Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal
Covers the history of portfolio planning at CIBA-GEIGY, a leading Swiss chemical and pharmaceutical company, beginning with the introduction of the process in the mid-1980s. The discussion extends to the application of portfolio planning techniques to a specific investment proposal: the comprehensive modernization of a plant dedicated to the production of high-quality specialty pigments.
Swot Analysis of "Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal" written by David J. Collis, Elizabeth Johnson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Geigy Ciba facing as an external strategic factors. Some of the topics covered in Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal case study are - Strategic Management Strategies, Financial management, Operations management, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal casestudy better are - – supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing transportation and logistics costs,
technology disruption, geopolitical disruptions, etc
Introduction to SWOT Analysis of Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Geigy Ciba, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Geigy Ciba 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 Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal can be done for the following purposes –
1. Strategic planning using facts provided in Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal case study
2. Improving business portfolio management of Geigy Ciba
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 Geigy Ciba
Strengths Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Geigy Ciba in Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal Harvard Business Review case study are -
High switching costs
– The high switching costs that Geigy Ciba 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.
Strong track record of project management
– Geigy Ciba is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Geigy Ciba 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 Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Geigy Ciba
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Geigy Ciba does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Geigy Ciba has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal 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.
Successful track record of launching new products
– Geigy Ciba has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Geigy Ciba 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.
Learning organization
- Geigy Ciba is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Geigy Ciba is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Strategy & Execution field
– Geigy Ciba 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 Geigy Ciba in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Geigy Ciba is one of the leading recruiters in the industry. Managers in the Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Geigy Ciba in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Geigy Ciba 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.
High brand equity
– Geigy Ciba has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Geigy Ciba to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal are -
High operating costs
– Compare to the competitors, firm in the HBR case study Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Geigy Ciba 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Geigy Ciba 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.
Low market penetration in new markets
– Outside its home market of Geigy Ciba, firm in the HBR case study Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Geigy Ciba 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.
Lack of clear differentiation of Geigy Ciba products
– To increase the profitability and margins on the products, Geigy Ciba needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal 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 Geigy Ciba has relatively successful track record of launching new products.
Need for greater diversity
– Geigy Ciba 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal, in the dynamic environment Geigy Ciba has struggled to respond to the nimble upstart competition. Geigy Ciba has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal, it seems that the employees of Geigy Ciba 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal, is just above the industry average. Geigy Ciba 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Geigy Ciba is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal | 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 Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal are -
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. Geigy Ciba can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Geigy Ciba 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.
Buying journey improvements
– Geigy Ciba can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Geigy Ciba can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Geigy Ciba 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 Geigy Ciba 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.
Using analytics as competitive advantage
– Geigy Ciba 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 Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Geigy Ciba 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, Geigy Ciba is facing challenges because of the dominance of functional experts in the organization. Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Geigy Ciba can use these opportunities to build new business models that can help the communities that Geigy Ciba operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Geigy Ciba 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 Geigy Ciba to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Geigy Ciba 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, Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Geigy Ciba can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Geigy Ciba 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. Geigy Ciba 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.
Threats Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal are -
Regulatory challenges
– Geigy Ciba needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Environmental challenges
– Geigy Ciba 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. Geigy Ciba can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Geigy Ciba.
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 Geigy Ciba in the Strategy & Execution sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Geigy Ciba 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.
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 Geigy Ciba business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal, Geigy Ciba 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 .
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. Geigy Ciba needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Consumer confidence and its impact on Geigy Ciba 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.
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.
Technology acceleration in Forth Industrial Revolution
– Geigy Ciba has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Geigy Ciba needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing wage structure of Geigy Ciba
– 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 Geigy Ciba.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Geigy Ciba with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal 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 Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal 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 Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal 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 Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal 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 Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal 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 Geigy Ciba needs to make to build a sustainable competitive advantage.