Harvard Case - Michigan Dining: 20% Local by 2025
"Michigan Dining: 20% Local by 2025" Harvard business case study is written by Ravi Anupindi. It deals with the challenges in the field of Strategy. The case study is 25 page(s) long and it was first published on : Jan 23, 2019
At Fern Fort University, we recommend that Michigan Dining implement a multi-pronged strategy to achieve its '20% Local by 2025' goal, focusing on innovation, strategic partnerships, and consumer engagement. This strategy will leverage technology and analytics to optimize sourcing, supply chain management to ensure consistent quality, and marketing to promote the initiative and its benefits.
2. Background
The case study focuses on Michigan Dining, the food service provider for the University of Michigan, aiming to increase the percentage of locally sourced food in its menus to 20% by 2025. This goal is driven by a desire to support local farmers and businesses, reduce environmental impact, and enhance the dining experience for students and faculty. However, Michigan Dining faces challenges in achieving this goal, including limited local supply, logistical complexities, and potential cost increases.
The main protagonists are:
- Michigan Dining: The food service provider for the University of Michigan, responsible for sourcing, preparing, and serving food to the university community.
- Local Farmers and Suppliers: The key stakeholders in achieving the '20% Local' goal, providing fresh and high-quality ingredients.
- University of Michigan: The institution that supports the initiative and sets the overall framework for sustainability efforts.
- Students and Faculty: The ultimate beneficiaries of the initiative, enjoying the benefits of local and sustainable food.
3. Analysis of the Case Study
To understand the challenges and opportunities, we can apply a SWOT analysis and Porter's Five Forces framework:
SWOT Analysis:
Strengths:
- Strong brand reputation: University of Michigan's commitment to sustainability and social responsibility.
- Large customer base: Significant demand for local and sustainable food options.
- Access to resources: University's infrastructure and support for research and development.
Weaknesses:
- Limited local supply: Availability of certain ingredients may be restricted.
- Logistical complexities: Transportation and storage of local produce can be challenging.
- Cost considerations: Local sourcing may lead to higher prices compared to conventional options.
Opportunities:
- Growing consumer demand: Increased awareness and preference for local and sustainable food.
- Technological advancements: Improved logistics and food preservation technologies.
- Government support: Policies and incentives promoting local agriculture and food systems.
Threats:
- Competition from other food service providers: Pressure to remain competitive on price and quality.
- Climate change and weather variability: Potential impact on local food production and availability.
- Economic fluctuations: Impact on consumer spending and demand for premium food options.
Porter's Five Forces:
- Threat of new entrants: Relatively low due to established infrastructure and university partnerships.
- Bargaining power of buyers: Moderate, as students and faculty have limited alternatives.
- Bargaining power of suppliers: Moderate, as local farmers and suppliers have limited market reach.
- Threat of substitute products: Moderate, as conventional food options remain readily available.
- Rivalry among existing competitors: Moderate, as other food service providers operate in the university setting.
4. Recommendations
To achieve the '20% Local by 2025' goal, Michigan Dining should implement the following recommendations:
1. Strategic Partnerships and Innovation:
- Build strong relationships with local farmers and suppliers: Create a network of reliable suppliers who can meet the quality and quantity requirements.
- Develop innovative sourcing strategies: Explore alternative sourcing options, such as community gardens, urban farms, and vertical farming technologies.
- Invest in technology and analytics: Utilize data-driven insights to optimize sourcing, inventory management, and logistics.
2. Supply Chain Management and Quality Control:
- Implement robust quality control measures: Establish strict standards for local produce, ensuring freshness, safety, and traceability.
- Develop efficient logistics and transportation systems: Optimize delivery routes, storage facilities, and transportation methods to minimize waste and maintain product quality.
- Explore vertical integration: Consider investing in local farms or partnering with existing farms to control supply and quality.
3. Consumer Engagement and Marketing:
- Promote the '20% Local' initiative: Highlight the environmental, social, and economic benefits of local sourcing through marketing campaigns.
- Educate students and faculty about local food: Organize workshops, tastings, and farm tours to increase awareness and appreciation for local agriculture.
- Offer interactive dining experiences: Incorporate local ingredients into themed menus, showcasing regional flavors and culinary traditions.
4. Financial Sustainability:
- Explore cost-sharing models: Partner with local farmers to share the costs of production and transportation.
- Seek funding opportunities: Apply for grants and subsidies aimed at promoting local food systems.
- Develop a pricing strategy: Balance the cost of local sourcing with the value proposition to students and faculty.
5. Basis of Recommendations
These recommendations consider:
- Core competencies and consistency with mission: Aligning with the University of Michigan's commitment to sustainability and social responsibility.
- External customers and internal clients: Meeting the needs and preferences of students, faculty, and local farmers.
- Competitors: Maintaining a competitive edge in the university food service market by offering unique and sustainable dining options.
- Attractiveness: Evaluating the financial viability of the initiative through cost-benefit analysis and potential return on investment.
6. Conclusion
By implementing a multi-pronged strategy focused on innovation, strategic partnerships, and consumer engagement, Michigan Dining can achieve its '20% Local by 2025' goal, creating a sustainable and impactful food system that benefits the university community, local farmers, and the environment.
7. Discussion
Alternatives:
- Focusing solely on cost reduction: This approach might prioritize affordability over sustainability, potentially compromising the quality and impact of the initiative.
- Adopting a 'wait-and-see' approach: This strategy risks falling behind competitors and missing out on opportunities to lead the market in sustainable food practices.
Risks and Key Assumptions:
- Limited local supply: This risk can be mitigated by exploring alternative sourcing options and developing innovative partnerships.
- Cost increases: This risk can be addressed through cost-sharing models, funding opportunities, and strategic pricing strategies.
- Consumer acceptance: This assumption is based on the growing demand for local and sustainable food, which can be further cultivated through effective marketing and education.
8. Next Steps
- Develop a comprehensive implementation plan: Outline specific timelines, milestones, and responsibilities for each recommendation.
- Establish a dedicated team: Assemble a cross-functional team to manage the initiative and ensure effective collaboration.
- Monitor progress and adjust strategies: Regularly track key performance indicators and make necessary adjustments to ensure the initiative remains on track.
By taking these steps, Michigan Dining can successfully implement its '20% Local by 2025' goal, becoming a leader in sustainable food practices and creating a lasting impact on the university community and the local food system.
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Case Description
This case study highlights the opportunities and economic, environmental, and social value generated by one of the nation's largest college dining operations, the University of Michigan's MDining. The case describes the MDining leadership team and their holistic approach to implementing local and sustainable food sourcing initiatives. The team's challenges in implementing an aspirational local sourcing program and gaps in the ecosystem encourage students to discuss potential solutions. The case covers the important role a university can play in improving food sustainability on campus, especially through student clubs, projects, and employment and research opportunities. More broadly, the case highlights challenges that large institutions can face in implementing local sourcing and what role institutions can play in ensuring sustainable food services procurement.
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