Case Study Description of Andersen Consulting - EMEAI: Reorganization for Revitalization
Vernon Ellis, managing partner of Andersen Consulting -- Europe, Middle East, Africa, and India (AC -- EMEAI), is considering how best to reorganize. AC -- EMEAI has grown rapidly over the past five years to become Europe's largest consulting operation. However, Ellis feels that the organization needs to be reconfigured if it has to continue on its trajectory of rapid growth. Each of the various alternatives that he is considering offers intriguing potential benefits but also carries considerable risks.
Swot Analysis of "Andersen Consulting - EMEAI: Reorganization for Revitalization" written by Ashish Nanda, Michael Y. Yoshino includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Emeai Ac facing as an external strategic factors. Some of the topics covered in Andersen Consulting - EMEAI: Reorganization for Revitalization case study are - Strategic Management Strategies, International business, Managing people, Organizational structure, Reorganization and Organizational Development.
Some of the macro environment factors that can be used to understand the Andersen Consulting - EMEAI: Reorganization for Revitalization casestudy better are - – there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google,
increasing energy prices, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Andersen Consulting - EMEAI: Reorganization for Revitalization
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Andersen Consulting - EMEAI: Reorganization for Revitalization case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Emeai Ac, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Emeai Ac 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 Andersen Consulting - EMEAI: Reorganization for Revitalization can be done for the following purposes –
1. Strategic planning using facts provided in Andersen Consulting - EMEAI: Reorganization for Revitalization case study
2. Improving business portfolio management of Emeai Ac
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 Emeai Ac
Strengths Andersen Consulting - EMEAI: Reorganization for Revitalization | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Emeai Ac in Andersen Consulting - EMEAI: Reorganization for Revitalization Harvard Business Review case study are -
Innovation driven organization
– Emeai Ac is one of the most innovative firm in sector. Manager in Andersen Consulting - EMEAI: Reorganization for Revitalization Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Emeai Ac is present in almost all the verticals within the industry. This has provided firm in Andersen Consulting - EMEAI: Reorganization for Revitalization 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.
Training and development
– Emeai Ac has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Andersen Consulting - EMEAI: Reorganization for Revitalization 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.
Successful track record of launching new products
– Emeai Ac has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Emeai Ac 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 Emeai Ac in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Emeai Ac is one of the leading recruiters in the industry. Managers in the Andersen Consulting - EMEAI: Reorganization for Revitalization are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Organizational Development field
– Emeai Ac 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 Emeai Ac in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Emeai Ac 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 Ashish Nanda, Michael Y. Yoshino 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.
Organizational Resilience of Emeai Ac
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Emeai Ac does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Emeai Ac digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Emeai Ac has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Sustainable margins compare to other players in Organizational Development industry
– Andersen Consulting - EMEAI: Reorganization for Revitalization firm has clearly differentiated products in the market place. This has enabled Emeai Ac to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Emeai Ac to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Emeai Ac 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.
Weaknesses Andersen Consulting - EMEAI: Reorganization for Revitalization | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Andersen Consulting - EMEAI: Reorganization for Revitalization are -
High cash cycle compare to competitors
Emeai Ac 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.
Increasing silos among functional specialists
– The organizational structure of Emeai Ac is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Emeai Ac needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Emeai Ac to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Emeai Ac products
– To increase the profitability and margins on the products, Emeai Ac needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Emeai Ac 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 - Andersen Consulting - EMEAI: Reorganization for Revitalization should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Emeai Ac 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Andersen Consulting - EMEAI: Reorganization for Revitalization, it seems that the employees of Emeai Ac 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Emeai Ac 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Andersen Consulting - EMEAI: Reorganization for Revitalization 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 Emeai Ac has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Andersen Consulting - EMEAI: Reorganization for Revitalization 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 Andersen Consulting - EMEAI: Reorganization for Revitalization can leverage the sales team experience to cultivate customer relationships as Emeai Ac is planning to shift buying processes online.
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 Emeai Ac supply chain. Even after few cautionary changes mentioned in the HBR case study - Andersen Consulting - EMEAI: Reorganization for Revitalization, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Emeai Ac vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Ashish Nanda, Michael Y. Yoshino suggests that, Emeai Ac 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 Andersen Consulting - EMEAI: Reorganization for Revitalization | 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 Andersen Consulting - EMEAI: Reorganization for Revitalization are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Emeai Ac is facing challenges because of the dominance of functional experts in the organization. Andersen Consulting - EMEAI: Reorganization for Revitalization 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.
Building a culture of innovation
– managers at Emeai Ac 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.
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. Emeai Ac can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Emeai Ac can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Emeai Ac can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Emeai Ac 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Emeai Ac 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, Andersen Consulting - EMEAI: Reorganization for Revitalization, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Emeai Ac 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.
Loyalty marketing
– Emeai Ac 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.
Better consumer reach
– The expansion of the 5G network will help Emeai Ac to increase its market reach. Emeai Ac 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Emeai Ac can use these opportunities to build new business models that can help the communities that Emeai Ac operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
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 Emeai Ac in the consumer business. Now Emeai Ac can target international markets with far fewer capital restrictions requirements than the existing system.
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 Emeai Ac 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Emeai Ac 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 Emeai Ac to hire the very best people irrespective of their geographical location.
Threats Andersen Consulting - EMEAI: Reorganization for Revitalization External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Andersen Consulting - EMEAI: Reorganization for Revitalization are -
Technology acceleration in Forth Industrial Revolution
– Emeai Ac has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Emeai Ac 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Emeai Ac 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.
Increasing wage structure of Emeai Ac
– 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 Emeai Ac.
Consumer confidence and its impact on Emeai Ac 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Andersen Consulting - EMEAI: Reorganization for Revitalization, Emeai Ac 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 .
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 Emeai Ac.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Emeai Ac 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 Andersen Consulting - EMEAI: Reorganization for Revitalization .
High dependence on third party suppliers
– Emeai Ac 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.
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.
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 Emeai Ac business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Emeai Ac 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.
Environmental challenges
– Emeai Ac 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. Emeai Ac can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
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.
Weighted SWOT Analysis of Andersen Consulting - EMEAI: Reorganization for Revitalization 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 Andersen Consulting - EMEAI: Reorganization for Revitalization 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 Andersen Consulting - EMEAI: Reorganization for Revitalization 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 Andersen Consulting - EMEAI: Reorganization for Revitalization 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 Andersen Consulting - EMEAI: Reorganization for Revitalization 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 Emeai Ac needs to make to build a sustainable competitive advantage.