Quenchbliss Case Study: Write a SWOT Analysis
SCENARIO: Quenchbliss is a craft soda company based in El Paso, Texas. Craft sodas are more expensive, gourmet sodas, usually from small companies—the soft drink equivalent of “microbrews.” Quenchbliss’s primary business is their sodas, with smaller revenue streams from merchandise. They have an owners group of thirty shareholders but are not yet publicly traded. They have a staff of about 80, most of whom work in the warehouse, distribution, and at a store attached to the warehouse. All operations are at the same location, from research and development, to promotions and sales, to bottling and distribution. Because it began as a small operation and grew quickly, their organizational structure is flat and organic. “Everybody does a little bit of everything,” their founder and CEO says. Indeed, the CEO herself sometimes takes the register at the store or oversees warehouse operations.
Quenchbliss’s claim to fame is unusual flavors, like “Bacon and Eggs,” and seasonal offerings like “Thanksgiving Turkey.” They have to constantly release new flavors since their target market is focused on these new and unique flavors. In fact, one of the company’s biggest sellers is their subscriiption box, which comes out four times a year and contains a four-pack of their newest flavors and seasonal favorites. The unusual and constantly changing flavors are also what bring people into the store. Quenchbliss does produce traditional flavors like cola and lemon-lime, which they distribute through restaurants and grocery stores. These bring in reliable revenue, even if they don’t get the attention on social media of their nontraditional flavors. Several months ago, Quenchbliss went international by opening a distribution center in Juarez, Mexico. This market has little competition for craft soda, so their products have become popular. They’ve done so well, in fact, Quenchbliss is considering expanding into other international markets such as Santo Domingo, Dominican Republic, and Kingston, Jamaica.
However, since they have spent time, money, and energy on expansion, Quenchbliss has lost a contract with a local restaurant chain and has also seen a decrease in subscriiptions. Because of these setbacks, Quenchbliss has put expansion on hold and gone back to finding exciting new flavors by growing their product development team, a combination of food scientists and creative professionals who brainstorm how to create and market new flavors. This move has caused some internal friction, as many were excited about the continued growth of the brand. Another source of internal friction is that salaries are not keeping pace with the market, so Quenchbliss has a hard time recruiting people for lower-level jobs of production and distribution. These jobs also have high turnover.
ASSIGNMENT: For all of the Touchstones in this class, you will take on the role of an Organizational Behavior Consultant to help Quenchbliss understand and address their challenges. For this assignment, you will perform a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). In addition to providing initial analysis of the organization, you will make recommendations based on the tutorials you have read so far. For more information on SWOT analyses, see the tutorial on Internal Organizations and External Environments. You should also review the content throughout Unit 1 on internal and external environments, organizational change, and diversity in the workforce. An example SWOT analysis is provided in Section B below.
Download the Template
A. Directions
Step 1. Perform Research:
In order to effectively perform a SWOT analysis, you must do research on the company, the industry, the region, and the economy. You have the Quenchbliss scenario to tell you about the company’s strengths and weaknesses, but should find at least three outside sources of information to understand the threats and opportunities facing Quenchbliss.
Examples of specific places to research would be:
• An inventory of grocery stores in the southwestern United States to see which brands of craft soda they sell. This will tell you about the competition.
• Job sites like Indeed and LinkedIn to understand the job market in El Paso, TX, and Juarez, the border city in Chihuahua, Mexico. This will tell you about the market in this area.
• National and global information on the craft soda industry and trends for these companies.
• National and global information on the economy and the job market in general.
• The economy in downtown El Paso, particularly for “entertainment shopping,” and recreational activities that might bring foot traffic to their store.
Step 2: Develop your SWOT Analysis on Quenchbliss:
After you’ve synthesized the information, record the SWOT analysis in the template provided, answering these key points:
• What Quenchbliss does well internally.
• What weaknesses the company has internally.
• What external opportunities exist as they relate to changing demographics, new markets, or international markets.
• What external challenges they face, such as competition, consumer tastes shifts, or local economic issues.
Hint: Each bullet point should state an observation or fact, provide a source for the fact if it is not in the scenario, and a few words about why you consider it a strength, weakness, opportunity, or fact. See below for examples.
Step 3: Consider the Impact:
Select at least two items identified in your SWOT Analysis that are likely to have an effect on aspects of the internal organization, such as structure, culture, stability, and complexity. Write 2-4 paragraphs that explain why this is important and what effect it will have on the organization. Apply concepts for the course tutorials in Unit 1. See the example below for further clarification. The prompts below may help you in writing this analysis.
• What are the most significant potential impacts on Quenchbliss?
• How can Quenchbliss leverage identified strengths and opportunities to mitigate weaknesses and threats?
• What strategic recommendations would you make to address these impacts, and what are the considerations for implementing these recommendations?
• How can the company plan for and mitigate potential future threats?
Step 4: Develop strategic recommendations:
Include suggestions for Quenchbliss to leverage strengths, address weaknesses, seize opportunities, and mitigate threats. Write 2-4 paragraphs incorporating at least 2 recommendations for Quenchbliss. Each recommendation should include a brief risk analysis to anticipate potential pitfalls and propose measures to address these risks.
• How can strengths be transformed into opportunities to drive growth?
• What changes should Quenchbliss consider to turn weaknesses into strengths or opportunities?
• Identify and evaluate the potential risks associated with your recommendations.
• Propose actionable steps to mitigate identified risks.
Step 5: References:
Finally, add the references to the articles you cited in the paper. You should include at least 5 references, 2 of which can be from the Sophia Learning course tutorials. Be sure to use APA format, usually in the format shown below. Make sure any URLs are correct and do not contain any unnecessary code.
Columbo, F. & Fletcher, J. (2020, March 5). The perils of dishonesty in business. Levinson Institute of Economics. http://levinsoninst.org/perils-of-dishonesty.html
Step 6: Submit Touchstone:
Once you have completed your analysis and reviewed the checklist below, it is time to submit your document. If you are using Microsoft Word, you simply need to save your document and upload the file to Sophia. If you are using other word processing software, export the document as a Microsoft Word document (.docx) and upload this version to Sophia. In Google Docs this is under File: Download: Microsoft Word. In Apple Keynote it is under File: Export to: Microsoft Word.
Remember to check your work! Refer to the checklist below throughout the writing process. Do not submit your Touchstone Task until it meets these guidelines.
❒ Does your analysis communicate your points?
❒ Did you find at least five sources of information on competition and other environmental factors to provide a viable SWOT?
❒ Have you thought of all potential strengths, making reasonable assumptions?
❒ Have you thought of all potential weaknesses, as compared to competitors, making reasonable assumptions?
❒ Have you thought of all potential opportunities, based on research, making reasonable assumptions?
❒ Have you thought of all potential threats, based on research and by making reasonable assumptions?
❒ Have you thought of at least 2 recommendations to give Quenchbliss based off your SWOT analysis?
❒ Have you identified potential risks and mitigation strategies for the recommendations made?
❒ Have you correctly included your in-text citations and completed your Reference page using APA formatting?
B. Example
This example shows one way to do a SWOT analysis, for the other company we discuss throughout the class, Media4U. Since that company has a different story than Quenchbliss, please use this only as a reference for what a SWOT analysis looks like; do not copy the specific points.
Strengths Weaknesses
• High customer satisfaction and loyalty give Media4U reliable core business.
• Committed, creative, and diverse employees give Media4U a strong portfolio that attracts new clients.
• Ethical approach to advertising builds trust and authenticity giving a competitive edge to clients who share our values.
• Leadership committed to continuous improvement assuring that Media4U will continue to adapt to the changing environment. • Structural changes have created instability, which in turn affects employee morale.
• The Media4U brand is not well known in a highly competitive market, making it harder to attract new clients.
• While there are new hires who lead social media marketing efforts, the organization still lacks broad or deep technological knowledge making it hard to compete in this area.
• Staff feels opportunities for advancement are rare and highly competitive, making them less loyal and committed to Media4U in the long term.
Opportunities Threats
• New media marketing is a growth industry (Business Insights Today, 2024) so Media4U could meet this demand.
• Companies are looking for authenticity and DEI in advertising (Little Black Book) which are strength areas for Media4U.
• Election years always provide additional work for media companies so Media4U could focus sales in this area.
• Growth of business in DC area is good opportunity for new client relationships, so Media4U could focus on building relationships with new businesses. • AI is threat to conventional media creation (Anderson, 2024) changing the media landscape in ways we can’t anticipate.
• Other companies have more tech savvy in areas like digital marketing and data analytics so we must catch up if we want to stay relevant.
• Political clients can lead to blowback from clients (AAF, 2024) so we must be careful about committing to divisive candidates.
• Advertising companies outpacing other businesses for growth in DC area, meaning more competition for new clients and even maintaining current clients.
Impact
Media4U is facing some challenges which threaten the stability of the organization. In particular, they lag on technological capacity. They have made some gains in this area by adding a social media marketing department, but still have limited resources in this area and furthermore have trouble recruiting and training staff who have this knowledge. Further change is needed to stay competitive. Media4U is at a crucial stage in the business life cycle, one where organizational decisions can lead to decline or renewal based on willingness to make deep changes (“Organizational Change”, n.d.)
In addressing this need, the organization should consider a “bottom-up” approach to making organizational changes, since without employee buy-in there is likely to be continued friction and even resentment. One tried-and-true approach that would be effective for Media4U is a “5-D” process. Following this model, leadership would create a cross-organizational committee to define their goals for the future, discover (do initial learning about the environment), dream and design (create a broad vision for their organization, and identify specific ways to achieve it) and ultimately determine the organization’s destiny (“Appreciative Inquiry”, n.d.). Each member of the committee can also meet with their respective departments, so all points of view are represented and the change has organization-wide commitment.
Moreover, it is important to consider all stakeholders in these decisions, especially existing (especially long-term) clients. An open meeting for all stakeholders where a trained facilitator helps them explore ideas for the future would assure that organizational changes are consistent with what other stakeholders (such as clients and the community) want from Media4U and help avoid further instability (“Complex Adaptive Systems”, n.d.). These stakeholders also have ideas and beliefs that need to be part of their vision.
References
American Advertising Federation (2024, March 6). What’s On the Agenda for US Advertising in 2024? Little Black Book. https://lbbonline.com/news/whats-on-the-agenda-for-us-advertising-in-2024
Anderson, B. (2024, June 4). AI in Digital Marketing: Trends and Best Practices for 2024. ReadWrite. https://readwrite.com/ai-digital-marketing-trends/
Business Insights Today (2024, January 24). “Digital Media Market Size” | Showing Impressive Growth by 2031 [LinkedIn]. LinkedIn. https://www.linkedin.com/pulse/digital-media-market-size-showing-impressive-growth-gafic/
Sophia Learning (n.d.) Complex Adaptive Systems. Organizational Behavior [MOOC]. Sophia. https://app.sophia.org/course_preview/organizational-behavior/challenge-1-3/6/14490/complex-adaptive-systems
Sophia Learning (n.d.) Appreciative Inquiry. Organizational Behavior [MOOC]. Sophia. https://app.sophia.org/course_preview/organizational-behavior/challenge-1-3/5/14489/appreciative-inquiry
Sophia Learning (n.d.) Organizational Change. Organizational Behavior [MOOC]. Sophia. https://app.sophia.org/course_preview/organizational-behavior/challenge-1-3/2/14486/organizational-change-2
C. Requirements
• All content must be original, created for this assignment, and appropriate for an academic audience.
• Content should be formatted for professional conventions (12-point font, preferably Times New Roman or another standard-looking font, 1-inch margins, and carefully proofread for errors). Professional documents are usually single-spaced with an extra space between paragraphs.
• Plagiarism of any kind is strictly prohibited, including the use of AI-generated content.
• Submission must include your name, the date, and the assignment name.
• Include all of the assignment components in a single .doc or .docx file. If you are using software other than Microsoft Word, such as Google Docs or Apple Pages, you can export in these formats.
D. Additional Resources
The following resources may be helpful to you as you work on your Touchstone Task assignment.
1. Purdue Online Writing Lab’s APA Formatting and Style Guide. This site includes a comprehensive overview of APA style, as well as individual pages with guidelines for specific citation types.
2. Frequently Asked Questions About APA Style. This page on the official APA website addresses common questions related to APA formatting. The “References,” “Punctuation,” and “Grammar and Writing Style” sections will be the most useful to your work in this course.
3. APA Style: Quick Answers—References. This page on the official APA Style website provides numerous examples of reference list formatting for various source types.
4. Appropriate Level of Citation. This page offers guidance on how to effectively avoid over- or under-citation.
E. Rubric
Advanced (100%) Proficient (85%) Acceptable (75%) Needs Improvement (50%) Non-Performance (0%)
Strengths
Identifies organizational strengths that are consistent with the scenario and/or supported by research. (15%) Identifies 4 organizational strengths that are consistent with the scenario and/or supported by research. Identifies 3 organizational strengths that are consistent with the scenario and/or supported by research. Additional items may be listed that are not consistent with the scenario and/or the facts available. Identifies 2 organizational strengths that are consistent with the scenario and/or supported by research. Additional items may be listed that are not consistent with the scenario and/or the facts available. Identifies 1 organizational strength that is consistent with the scenario and/or supported by research. Additional items may be listed that are not consistent with the scenario and/or the facts available. Identifies no organizational strengths, or none are consistent with the scenario or supported by research.
Weaknesses
Identifies organizational weaknesses that are consistent with the scenario and/or supported by research. (15%) Identifies 4 organizational weaknesses that are consistent with the scenario and/or supported by research. Identifies 3 organizational weaknesses that are consistent with the scenario and/or supported by research. Additional items may be listed that are not consistent with the scenario and/or the facts available. Identifies 2 organizational weaknesses that are consistent with the scenario and/or supported by research. Additional items may be listed that are not consistent with the scenario and/or the facts available. Identifies 1 organizational weakness that is consistent with the scenario and/or supported by research. Additional items may be listed that are not consistent with the scenario and/or the facts available. Identifies no organizational weaknesses, or none are consistent with the scenario or supported by research.
Opportunities
Identifies organizational opportunities that are consistent with the scenario and/or supported by research. (15%) Identifies 4 organizational opportunities that are consistent with the scenario and/or supported by research. Identifies 3 organizational opportunities that are consistent with the scenario and/or supported by research. Additional items may be listed that are not consistent with the scenario and/or the facts available. Identifies 2 organizational opportunities that are consistent with the scenario and/or supported by research. Additional items may be listed that are not consistent with the scenario and/or the facts available. Identifies 1 organizational opportunity that is consistent with the scenario and/or supported by research. Additional items may be listed that are not consistent with the scenario and/or the facts available. Identifies no organizational opportunities, or none are consistent with the scenario or supported by research.
Threats
Identifies organizational threats that are consistent with the scenario and/or supported by research. (15%) Identifies 4 organizational threats that are consistent with the scenario and/or supported by research. Identifies 3 organizational threats that are consistent with the scenario and/or supported by research. Additional items may be listed that are not consistent with the scenario and/or the facts available. Identifies 2 organizational threats that are consistent with the scenario and/or supported by research. Additional items may be listed that are not consistent with the scenario and/or the facts available. Identifies 1 organizational threat that is consistent with the scenario and/or supported by research. Additional items may be listed that are not consistent with the scenario and/or the facts available. Identifies no organizational threats, or none are consistent with the scenario or supported by research.
Impact
Consider impact of at least one aspect of the SWOT analysis on the internal organization, and make recommendations based on course tutorials. (15%) Provides at least 2 highly detailed paragraphs considering impact of at least one aspect of the SWOT analysis on the internal organization. Provides at least 2 paragraphs considering impact of at least one aspect of the SWOT analysis on the internal organization. Provides 1 paragraph considering impact of at least one aspect of the SWOT analysis on the internal organization. Provides less than one paragraph considering impact of SWOT analysis on the internal organization; impact may not be in paragraph form and/or is not clearly drawn from SWOT analysis. Does not provide a reasonable consideration of impacts for any aspect of the SWOT analysis.
Recommendations
Make recommendations based on your analyses utilizing tutorials. (15%) At least 2 highly detailed paragraphs with at least 2 recommendations are included with recommendations derived from the SWOT analyses, including risks and mitigation strategies At least 2 paragraphs are included with recommendations derived from the SWOT analyses, including risks and mitigation strategies At least 1 paragraph and 1 recommendation is included with recommendation derived from the SWOT analyses, including risks and mitigation strategies Provides less than one paragraph, and at least 1 recommendation is included with recommendation derived from the SWOT analyses. Risks and mitigation strategies may be missing. Does not provide reasonable recommendations and does not include any risks or mitigation strategies.
Conventions
Meets conventions for grammar, punctuation, spelling, and APA formatting. (10%) At least 5 references have been used in the analyses. Includes virtually no minor errors in grammar, punctuation, spelling, and APA formatting. At least 4 references have been used in the analyses. Includes fewer than 5 minor errors in grammar, punctuation, spelling, and APA formatting.
Org Behavior TS1 Template.docx
Struggling with where to start this assignment? Follow this guide to tackle your assignment easily!
Strengths
- Innovative and Unique Flavors: Quenchbliss is known for its highly creative and unique flavors, such as “Bacon and Eggs” and “Thanksgiving Turkey,” which attract a niche market interested in novelty products. This unique selling proposition (USP) helps Quenchbliss differentiate itself in a competitive industry, building strong customer loyalty.
- Strong Social Media Presence: The unusual and constantly changing flavors generate excitement on social media, with the company tapping into the trend of “foodie” culture. Social media engagement helps them maintain a strong brand presence and keep customers excited about their product releases.
- Subscription Box Service: The subscription box, which delivers new and seasonal flavors to customers regularly, provides a consistent revenue stream and increases customer loyalty by offering exclusive access to new products.
- Expansion into International Markets: The successful launch of a distribution center in Juarez, Mexico, with minimal competition in the craft soda market, demonstrates that Quenchbliss has strong potential for international growth. This marks an important step in their brand’s scalability and reach beyond local markets.
Weaknesses
- Financial Strain and Resource Allocation: Recent expansion efforts have stretched Quenchbliss’s resources thin, particularly in terms of staffing and finances. The pause in expansion to refocus on flavor development suggests that the company is facing financial stress, which impacts its ability to continue its growth trajectory.
- High Turnover in Lower-Level Jobs: Positions in production and distribution are plagued by high turnover, which affects productivity and increases recruitment and training costs. Additionally, salaries that don’t match the industry standard make it difficult to retain employees in these roles.
- Reliance on Unusual Flavors for Market Identity: While unique flavors have been a key differentiator, they also create the challenge of maintaining customer interest through constant innovation. Additionally, these flavors may not appeal to every customer, leading to the potential loss of business from more traditional soda drinkers.
- Inability to Maintain Large-Scale Contracts: Losing a local restaurant chain contract could indicate a vulnerability in maintaining large, stable business relationships, which impacts overall revenue.
Opportunities
- Growth of Craft Beverage Market: The craft soda industry is experiencing significant growth as more consumers turn to artisanal and unique beverage options. This trend presents an opportunity for Quenchbliss to expand its customer base, especially among consumers who prefer high-quality, locally sourced products.
- Expansion into Additional International Markets: The success in Mexico sets a positive precedent for expansion into other international markets, such as the Dominican Republic and Jamaica, which could open up new revenue streams.
- Diversification of Product Line: By expanding beyond soda and exploring new product lines such as craft sodas in cans, mixers for alcoholic beverages, or even health-conscious sodas (e.g., low-sugar or functional beverages), Quenchbliss can tap into larger or more diverse markets.
- Collaborations with Food Industry Partners: Strategic partnerships with restaurants, grocery stores, and food festivals could expose Quenchbliss’s products to a broader audience and increase brand visibility.
Threats
- Intense Competition: The craft soda industry is becoming increasingly competitive, with many small and local brands vying for market share. Larger beverage companies may also tap into the craft soda market, putting pressure on smaller companies like Quenchbliss to innovate constantly.
- Economic Conditions and Consumer Spending: Economic downturns or shifts in consumer spending habits could negatively affect discretionary spending on premium products like craft sodas. A decrease in consumer purchasing power could lead to a reduction in demand for nonessential items such as gourmet sodas.
- Supply Chain and Distribution Challenges: As Quenchbliss expands, logistical challenges related to distribution, especially internationally, could arise. Operational disruptions due to geopolitical factors, trade restrictions, or transportation issues could impact product availability.
- Consumer Taste Shifts: The demand for novelty flavors may eventually wane, and consumer taste preferences could shift toward healthier, low-sugar, or functional beverages. This shift would require Quenchbliss to innovate quickly and adapt to changing market demands.
Impact Analysis
Two aspects of Quenchbliss’s SWOT analysis that will significantly impact the internal organization are its high turnover in lower-level positions and its expansion into international markets.
High turnover in lower-level jobs: High employee turnover in production and distribution roles is concerning as it leads to an unstable workforce. Quenchbliss may face challenges in maintaining consistent productivity, which could affect its ability to fulfill orders and maintain quality standards. The lack of competitive compensation exacerbates the issue by making recruitment and retention difficult. Additionally, this high turnover could undermine team morale, leading to decreased efficiency and greater strain on the remaining employees.
To address this, Quenchbliss needs to consider improving compensation packages and offering growth opportunities within the company. Investing in employee training, career development, and retention programs could create a more stable and motivated workforce. Furthermore, Quenchbliss could explore automated solutions to streamline the production process and reduce dependency on manual labor.
Expansion into International Markets: Quenchbliss’s expansion into Juarez has been successful, and the company is considering additional international growth in markets like the Dominican Republic and Jamaica. While this is an exciting opportunity, it also brings increased complexity and risk. International operations can lead to challenges in managing supply chains, navigating different regulatory environments, and handling currency fluctuations. Additionally, cultural differences in taste preferences could require product adaptations.
To effectively manage international expansion, Quenchbliss should develop a strategic plan that addresses these challenges. Hiring local experts and creating localized marketing strategies could help Quenchbliss tailor its approach to new markets and navigate regulatory hurdles more effectively. Leveraging its strong brand identity for unique flavors could help establish a loyal customer base even in new regions.
Strategic Recommendations
- Enhance Employee Retention Strategies: To address the issue of high turnover, Quenchbliss should focus on improving compensation for lower-level employees, especially those in production and distribution. A competitive wage structure will not only help with recruitment but also improve employee morale and loyalty. Additionally, Quenchbliss could offer employee development programs to create career advancement opportunities and reduce the likelihood of staff burnout.
Risk Analysis: There is a potential risk of increasing operational costs by raising wages. However, the return on investment will likely be seen through improved employee satisfaction, reduced recruitment costs, and enhanced productivity. A phased implementation of wage increases could help mitigate the financial strain.
- Focus on Scaling International Expansion: Quenchbliss should prioritize expanding strategically into international markets that align with their brand’s unique selling proposition, particularly those with limited competition in the craft soda space. Local market research and the recruitment of regional experts will help adapt products to local tastes and navigate regulatory challenges.
Risk Analysis: Expanding into new regions presents logistical challenges, especially related to supply chain management. Quenchbliss will need to build robust distribution channels and partnerships with local businesses to minimize delays and disruptions. Implementing a pilot program in select cities could reduce the risk of over-expansion too quickly.
References
- Sophia Learning. (n.d.). Complex Adaptive Systems. Organizational Behavior [MOOC]. Retrieved from https://app.sophia.org/course_preview/organizational-behavior/challenge-1-3/6/14490/complex-adaptive-systems
- Sophia Learning. (n.d.). Organizational Change. Organizational Behavior [MOOC]. Retrieved from https://app.sophia.org/course_preview/organizational-behavior/challenge-1-3/2/14486/organizational-change-2
- Anderson, B. (2024, June 4). AI in Digital Marketing: Trends and Best Practices for 2024. ReadWrite. https://readwrite.com/ai-digital-marketing-trends/
- Business Insights Today (2024, January 24). Digital Media Market Size | Showing Impressive Growth by 2031 [LinkedIn]. LinkedIn. https://www.linkedin.com/pulse/digital-media-market-size-showing-impressive-growth-gafic/