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Treat:

1. Due to the impact of the Covid-19, the overall economic downturn, weak consumption, the overall purchasing power of customers decreased, and the overall cost of manufacturing industry increased

2. People travel less and the demand for sportswear decreases.

Opportunities:

1. As the epidemic became less dangerous, people started to go out more often because they were really stuck at home for too long and people were getting tired of living at home.

2. There is still a long time before people really go back to the 9 to 5 daily commute in suits, so it is a good period for the development of sportswear.

Weaknesses:

1. People don't necessarily want to shop offline because the epidemic is still recurring and restarting offline stores would be very costly to operate and very vulnerable

2. Adidas is not a traditional online selling brand, so it has a lot to do with the new situation.

Strength:

1. Adidas is a large international brand, with a good brand image and influence this advantage，which has an inherent advantage of attracting a large number of customers.

2. People are tired of the life of online shopping at home all the time, the long-suppressed desire to consume is slowly being released.

Pros and Cons:

There is no doubt that Adidas is a large international brand, with a good brand image and influence this advantage，which has an inherent advantage of attracting a large number of customers. It may went through the Covid-19 by selling online. However, the reopening of the offline store would take risk of being compulsorily closed by the relevant policies. Even though it could attract more customers and increase the old customer's loyalty.

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Threats:

·      Semiconductor and parts supply shortages

·      Global health crisis caused by the COVID-19 let many factories and facilities shut down

Opportunities:

·      Some fans delay their gratification and look out for Switch Pro

·      Fans’ loyalty of the Switch

Weaknesses:

·      Ongoing demand for the market

·      Company might not be able to prepare enough for orders because of the semiconductor.

Strengths:

·      The company does not have any production issues yet

·      And the company have necessary materials for immediate production of semiconductors

Nintendo’s new president Shuntaro Furukawa announced the company was facing a shortage of semiconductors due to the COVID-19 pandemic. Many factories and supply chains were unable to unction due to the pandemic, and it leaded Nintendo to assemble. Also, with the increasing demand for Switch from many people, Nintendo has led to supply fails short of demand. All of these factors affect Nintendo’s market share. But Nintendo’s huge fan base and fan’s loyalty can keep it in the market.

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Threats:

—> Fear that the new candidate may be motivated by money and may not be a right fit for the role.

—> New candidate may not be able to balance the tradition and high standards that the BBC has been known for, while ensuring good value to its customers.

Opportunities:

—> Mr. Clementi recognized the flaws in the BBC Trust model and therefore needed to reform the system’s governance and regulations.

—> He is a person of high integrity and would be upscale the skills of people working under his governance.

—> He has ample experience

Weakness:

—> Sir David worked in a financial sector and therefore may not have expertise in the journalism domain.

—> The BBC Trust is facing problems and requires to be fixed.

Strengths:

—> Sir David has a proposal laid out to establish strong BBC board and an external regulator- a change that was much needed within the system.

—> His passion for governance and, his soft skills like thoughtfulness and generosity can be a huge asset for BBC.

Although Mr. Clementi’s domain expertise may not be in the media industry, he has laid out a strategic proposal to establish strong BBC board and a strong external regulator. He was appointed by his colleagues due to his clever and righteous personality and did not have any wrong motives therefore is a great asset to BBC.

In a similar situation like this, I would ask for the inputs from everyone on the team. An open discussion would bring in a lot of nuanced ideas and also the team members would feel heard. After considering everyone opinion, I would put forward my solution to the issue and back it up with my previous experience and lessons learnt.

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TOWS Analysis:

Threats:

The leadership style of Ulf Mark Schneider cannot be adopted by the international branch office.

Young customers usually prefer an unfamiliar brand that is new to them. If Nestle cannot address more young customers then it is possible to result in an economic loss.

Opportunities:

A new potential customer population can change the current image of Nestle, which will provide more profit to the company.

The company will new strategy can attract more young talents.

Weakness:

Nestle is a brand with a long history, and it is not easy to engage with the younger population.

Nestle is a large company, and it is not easy to adopt changes.

Strengths:

Nestle has a stable customer population in the market, which can support the company when Nestle announces any new product.

Nestle has a strong brand image in the international market.

In this case study, Nestle's CEO describes that Nestle needs to gain the heart of the younger population. As one of the largest international food and beverage companies, it is not an easy task for Nestle. First of all, the pressure on the supply chain will increase the pressure on Nestle, especially when they need to apply a new marketing strategy. Furthermore, Nestle also needs to focus on the solution to its greenhouse gas emissions, which requires a large amount of time and resources. However, the advantage for Nestle is that the company already has a strong brand image and customer population, which allows the company to test the new market reaction.

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Nintendo TOWS Leadership Analysis - Alisa Xu

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Nintendo TOWS Leadership Analysis - Alisa Xu

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1. TOWS Analysis

Threats:

A global semiconductor supply shortage in the gaming industry because of COVID-19.

Nintendo Switch faces strong rivals, such as Xbox Series XIS and PS5, to share its target market.

Opportunities:

The demand for gaming consoles has soared in these years.

Nintendo has reasonable cause to raise the price in short supply.

Weaknesses:

Nintendo's product stock shortages could not meet the ongoing demands and orders.

Strength:

Nintendo has a significant number of loyal fans and users.

Nintendo was able to secure the necessary materials for the immediate production of semiconductors for switches.

2. Pros and Cons

In nowadays situation, the transforming leadership is more appropriate for the current president Shuntaro Furukawa to lead Nintendo.

Since Shuntaro Furukawa succeeded Tatsumi Kimishima position, becoming the sixth president of Nintendo in 2018. He needs to create his style to push the company and employees outside their comfort zone, transform their products and management processes, and inspire them to have a growth mindset to face many uncertainties in the current world. However, it will be challenging to lead the transformation, especially in the current situation; the shortage of materials and supply is a common puzzle for all global companies. It's significant for the leader to be sensitive to uncertain market and supply chain changes, understand and adjust their business strategies timely, and make the right decisions.

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As per the article, Sir David Clementi comes across a an extremely wise and learned gentleman. His achievements and his contribution to the financial world has been immense. His leadership style comes across as : Transformational & Strategic mix. People who he has closely worked with have only sung praises of his thought leadership and a true visionary.

How would I emulate this leadership style in a similar situation:
If there is a change that I’m proposing as a leader to my team,I would open the stage for them to share what they think about the opportunity and encourage them to share their ideas.I would present my case with facts and success stories of similar situations to earn the trust of my teammates and host an open space for them to discuss and challenge their thought to make them think out of the box and steer the discussion to come up with the right strategy to tackle the situation at hand.

TOWS from the case study:

Threats:
-That the new chairman should not be motivated by money as Sir David was earning much higher in his previous job.
-Sir David didn't have any media background.

Opportunities:
-BBC Trust model was fundamentally flawed and required reform in the governance and regulation.
-Leveraging Sir David’s wisdom, reputation, and strategic approach to BBC’s advantage.

Weakness:
-The current BBC Trust is not doing well.
-Sir David’s inexperience with the media industry.

Strengths:
-The willingness of the company to embrace change and act on it.

-Bringing in Sir David as the chairman to help BBC be regulated and governed properly.

In this case, Sir David’s analysis of the requirement of a board for BBC has been much appreciated because he does back the idea up with facts and from his experience working and building companies through the years. Sir David would be an ideal fit to lead this board and grow BBC. His peers have only good things to say about his leadership style and believe that by having a board the governance and regulation would perform much better.

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Threats:

All systems will be depended on the quality of people that will be recruited, which the recruiting process will become extremely important

Put BBC into a ‘no hiding place’, that the system will be extremely open,

Opportunities:

The new system can fixed the ‘flawed’ in the trust and be able to self-regulated

The new govern board can increase supervision effort

Weaknesses:

The new Chairman has little experience in media business

It is controversial, if the system fail, there will be a lot of criticisms

Strengths:

If there is a problem, we know where to find responsibility in the new single board

The regulatory strength will be improved largely to responsible for any emergency and controversial cases

For this situation, it is good to have a new BBC board to replace the old BBC trust, because there is indeed some flaws in it. The regulatory strength is not enough. For example, the previous case that discuss about the Jimmy Savile sexual abuse scandal and falsely implied that Lord McAlpine was involved in child abuse. This actually led the company into a controversial situation. The trust didn’t act enough to self-regulate the company. Having a new board that take full responsibility of such controversial situation, it will be more focus on fixing the crisis. However, the team has a little experience in media business so it requires more effort in adapting the industry.

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Adidas TOWS Leadership Analysis- Mehak Sethi

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Adidas TOWS Leadership Analysis- Mehak Sethi

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Threats:

1.     People are more invested in online shopping as due to the pandemic, that’s a safer option as everyone wants to avoid crowds. During the coronavirus pandemic, Adidas' third-quarter e-commerce sales increased by 51% year on year.

2.     Adidas is finding a good market on the E-commerce platform. So, people might want to experience online shopping of this brand rather than in-store experience.

Opportunities:

1.     Increased sales as people want to invest more into casual clothing instead of formal wear.

2.     People miss the in-store experience and many prefer seeing and trying on stuff before making any purchase.

Weaknesses:

1.     There’s no fixed plan and explanation on expansion of offline stores. Customer’s point of view not discussed.

2.     Investment on making the in-store experience better is loosely explained.

Strength:

1.     Adidas enjoys good reputation and brand name. People will be drawn to the stores once the pandemic is over.

2.     Online shopping is the present and future. Investments on making the online sites more engaging will boost sales even more.

I think the entire pandemic has shown us how work can be done in a more efficient and effective manner. People don’t need to necessarily go in stores to make purchases. This online shopping experience was there pre-pandemic as well but it has now been enhanced. Pros are that adidas enjoys a good reputation and people would invest more in it due to the casual dressing mindset. It will never go out of fashion. They will generate even more profits through e-commerce sites. But they may face increased competition from other rival brands. By making in-store experience better they might attract larger crowds to the stores post-pandemic as well. Many people like going out and feeling the products before spending their hard-earned money. The company’s investment in offline stores can be a con as we don’t have any numerical figures of customers wanted to shop in person. Expansion during such uncertain times is surely questionable.

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Nestle TOWS Leadership Analysis - Isabel Hu

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Nestle TOWS Leadership Analysis - Isabel Hu

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1- TOWS Analysis:

Threats:

-        The demand for packaging has significantly increased

-        Agricultural commodity price increases

-        Increased freight costs

opportunities:

-        Younger customers are the people with the strongest purchasing power nowadays. It is important for the enterprise to Increase the customer adhesion of younger customers.

Weakness:

-        Nestlé's carbon emissions are among the highest in the world

-        Nestlé's targets do not include emissions from some other areas

Strengths:

-        Carbon emissions are already steadily declining

-        Governments and corporations will make more firm commitments.

2- Pros and Cons:

Ulf Mark Schneider set a very good development policy which is not only beneficial to the enterprise but also beneficial to our environment. Global warming is now one of the world's most serious problems. In my opinion, reducing carbon emissions can also attract more young customers. Because younger customers are more educated and more independent and forward thinking. They will take environmental protection and sustainability very seriously. Reducing carbon emissions will make costs higher, which, combined with increased freight costs and higher prices for agricultural products, will put more pressure on the company's performance.

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1. TOWS Analysis

Threat

Nintendo is facing a shortage of semiconductors, which is a key component to produce the hybrid console.

Nintendo might not be able to meet ongoing demands for Switch because of the worldwide covid crisis.

Opportunities

The whole gaming industry is influenced by the covid-19.

Some fans are turning their attention to the Nintendo Switch Pro, which can increase the popularity of their new products.

Weakness

They have not found any solution to the supply shortage of semiconductors.

Nintendo might not be able to prepare enough for retail stores in the future in Japan and other countries because of the large demand.

Strength

Nintendo has stored the necessary materials for the immediate production of semiconductors for switches.

2. Pros and cons:

One of the pros of the semiconductor shortage is that the sales of Nintendo’s other products may increase. Fans may purchase other similar hybrid gaming consoles to replace the Switch. For those who really want to buy Switch when the stock is not enough, Nintendo can also increase the selling price of Switch to decrease its demand thus, solving the shortage problem.

The cons of the situation are that the sales and revenue will decrease due to the shortage. If the customers are not able to buy Switch for a long time, they may try to find substitute game consoles from other companies which can decrease the loyalty of fans to the Nintendo and Switch.

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Gui: BlackBerry TOWS Leadership reflection

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Gui: BlackBerry TOWS Leadership reflection

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1 - TOWS Analysis:

Threats：（1）E-commerce platforms such as Amazon will establish their own logistics systems。（2）Poor facilities reduce work efficiency and thus reduce profits.

Opportunities：（1） Autonomous vehicles could be used to cut transport times and fuel bills.（2）Upgrading the supply chain is conducive to sustainable development.

Weaknesses：（1） Ups produces a huge amount of carbon emissions every year.（2）Customer information database is vulnerable to leakage and trafficking.

Strengths:(1) Ups is a world-renowned, century-old company with a long history and many loyal customers(2)Ups has a good culture and reputation for valuing its employees.

2. Pros and Cons:

UPS is a century-old enterprise with a long history and huge volume. Such characteristics create both strengths and weaknesses for UPS. Carol Tome is an excellent strategic leader who knows UPS well and can pinpoint the problems and opportunities it faces. Ups has a global reputation and many loyal customers. Besides, Ups also has an extensive system and a large number of employees and has developed a good and reputable culture of valuing employees. But at the same time, this vast and ancient business system has brought a lot of problems, such as high carbon emissions, customer security leakage, and so on. At the same time, in the face of increasingly fierce market competition, UPS also needs to accept challenges from Amazon and other e-commerce companies to establish their own logistics systems. UPS requires new technologies to update its supply chain systems and reduce carbon emissions to meet these challenges. Only by keeping pace with The Times can we gain vitality.

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Strengths

-It is able to offer a competitive wage to 7-eleven employees based on their current contractual gross profit split with Irving.

-The corporation needs to agree to hold a collaborative and amicable meeting to find solutions to these intractable issues

Weakness

-The royalty structure for 7-eleven franchisees hasn’t change while the environment has changed

-7 eleven faced chronic understaffing and unprofitable overnight operations。

The portion of the gross profit split, or royalty, can be greater than 59%.

Opportunities

-The recruitment tools 7-eleven provides, like Hire Right, is helpful.

-7-Eleven could help its franchisees first by sharing with us their extensive data on franchisee profitability in general, and overnight profitability and employee expense.

Threats

-Declining customer count due to newer competitive stores near the store

-Franchisees are being squeezed by the staffing crisis and the terms of their agreement.

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Threats:
1.People are more willing to shop online because of the Covid19 pandemic and the physical stores can face revenue decline.
2.The majority prefer to put on casual wear instead of brown shoes and a suit. This derails the opportunity to tap into the new market pool.
Opportunities:
1.Adidas has a growing e-commerce market, and its foremost opportunity is that the future is in the online platform.
2.The pandemic has made people to realize the importance of healthy living style and more willing to spend on sports wear.
Weakness:
1.It is the boredom and the constant need for the clients to have a feeling of whatever they are purchasing.
2.The unpredictable investment on online platform,basic information are needed,need more data to draw a precise conclusion.
Strength:
1. The world is geared towards an online world. Therefore, they can make more sales and thus take advantage of the opportunity presented to them in the online platform.
2.Adidas is a well-known brand, they can use the brand influence when lauching a new service.
Pros and Cons:
The pros of the situation are that there is an excellent opportunity to increase sales and thus take advantage of the online market. In addition, the world is now a global village, and the online platform is here to stay; therefore, Adidas is destined to make considerable profits. On the other hand, the main cons are that the social aspect of shopping is being eroded, and clients might not satisfy their unending urge to get a feel of what they are purchasing before paying for their product. In addition, the intended idea of selling Reebok company would imply that another competitor would have been added to the industry. Thus, there would be competition for the limited number of clients in the market.

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Nestle TOWS Leadership Analysis - Xiaoyue Zhang

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Nestle TOWS Leadership Analysis - Xiaoyue Zhang

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1. TOWS Analysis

Threats

The global shipping industry is under stress and energy price increases will lead to the increase in transportation costs.

Strong inflationary pressure will extend and the inflation period is unknown.

Opportunities

Younger customers are concerned about sustainability and will influence their purchasing decisions. If you can win their hearts and minds, then you can gain market share.

Younger consumers will come into prime earning and consuming years, which will drive purchasing power.

Weaknesses

Nestle has a significant environment footprint, and its greenhouse gas emissions are still high.

Not all things and activities are included in the scope of reducing greenhouse gas emissions.

Strengths

As the largest food and beverage company, Nestle has always been committed to sustainability and has set clear goals for environmental protection.

Nestle’s  carbon footprint is decreasing.

2. Pros & Cons

Young customers are concerned about sustainability, they will tend to buy products from sustainable brands, and sustainable brands will have better reputation. Nestle has been adopting a sustainable strategy and their practice of reducing greenhouse gas emissions have paid off. Young customers are the main buyers, and Nestle will be able to win the hearts and minds of young customers and win the market share by maintaining sustainability. However, with the increase in energy price and higher transportation costs, it will cost more to maintain sustainability. Inflation could also affect the business and become an obstacle to the sustainability strategy. In addition, Nestle has a large scale and it is difficult to incorporate all of the industries and activities into cutting emissions practices.

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1 - TOWS Analysis:
Threats

Amazon is planning on developing its own shipping network instead of relying on UPS as one of their couriers

Poor infrastructure results in a loss of profit and a decrease in productivity and efficiency

Opportunities

Autonomous vehicles help cut down travel time and excessive cost of gasoline

Replan the entire supply chain to boost productivity and efficiency

Weaknesses

Sustainability issues where 30 million metric tons of greenhouse gases are emitted each year

Customer privacy concerns where data is shared across the database. Data is in a “dirty pool” rather than a “clean system.”

Strengths

Cares about employees' comfort and modifies company culture to make employees more at ease

Adapts quickly to the world’s changes and stays nimble during the pandemic to keep the company and the world going

Carol Tome has an in depths breakdown of what UPS is good at and what they’re lacking. From the article, it is clear that she cares about the employees wanting to make their time at work more comfortable and how she wants to look for ways to make sure the employees won’t have to work overtime due to delivery delays. Tome is also aware of their partner potentially becoming their competitor and provided a positive outlook on the scenario. With its current situation, I believe UPS’s reputation can continue to be upheld because it’s been in the business for over a century. The idea of becoming more sustainable and utilizing autonomous vehicles will only serve UPS better in terms of competing with other competitors, specifically Amazon. The main issue that UPS should focus on is how to cut down emission waste and costs so they can become more productive and efficient because that's what's putting them at a disadvantage compared to their competitors.

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1. TOWS Analysis:

Threats:

Poor public infrastructure will affect UPS's productivity and loss of profits.

Online vendors like Amazon want to develop their own shipping network.

Opportunities:

Autonomous vehicles might be a good solution to solve delivery delays and the additional cost of gasoline.

Reconsidering the supply chain and making an efficient delivery plan might be a solution to solve the sustainability problem.

Weaknesses:

UPS has a serious environmental problem because they emit about 30 million metric tons of greenhouse gas each year.

The information of customers’ packages is exposed to the online database. This information has a risk to be sold to other companies.

Strengths:

UPS has already become a well-known brand and one of the biggest parcel companies and has some loyal customers

UPS is a warm company, and it really cares about its employees’ working experience.

2. Pros and Cons:

In my perspective, Carol Tomé’s leadership style is strategic because she cares about employees and has a thoughtful analysis of UPS’s current operation, sustainability issues, and some possible future solutions. Tomé really understands UPS’s position and potential business issues, and she has a positive attitude towards the competition with Amazon. During the pandemics, UPS’s business still maintains well all over the word and still carry on packages and products to different places. However, as the articles said, some online vendors are looking for their own shipping network to expand business or want a more stable supply chain. Therefore, UPS should be award of other potential competitors’ growth.

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1. TOWS Analysis
Threats

Gaming company all over the world has a semiconductor supply shortage because of covid and they will have a potential shortage of part

The Nintendo company would not have enough stock for higher demands in the future

Strengths

Nintendo company has the necessary material for the immediate production of semiconductors for switches.

Other gaming companies have the same problem which means Nintendo does not have competitors.

Opportunities

Potential production of Switch pro which will lead to a higher profit

Higher demand will lead to a positive price match

Weaknesses

No solutions for the semiconductor shortage

Japan and other area's higher demand will cause the retailers in the future have a shortage

2. Pros and Cons
Pro for the semiconductor shortage is that the company can raise the retail price for a little bit and form a positive prize match in order to improve the revenue because all the other gaming companies have the same situation as Nintendo company but they do not have the ability to manufacture the console as fast as Nintendo, which means Nintendo do not have competitors. The con part of this situation is that due to the higher demand in the future, the production of the Nintendo Switch will be stalled and it will cause many customers cannot order their own which will lead to a negative reputation for the company and the profit will decrease as well.

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Threats:

1.    Due to the epidemic, people may be reluctant to enter physical stores because people may be too crowded and increase the probability of Covid-19.

2.    Company's growing e-commerce prowess could impact in-store shopping experience.

Opportunities:

1.    During the epidemic, people may want to be able to go out and feel the product.

2.    Health crisis changes fundamentals of sporting goods industry.

Weaknesses:

1.    Compared with online sales, the investment in offline stores is too low, and the operating income of physical stores is not sure.

2.    There is no scientific survey of people's thinking, uncertainty about whether it is worthwhile to invest more in brick-and-mortar stores, and insufficient information.

Strength:

1.     Adidas, as a well-known international company, is strong and has sufficient funds to invest in brick-and-mortar stores.

2.     Adidas is so well known that it's easy to get people's thoughts on whether they would prefer to shop offline.

Pros and Cons

I think Kasper's leadership style is more towards Strategic Leadership. Because he was facing the continuous growth of e-commerce during the epidemic, he thought in turn, thinking that investing in physical stores was an opportunity. But there are pros and cons to this strategic idea. The good thing is that things are just as he thought. People in the world are more eager to go out and experience products in physical stores because of the epidemic. This is a huge business opportunity. But the uncertain factor is whether the company's investment in offline stores will pay off, because it is uncertain how many people have this idea.

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1. TOWS Analysis

Threats:

7-Eleven Franchisees are being squeezed by the staffing crisis and the terms of the franchise agreement.

Employees had to work overtime because of ‘Chronic Understaffing’.

Opportunities:

Offer a competitive wage to their employees.

Lower their standards for new hires.

Weaknessess:

The royalty structure for 7-Eleven franchisees hasn’t changed.

The company’s franchise agreement requires that franchisees pay a graduated gross profit split in exchange for their right to operate. For some franchisees, the portion of the gross profit split, or royalty, can be greater than 59%.

Strengths:

Franchisees are able to offer a competitive wage to their employees based on their current contractual gross profit split with Irving, Texas-based franchisor 7-Eleven Inc.

7-Eleven provides recruitment tools such as Hire Right, which franchisees can use to help recruitment.

2. Pros or Cons

7-Eleven does have strong and productive relationships with independent franchisees, but there are still some issues. For years, the company has been eroding franchisee profitability by increasing operating costs. Plus, 7-Eleven has not provided effective solutions to the Chronic Understaffing issue reported by franchisees. 7-Eleven could share their extensive data on franchisee profitability in general, and overnight profitability and employee expense in particular to help its franchisees. At the same time, the corporation needs to agree to hold a collaborative and amicable meeting to find more solutions.

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Ramy Tadros - Nestle TOWS Leadership Analysis    

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Ramy Tadros - Nestle TOWS Leadership Analysis    

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1- TOWS Analysis:

Threats:

Supply Chain disruptions could hinder Nestle’s ability to achieve its sustainability goals

Inflation and economic disruptions could encourage Nestle to cut costs and slow sustainability plans

Opportunities:

Winning the hearts and minds of younger generations ensures future loyal customers and future business growth

Having a positive brand image

Weakness:

Nestle has a significant environmental footprint

Nestle’s immense size and diversified portfolio make it challenging to achieve the sustainability goals

Strengths:

As the largest food and beverage company on the planet, Nestle has the necessary resources to reach its sustainability goals

Because of the ongoing sustainability practices, peak Carbon is behind and is getting lower every year

2- Pros and Cons:

Nestle’s CEO, Ulf Mark Schneider, has a Transformational leadership style. He is aiming to transform and improve Nestle to achieve net-zero greenhouse gas emissions by 2050. Being sustainable appeals to younger generations that demand and require sustainability from all companies, which will ensure Nestle’s future growth. Also, acting early on sustainability will save Nestle from the expected government regulations to cut emissions and combat climate change. However, it is not easy for the largest food and beverage company on the planet to reach a net-zero emissions goal. The process will be costly and time-consuming. With the current inflation, economic turmoil, and global supply chain disruption, it is better to cut costs than increase costs to be more sustainable. Moreover, Nestle’s highly diversified portfolio means different strategies and initiatives to cut emissions, which would make cutting emissions more challenging.

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The threat to 7-eleven is that they are facing a chronic understaffing problem despite wage increases. And, due to staff shortages, existing staff had to work mandatory overtime. The franchisees even have to lower the hire standards for new employees. This also provide opportunities of Increasing Competitiveness. Under the contractual gross profit sharing, the franchisee is able to offer competitive wages to its employees. The company's franchise agreement requires franchisees to pay a progressive gross profit share in exchange for the right to operate their business. The weaknesses of 7-eleven is that their franchisees are being squeezed by a staffing crisis and the terms of their agreements, this could lead to a situation of franchisee dissatisfaction and exits.
The strengths is that 7-Eleven will provide franchisees with recruiting tools such as Hire Right", and they are willing to help these franchisees to overcome these problems.
This situation reflects the strengths and weaknesses of 7-eleven. 7-eleven's strengths are that their research has identified the problems that franchisees are experiencing with staffing shortages and have tried to provide recruitment tools for franchisees. They have also increased the wages available to employees in order to be more competitive. 7-eleven's weaknesses are that they do not really understand the problems their franchisees face and thus these problems are not really solved. 7-eleven should conduct overnight profitability and employee expense assessments for their franchisees and make adjustments.

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Carol B. Tomé, CEO of United Postal Service (UPS) 

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Ulf Mark Schneider, CEO of Nestle

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Shuntaro Furukawa, President of Nintendo 

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7-Eleven Franchisees Experiencing ‘Chronic Understaffing’ Despite Wage Increases

https://www.cspdailynews.com/company-news/7-eleven-franchisees-experiencing-chronic-understaffing-despite-wage-increases

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Sir David Clementi: City grandee ready to do the business at the BBC

https://www.theguardian.com/media/2017/jan/10/david-clementi-city-bbc-bank-of-england-board

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Why UPS CEO Carol Tomé is not worried about competing with Amazon

https://www.fastcompany.com/90677483/why-ups-ceo-carol-tome-is-not-that-worried-about-competing-with-amazon

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BlackBerry CEO says the mobile company’s turnaround has hit a tipping point after near-death experience

https://www.cnbc.com/2019/09/14/blackberry-ceo-says-hes-hit-tipping-point-in-company-turnaround.html

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‘Win their hearts and minds’: Nestle CEO on plans to address young consumers’ sustainability concerns

https://www.cnbc.com/2021/09/09/nestle-ceo-on-plans-to-address-young-consumers-sustainability-concerns.html

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Adidas will keep opening new stores despite Covid e-commerce surge, CEO says

https://www.cnbc.com/2020/12/16/adidas-will-keep-opening-new-stores-despite-covid-e-commerce-surge-ceo.html

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Nintendo Switch Could Face The Same Xbox Series X, PS5 Problem This Year

https://www.ibtimes.com/nintendo-switch-could-face-same-xbox-series-x-ps5-problem-year-3179596