Swot Analysis of "Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version" written by Mihir A. Desai, Kathleen Luchs, Alberto Moel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cme Zelezny facing as an external strategic factors. Some of the topics covered in Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version case study are - Strategic Management Strategies, International business, Joint ventures, Negotiations, Risk management and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version casestudy better are - – supply chains are disrupted by pandemic , increasing commodity prices, increasing household debt because of falling income levels, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cme Zelezny, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cme Zelezny 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 Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version can be done for the following purposes –
1. Strategic planning using facts provided in Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version case study
2. Improving business portfolio management of Cme Zelezny
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cme Zelezny
Strengths Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cme Zelezny in Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version Harvard Business Review case study are -
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Cme Zelezny digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cme Zelezny 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.
Ability to recruit top talent
– Cme Zelezny is one of the leading recruiters in the industry. Managers in the Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version 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
- Cme Zelezny 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 Cme Zelezny is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Cme Zelezny 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 lead change in Finance & Accounting field
– Cme Zelezny 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 Cme Zelezny in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Cme Zelezny has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cme Zelezny 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.
Cross disciplinary teams
– Horizontal connected teams at the Cme Zelezny 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version firm has clearly differentiated products in the market place. This has enabled Cme Zelezny to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Cme Zelezny to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Cme Zelezny 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 Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Cme Zelezny has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version 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.
Highly skilled collaborators
– Cme Zelezny 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 Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version 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 Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version are -
Slow to strategic competitive environment developments
– As Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version HBR case study mentions - Cme Zelezny takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High cash cycle compare to competitors
Cme Zelezny 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version, in the dynamic environment Cme Zelezny has struggled to respond to the nimble upstart competition. Cme Zelezny has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Cme Zelezny is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Cme Zelezny needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cme Zelezny to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cme Zelezny is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version 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 Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version, it seems that the employees of Cme Zelezny 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.
Interest costs
– Compare to the competition, Cme Zelezny 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 operating costs
– Compare to the competitors, firm in the HBR case study Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version 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 Cme Zelezny 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version 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 Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version can leverage the sales team experience to cultivate customer relationships as Cme Zelezny is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Cme Zelezny, firm in the HBR case study Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version, is just above the industry average. Cme Zelezny needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Opportunities Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version | 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 Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version are -
Creating value in data economy
– The success of analytics program of Cme Zelezny has opened avenues for new revenue streams for the organization in the industry. This can help Cme Zelezny to build a more holistic ecosystem as suggested in the Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version case study. Cme Zelezny can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Cme Zelezny 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Cme Zelezny 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. Cme Zelezny 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Cme Zelezny can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Cme Zelezny can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Cme Zelezny 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 Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cme Zelezny to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cme Zelezny 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.
Buying journey improvements
– Cme Zelezny can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version 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.
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 Cme Zelezny 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cme Zelezny can use these opportunities to build new business models that can help the communities that Cme Zelezny operates in. Secondly it can use opportunities from government spending in Finance & Accounting 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 Cme Zelezny in the consumer business. Now Cme Zelezny can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Cme Zelezny can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cme Zelezny 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, Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version are -
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.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cme Zelezny can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Cme Zelezny 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.
Environmental challenges
– Cme Zelezny 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. Cme Zelezny can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cme Zelezny with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Cme Zelezny 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 Finance & Accounting industry regulations.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Cme Zelezny.
Increasing wage structure of Cme Zelezny
– 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 Cme Zelezny.
Technology acceleration in Forth Industrial Revolution
– Cme Zelezny has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Cme Zelezny needs to keep up with the evolution of technology in the Finance & Accounting 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.
Shortening product life cycle
– it is one of the major threat that Cme Zelezny is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Cme Zelezny needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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 Cme Zelezny in the Finance & Accounting sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cme Zelezny 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 Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version .
Weighted SWOT Analysis of Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version 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 Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version 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 Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version 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 Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version 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 Czech Mate: CME and Vladimir Zelezny (B1)--CME Negotiates, Chinese Version 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 Cme Zelezny needs to make to build a sustainable competitive advantage.