Privatization of Anatolia National Telekom: TAD Confidential Instructions SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Privatization of Anatolia National Telekom: TAD Confidential Instructions
Anatolia National Telekom is a multiparty negotiation simulation patterned after the Turkish government's aborted attempt to privatize its state-owned telecommunications monopoly, Turk Telekom, in late 1997. Provides participants with an opportunity to identify and negotiate complex issues related to the valuation and sale of a state-owned enterprise in an emerging market. Members of each negotiating team are valuing a 20% equity stake being offered by three "selling" teams to three prospective "buying" teams representing different types of foreign investors.
Authors :: Michael D. Watkins, Banu Ozcan, Burkhard Schrage, Paul Vaaler
Swot Analysis of "Privatization of Anatolia National Telekom: TAD Confidential Instructions" written by Michael D. Watkins, Banu Ozcan, Burkhard Schrage, Paul Vaaler includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Telekom Anatolia facing as an external strategic factors. Some of the topics covered in Privatization of Anatolia National Telekom: TAD Confidential Instructions case study are - Strategic Management Strategies, Economy, Emerging markets, Financial analysis, Government, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Privatization of Anatolia National Telekom: TAD Confidential Instructions casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, geopolitical disruptions, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies,
supply chains are disrupted by pandemic , increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Privatization of Anatolia National Telekom: TAD Confidential Instructions
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Privatization of Anatolia National Telekom: TAD Confidential Instructions case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Telekom Anatolia, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Telekom Anatolia 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 Privatization of Anatolia National Telekom: TAD Confidential Instructions can be done for the following purposes –
1. Strategic planning using facts provided in Privatization of Anatolia National Telekom: TAD Confidential Instructions case study
2. Improving business portfolio management of Telekom Anatolia
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 Telekom Anatolia
Strengths Privatization of Anatolia National Telekom: TAD Confidential Instructions | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Telekom Anatolia in Privatization of Anatolia National Telekom: TAD Confidential Instructions Harvard Business Review case study are -
Strong track record of project management
– Telekom Anatolia is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Telekom Anatolia has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Telekom Anatolia to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Telekom Anatolia in the sector have low bargaining power. Privatization of Anatolia National Telekom: TAD Confidential Instructions has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Telekom Anatolia to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Strategy & Execution industry
– Privatization of Anatolia National Telekom: TAD Confidential Instructions firm has clearly differentiated products in the market place. This has enabled Telekom Anatolia to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Telekom Anatolia to invest into research and development (R&D) and innovation.
Learning organization
- Telekom Anatolia 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 Telekom Anatolia is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Privatization of Anatolia National Telekom: TAD Confidential Instructions Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Strategy & Execution field
– Telekom Anatolia 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 Telekom Anatolia in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Telekom Anatolia digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Telekom Anatolia 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.
Organizational Resilience of Telekom Anatolia
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Telekom Anatolia does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Telekom Anatolia is one of the leading recruiters in the industry. Managers in the Privatization of Anatolia National Telekom: TAD Confidential Instructions are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Telekom Anatolia is one of the most innovative firm in sector. Manager in Privatization of Anatolia National Telekom: TAD Confidential Instructions Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Telekom Anatolia 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 Michael D. Watkins, Banu Ozcan, Burkhard Schrage, Paul Vaaler 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.
Cross disciplinary teams
– Horizontal connected teams at the Telekom Anatolia 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.
Weaknesses Privatization of Anatolia National Telekom: TAD Confidential Instructions | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Privatization of Anatolia National Telekom: TAD Confidential Instructions are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Privatization of Anatolia National Telekom: TAD Confidential Instructions, it seems that the employees of Telekom Anatolia 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Privatization of Anatolia National Telekom: TAD Confidential Instructions, in the dynamic environment Telekom Anatolia has struggled to respond to the nimble upstart competition. Telekom Anatolia has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Privatization of Anatolia National Telekom: TAD Confidential Instructions, 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.
Low market penetration in new markets
– Outside its home market of Telekom Anatolia, firm in the HBR case study Privatization of Anatolia National Telekom: TAD Confidential Instructions needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Telekom Anatolia 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. Telekom Anatolia 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.
Products dominated business model
– Even though Telekom Anatolia 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 - Privatization of Anatolia National Telekom: TAD Confidential Instructions should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Privatization of Anatolia National Telekom: TAD Confidential Instructions HBR case study mentions - Telekom Anatolia 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.
Capital Spending Reduction
– Even during the low interest decade, Telekom Anatolia 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 operating costs
– Compare to the competitors, firm in the HBR case study Privatization of Anatolia National Telekom: TAD Confidential Instructions 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 Telekom Anatolia 's lucrative customers.
High cash cycle compare to competitors
Telekom Anatolia 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Privatization of Anatolia National Telekom: TAD Confidential Instructions 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 Telekom Anatolia has relatively successful track record of launching new products.
Opportunities Privatization of Anatolia National Telekom: TAD Confidential Instructions | 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 Privatization of Anatolia National Telekom: TAD Confidential Instructions are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Telekom Anatolia is facing challenges because of the dominance of functional experts in the organization. Privatization of Anatolia National Telekom: TAD Confidential Instructions 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.
Manufacturing automation
– Telekom Anatolia 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.
Leveraging digital technologies
– Telekom Anatolia 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.
Loyalty marketing
– Telekom Anatolia 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.
Developing new processes and practices
– Telekom Anatolia 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.
Creating value in data economy
– The success of analytics program of Telekom Anatolia has opened avenues for new revenue streams for the organization in the industry. This can help Telekom Anatolia to build a more holistic ecosystem as suggested in the Privatization of Anatolia National Telekom: TAD Confidential Instructions case study. Telekom Anatolia can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Telekom Anatolia in the consumer business. Now Telekom Anatolia can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Telekom Anatolia 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, Privatization of Anatolia National Telekom: TAD Confidential Instructions, 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 Telekom Anatolia can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Telekom Anatolia 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 Telekom Anatolia 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 Telekom Anatolia to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Telekom Anatolia can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Privatization of Anatolia National Telekom: TAD Confidential Instructions 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.
Learning at scale
– Online learning technologies has now opened space for Telekom Anatolia 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.
Threats Privatization of Anatolia National Telekom: TAD Confidential Instructions External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Privatization of Anatolia National Telekom: TAD Confidential Instructions 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. Telekom Anatolia needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Telekom Anatolia in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing wage structure of Telekom Anatolia
– 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 Telekom Anatolia.
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. Telekom Anatolia can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Telekom Anatolia 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.
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. Telekom Anatolia 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.
High dependence on third party suppliers
– Telekom Anatolia 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Telekom Anatolia 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.
Shortening product life cycle
– it is one of the major threat that Telekom Anatolia is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Telekom Anatolia 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.
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 Telekom Anatolia.
Consumer confidence and its impact on Telekom Anatolia 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Telekom Anatolia 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 Privatization of Anatolia National Telekom: TAD Confidential Instructions .
Weighted SWOT Analysis of Privatization of Anatolia National Telekom: TAD Confidential Instructions 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 Privatization of Anatolia National Telekom: TAD Confidential Instructions 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 Privatization of Anatolia National Telekom: TAD Confidential Instructions 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 Privatization of Anatolia National Telekom: TAD Confidential Instructions 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 Privatization of Anatolia National Telekom: TAD Confidential Instructions 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 Telekom Anatolia needs to make to build a sustainable competitive advantage.
