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 - – increasing energy prices, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%,
geopolitical disruptions, wage bills are increasing, 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 -
Innovation driven organization
– Anz Mergers is one of the most innovative firm in sector. Manager in Managing Mergers: Why People First Can Improve Brand and IT Consolidations Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Strategy & Execution field
– Anz Mergers 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 Anz Mergers in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Anz Mergers in the sector have low bargaining power. Managing Mergers: Why People First Can Improve Brand and IT Consolidations has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Anz Mergers to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Anz Mergers
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Anz Mergers does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Anz Mergers has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Managing Mergers: Why People First Can Improve Brand and IT Consolidations 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Managing Mergers: Why People First Can Improve Brand and IT Consolidations firm has clearly differentiated products in the market place. This has enabled Anz Mergers to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Anz Mergers to invest into research and development (R&D) and innovation.
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.
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.
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.
Effective Research and Development (R&D)
– Anz Mergers 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 Managing Mergers: Why People First Can Improve Brand and IT Consolidations - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
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 -
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.
Slow decision making process
– As mentioned earlier in the report, Anz Mergers 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. Anz Mergers 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.
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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Managing Mergers: Why People First Can Improve Brand and IT Consolidations, in the dynamic environment Anz Mergers has struggled to respond to the nimble upstart competition. Anz Mergers has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Managing Mergers: Why People First Can Improve Brand and IT Consolidations, is just above the industry average. Anz Mergers 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Sandy Jap, A. Noel Gould, Annie H. Liu suggests that, Anz Mergers 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.
Interest costs
– Compare to the competition, Anz Mergers 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.
Aligning sales with marketing
– It come across in the case study Managing Mergers: Why People First Can Improve Brand and IT Consolidations 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 Managing Mergers: Why People First Can Improve Brand and IT Consolidations can leverage the sales team experience to cultivate customer relationships as Anz Mergers is planning to shift buying processes online.
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 -
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.
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 Anz Mergers 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Anz Mergers 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, Managing Mergers: Why People First Can Improve Brand and IT Consolidations, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
Developing new processes and practices
– Anz Mergers 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. 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.
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.
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.
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.
Loyalty marketing
– Anz Mergers 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.
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. Anz Mergers 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. Anz Mergers 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.
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.
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 -
Technology acceleration in Forth Industrial Revolution
– Anz Mergers has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Anz Mergers 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.
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. Anz Mergers 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, Anz Mergers 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 Managing Mergers: Why People First Can Improve Brand and IT Consolidations .
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Managing Mergers: Why People First Can Improve Brand and IT Consolidations, Anz Mergers 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 .
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.
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.
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.
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.
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.
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.
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 Anz Mergers.
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.