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 - – wage bills are increasing, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, increasing energy prices, central banks are concerned over increasing inflation, increasing household debt because of falling income levels, 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 -

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.

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.

Operational resilience

– The operational resilience strategy in the Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants 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.

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.

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.

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.

Superior customer experience

– The customer experience strategy of Telekom Anatolia in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

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.

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.

Training and development

– Telekom Anatolia has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants 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.

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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 -

Skills based hiring

– The stress on hiring functional specialists at Telekom Anatolia 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.

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.

Workers concerns about automation

– As automation is fast increasing in the segment, Telekom Anatolia 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.

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.

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.

Interest costs

– Compare to the competition, Telekom Anatolia 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, 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.

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.

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 bargaining power of channel partners

– Because of the regulatory requirements, Michael D. Watkins, Banu Ozcan, Burkhard Schrage, Paul Vaaler suggests that, Telekom Anatolia 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.

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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 -

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: General Instructions for All Simulation Participants 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.

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.

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.

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.

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.

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.

Building a culture of innovation

– managers at Telekom Anatolia 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.

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.

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.

Using analytics as competitive advantage

– Telekom Anatolia 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 Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Telekom Anatolia to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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.

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: General Instructions for All Simulation Participants, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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.

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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 -

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.

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 .

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 Telekom Anatolia business can come under increasing regulations regarding data privacy, data security, etc.

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.

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.

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.

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.

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.

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.

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.

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 .

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.

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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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