Managing Mergers: Why People First Can Improve Brand and IT Consolidations SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Managing Mergers: Why People First Can Improve Brand and IT Consolidations
The number and value of mergers and acquisitions (M&As) continue to grow, with record increases in the U.S. and Asia Pacific in 2015. Yet, despite calls from academic literature for more consideration of the human and behavioral factors in such massive change, there remains an inordinate focus on the financial or quantitative aspects. We connect the newer streams of research with efficiency and growth imperatives via an illustrative analysis of ANZ New Zealand's horizontal merger with The National Bank of New Zealand. ANZ successfully completed a brand and technology merger by prioritizing the customer, addressing employees' socioeconomic concerns, providing enough time and resources to ensure efficiencies, and rebranding enriched customer services and revenues. The results were overwhelmingly positive and provide a useful template for how M&As should be executed in the future using a people-first approach.
Swot Analysis of "Managing Mergers: Why People First Can Improve Brand and IT Consolidations" written by Sandy Jap, A. Noel Gould, Annie H. Liu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Anz Mergers facing as an external strategic factors. Some of the topics covered in Managing Mergers: Why People First Can Improve Brand and IT Consolidations case study are - Strategic Management Strategies, Mergers & acquisitions and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Managing Mergers: Why People First Can Improve Brand and IT Consolidations casestudy better are - – talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing commodity prices, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Managing Mergers: Why People First Can Improve Brand and IT Consolidations
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Managing Mergers: Why People First Can Improve Brand and IT Consolidations case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Anz Mergers, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Anz Mergers 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 Managing Mergers: Why People First Can Improve Brand and IT Consolidations can be done for the following purposes –
1. Strategic planning using facts provided in Managing Mergers: Why People First Can Improve Brand and IT Consolidations case study
2. Improving business portfolio management of Anz Mergers
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 Anz Mergers
Strengths Managing Mergers: Why People First Can Improve Brand and IT Consolidations | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Anz Mergers in Managing Mergers: Why People First Can Improve Brand and IT Consolidations Harvard Business Review case study are -
Strong track record of project management
– Anz Mergers is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Anz Mergers has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Anz Mergers 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.
Learning organization
- Anz Mergers 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 Anz Mergers is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Managing Mergers: Why People First Can Improve Brand and IT Consolidations Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Anz Mergers is one of the leading recruiters in the industry. Managers in the Managing Mergers: Why People First Can Improve Brand and IT Consolidations are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Anz Mergers 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.
Operational resilience
– The operational resilience strategy in the Managing Mergers: Why People First Can Improve Brand and IT Consolidations 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.
High brand equity
– Anz Mergers has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Anz Mergers to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Anz Mergers is present in almost all the verticals within the industry. This has provided firm in Managing Mergers: Why People First Can Improve Brand and IT Consolidations 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Anz Mergers digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Anz Mergers 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.
Highly skilled collaborators
– Anz Mergers 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 Managing Mergers: Why People First Can Improve Brand and IT Consolidations HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Anz Mergers 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 Sandy Jap, A. Noel Gould, Annie H. Liu 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.
Superior customer experience
– The customer experience strategy of Anz Mergers in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Managing Mergers: Why People First Can Improve Brand and IT Consolidations | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Managing Mergers: Why People First Can Improve Brand and IT Consolidations are -
Increasing silos among functional specialists
– The organizational structure of Anz Mergers is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Anz Mergers needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Anz Mergers to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Anz Mergers is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Managing Mergers: Why People First Can Improve Brand and IT Consolidations 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 Anz Mergers 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 - Managing Mergers: Why People First Can Improve Brand and IT Consolidations should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Anz Mergers 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.
Need for greater diversity
– Anz Mergers 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 cash cycle compare to competitors
Anz Mergers 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Anz Mergers 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.
Lack of clear differentiation of Anz Mergers products
– To increase the profitability and margins on the products, Anz Mergers needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Managing Mergers: Why People First Can Improve Brand and IT Consolidations 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 Anz Mergers has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Anz Mergers, firm in the HBR case study Managing Mergers: Why People First Can Improve Brand and IT Consolidations needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Anz Mergers 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 Managing Mergers: Why People First Can Improve Brand and IT Consolidations | 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 Managing Mergers: Why People First Can Improve Brand and IT Consolidations are -
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 Anz Mergers in the consumer business. Now Anz Mergers can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Anz Mergers to increase its market reach. Anz Mergers 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.
Buying journey improvements
– Anz Mergers can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Managing Mergers: Why People First Can Improve Brand and IT Consolidations 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Anz Mergers is facing challenges because of the dominance of functional experts in the organization. Managing Mergers: Why People First Can Improve Brand and IT Consolidations 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.
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. Anz Mergers can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Anz Mergers 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.
Using analytics as competitive advantage
– Anz Mergers 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 Managing Mergers: Why People First Can Improve Brand and IT Consolidations - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Anz Mergers to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Anz Mergers has opened avenues for new revenue streams for the organization in the industry. This can help Anz Mergers to build a more holistic ecosystem as suggested in the Managing Mergers: Why People First Can Improve Brand and IT Consolidations case study. Anz Mergers can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Anz Mergers 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Anz Mergers in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Anz Mergers can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Anz Mergers 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 Anz Mergers to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Anz Mergers can use these opportunities to build new business models that can help the communities that Anz Mergers operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats Managing Mergers: Why People First Can Improve Brand and IT Consolidations External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Managing Mergers: Why People First Can Improve Brand and IT Consolidations are -
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.
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 Anz Mergers in the Strategy & Execution sector and impact the bottomline of the organization.
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.
Regulatory challenges
– Anz Mergers 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.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Anz Mergers can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Anz Mergers 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. Anz Mergers can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Anz Mergers with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Anz Mergers 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.
Consumer confidence and its impact on Anz Mergers 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.
Stagnating economy with rate increase
– Anz Mergers 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.
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. Anz Mergers 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.
Shortening product life cycle
– it is one of the major threat that Anz Mergers is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Anz Mergers business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Managing Mergers: Why People First Can Improve Brand and IT Consolidations 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 Managing Mergers: Why People First Can Improve Brand and IT Consolidations 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 Managing Mergers: Why People First Can Improve Brand and IT Consolidations 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 Managing Mergers: Why People First Can Improve Brand and IT Consolidations 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 Managing Mergers: Why People First Can Improve Brand and IT Consolidations 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 Anz Mergers needs to make to build a sustainable competitive advantage.