Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version
Since the 1960s, SMI has quietly executed a series of brilliantly negotiated takeovers throughout Europe, often acquiring companies much larger than itself. Despite formidable obstacles, SMI has managed to acquire state-owned competitors in Italy and France, as well as a tightly held semi-finished copper producer--one of Europe's largest--in "fortress" Germany, a country notoriously hostile to takeover bids from foreign firms. In an interview with the chairman of SMI's copper operations at the company's Florence headquarters, Prof. J.K. Sebenius of the Harvard Business School explores the negotiating strategies that have enabled what was once a little-known firm in Italy to consolidate a fragmented industry and become one of Europe's leading producers of semi-finished copper.
Swot Analysis of "Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version" written by James K. Sebenius includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Smi Copper facing as an external strategic factors. Some of the topics covered in Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version case study are - Strategic Management Strategies, Mergers & acquisitions, Negotiations, Reorganization and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version casestudy better are - – increasing transportation and logistics costs, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, wage bills are increasing, challanges to central banks by blockchain based private currencies, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google,
competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Smi Copper, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Smi Copper 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 Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version can be done for the following purposes –
1. Strategic planning using facts provided in Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version case study
2. Improving business portfolio management of Smi Copper
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 Smi Copper
Strengths Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Smi Copper in Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version Harvard Business Review case study are -
Training and development
– Smi Copper has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version 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 Strategy & Execution segment
- digital transformation varies from industry to industry. For Smi Copper digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Smi Copper 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.
Effective Research and Development (R&D)
– Smi Copper 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 Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version - 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 Smi Copper 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 Smi Copper
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Smi Copper does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Strategy & Execution industry
– Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version firm has clearly differentiated products in the market place. This has enabled Smi Copper to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Smi Copper to invest into research and development (R&D) and innovation.
Analytics focus
– Smi Copper 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 James K. Sebenius 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.
Operational resilience
– The operational resilience strategy in the Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version 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.
Diverse revenue streams
– Smi Copper is present in almost all the verticals within the industry. This has provided firm in Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version 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.
Ability to lead change in Strategy & Execution field
– Smi Copper 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 Smi Copper in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Smi Copper has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Smi Copper 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.
Low bargaining power of suppliers
– Suppliers of Smi Copper in the sector have low bargaining power. Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Smi Copper to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version are -
Lack of clear differentiation of Smi Copper products
– To increase the profitability and margins on the products, Smi Copper needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version, is just above the industry average. Smi Copper 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.
Aligning sales with marketing
– It come across in the case study Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version 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 Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version can leverage the sales team experience to cultivate customer relationships as Smi Copper is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Smi Copper is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Smi Copper needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Smi Copper to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Smi Copper 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 - Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Smi Copper is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Smi Copper 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 bargaining power of channel partners
– Because of the regulatory requirements, James K. Sebenius suggests that, Smi Copper 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version, it seems that the employees of Smi Copper 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.
Slow decision making process
– As mentioned earlier in the report, Smi Copper 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. Smi Copper 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.
Slow to strategic competitive environment developments
– As Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version HBR case study mentions - Smi Copper takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Opportunities Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version | 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 Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version are -
Creating value in data economy
– The success of analytics program of Smi Copper has opened avenues for new revenue streams for the organization in the industry. This can help Smi Copper to build a more holistic ecosystem as suggested in the Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version case study. Smi Copper can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Smi Copper 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 Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Smi Copper to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Smi Copper 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.
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 Smi Copper 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Smi Copper can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Smi Copper to increase its market reach. Smi Copper 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.
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. Smi Copper can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Smi Copper 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 Smi Copper to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Smi Copper 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.
Buying journey improvements
– Smi Copper can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Smi Copper 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, Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version, 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, Smi Copper is facing challenges because of the dominance of functional experts in the organization. Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version 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.
Learning at scale
– Online learning technologies has now opened space for Smi Copper 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.
Threats Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version are -
Stagnating economy with rate increase
– Smi Copper 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.
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 Smi Copper.
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. Smi Copper needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Smi Copper in the Strategy & Execution sector and impact the bottomline of the organization.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Smi Copper with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Smi Copper
– 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 Smi Copper.
Environmental challenges
– Smi Copper 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. Smi Copper can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Technology acceleration in Forth Industrial Revolution
– Smi Copper has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Smi Copper 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.
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 Smi Copper business can come under increasing regulations regarding data privacy, data security, etc.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version, Smi Copper 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Smi Copper 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 Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version .
Weighted SWOT Analysis of Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version 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 Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version 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 Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version 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 Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version 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 Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version 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 Smi Copper needs to make to build a sustainable competitive advantage.
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You can download Excel Template of Case Study Solution & Analysis of Dr. Sergio Ceccuzzi and SMI: Negotiating Cross-Border Acquisitions in Europe (B), Chinese Version