Case Study Description of Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A)
University of California, Berkeley-Haas collectionThis case study provides the story of Jennifer Cook, Senior Vice President of the Immunology and Ophthalmology (GIO) business unit at Genentech who had worked hard with her team from 2010-2012 to develop a cohesive culture to tie together GIO's four brands, as she believed that culture fundamentally would drive the performance of her group and it was too important to leave to chance. In the process, she had faced a series of pressing questions such as how to bring her team together; what might affect the group's performance; what features of culture were at play; and what stood in the way of positive change? This case study provides students an opportunity to see first-hand what Cook and her team came up with and how they implemented a very successful culture change process. The (B) case allows students to discuss performance measurement and what the team should do next. Please note: this case also has a supplementary case available. The (B) supplement can be found using product number B5777.
Swot Analysis of "Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A)" written by Jennifer A. Chatman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gio Immunology facing as an external strategic factors. Some of the topics covered in Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) case study are - Strategic Management Strategies, Organizational culture and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) casestudy better are - – geopolitical disruptions, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, increasing energy prices,
central banks are concerned over increasing inflation, increasing commodity prices, etc
Introduction to SWOT Analysis of Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gio Immunology, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gio Immunology 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 Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) can be done for the following purposes –
1. Strategic planning using facts provided in Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) case study
2. Improving business portfolio management of Gio Immunology
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 Gio Immunology
Strengths Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gio Immunology in Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) firm has clearly differentiated products in the market place. This has enabled Gio Immunology to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Gio Immunology to invest into research and development (R&D) and innovation.
Strong track record of project management
– Gio Immunology is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Gio Immunology in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Gio Immunology has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) 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.
Operational resilience
– The operational resilience strategy in the Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) 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.
Ability to recruit top talent
– Gio Immunology is one of the leading recruiters in the industry. Managers in the Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Gio Immunology in the sector have low bargaining power. Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Gio Immunology to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Gio Immunology has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gio Immunology to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Strategy & Execution field
– Gio Immunology 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 Gio Immunology in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Gio Immunology has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Analytics focus
– Gio Immunology 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 Jennifer A. Chatman 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.
Effective Research and Development (R&D)
– Gio Immunology 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 Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A), is just above the industry average. Gio Immunology 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 Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) 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 Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) can leverage the sales team experience to cultivate customer relationships as Gio Immunology is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) HBR case study mentions - Gio Immunology 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.
Skills based hiring
– The stress on hiring functional specialists at Gio Immunology has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Products dominated business model
– Even though Gio Immunology 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 - Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Gio Immunology 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.
Need for greater diversity
– Gio Immunology has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A), it seems that the employees of Gio Immunology 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, Gio Immunology 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. Gio Immunology 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) 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 Gio Immunology has relatively successful track record of launching new products.
High cash cycle compare to competitors
Gio Immunology 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 Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) | 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 Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) are -
Leveraging digital technologies
– Gio Immunology 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.
Using analytics as competitive advantage
– Gio Immunology 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 Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Gio Immunology to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Gio Immunology is facing challenges because of the dominance of functional experts in the organization. Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Gio Immunology 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, Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Gio Immunology 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 Gio Immunology to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Gio Immunology 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gio Immunology 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.
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 Gio Immunology 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.
Creating value in data economy
– The success of analytics program of Gio Immunology has opened avenues for new revenue streams for the organization in the industry. This can help Gio Immunology to build a more holistic ecosystem as suggested in the Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) case study. Gio Immunology can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Gio Immunology can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Gio Immunology in the consumer business. Now Gio Immunology can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Gio Immunology 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.
Better consumer reach
– The expansion of the 5G network will help Gio Immunology to increase its market reach. Gio Immunology 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.
Threats Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gio Immunology 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.
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 Gio Immunology business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Gio Immunology 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.
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. Gio Immunology 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.
Stagnating economy with rate increase
– Gio Immunology 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.
High dependence on third party suppliers
– Gio Immunology 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.
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 Gio Immunology in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Gio Immunology is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gio Immunology 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 Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) .
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. Gio Immunology needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Increasing wage structure of Gio Immunology
– 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 Gio Immunology.
Weighted SWOT Analysis of Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) 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 Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) 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 Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) 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 Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) 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 Genentech Immunology & Ophthalmology (GIO): Culture Change to Drive Business Results (A) 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 Gio Immunology needs to make to build a sustainable competitive advantage.
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