Case Study Description of Baxter's Asia Pacific "Talent Edge" Initiative
To maximize their effectiveness, color cases should be printed in color.Can multinationals wield competitive advantage by aggressively hiring talented members of the excluded social group in each market? This is the subject of Siegel's global strategy research as well as the focus of this case study.
Authors :: Jordan Siegel, Mimi Xi, Christopher Poliquin
Topics :: Strategy & Execution
Tags :: Corporate governance, Diversity, Hiring, Human resource management, International business, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Baxter's Asia Pacific "Talent Edge" Initiative" written by Jordan Siegel, Mimi Xi, Christopher Poliquin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Baxter's Color.can facing as an external strategic factors. Some of the topics covered in Baxter's Asia Pacific "Talent Edge" Initiative case study are - Strategic Management Strategies, Corporate governance, Diversity, Hiring, Human resource management, International business and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Baxter's Asia Pacific "Talent Edge" Initiative casestudy better are - – wage bills are increasing, geopolitical disruptions, technology disruption, there is backlash against globalization, increasing commodity prices, increasing transportation and logistics costs, supply chains are disrupted by pandemic ,
central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Baxter's Asia Pacific "Talent Edge" Initiative
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Baxter's Asia Pacific "Talent Edge" Initiative case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Baxter's Color.can, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Baxter's Color.can 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 Baxter's Asia Pacific "Talent Edge" Initiative can be done for the following purposes –
1. Strategic planning using facts provided in Baxter's Asia Pacific "Talent Edge" Initiative case study
2. Improving business portfolio management of Baxter's Color.can
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 Baxter's Color.can
Strengths Baxter's Asia Pacific "Talent Edge" Initiative | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Baxter's Color.can in Baxter's Asia Pacific "Talent Edge" Initiative Harvard Business Review case study are -
Highly skilled collaborators
– Baxter's Color.can 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 Baxter's Asia Pacific "Talent Edge" Initiative HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– Baxter's Asia Pacific "Talent Edge" Initiative firm has clearly differentiated products in the market place. This has enabled Baxter's Color.can to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Baxter's Color.can to invest into research and development (R&D) and innovation.
Innovation driven organization
– Baxter's Color.can is one of the most innovative firm in sector. Manager in Baxter's Asia Pacific "Talent Edge" Initiative Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Baxter's Color.can is present in almost all the verticals within the industry. This has provided firm in Baxter's Asia Pacific "Talent Edge" Initiative 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.
Ability to lead change in Strategy & Execution field
– Baxter's Color.can 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 Baxter's Color.can in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Baxter's Color.can is one of the leading recruiters in the industry. Managers in the Baxter's Asia Pacific "Talent Edge" Initiative are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Baxter's Color.can in the sector have low bargaining power. Baxter's Asia Pacific "Talent Edge" Initiative has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Baxter's Color.can to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Baxter's Color.can has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Successful track record of launching new products
– Baxter's Color.can has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Baxter's Color.can 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.
High brand equity
– Baxter's Color.can has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Baxter's Color.can to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Baxter's Color.can 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.
Training and development
– Baxter's Color.can has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Baxter's Asia Pacific "Talent Edge" Initiative 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.
Weaknesses Baxter's Asia Pacific "Talent Edge" Initiative | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Baxter's Asia Pacific "Talent Edge" Initiative are -
Capital Spending Reduction
– Even during the low interest decade, Baxter's Color.can 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Baxter's Asia Pacific "Talent Edge" Initiative has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Baxter's Color.can 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Baxter's Asia Pacific "Talent Edge" Initiative, in the dynamic environment Baxter's Color.can has struggled to respond to the nimble upstart competition. Baxter's Color.can has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Baxter's Color.can 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.
Lack of clear differentiation of Baxter's Color.can products
– To increase the profitability and margins on the products, Baxter's Color.can needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Baxter's Color.can 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.
Interest costs
– Compare to the competition, Baxter's Color.can 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.
Low market penetration in new markets
– Outside its home market of Baxter's Color.can, firm in the HBR case study Baxter's Asia Pacific "Talent Edge" Initiative needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Baxter's Asia Pacific "Talent Edge" Initiative HBR case study mentions - Baxter's Color.can 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Baxter's Asia Pacific "Talent Edge" Initiative, is just above the industry average. Baxter's Color.can 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 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 Baxter's Color.can supply chain. Even after few cautionary changes mentioned in the HBR case study - Baxter's Asia Pacific "Talent Edge" Initiative, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Baxter's Color.can vulnerable to further global disruptions in South East Asia.
Opportunities Baxter's Asia Pacific "Talent Edge" Initiative | 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 Baxter's Asia Pacific "Talent Edge" Initiative are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Baxter's Color.can can use these opportunities to build new business models that can help the communities that Baxter's Color.can operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Baxter's Color.can 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. Baxter's Color.can 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Baxter's Color.can 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, Baxter's Asia Pacific "Talent Edge" Initiative, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Baxter's Color.can 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Baxter's Color.can can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Baxter's Color.can 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.
Leveraging digital technologies
– Baxter's Color.can 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.
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 Baxter's Color.can 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Baxter's Color.can 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 Baxter's Color.can to hire the very best people irrespective of their geographical location.
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 Baxter's Color.can in the consumer business. Now Baxter's Color.can can target international markets with far fewer capital restrictions requirements than the existing system.
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. Baxter's Color.can can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Baxter's Color.can 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.
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. Baxter's Color.can can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Baxter's Asia Pacific "Talent Edge" Initiative External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Baxter's Asia Pacific "Talent Edge" Initiative are -
Shortening product life cycle
– it is one of the major threat that Baxter's Color.can is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Baxter's Color.can 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Baxter's Asia Pacific "Talent Edge" Initiative, Baxter's Color.can 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 .
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. Baxter's Color.can needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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. Baxter's Color.can can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Baxter's Color.can.
Increasing wage structure of Baxter's Color.can
– 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 Baxter's Color.can.
Consumer confidence and its impact on Baxter's Color.can 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.
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 Baxter's Color.can in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Baxter's Color.can 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 Baxter's Asia Pacific "Talent Edge" Initiative .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Baxter's Color.can 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
– Baxter's Color.can has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Baxter's Color.can 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.
Weighted SWOT Analysis of Baxter's Asia Pacific "Talent Edge" Initiative 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 Baxter's Asia Pacific "Talent Edge" Initiative 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 Baxter's Asia Pacific "Talent Edge" Initiative 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 Baxter's Asia Pacific "Talent Edge" Initiative 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 Baxter's Asia Pacific "Talent Edge" Initiative 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 Baxter's Color.can needs to make to build a sustainable competitive advantage.
