Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants

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

Topics :: Strategy & Execution

Tags :: Economy, Emerging markets, Financial analysis, Government, Negotiations, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants" 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: General Instructions for All Simulation Participants 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: General Instructions for All Simulation Participants casestudy better are - – there is backlash against globalization, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, geopolitical disruptions, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, etc

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Introduction to SWOT Analysis of Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants

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: General Instructions for All Simulation Participants 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants can be done for the following purposes –
1. Strategic planning using facts provided in Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants 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

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Strengths Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants | 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: General Instructions for All Simulation Participants Harvard Business Review case study are -

Low bargaining power of suppliers

– Suppliers of Telekom Anatolia in the sector have low bargaining power. Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants 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.

Effective Research and Development (R&D)

– Telekom Anatolia 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 Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Innovation driven organization

– Telekom Anatolia is one of the most innovative firm in sector. Manager in Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Highly skilled collaborators

– Telekom Anatolia 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 Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

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.

Sustainable margins compare to other players in Strategy & Execution industry

– Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants 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: General Instructions for All Simulation Participants Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Successful track record of launching new products

– Telekom Anatolia has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Telekom Anatolia 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.

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.

Ability to recruit top talent

– Telekom Anatolia is one of the leading recruiters in the industry. Managers in the Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

High switching costs

– The high switching costs that Telekom Anatolia 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.

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.

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Weaknesses Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants are -

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants, is just above the industry average. Telekom Anatolia needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Telekom Anatolia is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants, 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.

High operating costs

– Compare to the competitors, firm in the HBR case study Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants 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.

Aligning sales with marketing

– It come across in the case study Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants can leverage the sales team experience to cultivate customer relationships as Telekom Anatolia is planning to shift buying processes online.

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: General Instructions for All Simulation Participants should strive to include more intangible value offerings along with its core products and services.

Lack of clear differentiation of Telekom Anatolia products

– To increase the profitability and margins on the products, Telekom Anatolia needs to provide more differentiated products than what it is currently offering in the marketplace.

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.

Need for greater diversity

– Telekom Anatolia has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants 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.

Slow to strategic competitive environment developments

– As Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants 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.

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Opportunities Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants | 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: General Instructions for All Simulation Participants are -

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.

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.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Telekom Anatolia to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

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.

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: General Instructions for All Simulation Participants 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.

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.

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.

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. Telekom Anatolia can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Telekom Anatolia can use these opportunities to build new business models that can help the communities that Telekom Anatolia operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.

Low interest rates

– Even though inflation is raising its head in most developed economies, Telekom Anatolia 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.

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. Telekom Anatolia 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. Telekom Anatolia 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.

Better consumer reach

– The expansion of the 5G network will help Telekom Anatolia to increase its market reach. Telekom Anatolia 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.

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.

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Threats Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants 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: General Instructions for All Simulation Participants are -

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.

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.

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.

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.

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.

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: General Instructions for All Simulation Participants .

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Telekom Anatolia with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

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.

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.

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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants, Telekom Anatolia 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 .

Environmental challenges

– Telekom Anatolia 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. Telekom Anatolia can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.

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Weighted SWOT Analysis of Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants 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: General Instructions for All Simulation Participants 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: General Instructions for All Simulation Participants 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: General Instructions for All Simulation Participants 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: General Instructions for All Simulation Participants 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.

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