Andre Volkoff Malaysia SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Andre Volkoff Malaysia
Martin Doyle, manager of a Canadian-Malaysian joint venture set up for the manufacture of custom-made ornamental building products in Malaysia, must reconcile the seemingly irreconcilable positions of the two partners. The case illustrates how the business environment in emerging markets can be simultaneously attractive and challenging. Success in such ventures is contingent upon an accurate assessment of the relative positions of the partners as well as the ability to adopt creative solutions.
Authors :: Jaideep Anand, Prescott C. Ensign, Ken McReynolds
Swot Analysis of "Andre Volkoff Malaysia" written by Jaideep Anand, Prescott C. Ensign, Ken McReynolds includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Malaysia Ornamental facing as an external strategic factors. Some of the topics covered in Andre Volkoff Malaysia case study are - Strategic Management Strategies, Joint ventures and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Andre Volkoff Malaysia casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, increasing energy prices,
challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Andre Volkoff Malaysia
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Andre Volkoff Malaysia case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Malaysia Ornamental, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Malaysia Ornamental 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 Andre Volkoff Malaysia can be done for the following purposes –
1. Strategic planning using facts provided in Andre Volkoff Malaysia case study
2. Improving business portfolio management of Malaysia Ornamental
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 Malaysia Ornamental
Strengths Andre Volkoff Malaysia | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Malaysia Ornamental in Andre Volkoff Malaysia Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Malaysia Ornamental digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Malaysia Ornamental 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.
Innovation driven organization
– Malaysia Ornamental is one of the most innovative firm in sector. Manager in Andre Volkoff Malaysia Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Strategy & Execution industry
– Andre Volkoff Malaysia firm has clearly differentiated products in the market place. This has enabled Malaysia Ornamental to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Malaysia Ornamental to invest into research and development (R&D) and innovation.
Strong track record of project management
– Malaysia Ornamental 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)
– Malaysia Ornamental 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 Andre Volkoff Malaysia - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Malaysia Ornamental 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 Jaideep Anand, Prescott C. Ensign, Ken McReynolds can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Operational resilience
– The operational resilience strategy in the Andre Volkoff Malaysia 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.
High brand equity
– Malaysia Ornamental has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Malaysia Ornamental to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Malaysia Ornamental 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 Malaysia Ornamental is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Andre Volkoff Malaysia Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Malaysia Ornamental in the sector have low bargaining power. Andre Volkoff Malaysia has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Malaysia Ornamental to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Malaysia Ornamental has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Malaysia Ornamental 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 switching costs
– The high switching costs that Malaysia Ornamental 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.
Weaknesses Andre Volkoff Malaysia | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Andre Volkoff Malaysia are -
High bargaining power of channel partners
– Because of the regulatory requirements, Jaideep Anand, Prescott C. Ensign, Ken McReynolds suggests that, Malaysia Ornamental 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.
Products dominated business model
– Even though Malaysia Ornamental 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 - Andre Volkoff Malaysia should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Malaysia Ornamental is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Malaysia Ornamental needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Malaysia Ornamental to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Malaysia Ornamental 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.
Low market penetration in new markets
– Outside its home market of Malaysia Ornamental, firm in the HBR case study Andre Volkoff Malaysia needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Malaysia Ornamental 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Malaysia Ornamental is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Andre Volkoff Malaysia can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Andre Volkoff Malaysia 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 Malaysia Ornamental 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Andre Volkoff Malaysia, is just above the industry average. Malaysia Ornamental 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.
Lack of clear differentiation of Malaysia Ornamental products
– To increase the profitability and margins on the products, Malaysia Ornamental needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Malaysia Ornamental 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.
Opportunities Andre Volkoff Malaysia | 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 Andre Volkoff Malaysia are -
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 Malaysia Ornamental in the consumer business. Now Malaysia Ornamental can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Malaysia Ornamental can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Malaysia Ornamental 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.
Building a culture of innovation
– managers at Malaysia Ornamental 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Malaysia Ornamental 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Malaysia Ornamental 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 Malaysia Ornamental to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Malaysia Ornamental 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.
Buying journey improvements
– Malaysia Ornamental can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Andre Volkoff Malaysia 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.
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. Malaysia Ornamental can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Malaysia Ornamental 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Malaysia Ornamental in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Malaysia Ornamental has opened avenues for new revenue streams for the organization in the industry. This can help Malaysia Ornamental to build a more holistic ecosystem as suggested in the Andre Volkoff Malaysia case study. Malaysia Ornamental 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. Malaysia Ornamental can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Andre Volkoff Malaysia External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Andre Volkoff Malaysia are -
High dependence on third party suppliers
– Malaysia Ornamental 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Andre Volkoff Malaysia, Malaysia Ornamental 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 .
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 Malaysia Ornamental business can come under increasing regulations regarding data privacy, data security, etc.
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 Malaysia Ornamental.
Consumer confidence and its impact on Malaysia Ornamental 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.
Increasing wage structure of Malaysia Ornamental
– 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 Malaysia Ornamental.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Malaysia Ornamental in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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. Malaysia Ornamental can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Malaysia Ornamental is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Malaysia Ornamental with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Malaysia Ornamental has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Malaysia Ornamental 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.
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 Malaysia Ornamental in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Malaysia Ornamental 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 Andre Volkoff Malaysia .
Weighted SWOT Analysis of Andre Volkoff Malaysia 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 Andre Volkoff Malaysia 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 Andre Volkoff Malaysia 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 Andre Volkoff Malaysia 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 Andre Volkoff Malaysia 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 Malaysia Ornamental needs to make to build a sustainable competitive advantage.