Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2)
This case follows UV4253, which is designed to allow two integration teams, each representing one of two different companies, to construct a joint post-acquisition-integration plan. The confidential background about one of the companies is provided in this case for one of the teams. UV4254 provides confidential information about the other company.
Swot Analysis of "Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2)" written by Dan Watson, L.J. Bourgeois includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Uv4254 Confidential facing as an external strategic factors. Some of the topics covered in Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) case study are - Strategic Management Strategies, Competitive strategy, Cross-cultural management, Organizational structure and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, wage bills are increasing, there is backlash against globalization, talent flight as more people leaving formal jobs, increasing energy prices,
cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Uv4254 Confidential, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Uv4254 Confidential 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) can be done for the following purposes –
1. Strategic planning using facts provided in Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) case study
2. Improving business portfolio management of Uv4254 Confidential
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Uv4254 Confidential
Strengths Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Uv4254 Confidential in Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) Harvard Business Review case study are -
Ability to recruit top talent
– Uv4254 Confidential is one of the leading recruiters in the industry. Managers in the Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Uv4254 Confidential 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 Dan Watson, L.J. Bourgeois 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
– Uv4254 Confidential is one of the most innovative firm in sector. Manager in Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) 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.
Organizational Resilience of Uv4254 Confidential
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Uv4254 Confidential does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Uv4254 Confidential has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) 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.
Low bargaining power of suppliers
– Suppliers of Uv4254 Confidential in the sector have low bargaining power. Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Uv4254 Confidential to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Uv4254 Confidential 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 Uv4254 Confidential is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Uv4254 Confidential has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Uv4254 Confidential 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.
Diverse revenue streams
– Uv4254 Confidential is present in almost all the verticals within the industry. This has provided firm in Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) 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.
High switching costs
– The high switching costs that Uv4254 Confidential 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.
Ability to lead change in Strategy & Execution field
– Uv4254 Confidential 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 Uv4254 Confidential in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) are -
Increasing silos among functional specialists
– The organizational structure of Uv4254 Confidential is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Uv4254 Confidential needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Uv4254 Confidential to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) can leverage the sales team experience to cultivate customer relationships as Uv4254 Confidential is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2), it seems that the employees of Uv4254 Confidential 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2), in the dynamic environment Uv4254 Confidential has struggled to respond to the nimble upstart competition. Uv4254 Confidential has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Uv4254 Confidential is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Uv4254 Confidential 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. Uv4254 Confidential 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.
Interest costs
– Compare to the competition, Uv4254 Confidential 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.
Capital Spending Reduction
– Even during the low interest decade, Uv4254 Confidential 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 cash cycle compare to competitors
Uv4254 Confidential 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.
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 Uv4254 Confidential supply chain. Even after few cautionary changes mentioned in the HBR case study - Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Uv4254 Confidential vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) 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 Uv4254 Confidential 's lucrative customers.
Opportunities Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) | 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) are -
Using analytics as competitive advantage
– Uv4254 Confidential 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Uv4254 Confidential to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Uv4254 Confidential 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. Uv4254 Confidential 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.
Building a culture of innovation
– managers at Uv4254 Confidential 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 Strategy & Execution segment.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Uv4254 Confidential can use these opportunities to build new business models that can help the communities that Uv4254 Confidential operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Buying journey improvements
– Uv4254 Confidential can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Uv4254 Confidential can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Uv4254 Confidential can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Uv4254 Confidential 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Uv4254 Confidential 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, Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Uv4254 Confidential can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Uv4254 Confidential 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.
Manufacturing automation
– Uv4254 Confidential can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Leveraging digital technologies
– Uv4254 Confidential 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.
Threats Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) are -
Technology acceleration in Forth Industrial Revolution
– Uv4254 Confidential has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Uv4254 Confidential needs to keep up with the evolution of technology in the Strategy & Execution 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 Uv4254 Confidential
– 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 Uv4254 Confidential.
Regulatory challenges
– Uv4254 Confidential 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 Strategy & Execution industry regulations.
Environmental challenges
– Uv4254 Confidential 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. Uv4254 Confidential can take advantage of this fund but it will also bring new competitors in the Strategy & Execution 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 Uv4254 Confidential.
Stagnating economy with rate increase
– Uv4254 Confidential 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.
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. Uv4254 Confidential 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Uv4254 Confidential in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High dependence on third party suppliers
– Uv4254 Confidential 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.
Consumer confidence and its impact on Uv4254 Confidential 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.
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 Uv4254 Confidential in the Strategy & Execution sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Uv4254 Confidential can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-2) 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 Uv4254 Confidential needs to make to build a sustainable competitive advantage.