Strategy Analysis for Organic Fruit Bars (OFB)
Your task
You have been asked to conduct strategy analysis for OFB to ensure they can realise their desired future state.
Structure
Your report will need to include the following details. It is recommended that you use these as main sections in your report and then break them down into sub-sections where necessary.
Executive summary
A summary of the main details contained in the report.
Strategy analysis
Current state analysis
Describe how the business currently functions and identify problems and pain points.
Minimum requirements:
- Describe how the business currently functions.
- Include two personas representing farmers and employees and two journey maps, which are customer journey maps (CJMs), showing their interaction with the current system in relation to tracing fruit bars sold in a store to the origin of the berries. It is necessary to identify problems and pain points.
- Identify business processes that need to be changed.
Future state analysis
Describe the desired future state.
Minimum requirements:
- Two business goals and two SMART objectives.
- Scope of the solution space and constraints.
- Changes in the journey maps and business processes that will address the issues found in the current state.
- Identify at least 5 risks. Include the following elements for each risk: consequences, probability, impact, and treatment.
Risk assessment
Change strategy
Explain what the business will need to do to get from the current state to the desired future state.
Minimum requirements:
- Gap analysis.
- Readiness assessment: Assess whether farmers and the business are ready for the change.
- Recommended change strategy.
Solution Design
Present two solutions, a primary and an alternative solution, both of which implement the future state. The primary solution is your main recommendation, whereas the alternative solution is the next-best option. The solution can include technology (hardware and/or software), processes and people. You don’t need to include all three aspects in your solution, but you will still need to explain why a particular area isn’t being changed.
You must define 2 KPIs to monitor the performance of your solution. Briefly explain how you are planning to obtain the data for those KPIs.
Word Limit and References
The word limit for this report is 4,500 words (not including the words in the personas and journey maps). A tolerance of ±10% will be permitted.
You must include at least 10 references in your report to support your arguments, where necessary. This can include academic journal articles, conference proceedings, whitepapers, news articles, or reputable blogs.
References are not included in the word limit. You must use the APA referencing style.
Strategy Analysis
Student’s Name
Institution
Course Number and Name
Instructor’s Name
Date
Strategy Analysis
1. Describe how the business currently functions
The current operations at OFB rely on numerous IT systems and the effort of farmers and employees to input data into its systems. The many IT systems the organisation uses to support its processes mean they work like islands, unable to transmit data seamlessly and automatically.
The primary communication method between the farmers and the company is through an online Excel sheet. Farmers do not always access this Excel sheet; employees sometimes have to record data from papers once shipments arrive at the company. In addition, the Excel system is built in-house, which means that it can be tampered with and is not fully reliable.
OFB also utilises a Pipedrive system for customer relationship management as well as a standard warehouse system that keeps track of all berries and inventory. These two systems are incompatible with the above-mentioned online Excel sheet. As such, the data entered into the online Excel sheet must again be entered into the warehouse system. The lack of data sharing and manual input of information significantly hampers the efficiency of the company’s processes.
Other systems used by OFB include a production system for estimating and updating the number of berries required for a particular number of bars, an ERP system for administrative functions, and an online portal where customers place their orders. Customers can also place orders offline, which are then entered into the portal by the company's sales team. This not only allows for human error but also creates inefficiency.
The current state of operations at OFB is inefficient and costly. With the organisation employing many systems to carry out its functions, some of which are incompatible, it faces a significant risk of failing to satisfy its customers. The inability of the systems to share data automatically further impacts the ability of the company to facilitate external traceability.
2. Risk Assessment
Risk Name
Consequence
Probability
Impact
Treatment
Incomplete tracing of products
The current traceability in the company ends with the production of fruit bars, which limits the company's ability to guarantee its products' safety. Without complete traceability, the company cannot link the fruit bars in stores to the farmers, meaning it cannot identify areas in its supply chain that need improvement.
60%
There is a relatively high chance that the company could supply unsafe products because berries are perishable. Without full traceability, it can be difficult to locate the source of bad berries.
8
Unsafe products will significantly impact the ability of the company to satisfy its clients and can even lead to loss of customers.
Mitigate
Consider adopting a new system that allows for two-way traceability.
Legal risks
The company can face legal suit in case its products results in harm to customer(s). This can impact negatively its finances as well as reputation
30%
There is a relatively low chance of the company being sued because it has some quality checks in place.
7
A legal suit could jeopardise the company's future, particularly due to a bad reputation and fines.
Risk Transfer
Given that sometimes the company may not have control over legal suits, it should consider using insurance coverage.
Competition
Stiff competition in the market can put the company out of business
60%
Given the inefficiencies with the company’s current systems, there is a somewhat high chance that a competitor with better systems can take over the market share.
8
Competition with better systems can lead to business closure if OFB does not make significant changes now.
Mitigate
The competition risk can be mitigated by employing a new system that allows for data sharing as well as two-way traceability.
Berries’ Price Changes
A major increase in the prices of berries can impact the ability of customers to buy the products since the cost will be passed to them. As a result, they may consider alternative products.
20%
There is a low chance that an increase in the prices of berries will significantly affect the market size because of growing interest in organic products.
7
Loss of customers due to increased prices may force the company to cut its operational costs, further affecting quality.
Risk Transfer
The firm can take price insurance to cover times when prices are too high.
Extreme Weather Conditions
Extreme weather conditions such as hailstones and immense humidity can dramatically raise the prices of berries from farmers because of reduced supply.
30%
There is a relatively low chance that the extreme weather patterns will occur.
8
In the event of extreme weather conditions, the impact could be high because a whole season's production of berries may be affected.
Mitigate
The company should consider entering into agreements with farmers from different locations to cover for when there is an extreme weather event.
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