Novo Nordisk Engineering: Running for Fast-Track Project Execution SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Novo Nordisk Engineering: Running for Fast-Track Project Execution
When appointed CEO of Novo Nordisk Engineering, Hans Ole Voigt created a vision for the company: Within five years NNE should be able to build a pharmaceutical plant in less than a year. The first reactions were quite negative, most of the employees thought such a goal was totally unrealistic. Processes were reengineered, people were coached and step by step NNE got closer to the objective. Employees became more and more energized and felt the 12 months goal was reachable. From a 30 to 36 months industry average construction time, NNE first came down to 24 then 18 and finally 11 months. By 2005 the goal was reached and the company had earned a standing reputation thanks to its accomplishments. Learning objectives: This case provides a good opportunity to learn about speed in project management. From a supply chain perspective it shows the importance of involving external partners from clients to suppliers in successful project execution. It also helps understand that even in highly regulated industries (here pharmaceutical industry) processes can be changed and improved. From a human resourced management it shows the importance both of creating energy driving employees to overcome extremely challenging projects and investing in project management training.
Authors :: Carlos Cordon, Ralf W. Seifert, Francois Jager
Swot Analysis of "Novo Nordisk Engineering: Running for Fast-Track Project Execution" written by Carlos Cordon, Ralf W. Seifert, Francois Jager includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nne Nordisk facing as an external strategic factors. Some of the topics covered in Novo Nordisk Engineering: Running for Fast-Track Project Execution case study are - Strategic Management Strategies, Project management, Supply chain and Organizational Development.
Some of the macro environment factors that can be used to understand the Novo Nordisk Engineering: Running for Fast-Track Project Execution casestudy better are - – increasing government debt because of Covid-19 spendings, geopolitical disruptions, there is backlash against globalization, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, increasing energy prices, increasing commodity prices,
there is increasing trade war between United States & China, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Novo Nordisk Engineering: Running for Fast-Track Project Execution
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Novo Nordisk Engineering: Running for Fast-Track Project Execution case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nne Nordisk, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nne Nordisk 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 Novo Nordisk Engineering: Running for Fast-Track Project Execution can be done for the following purposes –
1. Strategic planning using facts provided in Novo Nordisk Engineering: Running for Fast-Track Project Execution case study
2. Improving business portfolio management of Nne Nordisk
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 Nne Nordisk
Strengths Novo Nordisk Engineering: Running for Fast-Track Project Execution | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nne Nordisk in Novo Nordisk Engineering: Running for Fast-Track Project Execution Harvard Business Review case study are -
Strong track record of project management
– Nne Nordisk is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Nne Nordisk is one of the leading recruiters in the industry. Managers in the Novo Nordisk Engineering: Running for Fast-Track Project Execution are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Nne Nordisk is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Nne Nordisk is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Novo Nordisk Engineering: Running for Fast-Track Project Execution Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Nne Nordisk
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Nne Nordisk does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Organizational Development field
– Nne Nordisk 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 Nne Nordisk in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Nne Nordisk has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nne Nordisk to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Nne Nordisk has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nne Nordisk 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.
High switching costs
– The high switching costs that Nne Nordisk 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.
Diverse revenue streams
– Nne Nordisk is present in almost all the verticals within the industry. This has provided firm in Novo Nordisk Engineering: Running for Fast-Track Project Execution 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.
Analytics focus
– Nne Nordisk 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 Carlos Cordon, Ralf W. Seifert, Francois Jager 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.
Innovation driven organization
– Nne Nordisk is one of the most innovative firm in sector. Manager in Novo Nordisk Engineering: Running for Fast-Track Project Execution Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Novo Nordisk Engineering: Running for Fast-Track Project Execution 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.
Weaknesses Novo Nordisk Engineering: Running for Fast-Track Project Execution | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Novo Nordisk Engineering: Running for Fast-Track Project Execution are -
High cash cycle compare to competitors
Nne Nordisk 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 operating costs
– Compare to the competitors, firm in the HBR case study Novo Nordisk Engineering: Running for Fast-Track Project Execution 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 Nne Nordisk 's lucrative customers.
Products dominated business model
– Even though Nne Nordisk has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Novo Nordisk Engineering: Running for Fast-Track Project Execution should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Nne Nordisk products
– To increase the profitability and margins on the products, Nne Nordisk needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Nne Nordisk is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Novo Nordisk Engineering: Running for Fast-Track Project Execution can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Novo Nordisk Engineering: Running for Fast-Track Project Execution, it seems that the employees of Nne Nordisk 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.
Capital Spending Reduction
– Even during the low interest decade, Nne Nordisk 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Nne Nordisk 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.
Skills based hiring
– The stress on hiring functional specialists at Nne Nordisk has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Low market penetration in new markets
– Outside its home market of Nne Nordisk, firm in the HBR case study Novo Nordisk Engineering: Running for Fast-Track Project Execution needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Nne Nordisk supply chain. Even after few cautionary changes mentioned in the HBR case study - Novo Nordisk Engineering: Running for Fast-Track Project Execution, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Nne Nordisk vulnerable to further global disruptions in South East Asia.
Opportunities Novo Nordisk Engineering: Running for Fast-Track Project Execution | 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 Novo Nordisk Engineering: Running for Fast-Track Project Execution are -
Loyalty marketing
– Nne Nordisk 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nne Nordisk can use these opportunities to build new business models that can help the communities that Nne Nordisk operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Nne Nordisk 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, Novo Nordisk Engineering: Running for Fast-Track Project Execution, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Nne Nordisk can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Nne Nordisk can use the latest technology developments to improve its manufacturing and designing process in Organizational Development 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Nne Nordisk 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Nne Nordisk 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.
Developing new processes and practices
– Nne Nordisk 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.
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 Nne Nordisk in the consumer business. Now Nne Nordisk can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Nne Nordisk 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.
Buying journey improvements
– Nne Nordisk can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Novo Nordisk Engineering: Running for Fast-Track Project Execution 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Nne Nordisk is facing challenges because of the dominance of functional experts in the organization. Novo Nordisk Engineering: Running for Fast-Track Project Execution 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.
Using analytics as competitive advantage
– Nne Nordisk 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 Novo Nordisk Engineering: Running for Fast-Track Project Execution - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nne Nordisk to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Novo Nordisk Engineering: Running for Fast-Track Project Execution External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Novo Nordisk Engineering: Running for Fast-Track Project Execution are -
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. Nne Nordisk can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Nne Nordisk with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Nne Nordisk 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.
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. Nne Nordisk needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
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 Nne Nordisk business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Nne Nordisk in the Organizational Development industry. The Organizational Development 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.
Technology acceleration in Forth Industrial Revolution
– Nne Nordisk has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Nne Nordisk 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Novo Nordisk Engineering: Running for Fast-Track Project Execution, Nne Nordisk 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Nne Nordisk 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 Novo Nordisk Engineering: Running for Fast-Track Project Execution .
Regulatory challenges
– Nne Nordisk 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.
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. Nne Nordisk 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.
Environmental challenges
– Nne Nordisk 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. Nne Nordisk can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Stagnating economy with rate increase
– Nne Nordisk can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Weighted SWOT Analysis of Novo Nordisk Engineering: Running for Fast-Track Project Execution 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 Novo Nordisk Engineering: Running for Fast-Track Project Execution 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 Novo Nordisk Engineering: Running for Fast-Track Project Execution 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 Novo Nordisk Engineering: Running for Fast-Track Project Execution 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 Novo Nordisk Engineering: Running for Fast-Track Project Execution 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 Nne Nordisk needs to make to build a sustainable competitive advantage.