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Peer Review the essay below. This week’s focus is on Internal…
Peer Review the essay below. This week’s focus is on Internal Environment (to assess the Internal Environment of Beyond Meat. The focus this week is ONLY on the strengths and weaknesses of Marketing, Operations, and HR of Beyond Meat.
Criteria for Peer Review
1) Marketing section – to look for such topics as 4P’s of marketing covered, including Customer Analysis, Selling Products and Services, Product and Service Planning, Pricing, and Distribution – 2 points
2) Operations section – to look for analysis of the following five functions process, capacity, inventory, workforce (not HR), and quality AND R&D (depends on the industry) – 2 points
3) HR section – to look for a review of organizational structure, hiring practices (diversity, training, etc.), employees review of an organization, employee programs, organizational culture – 2 points
4) A student stated a company’s objectives for each section – 1 point
5) Each section has an analysis of both strengths and weaknesses – 2 point
Internal Environment – Strengths and Weaknesses
Marketing
Objectives
One objective that Beyond Meat had when marketing its products was to not sell to only vegans and vegetarians. Beyond Meat recognized that if it only targeted this market, it would severely limit its appeal. According to Beyond Meat’s 10-K form (2020), the company requested that its products would be sold in the meat section at grocery stores to drive brand awareness. Beyond Meat has also taken a strong interest in social media marketing (Besserve, 2022). The company has a viral marketing objective that has been enhanced by its brand ambassadors worldwide and by celebrity endorsements (“Beyond Meat Interim,” 2022). This is a way that the company has continued to grow and generate attention. According to Beyond Meat’s 10-K form (2020), another objective is to promote the product using television campaigns, radio, and digital channels. Many retail customers have seen increased levels of velocity in the products, measured by units sold per month and by repeat purchases (“Beyond Meat Interim,” 2022). The customer’s choice to promote Beyond Meat themselves is a signal of the company’s marketing power.
Strengths.
One of Beyond Meat’s strengths is its customer analysis. Customer analysis is the examination and evaluation of consumer needs, desires, and wants (David & David, 2017). Beyond Meat uses customer surveys, analyzes customer information, and determines optimal market segmentation strategies. The company has been able to evolve with or before consumer demand (Besserve, 2022). The markets have been segmented effectively. This is a major strength for the company because they have a high-speed-to-market strategy. According to Beyond Meat’s 10-K form (2020), customer service is a strength for Beyond Meat because the metrics for it include on-time shipments, customer scorecards, cost leadership, and order fill. Beyond Meat understands that its customers are not just vegans or vegetarians, but it should market to everyone in the grocery stores by being in the meat section. The marketing managers have adequate training and experience to make these decisions. Households with a younger head of household, younger than 35, were more likely to purchase plant-based meat alternatives than middle-aged and older households (Neuhofer & Lusk, 2022). The customers are usually younger people who are willing to try new things.
Another strength is product and service planning because Beyond Meat has been able to position itself among competitors as the main business for plant-based meat substitutes. The brand is distinctively positioned to capitalize on the growing consumer interest in nutritious, convenient, great-tasting, higher protein-content plant-based foods (“Beyond Meat Interim,” 2022). They advertise to a wide audience with a product promotion and publicity strategy. Beyond Meat has used test marketing to test different marketing plans and forecast sales in the future. Net revenues from sales through its retail channels in 2019 increased by $94 million or 185.2% compared to 2018 (“Beyond Meat Interim,” 2022). Marketing, planning, budgeting, and its internet presence are effective and excellent compared to its competitors.
Weaknesses.
The customer analysis for Beyond Meat is crucial so that the company can best appeal to its core customers and expand outside of that. According to Beyond Meat’s 10-K form (2020), customers consolidating or the losing a major customer could adversely affect sales and profitability. As customer buying power increases, people are more resistant to price increases. According to Beyond Meat’s 10-K form (2020), it could lower inventories, decrease the brands the company carries and increase the emphasis on private label products that could negatively affect the business. This means that the company may need better inventory-control policies and procedures. A potential weakness for the company is being able to sell its products. If the company is unable to sell inventory in a timely fashion it will require the company to sell through liquidation channels at lower prices (“Beyond Meat Interim,” 2022). Customers have been less willing to buy their products because inflation has caused them to buy options that they are more comfortable with (Besserve, 2022). Beyond Meat must provide variations in product selling prices and cost to sell its products.
Pricing is another weakness for the company because the impact of inflation and premium pricing relative to animal meat could cause consumers to use cheaper forms of protein, like animal protein (“Beyond Meat Interim,” 2022). The company could lose market share if they fall to lower prices. The products are priced effectively for how much it cost them to make them. According to Beyond Meat’s 10-K form (2020), total pounds sold increased by 6.8%, offset by a decrease of 6.3% in net revenue per pound could cause lower pricing. However, the distribution could also be a weakness because of the potential disruption to the supply chain caused by distribution issues. This could make distribution unreliable and not cost-effective. According to Beyond Meat’s 10-K form (2020), the company does not utilize internal software to track loads but uses the logistic system of its partners.
Operations
Objectives
The operations function of a business consists of inputs, transformations, and outputs in the industry (David & David, 2017). An objective for Beyond Meat is to increase its use of technology to shorten the distances from raw materials to production sites for consumers. Another objective is to improve their information technologies, resulting in a larger technological presence and being able to combat cybersecurity attacks. The company must follow FDA regulations that require facilities to manufacture food products that comply with hazard analysis, preventative control regulations, and good manufacturing processes (“Beyond Meat Interim,” 2022). The facilities, equipment, machinery, and offices are in good condition. In October 2022, the company spent $40.7 million on new machinery and equipment (“Beyond Meat Interim,” 2022). The company is in strategically placed locations across the United States and expanded to Canada in 2019. Another objective is to effectively expand its manufacturing and production capacity, including effectively managing capacity. Reducing the workforce based on cost-reduction plans meant to lower operating expenses as they focus on key growth priorities is an objective. According to Beyond Meat’s 10-K form (2020), another objective is to have high-quality raw materials to make its products and to stop any quality issues that could hurt the brand. Being able to reliably and reasonably procure high-quality raw materials at competitive prices to manufacture products is another goal.
Strengths.
Inventory is a strength for Beyond Meat because the company can accurately forecast demand for its products and manage its inventory, including the number of customer orders before holidays and shelf reset activities (“Beyond Meat Interim,” 2022). The forecast is based on the ability to get adequate manufacturing capacity and inventory supply to meet the demand for its products. According to Beyond Meat’s 10-K form (2020), the full-time employee count has tripled since December 2016 and the company has rapidly grown. The management team has an integral role in the success of the company by committing to innovation, growth, and customer satisfaction. Beyond Meat has a highly motivated and skilled workforce that is committed to its mission and the company (“Beyond Meat Interim,” 2022). Quality is a strength of Beyond Meat because it has strict processes to ensure the quality of its products. According to Beyond Meat’s 10-K form (2020), after receiving the ingredients, they receive Certificates of Analysis from the suppliers in its quality control process to confirm that their standards are met. The flavor of the product is tested to make sure that the product’s taste, aroma, appearance, and texture are not harmfully impacted. All products are transported and stored frozen to ensure quality, and instructions are provided to consumers on storing and cooking (“Beyond Meat Interim,” 2022). In-process quality checks are done throughout the manufacturing process, including physical dimensions, weight, and temperature.
Research and development are a strength of the company because it has delivered many first-to-market breakthroughs. The research and development team produces, tests, and enhances the products at the Manhattan Beach Project Innovation Center (“Beyond Meat Interim,” 2022). They use in-house scientists, researchers, and testers to make new plant-based meat products. The team focused on plant-based meat and the constant expansion of current products. On December 31, 2019, they hired roughly 104 scientists, engineers, researchers, and chefs to help create the next generation of food for consumers (“Beyond Meat Interim,” 2022). The Beyond Meat Rapid and Relentless Innovation Program specifies the aspects of product innovation processes from ideas and prototype development and commercialization. According to Beyond Meat’s 10-K form (2020), this process gives accountability and responsibility to each functional team during the process and identifies deliverables.
Weaknesses.
A significant disruption or a breach in Beyond Meat’s information technology systems could impact its reputation and data privacy (“Beyond Meat Interim,” 2022). Their suppliers must be able to protect the proprietary technology adequately. A weakness of Beyond Meat is the underutilization of capacity which could increase costs and cause them to pay underutilization fees (“Beyond Meat Interim,” 2022). Inventory could be a weakness for the company if they are unable to sell it. A potential weakness is risk and uncertainties related to cost reduction initiatives, workforce reduction, changes in executive leadership, and the timing of achieving financial goals (“Beyond Meat Interim,” 2022). Reductions in the workforce could cause the company to not meet its obligations under its campus innovation and headquarters lease. On October 11, 2022, the Board of Directors approved a plan to decrease the workforce by nearly 200 employees, representing roughly 19% of the total global workforce (“Beyond Meat Interim,” 2022). Reductions in the workforce could disrupt operations and reduce employee morale. According to Beyond Meat’s 10-K form (2020), due to a tight labor market, the company cannot hire and keep skilled workers, which will deter expansion plans, and manufacturing efforts. The company also must use expenses to draw in and maintain skilled workers.
Human Resources
Objectives
According to Beyond Meat’s 10-K form (2020), Beyond Meat contracts a professional employer organization or PEO in the U.S. that does its human resources, payroll, and employee benefits in the United States. Outside of the United States, they contract non-U.S. PEOs to achieve similar functions. According to Beyond Meat’s 10-K form (2020), the objective is to maintain a good working relationship with the outside organizations they work with for human resources. The company could be held liable if the outside party does not comply with regulations. An important factor is the effects of organizational changes including a reduction in workforce, realigning reporting structures, and changes in senior management (“Beyond Meat Interim,” 2022). Training and retaining qualified employees to maintain the company culture is an important objective.
Strengths.
Beyond Meat recruits and selects workers, each worker also has an employee record for the PEO. As a result, workers are paid through the PEO, are overseen by work guidelines created by the PEO, and obtain their annual wage statements and other payroll reports from the PEO (“Beyond Meat Interim,” 2022). This association allows management to concentrate on operations and productivity instead of payroll administration. Passionate and experienced executive management and the organizational structure is a high point for the company. Ethan Brown is the founder and CEO of the company. Deanna Jurgens is the chief growth officer, Lubi Kutua is the CFO and Treasurer, Dariush Ajami is the Chief Innovation Officer, and Teri Witteman is the Chief Legal Officer and Secretary, rounding out a diverse and skilled team. The members of the team have an average of 21 years in the industry (“Beyond Meat Interim,” 2022). The company is investing in hiring the best people to sustain a market-leading position.
According to Beyond Meat’s 10-K form (2020), a reason why Beyond Meat is successful is that they have invested time and resources into building the team, through brainstorming sessions. Employee programs are a strength for the company because they develop programs to increase innovation. According to Beyond Meat’s 10-K form (2020), the Beyond Meat Rapid and Relentless Innovation Program have a team of scientists and engineers focused on making improvements to existing product designs and creating new products across the plant-based beef, pork, and poultry platforms. The GO BEYOND ambassador program helps to achieve brand awareness, brings in new customers, and increases market penetration (“Beyond Meat Interim,” 2022). Another strength is the organizational culture because it embodies the values of trust and loyalty and provides a motivated and skilled workforce that is dedicated to the mission. According to Beyond Meat’s 10-K form (2020), the executives are responsible for determining the organizational culture and reputation that Beyond Meat has within the company and with its suppliers. The company aims to preserve the company culture in all locations they expand to (Besserve, 2022). Having a culture of accountability is important at Beyond Meat, so all workers feel connected to the results and the reasons behind their work.
Weaknesses.
Using a third party for their human resources could also be a weakness for Beyond Meat. According to Beyond Meat’s 10-K form (2020), if the U.S. PEO does not sufficiently hold back or pay employment taxes or comply with laws it would be a problem for Beyond Meat. These laws include the Family and Medical Leave Act, Fair Labor Standards Act, and federal anti-discrimination laws. According to Beyond Meat’s 10-K form (2020), it is outside of the company’s control, and they would be answerable for breaches, and indemnification obligations along with the U.S. PEO, may not be adequate to shield them from liabilities. If they were held liable for violations the PEOs made, it can negatively affect profitability, business, and outcomes of operations. Employee reviews of the organization have been weak due to firings to reduce costs. On August 3, 2022, and October 14, 2022, they declared reductions impacting roughly 4% and 19% of the global workforce (“Beyond Meat Interim,” 2022). One review stated that the company has a history of showing products to customers without an efficient or technical way of commercializing them (Simon, 2022). Selling promises they could not keep is a trend for employee reviews.
