StreamLine - The ABC of a Merger (A): Story of the Merger SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of StreamLine - The ABC of a Merger (A): Story of the Merger
In January 2000, two British middle-tier high technology companies, Stream and Line, announce their merger agreement. On 6 May 2000, in a record period of four months one of the biggest high technology companies with a capitalized market value of more than US$84 billion is formally launched on the world stock markets. On August 1st, the company celebrates its launch with world-wide satellite links in the presence of the newly designated CEO, Roger Farrell. This series of three sequential cases recounts the story of the merger from the perspective of one of the business unit, the Sales Organization, in the UK. The first case, "The Story of a Merger" covers the period between January 2000 and August 2000. It introduces the key character of the three cases, Anne Wright, the newly appointed Sales Organization President. After describing the business and cultures of the two merging companies, it proceeds by giving an account of the two most emotionally engaging events faced by the protagonist early in her position: her introduction to the acquired company, Stream, and the process of site selection and announcement. The second case, "Building the New Organization" covers the second half of 2000. It describes the painful experience of those remaining with the unsuccessful and closing site and the journey of those moving, temporary, to the winning location. After reviewing the appointment process, it gives an account of how the company brings to life the new values of the merged company. The third case, "Bumpy Road of Transformation" gives an account of the major activities during 2001 and 2002. It opens up by going over the residual frustrations as experienced by middle managers. It then proceeds by giving an overview of the systems and initiatives launched by the global and the UK company to equip the organization to meet the challenges of the future.
Swot Analysis of "StreamLine - The ABC of a Merger (A): Story of the Merger" written by Quy Huy, Ramina Samii includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Merger 2000 facing as an external strategic factors. Some of the topics covered in StreamLine - The ABC of a Merger (A): Story of the Merger case study are - Strategic Management Strategies, Mergers & acquisitions, Psychology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the StreamLine - The ABC of a Merger (A): Story of the Merger casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing transportation and logistics costs, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of StreamLine - The ABC of a Merger (A): Story of the Merger
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in StreamLine - The ABC of a Merger (A): Story of the Merger case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Merger 2000, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Merger 2000 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 StreamLine - The ABC of a Merger (A): Story of the Merger can be done for the following purposes –
1. Strategic planning using facts provided in StreamLine - The ABC of a Merger (A): Story of the Merger case study
2. Improving business portfolio management of Merger 2000
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 Merger 2000
Strengths StreamLine - The ABC of a Merger (A): Story of the Merger | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Merger 2000 in StreamLine - The ABC of a Merger (A): Story of the Merger Harvard Business Review case study are -
High switching costs
– The high switching costs that Merger 2000 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.
Ability to lead change in Strategy & Execution field
– Merger 2000 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 Merger 2000 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 Merger 2000 in the sector have low bargaining power. StreamLine - The ABC of a Merger (A): Story of the Merger has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Merger 2000 to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Merger 2000 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.
Sustainable margins compare to other players in Strategy & Execution industry
– StreamLine - The ABC of a Merger (A): Story of the Merger firm has clearly differentiated products in the market place. This has enabled Merger 2000 to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Merger 2000 to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Merger 2000 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Merger 2000 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.
Strong track record of project management
– Merger 2000 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Merger 2000 is present in almost all the verticals within the industry. This has provided firm in StreamLine - The ABC of a Merger (A): Story of the Merger 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 Merger 2000 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Merger 2000 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.
Analytics focus
– Merger 2000 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 Quy Huy, Ramina Samii 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.
Learning organization
- Merger 2000 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 Merger 2000 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in StreamLine - The ABC of a Merger (A): Story of the Merger Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Merger 2000 is one of the most innovative firm in sector. Manager in StreamLine - The ABC of a Merger (A): Story of the Merger Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses StreamLine - The ABC of a Merger (A): Story of the Merger | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of StreamLine - The ABC of a Merger (A): Story of the Merger are -
Interest costs
– Compare to the competition, Merger 2000 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.
Skills based hiring
– The stress on hiring functional specialists at Merger 2000 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.
Slow to strategic competitive environment developments
– As StreamLine - The ABC of a Merger (A): Story of the Merger HBR case study mentions - Merger 2000 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.
Low market penetration in new markets
– Outside its home market of Merger 2000, firm in the HBR case study StreamLine - The ABC of a Merger (A): Story of the Merger needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study StreamLine - The ABC of a Merger (A): Story of the Merger, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Increasing silos among functional specialists
– The organizational structure of Merger 2000 is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Merger 2000 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Merger 2000 to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Merger 2000 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Merger 2000 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study StreamLine - The ABC of a Merger (A): Story of the Merger 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 Merger 2000 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 - StreamLine - The ABC of a Merger (A): Story of the Merger should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the StreamLine - The ABC of a Merger (A): Story of the Merger 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 Merger 2000 has relatively successful track record of launching new products.
Need for greater diversity
– Merger 2000 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.
Opportunities StreamLine - The ABC of a Merger (A): Story of the Merger | 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 StreamLine - The ABC of a Merger (A): Story of the Merger 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, Merger 2000 can use these opportunities to build new business models that can help the communities that Merger 2000 operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Manufacturing automation
– Merger 2000 can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Merger 2000 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.
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 Merger 2000 in the consumer business. Now Merger 2000 can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Merger 2000 has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Merger 2000 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Merger 2000 to increase its market reach. Merger 2000 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.
Leveraging digital technologies
– Merger 2000 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Merger 2000 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 Merger 2000 to hire the very best people irrespective of their geographical location.
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. Merger 2000 can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Merger 2000 is facing challenges because of the dominance of functional experts in the organization. StreamLine - The ABC of a Merger (A): Story of the Merger 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.
Building a culture of innovation
– managers at Merger 2000 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Merger 2000 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.
Threats StreamLine - The ABC of a Merger (A): Story of the Merger External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study StreamLine - The ABC of a Merger (A): Story of the Merger are -
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 Merger 2000 business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Merger 2000 with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Merger 2000.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Merger 2000 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.
Regulatory challenges
– Merger 2000 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.
Technology acceleration in Forth Industrial Revolution
– Merger 2000 has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Merger 2000 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.
Shortening product life cycle
– it is one of the major threat that Merger 2000 is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Merger 2000 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.
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 Merger 2000 in the Strategy & Execution sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Merger 2000 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.
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.
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. Merger 2000 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Merger 2000 needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of StreamLine - The ABC of a Merger (A): Story of the Merger 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 StreamLine - The ABC of a Merger (A): Story of the Merger 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 StreamLine - The ABC of a Merger (A): Story of the Merger 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 StreamLine - The ABC of a Merger (A): Story of the Merger 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 StreamLine - The ABC of a Merger (A): Story of the Merger 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 Merger 2000 needs to make to build a sustainable competitive advantage.
