Ngozi Mbanugo

Internal and External Factor Evaluation of Keurig Green Mountain

External Factor Evaluation

To start with, the External Factor Evaluation (EFE) can broadly be categorised as combination of two main external factors i.e. opportunities and threats. The sections below present the various opportunities and threats for the selected company along with their relative weight. Also, it is to be noted that the combined weight of the ten indicated opportunities as well as ten indicated threats sum up to 1.00. Also, the rating for each factor has been provided with 1 indicating an extremely poor response by the company while 4 indicating extremely superior response of the company.

Opportunities

There are a number of opportunities ahead for Keurig Green Mountain. Some of the main and most relevant opportunities for the company include: international growth and expansion (0.10, 2); Expansion of product offerings, especially into snacks market (0.03, 2); Growth into soup market (0.02, 2); Enhanced level of innovation for both hot and cold brewing techniques (0.05, 3); Efforts to grow and expand in both the UK and Canada (0.05, 3); Explore different areas for service offerings such as workplace, food service, hospitality etc (0.04, 2); Explore growth opportunities in functional drinks market (0.04, 2); Various different overseas opportunities (0.02, 3); Offer more discounts to the customers to further strengthen and loyalty (0.05, 4) and lastly, Enhanced CSR and sustainability initiatives (0.10, 3).

Threats

Furthermore, there are also a number of threats ahead for Keurig Green Mountain. Some of the main and most relevant threats for the company include: Intense competition from other coffee brands such as Starbucks, Folgers, Dunkin Donuts etc (0.07, 3); Threat and danger from "On-the-go" coffee shops (0.02, 2); Constantly fluctuating prices of unroasted coffee beans (0.05, 2); Strong dependency on agriculture market (0.03, 2); Low brand loyalty for certain product offerings (0.03, 3); Competitors possessing their home brewing machines (0.10, 3); Limited expertise for expertise coffee manufacturing (0.04, 3); Constantly growing health and safety awareness amongst the consumers (0.03, 3); Limited international presence (0.07, 4) and lastly, Limited market offerings (0.06, 3).

Internal Factor Evaluation

To start with, the Internal Factor Evaluation (IFE) can broadly be categorised as combination of two main internal factors i.e. strengths and weaknesses. The sections below present the various strengths and weaknesses for the selected company along with their relative weight. Also, it is to be noted that the combined weight of the ten indicated strengths as well as ten indicated weaknesses sum up to 1.00. Also, the rating for each factor ranging from 1 to 4, with 1 being a major weakness, 2 being a minor weakness, 3 being a minor strength and 4 being a major strength.

Strengths

There are a number of strengths of Keurig Green Mountain. Some of the main and most relevant strengths of the company include: Strong focus on high quality products at all the times (0.10, 4); Easy and Simple Processes (0.03, 4); Quick and convenient manufacturing of beverages (0.02, 4); Extremely huge variety and options of product offerings (0.05, 3); Latest and innovative strategies (0.06, 3); Strong focus on latest technology (0.04, 3); Huge workforce and employee base (0.05, 3); Extremely strong support of partnership and wide spread network (0.03, 3); Numerous valuable acquisitions (0.06, 3) and lastly, Constant CSR initiatives and thereby, strong brand image and support from the customers (0.05, 3).

Weaknesses

Furthermore, there are also a number of weaknesses of Keurig Green Mountain. Some of the main and most relevant weaknesses of the company include: Intense level of criticism from the SEC (0.05, 2); Company lost patent in the year 2012 (0.08, 1); Huge dependency on various different machine and bean manufacturers (0.05, 1); Dependency and relation with only one China based producer for "Single Cup Brewers" (0.05, 1); Main source of revenue includes only few big retailers (0.04, 1); Lack of a strong global network (0.05, 1); Low brand loyalty and support in few areas (0.03, 2); Limited international presence (0.06, 1); No presence in energy drinks market (0.05, 2) and lastly, Strong dependency on agriculture market for coffee bean pricing (0.05, 1).

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