StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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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 - – digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, challanges to central banks by blockchain based private currencies, geopolitical disruptions,
increasing household debt because of falling income levels, 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 -
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.
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.
Successful track record of launching new products
– 2000 Merger has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. 2000 Merger 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.
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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For 2000 Merger digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. 2000 Merger 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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the 2000 Merger 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
– 2000 Merger has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Sustainable margins compare to other players in Strategy & Execution industry
– 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.
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.
Strong track record of project management
– 2000 Merger is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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 -
Skills based hiring
– The stress on hiring functional specialists at 2000 Merger 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.
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.
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.
Lack of clear differentiation of 2000 Merger products
– To increase the profitability and margins on the products, 2000 Merger needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation HBR case study mentions - 2000 Merger 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.
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.
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.
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.
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.
Slow decision making process
– As mentioned earlier in the report, 2000 Merger has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. 2000 Merger even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation, is just above the industry average. 2000 Merger 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.
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 -
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.
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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, 2000 Merger 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, StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. 2000 Merger 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. 2000 Merger 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.
Creating value in data economy
– The success of analytics program of 2000 Merger has opened avenues for new revenue streams for the organization in the industry. This can help 2000 Merger to build a more holistic ecosystem as suggested in the StreamLine - The ABC of a Merger (C): The Bumpy Road of Transformation case study. 2000 Merger can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help 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.
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 2000 Merger in the consumer business. Now 2000 Merger 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. 2000 Merger can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
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.
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 -
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 2000 Merger in the Strategy & Execution sector and impact the bottomline of the organization.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for 2000 Merger 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.
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.
Increasing wage structure of 2000 Merger
– 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 2000 Merger.
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.
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 .
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.
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.
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.
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.