Leveraging digital technologies
– BK BRASIL OPERACAO 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.
Creating value in data economy
– The success of analytics program of BK BRASIL OPERACAO has opened avenues for new revenue streams for the organization in Restaurants industry. This can help BK BRASIL OPERACAO to build a more holistic ecosystem for BK BRASIL OPERACAO products in the Restaurants industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at BK BRASIL OPERACAO 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 Restaurants industry.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Restaurants industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. BK BRASIL OPERACAO can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. BK BRASIL OPERACAO can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, BK BRASIL OPERACAO 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 BK BRASIL OPERACAO to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats BK BRASIL OPERACAO External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of BK BRASIL OPERACAO are -
Environmental challenges
– BK BRASIL OPERACAO 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. BK BRASIL OPERACAO can take advantage of this fund but it will also bring new competitors in the Restaurants industry.
Consumer confidence and its impact on BK BRASIL OPERACAO 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 Restaurants industry and other sectors.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, BK BRASIL OPERACAO may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Restaurants sector.
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. BK BRASIL OPERACAO 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.
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 BK BRASIL OPERACAO.
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 BK BRASIL OPERACAO in the Restaurants sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that BK BRASIL OPERACAO is facing in Restaurants sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of BK BRASIL OPERACAO
– 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 BK BRASIL OPERACAO.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for BK BRASIL OPERACAO in Restaurants industry. The Restaurants 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.
Stagnating economy with rate increase
– BK BRASIL OPERACAO 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 Restaurants industry.
Easy access to finance
– Easy access to finance in Restaurants industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. BK BRASIL OPERACAO can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– BK BRASIL OPERACAO 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 BK BRASIL OPERACAO Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at BK BRASIL OPERACAO 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 BK BRASIL OPERACAO 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 BK BRASIL OPERACAO 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 BK BRASIL OPERACAO 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 BK BRASIL OPERACAO needs to make to build a sustainable competitive advantage.
