StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation 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 (C): The Bumpy Road of Transformation
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 (C): The Bumpy Road of Transformation" written by Quy Huy, Ramina Samii includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that 2000 Merger facing as an external strategic factors. Some of the topics covered in StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation 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 (C): The Bumpy Road of Transformation casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, talent flight as more people leaving formal jobs, wage bills are increasing, supply chains are disrupted by pandemic , increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies,
increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation
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 (C): The Bumpy Road of Transformation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the 2000 Merger, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which 2000 Merger 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 (C): The Bumpy Road of Transformation can be done for the following purposes –
1. Strategic planning using facts provided in StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation case study
2. Improving business portfolio management of 2000 Merger
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 2000 Merger
Strengths StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 2000 Merger in StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation Harvard Business Review case study are -
High switching costs
– The high switching costs that 2000 Merger 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.
Highly skilled collaborators
– 2000 Merger 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 StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of 2000 Merger
– The covid-19 pandemic has put organizational resilience at the centre of everthing that 2000 Merger does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- 2000 Merger 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 2000 Merger is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– 2000 Merger is one of the leading recruiters in the industry. Managers in the StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Strategy & Execution industry
– StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation firm has clearly differentiated products in the market place. This has enabled 2000 Merger to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped 2000 Merger to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Low bargaining power of suppliers
– Suppliers of 2000 Merger in the sector have low bargaining power. StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps 2000 Merger to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of 2000 Merger in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– 2000 Merger has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled 2000 Merger to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– 2000 Merger 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 StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– 2000 Merger is one of the most innovative firm in sector. Manager in StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation 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 (C): The Bumpy Road of Transformation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation are -
Aligning sales with marketing
– It come across in the case study StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation 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 StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation can leverage the sales team experience to cultivate customer relationships as 2000 Merger is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Quy Huy, Ramina Samii suggests that, 2000 Merger 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.
Low market penetration in new markets
– Outside its home market of 2000 Merger, firm in the HBR case study StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though 2000 Merger 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 (C): The Bumpy Road of Transformation should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, 2000 Merger 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.
Need for greater diversity
– 2000 Merger 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 to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, 2000 Merger 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 (C): The Bumpy Road of Transformation can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation, it seems that the employees of 2000 Merger 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.
High cash cycle compare to competitors
2000 Merger 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.
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 2000 Merger supply chain. Even after few cautionary changes mentioned in the HBR case study - StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left 2000 Merger vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of 2000 Merger is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. 2000 Merger needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help 2000 Merger to focus more on services rather than just following the product oriented approach.
Opportunities StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation | 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 (C): The Bumpy Road of Transformation are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, 2000 Merger is facing challenges because of the dominance of functional experts in the organization. StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation 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.
Manufacturing automation
– 2000 Merger 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, 2000 Merger 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, 2000 Merger can use these opportunities to build new business models that can help the communities that 2000 Merger operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Learning at scale
– Online learning technologies has now opened space for 2000 Merger 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.
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. 2000 Merger can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– 2000 Merger 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.
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 2000 Merger 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.
Using analytics as competitive advantage
– 2000 Merger 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 StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation - to build a competitive advantage using analytics. The analytics driven competitive advantage can help 2000 Merger to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. 2000 Merger can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at 2000 Merger 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.
Better consumer reach
– The expansion of the 5G network will help 2000 Merger to increase its market reach. 2000 Merger 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects 2000 Merger can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation 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 (C): The Bumpy Road of Transformation are -
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation, 2000 Merger 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 .
Shortening product life cycle
– it is one of the major threat that 2000 Merger is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– 2000 Merger 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.
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 2000 Merger business can come under increasing regulations regarding data privacy, data security, etc.
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. 2000 Merger needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 2000 Merger.
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. 2000 Merger 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.
Stagnating economy with rate increase
– 2000 Merger 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.
High dependence on third party suppliers
– 2000 Merger 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.
Consumer confidence and its impact on 2000 Merger 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.
Technology acceleration in Forth Industrial Revolution
– 2000 Merger has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, 2000 Merger 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents 2000 Merger with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation 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 (C): The Bumpy Road of Transformation 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 (C): The Bumpy Road of Transformation 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 (C): The Bumpy Road of Transformation 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 (C): The Bumpy Road of Transformation 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 2000 Merger needs to make to build a sustainable competitive advantage.
