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 subscription 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 subscriptions. 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. 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?