Agrochemicals at Ciba-Geigy AG (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Agrochemicals at Ciba-Geigy AG (A)
After spending five years to develop a revolutionary product, the director of Ciba-Geigy's fungicide research department is handed an unfavorable market study. The case details the R&D process for the new product, including information on corporate partnerships, company structure, and departmental research procedures. The case ends with the R&D director faced with a decision about the best way of moving forward, if at all, with the product.
Authors :: Michael L. Tushman, Wendy K. Smith, Daniel B. Radov
Swot Analysis of "Agrochemicals at Ciba-Geigy AG (A)" written by Michael L. Tushman, Wendy K. Smith, Daniel B. Radov includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ciba Fungicide facing as an external strategic factors. Some of the topics covered in Agrochemicals at Ciba-Geigy AG (A) case study are - Strategic Management Strategies, Business processes, Change management, Emerging markets, Growth strategy, Internet, Leadership, Organizational structure, Product development, Strategic planning and Organizational Development.
Some of the macro environment factors that can be used to understand the Agrochemicals at Ciba-Geigy AG (A) casestudy better are - – central banks are concerned over increasing inflation, increasing commodity prices, increasing household debt because of falling income levels, technology disruption, there is backlash against globalization, increasing transportation and logistics costs, supply chains are disrupted by pandemic ,
talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Agrochemicals at Ciba-Geigy AG (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Agrochemicals at Ciba-Geigy AG (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ciba Fungicide, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ciba Fungicide 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 Agrochemicals at Ciba-Geigy AG (A) can be done for the following purposes –
1. Strategic planning using facts provided in Agrochemicals at Ciba-Geigy AG (A) case study
2. Improving business portfolio management of Ciba Fungicide
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 Ciba Fungicide
Strengths Agrochemicals at Ciba-Geigy AG (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ciba Fungicide in Agrochemicals at Ciba-Geigy AG (A) Harvard Business Review case study are -
Innovation driven organization
– Ciba Fungicide is one of the most innovative firm in sector. Manager in Agrochemicals at Ciba-Geigy AG (A) 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
– Ciba Fungicide is present in almost all the verticals within the industry. This has provided firm in Agrochemicals at Ciba-Geigy AG (A) 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.
Organizational Resilience of Ciba Fungicide
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ciba Fungicide does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Ciba Fungicide 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 Agrochemicals at Ciba-Geigy AG (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Ciba Fungicide has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ciba Fungicide to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Ciba Fungicide 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 Ciba Fungicide is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Agrochemicals at Ciba-Geigy AG (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Ciba Fungicide in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Ciba Fungicide 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 Agrochemicals at Ciba-Geigy AG (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Ciba Fungicide 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.
Analytics focus
– Ciba Fungicide 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 Michael L. Tushman, Wendy K. Smith, Daniel B. Radov 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.
Ability to recruit top talent
– Ciba Fungicide is one of the leading recruiters in the industry. Managers in the Agrochemicals at Ciba-Geigy AG (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Ciba Fungicide 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 Agrochemicals at Ciba-Geigy AG (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Agrochemicals at Ciba-Geigy AG (A) are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Agrochemicals at Ciba-Geigy AG (A), in the dynamic environment Ciba Fungicide has struggled to respond to the nimble upstart competition. Ciba Fungicide has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Ciba Fungicide supply chain. Even after few cautionary changes mentioned in the HBR case study - Agrochemicals at Ciba-Geigy AG (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ciba Fungicide vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Agrochemicals at Ciba-Geigy AG (A) 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 Agrochemicals at Ciba-Geigy AG (A) can leverage the sales team experience to cultivate customer relationships as Ciba Fungicide is planning to shift buying processes online.
High cash cycle compare to competitors
Ciba Fungicide 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.
Need for greater diversity
– Ciba Fungicide 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 Agrochemicals at Ciba-Geigy AG (A), it seems that the employees of Ciba Fungicide 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, Ciba Fungicide 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Michael L. Tushman, Wendy K. Smith, Daniel B. Radov suggests that, Ciba Fungicide 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Agrochemicals at Ciba-Geigy AG (A) 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 Ciba Fungicide 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Ciba Fungicide 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. Ciba Fungicide 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.
Increasing silos among functional specialists
– The organizational structure of Ciba Fungicide is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Ciba Fungicide needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ciba Fungicide to focus more on services rather than just following the product oriented approach.
Opportunities Agrochemicals at Ciba-Geigy AG (A) | 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 Agrochemicals at Ciba-Geigy AG (A) are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ciba Fungicide 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 Ciba Fungicide to hire the very best people irrespective of their geographical location.
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 Ciba Fungicide in the consumer business. Now Ciba Fungicide 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 Ciba Fungicide 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.
Developing new processes and practices
– Ciba Fungicide 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ciba Fungicide can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Ciba Fungicide 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 Agrochemicals at Ciba-Geigy AG (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ciba Fungicide to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Ciba Fungicide 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.
Manufacturing automation
– Ciba Fungicide 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ciba Fungicide is facing challenges because of the dominance of functional experts in the organization. Agrochemicals at Ciba-Geigy AG (A) 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.
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. Ciba Fungicide can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ciba Fungicide 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.
Loyalty marketing
– Ciba Fungicide 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, Ciba Fungicide can use these opportunities to build new business models that can help the communities that Ciba Fungicide operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Threats Agrochemicals at Ciba-Geigy AG (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Agrochemicals at Ciba-Geigy AG (A) are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ciba Fungicide 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 Agrochemicals at Ciba-Geigy AG (A) .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Agrochemicals at Ciba-Geigy AG (A), Ciba Fungicide 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 .
Shortening product life cycle
– it is one of the major threat that Ciba Fungicide is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Ciba Fungicide 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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Ciba Fungicide in the Organizational Development sector and impact the bottomline of the organization.
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. Ciba Fungicide needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Regulatory challenges
– Ciba Fungicide 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ciba Fungicide with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Ciba Fungicide can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Ciba Fungicide has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Ciba Fungicide 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.
Increasing wage structure of Ciba Fungicide
– 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 Ciba Fungicide.
Stagnating economy with rate increase
– Ciba Fungicide 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.
High dependence on third party suppliers
– Ciba Fungicide 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 Agrochemicals at Ciba-Geigy AG (A) 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 Agrochemicals at Ciba-Geigy AG (A) 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 Agrochemicals at Ciba-Geigy AG (A) 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 Agrochemicals at Ciba-Geigy AG (A) 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 Agrochemicals at Ciba-Geigy AG (A) 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 Ciba Fungicide needs to make to build a sustainable competitive advantage.