take on the role of a consultant who has been brought in to develop and evaluate creative solutions for a business facing the effects of a global crisis. You have been asked to develop some potential solutions to propose to company leaders that could help the business shift its focus or innovate in the face of change. You will employ creativity and design thinking principles to address business needs and help the company assess its readiness for innovation and change. For the purposes of this exercise, here are some guidelines:
You will choose the company (or type of company) and create a narrative for the specific problem the business is facing. This could be a company where you have worked or with which you are familiar, or you can locate an example of a company and use it as the basis for your narrative. For example, you might select a larger company that needs to figure out a way to reach more customers since most of its local business has been temporarily halted, or perhaps you will choose a small business that operates locally and offers a product or service that is currently not relevant to the market’s needs.
Note: If you select a company with which you do not have personal experience, some of the questions related to the employees and other similar details may be more challenging to answer; however, you should feel free to use your creativity to respond to the questions as if you had already interviewed the company’s staff and leaders. Provide information that will help you craft your narrative. The purpose of this activity is to demonstrate your ability to think through and develop creative solutions to business problems, not to have all the “right” answers.
You will engage in aspects of the design thinking process to complete this activity but will not be able to complete all parts of the process (including interviewing stakeholders and prototyping the solutions). You may want to review any resources you have already read on design thinking and consider how you would conduct this process if you were an actual consultant for this chosen company.
With those thoughts in mind, construct Parts 1 and 2 of your business solutions design, being sure to incorporate appropriate examples, where applicable, as well as citations for relevant academic resources from the classroom, the Walden Library, and/or other appropriate scholarly sources to support your work.
Synthesize the business problem. Specifically:
Describe the company in question, including how many people work there, the industry the company is part of, and what types of products and/or services the business offers.
Explain the business problem, including what impacts the global crisis is having on how the business operates and its ability to meet customer needs and deliver its product(s)/service(s).
Identify the company’s present internal strengths and weaknesses, as well as external opportunities and threats that the current crisis is presenting to the company.
Full Answer Section
Impact on Operations and Customer Needs:
- Decreased Revenue: Empty storefronts mean fewer customers and a significant drop in income. This threatens the bakery's ability to cover their costs and pay their employees.
- Limited Customer Reach: With social distancing regulations and reduced foot traffic, reaching their regular customers has become difficult. The bakery is missing out on the vital foot traffic and impulse purchases that sustained them pre-pandemic.
- Supply Chain Disruptions: Reliance on local, seasonal ingredients makes them vulnerable to disruptions in the agricultural sector. Fluctuations in availability and price of ingredients impact their menu and profitability.
- Loss of Community Connection: Wild Oats Bakery prides itself on being a hub for the community, fostering connections through shared meals and conversations. The pandemic restrictions and reduced engagement have strained these connections.
Internal Strengths and Weaknesses:
Strengths:
- Strong Brand Identity: Wild Oats Bakery has established a reputation for high-quality, locally sourced products and a warm, welcoming atmosphere. This loyal customer base and positive brand image are valuable assets.
- Skilled and Adaptable Team: The small, dedicated team of bakers and staff possesses strong baking skills and a willingness to adapt to new challenges. This agility can be crucial in navigating the crisis.
- Community Focus: Wild Oats Bakery is deeply connected to the local community, with partnerships with farmers and involvement in community events. This connection presents opportunities for collaboration and support.
Weaknesses:
- Limited Online Presence: Wild Oats Bakery primarily relied on walk-in customers and lacked a robust online ordering and delivery system. This puts them at a disadvantage compared to competitors with strong online presences.
- Limited Marketing Budget: As a small business, Wild Oats Bakery has limited resources for marketing and promotion. This makes it difficult to compete with larger businesses and reach new customers.
- Dependence on Fresh Ingredients: While their commitment to fresh, local ingredients is a strength, it also presents a vulnerability in times of supply chain disruptions and fluctuating prices.
External Opportunities and Threats:
Opportunities:
- Growing Demand for Online Food Delivery: The pandemic has fueled a surge in online food delivery, presenting an opportunity for Wild Oats Bakery to expand their reach and tap into a new customer segment.
- Increased Focus on Local and Sustainable Food: Consumer interest in locally sourced and sustainable food options is rising. Wild Oats Bakery can leverage their existing strength in this area to attract new customers who value these qualities.
- Community Support initiatives: Local government and community organizations may have support programs available for small businesses affected by the pandemic. This could provide valuable resources for Wild Oats Bakery to weather the storm.
Threats:
- Competition from Larger Businesses: Large bakery chains and online food delivery companies have deeper resources and wider reach, posing a significant competitive threat to Wild Oats Bakery.
- Continued Pandemic Uncertainty: The ongoing pandemic and potential for future lockdowns pose an ongoing threat to customer traffic and the bakery's ability to operate normally.
- Rising Supply Chain Costs: Fluctuations in the agricultural sector and global supply chain disruptions can lead to increased costs for ingredients, impacting Wild Oats Bakery's profitability.
In conclusion, Wild Oats Bakery faces a complex set of challenges due to the pandemic. However, their internal strengths, coupled with external opportunities, provide a foundation for creative solutions. By leveraging their community connection, adapting to online platforms, and exploring innovative approaches to their product offerings and marketing, they can potentially reimagine their business model and emerge from the crisis stronger.
Sample Answer
Company: Wild Oats Bakery - a small, community-focused bakery with 15 employees located in a bustling city center. Their passion lies in crafting artisanal breads and pastries using locally sourced ingredients.
Business Problem: The global pandemic has dealt a blow to Wild Oats Bakery. Foot traffic in the city center has plummeted, leading to a drastic decline in walk-in customers. Social distancing restrictions limit indoor capacity, further impacting sales. The bakery's reliance on fresh, local ingredients makes them susceptible to supply chain disruptions and fluctuating prices. This perfect storm of challenges threatens their financial viability and community connection.