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 - – geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, increasing commodity prices, there is backlash against globalization,
supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, 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 -
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.
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.
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.
Innovation driven organization
– Geigy Ciba is one of the most innovative firm in sector. Manager in Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
Diverse revenue streams
– Geigy Ciba is present in almost all the verticals within the industry. This has provided firm in Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal 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.
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.
Analytics focus
– Geigy Ciba 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 David J. Collis, Elizabeth Johnson 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.
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.
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.
Sustainable margins compare to other players in Strategy & Execution industry
– Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal firm has clearly differentiated products in the market place. This has enabled Geigy Ciba to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Geigy Ciba to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Geigy Ciba has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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 -
Capital Spending Reduction
– Even during the low interest decade, Geigy Ciba 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.
High bargaining power of channel partners
– Because of the regulatory requirements, David J. Collis, Elizabeth Johnson suggests that, Geigy Ciba 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.
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.
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.
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.
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.
Interest costs
– Compare to the competition, Geigy Ciba has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Increasing silos among functional specialists
– The organizational structure of Geigy Ciba is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Geigy Ciba needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Geigy Ciba to focus more on services rather than just following the product oriented approach.
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 Geigy Ciba supply chain. Even after few cautionary changes mentioned in the HBR case study - Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Geigy Ciba vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
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.
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 -
Better consumer reach
– The expansion of the 5G network will help Geigy Ciba to increase its market reach. Geigy Ciba 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.
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 Geigy Ciba in the consumer business. Now Geigy Ciba can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Geigy Ciba 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.
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.
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.
Leveraging digital technologies
– Geigy Ciba 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.
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.
Manufacturing automation
– Geigy Ciba 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.
Building a culture of innovation
– managers at Geigy Ciba 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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Geigy Ciba 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.
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 -
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.
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.
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.
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.
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.
Shortening product life cycle
– it is one of the major threat that Geigy Ciba is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Geigy Ciba 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 Portfolio Planning at CIBA-GEIGY and the Newport Investment Proposal .
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.
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 .
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.
Stagnating economy with rate increase
– Geigy Ciba 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.
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 Geigy Ciba business can come under increasing regulations regarding data privacy, data security, etc.
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.