Ezra Holdings: Entrepreneurship and Capability Building SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Ezra Holdings: Entrepreneurship and Capability Building
The case discusses the entrepreneurial paths taken by two men, a father and son team, who created a highly successful business venture in regional marine offshore industry in the first decade of the 21st century. The factors that contributed to venture's rapid growth are examined as well as the challenges they faced in taking their company, Ezra Holdings, to the next level of fast growth. Started in 1992, the entrepreneurs leveraged on their knowledge of the regional oil and gas (O&G) and marine engineering businesses to grow the firm into a global offshore support services company with market capitalisation of US$1.2 billion by the end of January 2010. The firm began as a small company managing and operating supply vessels supporting offshore O&G activities in the region. From managing small vessels, they moved on to build the essential capabilities needed to operate efficient offshore support services for O&G exploration and production projects of major global firms. To drive growth, they embarked on a series of asset acquisitions and joint ventures with other players. In a highly capital-intensive business, they were successful in prospecting for funds needed to secure the operating assets of their business. As they moved up the value chain in their segment of the industry, they also kept a lookout for industry veterans or specialists and technical staff from acquired companies to build their human resource pool. Ezra's decade of rapid growth is examined from several perspectives: a?? Entrepreneurship as the dynamic process of structure and action. a?? Capability building as an essential condition for new venture success as reflected in Ezra's resource acquisition strategies for funds, human capital and technical knowhow.
Swot Analysis of "Ezra Holdings: Entrepreneurship and Capability Building" written by Beng Geok Wee, Yvonne Chong includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Offshore Ezra facing as an external strategic factors. Some of the topics covered in Ezra Holdings: Entrepreneurship and Capability Building case study are - Strategic Management Strategies, Financial analysis, International business, Manufacturing, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Ezra Holdings: Entrepreneurship and Capability Building casestudy better are - – there is increasing trade war between United States & China, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings,
increasing commodity prices, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Ezra Holdings: Entrepreneurship and Capability Building
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ezra Holdings: Entrepreneurship and Capability Building case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Offshore Ezra, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Offshore Ezra 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 Ezra Holdings: Entrepreneurship and Capability Building can be done for the following purposes –
1. Strategic planning using facts provided in Ezra Holdings: Entrepreneurship and Capability Building case study
2. Improving business portfolio management of Offshore Ezra
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 Offshore Ezra
Strengths Ezra Holdings: Entrepreneurship and Capability Building | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Offshore Ezra in Ezra Holdings: Entrepreneurship and Capability Building Harvard Business Review case study are -
Diverse revenue streams
– Offshore Ezra is present in almost all the verticals within the industry. This has provided firm in Ezra Holdings: Entrepreneurship and Capability Building case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Organizational Resilience of Offshore Ezra
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Offshore Ezra does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Offshore Ezra 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 Beng Geok Wee, Yvonne Chong 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 Ezra Holdings: Entrepreneurship and Capability Building 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.
Innovation driven organization
– Offshore Ezra is one of the most innovative firm in sector. Manager in Ezra Holdings: Entrepreneurship and Capability Building Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Offshore Ezra has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ezra Holdings: Entrepreneurship and Capability Building 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.
Ability to lead change in Strategy & Execution field
– Offshore Ezra 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 Offshore Ezra in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Offshore Ezra 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.
Low bargaining power of suppliers
– Suppliers of Offshore Ezra in the sector have low bargaining power. Ezra Holdings: Entrepreneurship and Capability Building has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Offshore Ezra to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Offshore Ezra 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 Ezra Holdings: Entrepreneurship and Capability Building HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Offshore Ezra is one of the leading recruiters in the industry. Managers in the Ezra Holdings: Entrepreneurship and Capability Building are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Offshore Ezra is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Ezra Holdings: Entrepreneurship and Capability Building | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ezra Holdings: Entrepreneurship and Capability Building are -
Interest costs
– Compare to the competition, Offshore Ezra 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.
Increasing silos among functional specialists
– The organizational structure of Offshore Ezra is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Offshore Ezra needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Offshore Ezra to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Offshore Ezra 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.
Capital Spending Reduction
– Even during the low interest decade, Offshore Ezra 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.
Products dominated business model
– Even though Offshore Ezra 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 - Ezra Holdings: Entrepreneurship and Capability Building should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Ezra Holdings: Entrepreneurship and Capability Building HBR case study mentions - Offshore Ezra 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.
Need for greater diversity
– Offshore Ezra 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.
Lack of clear differentiation of Offshore Ezra products
– To increase the profitability and margins on the products, Offshore Ezra needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Offshore Ezra 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Ezra Holdings: Entrepreneurship and Capability Building 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 Offshore Ezra has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Ezra Holdings: Entrepreneurship and Capability Building, is just above the industry average. Offshore Ezra 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.
Opportunities Ezra Holdings: Entrepreneurship and Capability Building | 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 Ezra Holdings: Entrepreneurship and Capability Building are -
Leveraging digital technologies
– Offshore Ezra 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Offshore Ezra 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, Ezra Holdings: Entrepreneurship and Capability Building, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Offshore Ezra can use these opportunities to build new business models that can help the communities that Offshore Ezra operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Developing new processes and practices
– Offshore Ezra 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.
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. Offshore Ezra can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Offshore Ezra can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Offshore Ezra 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.
Buying journey improvements
– Offshore Ezra can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ezra Holdings: Entrepreneurship and Capability Building 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.
Building a culture of innovation
– managers at Offshore Ezra 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.
Learning at scale
– Online learning technologies has now opened space for Offshore Ezra 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Offshore Ezra 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Offshore Ezra is facing challenges because of the dominance of functional experts in the organization. Ezra Holdings: Entrepreneurship and Capability Building 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.
Creating value in data economy
– The success of analytics program of Offshore Ezra has opened avenues for new revenue streams for the organization in the industry. This can help Offshore Ezra to build a more holistic ecosystem as suggested in the Ezra Holdings: Entrepreneurship and Capability Building case study. Offshore Ezra can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Ezra Holdings: Entrepreneurship and Capability Building External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ezra Holdings: Entrepreneurship and Capability Building are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Offshore Ezra 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.
Environmental challenges
– Offshore Ezra 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. Offshore Ezra 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. Offshore Ezra needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Offshore Ezra 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 Ezra Holdings: Entrepreneurship and Capability Building .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Offshore Ezra 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
– Offshore Ezra has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Offshore Ezra 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Ezra Holdings: Entrepreneurship and Capability Building, Offshore Ezra 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 .
Consumer confidence and its impact on Offshore Ezra 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 Offshore Ezra
– 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 Offshore Ezra.
Regulatory challenges
– Offshore Ezra 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.
Stagnating economy with rate increase
– Offshore Ezra 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 Offshore Ezra.
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. Offshore Ezra 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.
Weighted SWOT Analysis of Ezra Holdings: Entrepreneurship and Capability Building 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 Ezra Holdings: Entrepreneurship and Capability Building 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 Ezra Holdings: Entrepreneurship and Capability Building 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 Ezra Holdings: Entrepreneurship and Capability Building 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 Ezra Holdings: Entrepreneurship and Capability Building 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 Offshore Ezra needs to make to build a sustainable competitive advantage.
