Alex de Werra at TCFG--The Kermel Mandate SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Alex de Werra at TCFG--The Kermel Mandate
In April 2002, Alex de Werra, director at TCFG, was contacted by a fellow alumnus of IMD for advice on a possible management buyout of Kermel, a French textile company. Although de Werra handled this kind of transaction routinely, this mandate was very challenging. The vendor was in a rush to sell, and de Werra had less than two weeks to convince a private equity investor to submit a competitive bid. Illustrates the key role that M&A advisory firms play in engineering private equity transactions. Also addresses the major dilemma they face in purchase mandates, wherein they have to protect the interests of the management team but are often compensated by the private equity firm.
Swot Analysis of "Alex de Werra at TCFG--The Kermel Mandate" written by Benoit Leleux, Henri Bourgeois includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Werra Tcfg facing as an external strategic factors. Some of the topics covered in Alex de Werra at TCFG--The Kermel Mandate case study are - Strategic Management Strategies, Financial analysis, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Alex de Werra at TCFG--The Kermel Mandate casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies,
cloud computing is disrupting traditional business models, wage bills are increasing, etc
Introduction to SWOT Analysis of Alex de Werra at TCFG--The Kermel Mandate
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Alex de Werra at TCFG--The Kermel Mandate case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Werra Tcfg, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Werra Tcfg 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 Alex de Werra at TCFG--The Kermel Mandate can be done for the following purposes –
1. Strategic planning using facts provided in Alex de Werra at TCFG--The Kermel Mandate case study
2. Improving business portfolio management of Werra Tcfg
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 Werra Tcfg
Strengths Alex de Werra at TCFG--The Kermel Mandate | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Werra Tcfg in Alex de Werra at TCFG--The Kermel Mandate Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Werra Tcfg 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 Werra Tcfg in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Strategy & Execution industry
– Alex de Werra at TCFG--The Kermel Mandate firm has clearly differentiated products in the market place. This has enabled Werra Tcfg to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Werra Tcfg to invest into research and development (R&D) and innovation.
Strong track record of project management
– Werra Tcfg 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
– Werra Tcfg is present in almost all the verticals within the industry. This has provided firm in Alex de Werra at TCFG--The Kermel Mandate 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.
Low bargaining power of suppliers
– Suppliers of Werra Tcfg in the sector have low bargaining power. Alex de Werra at TCFG--The Kermel Mandate has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Werra Tcfg to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Werra Tcfg digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Werra Tcfg has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Ability to recruit top talent
– Werra Tcfg is one of the leading recruiters in the industry. Managers in the Alex de Werra at TCFG--The Kermel Mandate are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Werra Tcfg has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Werra Tcfg 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.
High brand equity
– Werra Tcfg has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Werra Tcfg to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Werra Tcfg 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.
Effective Research and Development (R&D)
– Werra Tcfg 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 Alex de Werra at TCFG--The Kermel Mandate - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Werra Tcfg has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Alex de Werra at TCFG--The Kermel Mandate 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.
Weaknesses Alex de Werra at TCFG--The Kermel Mandate | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Alex de Werra at TCFG--The Kermel Mandate are -
Products dominated business model
– Even though Werra Tcfg 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 - Alex de Werra at TCFG--The Kermel Mandate should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study Alex de Werra at TCFG--The Kermel Mandate, 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.
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 Werra Tcfg supply chain. Even after few cautionary changes mentioned in the HBR case study - Alex de Werra at TCFG--The Kermel Mandate, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Werra Tcfg vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Alex de Werra at TCFG--The Kermel Mandate HBR case study mentions - Werra Tcfg 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.
Increasing silos among functional specialists
– The organizational structure of Werra Tcfg is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Werra Tcfg needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Werra Tcfg to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Werra Tcfg, firm in the HBR case study Alex de Werra at TCFG--The Kermel Mandate needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Werra Tcfg 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. Werra Tcfg 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Alex de Werra at TCFG--The Kermel Mandate, in the dynamic environment Werra Tcfg has struggled to respond to the nimble upstart competition. Werra Tcfg has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Werra Tcfg 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.
Capital Spending Reduction
– Even during the low interest decade, Werra Tcfg has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Workers concerns about automation
– As automation is fast increasing in the segment, Werra Tcfg 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 Alex de Werra at TCFG--The Kermel Mandate | 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 Alex de Werra at TCFG--The Kermel Mandate are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Werra Tcfg can use these opportunities to build new business models that can help the communities that Werra Tcfg operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Manufacturing automation
– Werra Tcfg 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.
Loyalty marketing
– Werra Tcfg 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.
Creating value in data economy
– The success of analytics program of Werra Tcfg has opened avenues for new revenue streams for the organization in the industry. This can help Werra Tcfg to build a more holistic ecosystem as suggested in the Alex de Werra at TCFG--The Kermel Mandate case study. Werra Tcfg can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Werra Tcfg 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.
Learning at scale
– Online learning technologies has now opened space for Werra Tcfg 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Werra Tcfg 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, Werra Tcfg 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.
Leveraging digital technologies
– Werra Tcfg 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.
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. Werra Tcfg 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 Werra Tcfg 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 Werra Tcfg to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Werra Tcfg 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 Alex de Werra at TCFG--The Kermel Mandate - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Werra Tcfg to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Werra Tcfg to increase its market reach. Werra Tcfg 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 Alex de Werra at TCFG--The Kermel Mandate External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Alex de Werra at TCFG--The Kermel Mandate 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. Werra Tcfg needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
Regulatory challenges
– Werra Tcfg 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.
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 Werra Tcfg in the Strategy & Execution sector and impact the bottomline of the organization.
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.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Werra Tcfg can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Werra Tcfg 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.
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 Werra Tcfg business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Werra Tcfg 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. Werra Tcfg can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Werra Tcfg with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Werra Tcfg.
Increasing wage structure of Werra Tcfg
– 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 Werra Tcfg.
Consumer confidence and its impact on Werra Tcfg 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.
Weighted SWOT Analysis of Alex de Werra at TCFG--The Kermel Mandate 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 Alex de Werra at TCFG--The Kermel Mandate 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 Alex de Werra at TCFG--The Kermel Mandate 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 Alex de Werra at TCFG--The Kermel Mandate 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 Alex de Werra at TCFG--The Kermel Mandate 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 Werra Tcfg needs to make to build a sustainable competitive advantage.