MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply
Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply for product #PON323.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 - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply" written by Candace Lun, Jeswald Salacuse includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lee Meddevice facing as an external strategic factors. Some of the topics covered in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply 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 - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, increasing household debt because of falling income levels, there is backlash against globalization,
technology disruption, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply
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 - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lee Meddevice, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lee Meddevice 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 - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply can be done for the following purposes –
1. Strategic planning using facts provided in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply case study
2. Improving business portfolio management of Lee Meddevice
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 Lee Meddevice
Strengths MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lee Meddevice in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply Harvard Business Review case study are -
Successful track record of launching new products
– Lee Meddevice has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Lee Meddevice 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Lee Meddevice digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Lee Meddevice has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Ability to lead change in Strategy & Execution field
– Lee Meddevice 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 Lee Meddevice in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply 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.
Training and development
– Lee Meddevice 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 - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply 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.
Cross disciplinary teams
– Horizontal connected teams at the Lee Meddevice 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
– Lee Meddevice is present in almost all the verticals within the industry. This has provided firm in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply 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.
Innovation driven organization
– Lee Meddevice is one of the most innovative firm in sector. Manager in MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Lee Meddevice has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Lee Meddevice to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Lee Meddevice 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 - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Lee Meddevice 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.
Organizational Resilience of Lee Meddevice
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Lee Meddevice does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply | 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 - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply are -
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 Lee Meddevice supply chain. Even after few cautionary changes mentioned in the HBR case study - MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Lee Meddevice vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Lee Meddevice 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.
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 - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply 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 Lee Meddevice has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Lee Meddevice is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Lee Meddevice products
– To increase the profitability and margins on the products, Lee Meddevice needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Lee Meddevice is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Lee Meddevice needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Lee Meddevice to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Lee Meddevice 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Lee Meddevice 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply, in the dynamic environment Lee Meddevice has struggled to respond to the nimble upstart competition. Lee Meddevice has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply 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 MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply can leverage the sales team experience to cultivate customer relationships as Lee Meddevice is planning to shift buying processes online.
High cash cycle compare to competitors
Lee Meddevice 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.
Opportunities MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply | 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 - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply are -
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. Lee Meddevice 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. Lee Meddevice 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Lee Meddevice is facing challenges because of the dominance of functional experts in the organization. MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply 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.
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. Lee Meddevice can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Lee Meddevice 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.
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 Lee Meddevice 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.
Learning at scale
– Online learning technologies has now opened space for Lee Meddevice 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Lee Meddevice 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 Lee Meddevice to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Lee Meddevice 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.
Manufacturing automation
– Lee Meddevice 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.
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 Lee Meddevice in the consumer business. Now Lee Meddevice can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Lee Meddevice can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Lee Meddevice can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Lee Meddevice can use these opportunities to build new business models that can help the communities that Lee Meddevice operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply 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 - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply are -
Regulatory challenges
– Lee Meddevice 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Lee Meddevice 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 - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply .
Consumer confidence and its impact on Lee Meddevice 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.
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 Lee Meddevice in the Strategy & Execution sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Lee Meddevice 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.
Shortening product life cycle
– it is one of the major threat that Lee Meddevice is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Lee Meddevice needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Environmental challenges
– Lee Meddevice 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. Lee Meddevice can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Technology acceleration in Forth Industrial Revolution
– Lee Meddevice has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Lee Meddevice 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Lee Meddevice 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Lee Meddevice with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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. Lee Meddevice 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.
Weighted SWOT Analysis of MEDLEE: IN PURSUIT OF A HEALTHY JOINT VENTURE - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply 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 - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply 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 - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply 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 - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply 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 - Confidential Instructions for T.S. Lee, Vice President, Lee Medical Supply 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 Lee Meddevice needs to make to build a sustainable competitive advantage.
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