Michel Nassif Et Fils: Succeeding Generations SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Michel Nassif Et Fils: Succeeding Generations
In September 2014, the chief executive officer of Michel Nassif et Fils, an importer and producer of food and printed goods headquartered in Beirut, Lebanon, is trying to figure out what decisions he needs to take to ensure the development of the company that had been founded by his grandfather a century ago. At the age of 48, right after the birth of his first son, he realizes that he needs a plan to ensure a viable future for this family-owned company. He knows that succession planning will involve the entire management team, none of whom currently has a leadership position. As had his father and grandfather before him, he alone makes all decisions for the company. He is considering whether to pick a potential successor internally to be trained and prepared for senior management or to remain at the head of the company until his son is old enough to take over. Randa Salamoun is affiliated with American University of Beirut. Lina Tannir is affiliated with American University of Beirut.
Swot Analysis of "Michel Nassif Et Fils: Succeeding Generations" written by Randa Salamoun, Lina Tannir includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Beirut Fils facing as an external strategic factors. Some of the topics covered in Michel Nassif Et Fils: Succeeding Generations case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Michel Nassif Et Fils: Succeeding Generations casestudy better are - – increasing household debt because of falling income levels, increasing energy prices, technology disruption, increasing commodity prices, wage bills are increasing, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings,
increasing transportation and logistics costs, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Michel Nassif Et Fils: Succeeding Generations
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Michel Nassif Et Fils: Succeeding Generations case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Beirut Fils, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Beirut Fils 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 Michel Nassif Et Fils: Succeeding Generations can be done for the following purposes –
1. Strategic planning using facts provided in Michel Nassif Et Fils: Succeeding Generations case study
2. Improving business portfolio management of Beirut Fils
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 Beirut Fils
Strengths Michel Nassif Et Fils: Succeeding Generations | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Beirut Fils in Michel Nassif Et Fils: Succeeding Generations Harvard Business Review case study are -
Highly skilled collaborators
– Beirut Fils 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 Michel Nassif Et Fils: Succeeding Generations HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Beirut Fils has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Beirut Fils 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 Beirut Fils digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Beirut Fils 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.
Diverse revenue streams
– Beirut Fils is present in almost all the verticals within the industry. This has provided firm in Michel Nassif Et Fils: Succeeding Generations 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.
Low bargaining power of suppliers
– Suppliers of Beirut Fils in the sector have low bargaining power. Michel Nassif Et Fils: Succeeding Generations has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Beirut Fils to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Beirut Fils
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Beirut Fils does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Beirut Fils has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Beirut Fils to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Beirut Fils 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 Beirut Fils is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Michel Nassif Et Fils: Succeeding Generations Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Beirut Fils 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 Michel Nassif Et Fils: Succeeding Generations - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– Michel Nassif Et Fils: Succeeding Generations firm has clearly differentiated products in the market place. This has enabled Beirut Fils to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Beirut Fils to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Michel Nassif Et Fils: Succeeding Generations 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.
Cross disciplinary teams
– Horizontal connected teams at the Beirut Fils 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 Michel Nassif Et Fils: Succeeding Generations | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Michel Nassif Et Fils: Succeeding Generations are -
Low market penetration in new markets
– Outside its home market of Beirut Fils, firm in the HBR case study Michel Nassif Et Fils: Succeeding Generations needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Beirut Fils 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.
Interest costs
– Compare to the competition, Beirut Fils 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 strategic competitive environment developments
– As Michel Nassif Et Fils: Succeeding Generations HBR case study mentions - Beirut Fils 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.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Beirut Fils supply chain. Even after few cautionary changes mentioned in the HBR case study - Michel Nassif Et Fils: Succeeding Generations, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Beirut Fils vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Michel Nassif Et Fils: Succeeding Generations 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 Michel Nassif Et Fils: Succeeding Generations can leverage the sales team experience to cultivate customer relationships as Beirut Fils is planning to shift buying processes online.
Need for greater diversity
– Beirut Fils 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Beirut Fils is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Michel Nassif Et Fils: Succeeding Generations can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Beirut Fils 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.
Products dominated business model
– Even though Beirut Fils 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 - Michel Nassif Et Fils: Succeeding Generations should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Beirut Fils 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.
Opportunities Michel Nassif Et Fils: Succeeding Generations | 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 Michel Nassif Et Fils: Succeeding Generations are -
Better consumer reach
– The expansion of the 5G network will help Beirut Fils to increase its market reach. Beirut Fils 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.
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. Beirut Fils can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Beirut Fils is facing challenges because of the dominance of functional experts in the organization. Michel Nassif Et Fils: Succeeding Generations 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
– Beirut Fils 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Beirut Fils can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Beirut Fils can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Michel Nassif Et Fils: Succeeding Generations 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.
Manufacturing automation
– Beirut Fils 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.
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 Beirut Fils 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.
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. Beirut Fils 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. Beirut Fils 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.
Creating value in data economy
– The success of analytics program of Beirut Fils has opened avenues for new revenue streams for the organization in the industry. This can help Beirut Fils to build a more holistic ecosystem as suggested in the Michel Nassif Et Fils: Succeeding Generations case study. Beirut Fils can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Beirut Fils 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, Beirut Fils 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, Michel Nassif Et Fils: Succeeding Generations, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Beirut Fils 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 Beirut Fils to hire the very best people irrespective of their geographical location.
Threats Michel Nassif Et Fils: Succeeding Generations External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Michel Nassif Et Fils: Succeeding Generations are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Beirut Fils with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Beirut Fils.
Consumer confidence and its impact on Beirut Fils 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.
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.
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.
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 Beirut Fils business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Beirut Fils is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Beirut Fils needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Beirut Fils 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.
Environmental challenges
– Beirut Fils 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. Beirut Fils can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Beirut Fils 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.
Regulatory challenges
– Beirut Fils 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.
Increasing wage structure of Beirut Fils
– 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 Beirut Fils.
Weighted SWOT Analysis of Michel Nassif Et Fils: Succeeding Generations 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 Michel Nassif Et Fils: Succeeding Generations 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 Michel Nassif Et Fils: Succeeding Generations 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 Michel Nassif Et Fils: Succeeding Generations 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 Michel Nassif Et Fils: Succeeding Generations 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 Beirut Fils needs to make to build a sustainable competitive advantage.