Swot Analysis of "G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster" written by Stephen A. Greyser, Wendy Schille includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Powermaster Heileman facing as an external strategic factors. Some of the topics covered in G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster case study are - Strategic Management Strategies, Ethics, Marketing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster casestudy better are - – wage bills are increasing, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, increasing energy prices,
talent flight as more people leaving formal jobs, there is backlash against globalization, etc
Introduction to SWOT Analysis of G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Powermaster Heileman, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Powermaster Heileman 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 G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster can be done for the following purposes –
1. Strategic planning using facts provided in G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster case study
2. Improving business portfolio management of Powermaster Heileman
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 Powermaster Heileman
Strengths G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Powermaster Heileman in G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster Harvard Business Review case study are -
Diverse revenue streams
– Powermaster Heileman is present in almost all the verticals within the industry. This has provided firm in G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster 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.
Learning organization
- Powermaster Heileman 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 Powermaster Heileman is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Powermaster Heileman 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.
Analytics focus
– Powermaster Heileman 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 Stephen A. Greyser, Wendy Schille can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Innovation driven organization
– Powermaster Heileman is one of the most innovative firm in sector. Manager in G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Powermaster Heileman is one of the leading recruiters in the industry. Managers in the G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Powermaster Heileman 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.
Training and development
– Powermaster Heileman has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Powermaster Heileman digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Powermaster Heileman 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.
Low bargaining power of suppliers
– Suppliers of Powermaster Heileman in the sector have low bargaining power. G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Powermaster Heileman to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Powermaster Heileman 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 G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Powermaster Heileman in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster 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 Powermaster Heileman has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster HBR case study mentions - Powermaster Heileman 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster, in the dynamic environment Powermaster Heileman has struggled to respond to the nimble upstart competition. Powermaster Heileman has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Stephen A. Greyser, Wendy Schille suggests that, Powermaster Heileman 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.
Lack of clear differentiation of Powermaster Heileman products
– To increase the profitability and margins on the products, Powermaster Heileman needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Powermaster Heileman has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Products dominated business model
– Even though Powermaster Heileman 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 - G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster, it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Low market penetration in new markets
– Outside its home market of Powermaster Heileman, firm in the HBR case study G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Powermaster Heileman 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 Powermaster Heileman is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Powermaster Heileman needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Powermaster Heileman to focus more on services rather than just following the product oriented approach.
Opportunities G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster | 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 G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Powermaster Heileman can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Powermaster Heileman 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.
Buying journey improvements
– Powermaster Heileman can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster 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.
Creating value in data economy
– The success of analytics program of Powermaster Heileman has opened avenues for new revenue streams for the organization in the industry. This can help Powermaster Heileman to build a more holistic ecosystem as suggested in the G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster case study. Powermaster Heileman 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, Powermaster Heileman 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.
Learning at scale
– Online learning technologies has now opened space for Powermaster Heileman to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
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. Powermaster Heileman can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Powermaster Heileman to increase its market reach. Powermaster Heileman 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Powermaster Heileman 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 Powermaster Heileman to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Powermaster Heileman can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Powermaster Heileman can use these opportunities to build new business models that can help the communities that Powermaster Heileman operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Leveraging digital technologies
– Powermaster Heileman 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.
Developing new processes and practices
– Powermaster Heileman 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.
Threats G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Powermaster Heileman 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 G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Powermaster Heileman with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Powermaster Heileman 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.
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. Powermaster Heileman needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Environmental challenges
– Powermaster Heileman 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. Powermaster Heileman can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
High dependence on third party suppliers
– Powermaster Heileman 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.
Technology acceleration in Forth Industrial Revolution
– Powermaster Heileman has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Powermaster Heileman 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.
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 Powermaster Heileman.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster, Powermaster Heileman 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 .
Shortening product life cycle
– it is one of the major threat that Powermaster Heileman is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Powermaster Heileman in the Sales & Marketing sector and impact the bottomline of the organization.
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 Powermaster Heileman business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster 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 G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster 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 G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster 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 G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster 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 G. Heileman Brewing Co. (C): Public Controversy Over PowerMaster 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 Powermaster Heileman needs to make to build a sustainable competitive advantage.