Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1)
This case follows UV4253, which is designed to allow two integration teams, each representing one of two very different companies, to construct a joint post-acquisition-integration plan. Some of the issues addressed by UV4253 included (1) organization of Schuler, (2) staffing of management positions, (3) joint-distribution channels, (4) resolution of culture conflicts, (5) focus of strategic and operational decisions, and (6) performance metrics for assessing the success of the acquisition. The confidential background about one of the companies is provided in this case for one of the teams.
Swot Analysis of "Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1)" written by Dan Watson, William G. Bowen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Uv4253 Schuler facing as an external strategic factors. Some of the topics covered in Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) case study are - Strategic Management Strategies, Cross-cultural management, Mergers & acquisitions, Organizational structure and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) casestudy better are - – technology disruption, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, geopolitical disruptions, cloud computing is disrupting traditional business models,
customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Uv4253 Schuler, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Uv4253 Schuler 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) can be done for the following purposes –
1. Strategic planning using facts provided in Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) case study
2. Improving business portfolio management of Uv4253 Schuler
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 Uv4253 Schuler
Strengths Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Uv4253 Schuler in Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) Harvard Business Review case study are -
Organizational Resilience of Uv4253 Schuler
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Uv4253 Schuler does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Uv4253 Schuler 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 Dan Watson, William G. Bowen 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) firm has clearly differentiated products in the market place. This has enabled Uv4253 Schuler to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Uv4253 Schuler to invest into research and development (R&D) and innovation.
Innovation driven organization
– Uv4253 Schuler is one of the most innovative firm in sector. Manager in Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Uv4253 Schuler has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Uv4253 Schuler to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Uv4253 Schuler digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Uv4253 Schuler 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.
Learning organization
- Uv4253 Schuler 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 Uv4253 Schuler is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Uv4253 Schuler 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Uv4253 Schuler 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Uv4253 Schuler 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.
Training and development
– Uv4253 Schuler has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) 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.
Cross disciplinary teams
– Horizontal connected teams at the Uv4253 Schuler 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) are -
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 Uv4253 Schuler supply chain. Even after few cautionary changes mentioned in the HBR case study - Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Uv4253 Schuler vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Dan Watson, William G. Bowen suggests that, Uv4253 Schuler 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, Uv4253 Schuler 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Uv4253 Schuler is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Uv4253 Schuler 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1), in the dynamic environment Uv4253 Schuler has struggled to respond to the nimble upstart competition. Uv4253 Schuler has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) 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 Uv4253 Schuler has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1), is just above the industry average. Uv4253 Schuler 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.
Slow to strategic competitive environment developments
– As Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) HBR case study mentions - Uv4253 Schuler 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.
Increasing silos among functional specialists
– The organizational structure of Uv4253 Schuler is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Uv4253 Schuler needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Uv4253 Schuler to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1), it seems that the employees of Uv4253 Schuler don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Opportunities Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) | 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) are -
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. Uv4253 Schuler can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Uv4253 Schuler 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Uv4253 Schuler 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.
Loyalty marketing
– Uv4253 Schuler 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.
Developing new processes and practices
– Uv4253 Schuler 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Uv4253 Schuler can use these opportunities to build new business models that can help the communities that Uv4253 Schuler operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Uv4253 Schuler can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Uv4253 Schuler 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. Uv4253 Schuler 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.
Learning at scale
– Online learning technologies has now opened space for Uv4253 Schuler 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.
Leveraging digital technologies
– Uv4253 Schuler 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Uv4253 Schuler 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.
Better consumer reach
– The expansion of the 5G network will help Uv4253 Schuler to increase its market reach. Uv4253 Schuler 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Uv4253 Schuler is facing challenges because of the dominance of functional experts in the organization. Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) 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.
Threats Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Uv4253 Schuler 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) .
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 Uv4253 Schuler business can come under increasing regulations regarding data privacy, data security, etc.
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. Uv4253 Schuler 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.
High dependence on third party suppliers
– Uv4253 Schuler high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Environmental challenges
– Uv4253 Schuler 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. Uv4253 Schuler 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 Uv4253 Schuler 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1), Uv4253 Schuler 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 .
Technology acceleration in Forth Industrial Revolution
– Uv4253 Schuler has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Uv4253 Schuler 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.
Increasing wage structure of Uv4253 Schuler
– 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 Uv4253 Schuler.
Consumer confidence and its impact on Uv4253 Schuler 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.
Regulatory challenges
– Uv4253 Schuler 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. Uv4253 Schuler can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) 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 Titan Products, Inc.: Acquisition of Franz Schuler GMBH (B-1) 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 Uv4253 Schuler needs to make to build a sustainable competitive advantage.