Case Study Description of VERITAS 1999 (A): Integrating Sales Forces
In October 1998, VERITAS and Seagate's Network Storage and Management Group, which both sold data storage management software, agreed to merge. In terms of employee size and revenues, it was nearly a merger of equals. Until regulatory approval for the merger was granted from the government under the Hart-Scott-Rodino (HSR) Act, the two companies could share only public information, initially limiting due diligence. The companies received HSR approval on December 4, 1998. It had been clear from public information that the two companies offered different products, sold through different channels of distribution, and captured two different customer segments of the market. After all, these differences were regarded as complements and the major justification behind the merger. However, what was not so apparent until HSR approval was the clash in sales force cultures. Paul Sallaberry, an executive at pre-merger VERITAS, assumed the role of executive vice-president of worldwide sales and marketing after the merger. Sallaberry needed to design a sales force integration plan that would take the company to billions of dollars in sales within the next few years without sacrificing any short-term sales momentum. To do so, he had to resolve the issues at hand: culture clashes, disparate compensation structures, overlapping territories, and redundant management positions.
Swot Analysis of "VERITAS 1999 (A): Integrating Sales Forces" written by Mark Leslie, James Lattin, Erin Yurday includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hsr Veritas facing as an external strategic factors. Some of the topics covered in VERITAS 1999 (A): Integrating Sales Forces case study are - Strategic Management Strategies, Marketing, Mergers & acquisitions, Organizational culture, Sales and Sales & Marketing.
Some of the macro environment factors that can be used to understand the VERITAS 1999 (A): Integrating Sales Forces casestudy better are - – supply chains are disrupted by pandemic , geopolitical disruptions, wage bills are increasing, central banks are concerned over increasing inflation, increasing transportation and logistics costs, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies,
cloud computing is disrupting traditional business models, increasing commodity prices, etc
Introduction to SWOT Analysis of VERITAS 1999 (A): Integrating Sales Forces
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in VERITAS 1999 (A): Integrating Sales Forces case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hsr Veritas, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hsr Veritas 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 VERITAS 1999 (A): Integrating Sales Forces can be done for the following purposes –
1. Strategic planning using facts provided in VERITAS 1999 (A): Integrating Sales Forces case study
2. Improving business portfolio management of Hsr Veritas
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hsr Veritas
Strengths VERITAS 1999 (A): Integrating Sales Forces | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hsr Veritas in VERITAS 1999 (A): Integrating Sales Forces Harvard Business Review case study are -
Innovation driven organization
– Hsr Veritas is one of the most innovative firm in sector. Manager in VERITAS 1999 (A): Integrating Sales Forces Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Sales & Marketing industry
– VERITAS 1999 (A): Integrating Sales Forces firm has clearly differentiated products in the market place. This has enabled Hsr Veritas to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Hsr Veritas to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Hsr Veritas in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Hsr Veritas is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Hsr Veritas 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.
Diverse revenue streams
– Hsr Veritas is present in almost all the verticals within the industry. This has provided firm in VERITAS 1999 (A): Integrating Sales Forces 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.
Low bargaining power of suppliers
– Suppliers of Hsr Veritas in the sector have low bargaining power. VERITAS 1999 (A): Integrating Sales Forces has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hsr Veritas to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Hsr Veritas 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 Mark Leslie, James Lattin, Erin Yurday 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 lead change in Sales & Marketing field
– Hsr Veritas 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 Hsr Veritas in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Hsr Veritas is one of the leading recruiters in the industry. Managers in the VERITAS 1999 (A): Integrating Sales Forces are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Hsr Veritas 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 VERITAS 1999 (A): Integrating Sales Forces HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Hsr Veritas 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 VERITAS 1999 (A): Integrating Sales Forces | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of VERITAS 1999 (A): Integrating Sales Forces are -
Lack of clear differentiation of Hsr Veritas products
– To increase the profitability and margins on the products, Hsr Veritas needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study VERITAS 1999 (A): Integrating Sales Forces, is just above the industry average. Hsr Veritas 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.
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 Hsr Veritas supply chain. Even after few cautionary changes mentioned in the HBR case study - VERITAS 1999 (A): Integrating Sales Forces, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hsr Veritas vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Hsr Veritas 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.
Low market penetration in new markets
– Outside its home market of Hsr Veritas, firm in the HBR case study VERITAS 1999 (A): Integrating Sales Forces needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Hsr Veritas 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 VERITAS 1999 (A): Integrating Sales Forces 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 Hsr Veritas 's lucrative customers.
High cash cycle compare to competitors
Hsr Veritas 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 VERITAS 1999 (A): Integrating Sales Forces, in the dynamic environment Hsr Veritas has struggled to respond to the nimble upstart competition. Hsr Veritas has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Hsr Veritas 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.
Slow to strategic competitive environment developments
– As VERITAS 1999 (A): Integrating Sales Forces HBR case study mentions - Hsr Veritas 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.
Opportunities VERITAS 1999 (A): Integrating Sales Forces | 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 VERITAS 1999 (A): Integrating Sales Forces are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hsr Veritas is facing challenges because of the dominance of functional experts in the organization. VERITAS 1999 (A): Integrating Sales Forces 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.
Creating value in data economy
– The success of analytics program of Hsr Veritas has opened avenues for new revenue streams for the organization in the industry. This can help Hsr Veritas to build a more holistic ecosystem as suggested in the VERITAS 1999 (A): Integrating Sales Forces case study. Hsr Veritas can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hsr Veritas can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Hsr Veritas in the consumer business. Now Hsr Veritas can target international markets with far fewer capital restrictions requirements than the existing system.
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. Hsr Veritas can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Hsr Veritas can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. VERITAS 1999 (A): Integrating Sales Forces 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hsr Veritas can use these opportunities to build new business models that can help the communities that Hsr Veritas operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Leveraging digital technologies
– Hsr Veritas can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Building a culture of innovation
– managers at Hsr Veritas 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 Sales & Marketing segment.
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 Hsr Veritas 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.
Using analytics as competitive advantage
– Hsr Veritas 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 VERITAS 1999 (A): Integrating Sales Forces - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hsr Veritas to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Hsr Veritas can develop new processes and procedures in Sales & Marketing 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hsr Veritas 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 Hsr Veritas to hire the very best people irrespective of their geographical location.
Threats VERITAS 1999 (A): Integrating Sales Forces External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study VERITAS 1999 (A): Integrating Sales Forces are -
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. Hsr Veritas 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.
Technology acceleration in Forth Industrial Revolution
– Hsr Veritas has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Hsr Veritas needs to keep up with the evolution of technology in the Sales & Marketing 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.
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. Hsr Veritas needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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.
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 Hsr Veritas in the Sales & Marketing sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Hsr Veritas 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study VERITAS 1999 (A): Integrating Sales Forces, Hsr Veritas may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Increasing wage structure of Hsr Veritas
– 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 Hsr Veritas.
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.
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 Hsr Veritas business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Hsr Veritas 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. Hsr Veritas can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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 Hsr Veritas.
Consumer confidence and its impact on Hsr Veritas 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.
Weighted SWOT Analysis of VERITAS 1999 (A): Integrating Sales Forces 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 VERITAS 1999 (A): Integrating Sales Forces 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 VERITAS 1999 (A): Integrating Sales Forces 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 VERITAS 1999 (A): Integrating Sales Forces 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 VERITAS 1999 (A): Integrating Sales Forces 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 Hsr Veritas needs to make to build a sustainable competitive advantage.