MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information
This case includes supplements.Two-party, four-issue negotiation between representatives of two companies with different national and corporate cultures regarding a possible joint venture. MedDevice, a U.S.-based Fortune 500 company that manufactures high technology medical equipment, and Lee Medical Supply, a small Thailand-based company that distributes medical equipment in Southeast Asia, seek to conclude a joint venture. The venture, to be named MedLee, Ltd., will take the form of a Bangkok sales office that distributes MedDevice brand medical equipment. The CEOs have met and signed a Memorandum of Understanding. They have now instructed their subordinates (Pat Armstrong, the Director of International Strategic Market Research at MedDevice, and T.S. Lee, the Vice President and son of the owner of Lee Medical Supply) to conduct preliminary negotiations on four issues they consider central to the joint venture: decision making, staffing, profit distribution, and a conflict resolution mechanism. MedDevice and Lee Medical Supply differ greatly in their corporate cultures. The respective negotiators must develop a way for companies with such divergent cultures to work together. This is a role play case.
Swot Analysis of "MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information" written by Candace Lun, Jeswald Salacuse includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Meddevice Lee facing as an external strategic factors. Some of the topics covered in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information case study are - Strategic Management Strategies, Conflict, Decision making, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information casestudy better are - – increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models,
challanges to central banks by blockchain based private currencies, technology disruption, etc
Introduction to SWOT Analysis of MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Meddevice Lee, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Meddevice Lee 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information can be done for the following purposes –
1. Strategic planning using facts provided in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information case study
2. Improving business portfolio management of Meddevice Lee
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 Meddevice Lee
Strengths MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Meddevice Lee in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Meddevice Lee digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Meddevice Lee 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.
Operational resilience
– The operational resilience strategy in the MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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.
Strong track record of project management
– Meddevice Lee is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Meddevice Lee in the sector have low bargaining power. MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Meddevice Lee to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Meddevice Lee
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Meddevice Lee does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Meddevice Lee is one of the leading recruiters in the industry. Managers in the MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Meddevice Lee has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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.
Effective Research and Development (R&D)
– Meddevice Lee 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Meddevice Lee 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.
Innovation driven organization
– Meddevice Lee is one of the most innovative firm in sector. Manager in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Strategy & Execution field
– Meddevice Lee 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 Meddevice Lee in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Meddevice Lee 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 Candace Lun, Jeswald Salacuse 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.
Weaknesses MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information, is just above the industry average. Meddevice Lee 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information, it seems that the employees of Meddevice Lee 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.
Skills based hiring
– The stress on hiring functional specialists at Meddevice Lee 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.
Interest costs
– Compare to the competition, Meddevice Lee 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 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 Meddevice Lee supply chain. Even after few cautionary changes mentioned in the HBR case study - MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Meddevice Lee vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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 Meddevice Lee has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Meddevice Lee 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. Meddevice Lee 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.
Lack of clear differentiation of Meddevice Lee products
– To increase the profitability and margins on the products, Meddevice Lee needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Meddevice Lee, firm in the HBR case study MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information HBR case study mentions - Meddevice Lee 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.
No frontier risks strategy
– After analyzing the HBR case study MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Opportunities MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information | 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information are -
Manufacturing automation
– Meddevice Lee 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Meddevice Lee 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 Meddevice Lee to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Meddevice Lee can develop new processes and procedures in Strategy & Execution 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.
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 Meddevice Lee in the consumer business. Now Meddevice Lee can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Meddevice Lee can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Meddevice Lee 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.
Creating value in data economy
– The success of analytics program of Meddevice Lee has opened avenues for new revenue streams for the organization in the industry. This can help Meddevice Lee to build a more holistic ecosystem as suggested in the MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information case study. Meddevice Lee can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Meddevice Lee 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Meddevice Lee 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, MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Meddevice Lee is facing challenges because of the dominance of functional experts in the organization. MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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.
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 Meddevice Lee 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.
Leveraging digital technologies
– Meddevice Lee 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Meddevice Lee can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information are -
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. Meddevice Lee needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Regulatory challenges
– Meddevice Lee 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.
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 Meddevice Lee in the Strategy & Execution sector and impact the bottomline of the organization.
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 Meddevice Lee.
Environmental challenges
– Meddevice Lee 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. Meddevice Lee can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information, Meddevice Lee may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
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.
Consumer confidence and its impact on Meddevice Lee 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Meddevice Lee with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Meddevice Lee 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information .
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 Meddevice Lee business can come under increasing regulations regarding data privacy, data security, etc.
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. Meddevice Lee 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 dependence on third party suppliers
– Meddevice Lee high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Weighted SWOT Analysis of MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - General Information 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 Meddevice Lee needs to make to build a sustainable competitive advantage.
