Final report based of previous assignment and research.
Sophia Learning: Organizational Behavior
Touchstone 1: Create a SWOT Analysis
09 March 2025
Touchstone 1: Create a SWOT Analysis
ANALYSIS
Please make sure that you review the Unit 1 Touchstone 1 instructional guide carefully. After you’ve analyzed the scenario and completed your research of outside sources, record at least four strengths, four weaknesses, four opportunities, and four threats as
bulleted lists in the appropriate spaces below.
Strengths |
Weaknesses |
· Innovative Flavor Portfolio: Its unique tastes, such as “Bacon and Eggs” and “Thanksgiving Turkey,” make Quenchbliss stand apart. With this innovation, Quenchbliss stands apart from popular soda companies; customers want unique flavor sensations. Customer visits are frequent because they want to taste their new flavors, which drives social media hype. Because of this differentiating approach, Quenchbliss may charge higher pricing than regular soda companies, increasing company profits. · Subscription Model Success: One of Quenchbliss’ most successful business initiatives is its quarterly subscription box comprising four of its newest flavors and seasonal favorites. Subscription services retain consumers and generate income (Williams, 2025). The limited-edition tastes generate a feeling of urgency and exclusivity, enticing subscribers to commit. Customers feel linked to the company’s journey and product innovation, which boosts brand loyalty. · Integrated Operations: Strategically, the company’s choice to centralize R&D, manufacturing, sales, and distribution in El Paso is advantageous. This framework strengthens teamwork, enabling rapid product testing and deployment. Manage many sites with less overhead expenditures. A shop linked to the warehouse provides immediate consumer input for product and marketing improvements. · International Market Penetration: Quenchbliss achieves a significant milestone by becoming global. Successfully opening a distribution facility in Juarez, Mexico, shows that craft sodas are popular abroad and that the firm can succeed abroad. This growth minimizes domestic sales dependency and diversifies income. Quenchbliss has a first-mover advantage in the Mexican craft soda industry, which might boost its long-term success. |
· Flat Organizational Structure: Flat structures provide flexibility but may cause inefficiencies as companies grow. Due to multitasking, workers may make delayed decisions and be less accountable. The complexity of this structure may increase as Quenchbliss expands and workers struggle to juggle several tasks. Undefined work responsibilities may also confuse and reduce efficiency. · Employee Compensation Challenges: Quenchbliss struggles to pay industry-standard compensation, making hiring and retaining manufacturing and distribution workers hard. Staff turnover interrupts operations and raises training expenses (Sorn et al., 2023). Labor shortages may cause production slowdowns and delayed shipments if the firm does not address salary discrepancies. Dissatisfied workers may also lower morale and productivity. · Recent Contract Decline and Subscription Loss: Quenchbliss lost a contract with a local restaurant chain, reducing income. Losing such alliances might affect market exposure and distribution. Subscription box sales are also declining, suggesting client retention difficulties. Since subscriptions are a key source of income, any decline might hurt profitability. Increased competition, changing consumer tastes, or a lack of exciting flavor developments may explain the drop. · Strategic Direction Internal Friction: The company’s withdrawal from foreign growth to concentrate on product development has caused internal conflict. Employees who were enthusiastic about global expansion may feel demotivated, lowering morale. Internal conflicts impair teamwork and production because team members may not support the strategy move. If not handled well, these conflicts may cause disengagement and lower performance. |
Opportunities |
Threats |
· Health-Conscious Consumer Trends: The rise of health-conscious consumers may lead Quenchbliss to expand. Many consumers choose prebiotic and low-sugar drinks. Quenchbliss may add natural sweeteners, additives, or probiotics to sodas for this growing market. The company may increase its customer base and brand longevity by leveraging on the health-conscious trend. · Market Expansion in the Caribbean: The Company is expanding into Santo Domingo, Dominican Republic, and Kingston, Jamaica, after succeeding in Mexico. Craft soda markets in these places are prospective for growth. Quenchbliss may explore new global markets to diversify revenue and reduce U.S. dependence. Warm weather boosts drink demand in these areas, making them good expansion prospects. · Culinary Artists’ Collaborations: Working with chefs, bartenders, and mixologists to create unique soda flavors may increase Quenchbliss’ brand recognition and attract culinary and mixology fans. Limited-edition agreements may improve the company’s innovative profile and media attention. Quenchbliss drinks at high-end restaurants and cocktail bars may promote brand awareness beyond retail. · Leveraging e-commerce platforms: Quenchbliss gains from internet sales growth. Direct-to-consumer sales may help the company contact more consumers as many prefer online buying. Effective websites, social media promotion, and online shop partnerships may enhance e-commerce revenues. Subscription boxes might potentially be promoted online to halt the decline. |
· Increasing Competition: The craft soda industry is growing increasingly competitive as bigger beverage companies enter. Quenchbliss struggles to maintain market share since bigger companies have better marketing and distribution. As more companies develop new flavors and premium beverages, Quenchbliss needs innovation to remain ahead. Without differentiation, the brand risks losing its core audience. · Economic fluctuations: Premium craft drinks are recession-sensitive and discretionary. If clients are poor, they may pick mainstream beverages over Quenchbliss. Inflation and component increases may erode corporate profits, making pricing tougher to sustain. Economic instability may reduce subscription renewals as customers cut non-essential expenditure. · Supply chain vulnerabilities: Quenchbliss uses uncommon chemicals to generate different soda flavors. Shortages, transportation issues, and worldwide trade bans may delay production. Due to supply chain concerns, Quenchbliss may absorb or pass on higher expenses, hurting sales. · Regulatory Changes: Sugar prices and labelling rules might threaten Quenchbliss. If new health standards restrict sugar or demand greater ingredient disclosures, the company may need to reformulate its drinks. Compliance with new legislation may increase manufacturing costs and change marketing strategy. International markets with stronger rules may complicate growth. |
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 each is important and what effect it will have on the organization. Be sure to include citations from your outside references to support your paragraphs.
The flat organizational structure, which promotes flexibility but becomes inefficient as Quenchbliss expands, is one of its most prominent internal influences. Multiple positions may cause work ambiguity, fatigue, and lower productivity. Unspecialized roles may impede decision-making, product development, and operational efficiency. Primary objectives like expanding into new foreign markets or improving the subscription model may be challenging without defined leadership structures. Organizational behavior theories imply that more prominent organizations benefit from increased structure and job specialization (Davis & DeWitt, 2021). Quenchbliss might improve agility and efficiency by adopting a hybrid organization where teams communicate but have more explicit responsibilities. To simplify flavor creation, the product development team may be given more autonomy, while a specialized international expansion team could manage logistics, relieving personnel of many jobs. Employee reward and retention are other primary concerns, especially in manufacturing sectors. Due to recruiting and training expenses and workflow disruptions, frequent turnover in these jobs affects operational stability. Herzberg’s two-factor theory states that pay discontent is a primary hygiene issue that may lower employee morale and satisfaction (Alrawahi et al., 2020). Quenchbliss risks losing entry-level and experienced staff who help the firm succeed if it never addresses salary concerns. Quenchbliss should decrease costs or sell higher-margin items to boost pay. Expanding a premium product line with limited-edition chef or mixologist collaborations might justify a higher price point, boosting profitability and employee compensation. Non-monetary incentives like recognition and skill development may boost work satisfaction and prevent turnover. Quenchbliss needs to capitalize on its innovation and worldwide growth to prevent future dangers, especially from economic downturns and increased competition. Quenchbliss can stay relevant by leveraging consumer trends like health-conscious alternatives and functional drinks and using its unique flavor variety. A low-sugar or prebiotic soda brand may attract health-conscious consumers and boost soda sales. Expanding into craft soda-free Santo Domingo and Kingston diversifies income. Ensuring demand and laws in these regions involves considerable market research. Testing markets before full-scale expansion avoids risks and resource abuse. Internal modifications and outward growth initiatives may help Quenchbliss survive. |
RECOMMENDATIONS
Write 2-4 paragraphs with recommendations for Quenchbliss based on the impact statements above. Each recommendation should include a brief risk analysis to anticipate potential pitfalls and propose measures to address these risks. Be sure to include citations from your outside references to support your paragraphs.
Quenchbliss should progressively organize its structure while keeping innovation and cooperation. Clarifying work duties improves efficiency, burnout, and decision-making as the company grows. Clear leadership and cross-functional cooperation may maximize flexibility and efficiency. A Product Innovation Division distinct from operational teams would help food scientists and creatives explore flavors without distribution and marketing interruptions. Employees who are used to a flat hierarchy may resent this. Quenchbliss should carefully introduce changes and include workers in decision-making to engage them. Leadership training for existing workers may assist in smoothing the transition by promoting internal hiring into new positions, guaranteeing continuity, and upholding the company’s values. Quenchbliss should improve lower-level production and distribution of worker wages and benefits to keep and attract workers. Operating inefficiencies and higher recruiting expenses result from high turnover in these jobs. While raising pay may not be possible, Quenchbliss might provide performance-based incentives or profit-sharing bonuses to motivate employees. Non-monetary incentives, including flexible scheduling, transportation stipends, and professional promotion routes, may boost work satisfaction without raising expenditures (Alrawahi et al., 2020). Raising pay or perks without adequate financial planning might strain the company’s budget. Quenchbliss might progressively boost compensation while enhancing operational efficiency, such as supply chain logistics or automating industrial operations to decrease long-term labor expenditures. Strategic relationships with vocational schools or workforce development programs give a stream of skilled people, saving recruiting time and expense. Quenchbliss should expand its product line to attract health-conscious customers and capitalize on its distinctive tastes. Functional beverages like low-sugar sodas, probiotic-infused drinks, and electrolyte-enhanced craft sodas might attract new customers while keeping their brand identity. Since customer preferences are shifting toward healthier options, this would keep the firm competitive (Warren, 2024). Quenchbliss’ unusual, decadent tastes attract customers, but this technique risks alienating them. To avoid this, the corporation could present health-conscious choices as a supplement to its drinks. Limited-time releases or co-branding with health and wellness celebrities may boost brand awareness without diminishing its character. Quenchbliss can be future-proof and developed by blending craft soda tastes with healthy alternatives. |
REFERENCES
List at least 5 references in APA format, 2 of which can be from the Sophia Learning course tutorials and at least 3 that are original research on the external environment.