Mannai Corporation (A): On the Brink SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mannai Corporation (A): On the Brink
In September 2000 Mannai Corporation, one of the oldest and largest private enterprises in Qatar, was facing ruin. A combination of events had led to the company reaching its substantial bank borrowing limits and it was in grave danger of being unable to meet the wages bill for its 4,000 employees. The Mannai Corporation had grown to become the biggest privately owned trading house in Qatar. Mr Ahmed Mannai, a prominent member of the Qatar establishment, had created from nothing a highly successful conglomerate with activities ranging from automobile sales and service through construction and into oil related marine activities. As recently as 1998, Mannai had hit the headlines when it became the subject of the first management buyout in the Gulf region. Ahmed Mannai had bought out his two partners with a small consortium of Gulf banks providing the $110 million bridging loan. Subsequently caught out by the slump in oil prices to less that $10 a barrel at the end of 1998 and the resultant slow down of activity in that sector and a general malaise in the local economy, the Mannai Corporation had run into serious financial problems. With interest obligations now approaching $1 million a month, Mannai had been brought to its knees. The year was supposed to be one of celebration for Mannai, marking 50 years of successful trading and expansion, not just in Qatar but throughout the Gulf region and beyond. Instead, its very existence was threatened. The company was facing a stark choice: to liquidate or somehow contrive a means of survival. If it were to be the latter, what would be the priorities and how would they be tackled?
Swot Analysis of "Mannai Corporation (A): On the Brink" written by Stewart Hamilton, Sarah Hutton includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mannai Qatar facing as an external strategic factors. Some of the topics covered in Mannai Corporation (A): On the Brink case study are - Strategic Management Strategies, Reorganization and Organizational Development.
Some of the macro environment factors that can be used to understand the Mannai Corporation (A): On the Brink casestudy better are - – there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs,
there is increasing trade war between United States & China, increasing commodity prices, etc
Introduction to SWOT Analysis of Mannai Corporation (A): On the Brink
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mannai Corporation (A): On the Brink case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mannai Qatar, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mannai Qatar 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 Mannai Corporation (A): On the Brink can be done for the following purposes –
1. Strategic planning using facts provided in Mannai Corporation (A): On the Brink case study
2. Improving business portfolio management of Mannai Qatar
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mannai Qatar
Strengths Mannai Corporation (A): On the Brink | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mannai Qatar in Mannai Corporation (A): On the Brink Harvard Business Review case study are -
Analytics focus
– Mannai Qatar 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 Stewart Hamilton, Sarah Hutton 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.
Effective Research and Development (R&D)
– Mannai Qatar 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 Mannai Corporation (A): On the Brink - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Mannai Qatar 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 Mannai Qatar 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.
Operational resilience
– The operational resilience strategy in the Mannai Corporation (A): On the Brink Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Diverse revenue streams
– Mannai Qatar is present in almost all the verticals within the industry. This has provided firm in Mannai Corporation (A): On the Brink case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Ability to recruit top talent
– Mannai Qatar is one of the leading recruiters in the industry. Managers in the Mannai Corporation (A): On the Brink are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Mannai Qatar
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mannai Qatar does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Mannai Qatar 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 Mannai Corporation (A): On the Brink HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Organizational Development industry
– Mannai Corporation (A): On the Brink firm has clearly differentiated products in the market place. This has enabled Mannai Qatar to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Mannai Qatar to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Mannai Qatar are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Ability to lead change in Organizational Development field
– Mannai Qatar 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 Mannai Qatar in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Mannai Corporation (A): On the Brink | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mannai Corporation (A): On the Brink are -
Workers concerns about automation
– As automation is fast increasing in the segment, Mannai Qatar 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, Stewart Hamilton, Sarah Hutton suggests that, Mannai Qatar 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.
Lack of clear differentiation of Mannai Qatar products
– To increase the profitability and margins on the products, Mannai Qatar needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Mannai Corporation (A): On the Brink that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Mannai Corporation (A): On the Brink can leverage the sales team experience to cultivate customer relationships as Mannai Qatar is planning to shift buying processes online.
Need for greater diversity
– Mannai Qatar has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Interest costs
– Compare to the competition, Mannai Qatar 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Mannai Corporation (A): On the Brink 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 Mannai Qatar has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Mannai Qatar has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Mannai Qatar even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High cash cycle compare to competitors
Mannai Qatar has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Mannai Qatar supply chain. Even after few cautionary changes mentioned in the HBR case study - Mannai Corporation (A): On the Brink, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mannai Qatar vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Mannai Qatar has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Opportunities Mannai Corporation (A): On the Brink | 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 Mannai Corporation (A): On the Brink are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Mannai Qatar 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.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Mannai Qatar in the consumer business. Now Mannai Qatar can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Mannai Qatar can develop new processes and procedures in Organizational Development industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Loyalty marketing
– Mannai Qatar 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mannai Qatar in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Mannai Qatar has opened avenues for new revenue streams for the organization in the industry. This can help Mannai Qatar to build a more holistic ecosystem as suggested in the Mannai Corporation (A): On the Brink case study. Mannai Qatar can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Mannai Qatar to increase its market reach. Mannai Qatar 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.
Building a culture of innovation
– managers at Mannai Qatar 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 Organizational Development segment.
Learning at scale
– Online learning technologies has now opened space for Mannai Qatar to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Using analytics as competitive advantage
– Mannai Qatar 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 Mannai Corporation (A): On the Brink - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mannai Qatar to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mannai Qatar can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mannai Qatar to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Mannai Qatar to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Mannai Qatar can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mannai Corporation (A): On the Brink 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.
Threats Mannai Corporation (A): On the Brink External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mannai Corporation (A): On the Brink are -
Environmental challenges
– Mannai Qatar needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Mannai Qatar can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Technology acceleration in Forth Industrial Revolution
– Mannai Qatar has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Mannai Qatar needs to keep up with the evolution of technology in the Organizational Development sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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.
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. Mannai Qatar 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.
Increasing wage structure of Mannai Qatar
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Mannai Qatar.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mannai Qatar can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Mannai Qatar 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 Organizational Development industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mannai Corporation (A): On the Brink, Mannai Qatar may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
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 Mannai Qatar business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Mannai Qatar 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.
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 Mannai Qatar.
High dependence on third party suppliers
– Mannai Qatar high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Weighted SWOT Analysis of Mannai Corporation (A): On the Brink 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 Mannai Corporation (A): On the Brink 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 Mannai Corporation (A): On the Brink 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 Mannai Corporation (A): On the Brink 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 Mannai Corporation (A): On the Brink 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 Mannai Qatar needs to make to build a sustainable competitive advantage.