Bayer CropScience in India (B): Value-Driven Strategy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Bayer CropScience in India (B): Value-Driven Strategy
The case explores value-driven strategy formulation and implementation by bringing to the fore issues of ethics, responsible leadership, social initiatives in emerging markets and the global-local tensions in corporate social responsibility. It examines how Bayer CropScience addressed the issue of child labor in its cotton seed supply chain in rural India between 2002 and 2008. Bayer had been operating in India for more than a century. In December 2002, the Bayer Group completed the acquisition of India-based Aventis CropScience. Bayer CropScience first learned about the incidence and prevalence of child labor in its newly acquired India-based cotton seed operations a few months post acquisition, in April 2003. The Aventis acquisition had brought onboard a well-known Indian company, Proagro, which already had operations in the cotton seed production and marketing - a new segment of the supply chain for Bayer. Child labor was widespread in cotton seed production - a traditional practice taken for granted not only by Indian farmers but also by several hundred Indian companies then accounting for approximately 90 per cent of the market share. This is a supplement to Bayer CropScience in India (A): Against Child Labor, product #9B10M061, and focuses on Bayer's formulation of a value-driven strategy, with three pillars: communication, implementation and education.
Authors :: Satyajeet Subramanian, Charles Dhanaraj, Oana Branzei
Swot Analysis of "Bayer CropScience in India (B): Value-Driven Strategy" written by Satyajeet Subramanian, Charles Dhanaraj, Oana Branzei includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bayer Cropscience facing as an external strategic factors. Some of the topics covered in Bayer CropScience in India (B): Value-Driven Strategy case study are - Strategic Management Strategies, Cross-cultural management, Emerging markets, Leadership, Social responsibility, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Bayer CropScience in India (B): Value-Driven Strategy casestudy better are - – digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, increasing commodity prices, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion,
challanges to central banks by blockchain based private currencies, wage bills are increasing, etc
Introduction to SWOT Analysis of Bayer CropScience in India (B): Value-Driven Strategy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bayer CropScience in India (B): Value-Driven Strategy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bayer Cropscience, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bayer Cropscience operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Bayer CropScience in India (B): Value-Driven Strategy can be done for the following purposes –
1. Strategic planning using facts provided in Bayer CropScience in India (B): Value-Driven Strategy case study
2. Improving business portfolio management of Bayer Cropscience
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bayer Cropscience
Strengths Bayer CropScience in India (B): Value-Driven Strategy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bayer Cropscience in Bayer CropScience in India (B): Value-Driven Strategy Harvard Business Review case study are -
Highly skilled collaborators
– Bayer Cropscience has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Bayer CropScience in India (B): Value-Driven Strategy HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Leadership & Managing People field
– Bayer Cropscience is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Bayer Cropscience in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Bayer Cropscience is one of the most innovative firm in sector. Manager in Bayer CropScience in India (B): Value-Driven Strategy Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Bayer Cropscience has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Bayer CropScience in India (B): Value-Driven Strategy - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Bayer Cropscience has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Bayer CropScience in India (B): Value-Driven Strategy Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– Bayer Cropscience is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Satyajeet Subramanian, Charles Dhanaraj, Oana Branzei can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Sustainable margins compare to other players in Leadership & Managing People industry
– Bayer CropScience in India (B): Value-Driven Strategy firm has clearly differentiated products in the market place. This has enabled Bayer Cropscience to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Bayer Cropscience to invest into research and development (R&D) and innovation.
High brand equity
– Bayer Cropscience has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bayer Cropscience to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Bayer Cropscience has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bayer Cropscience has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Superior customer experience
– The customer experience strategy of Bayer Cropscience in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Bayer Cropscience is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Bayer Cropscience has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses Bayer CropScience in India (B): Value-Driven Strategy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bayer CropScience in India (B): Value-Driven Strategy are -
Increasing silos among functional specialists
– The organizational structure of Bayer Cropscience is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Bayer Cropscience needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bayer Cropscience to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bayer Cropscience is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Bayer CropScience in India (B): Value-Driven Strategy can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Bayer Cropscience has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Lack of clear differentiation of Bayer Cropscience products
– To increase the profitability and margins on the products, Bayer Cropscience needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study Bayer CropScience in India (B): Value-Driven Strategy, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to strategic competitive environment developments
– As Bayer CropScience in India (B): Value-Driven Strategy HBR case study mentions - Bayer Cropscience takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High operating costs
– Compare to the competitors, firm in the HBR case study Bayer CropScience in India (B): Value-Driven Strategy has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Bayer Cropscience 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Bayer CropScience in India (B): Value-Driven Strategy, it seems that the employees of Bayer Cropscience don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Bayer CropScience in India (B): Value-Driven Strategy HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Bayer Cropscience has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Bayer Cropscience needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High bargaining power of channel partners
– Because of the regulatory requirements, Satyajeet Subramanian, Charles Dhanaraj, Oana Branzei suggests that, Bayer Cropscience is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities Bayer CropScience in India (B): Value-Driven Strategy | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Bayer CropScience in India (B): Value-Driven Strategy are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Bayer Cropscience to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Bayer Cropscience can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bayer Cropscience is facing challenges because of the dominance of functional experts in the organization. Bayer CropScience in India (B): Value-Driven Strategy case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bayer Cropscience can use these opportunities to build new business models that can help the communities that Bayer Cropscience operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Loyalty marketing
– Bayer Cropscience has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bayer Cropscience can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Bayer CropScience in India (B): Value-Driven Strategy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Bayer Cropscience can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
Buying journey improvements
– Bayer Cropscience can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Bayer CropScience in India (B): Value-Driven Strategy suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Using analytics as competitive advantage
– Bayer Cropscience has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Bayer CropScience in India (B): Value-Driven Strategy - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bayer Cropscience to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Bayer Cropscience can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bayer Cropscience can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Better consumer reach
– The expansion of the 5G network will help Bayer Cropscience to increase its market reach. Bayer Cropscience will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Manufacturing automation
– Bayer Cropscience can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Threats Bayer CropScience in India (B): Value-Driven Strategy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Bayer CropScience in India (B): Value-Driven Strategy are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bayer Cropscience in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bayer Cropscience can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Bayer CropScience in India (B): Value-Driven Strategy .
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Bayer Cropscience will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bayer Cropscience with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Bayer Cropscience needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Bayer Cropscience.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Bayer Cropscience business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Bayer Cropscience can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Bayer Cropscience demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Shortening product life cycle
– it is one of the major threat that Bayer Cropscience is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Bayer Cropscience needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Bayer CropScience in India (B): Value-Driven Strategy Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Bayer CropScience in India (B): Value-Driven Strategy needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Bayer CropScience in India (B): Value-Driven Strategy is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Bayer CropScience in India (B): Value-Driven Strategy is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Bayer CropScience in India (B): Value-Driven Strategy is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Bayer Cropscience needs to make to build a sustainable competitive advantage.
