The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND)
In a six-party negotiation exercise, the TNDA Corp. plans to sell the Elcer Products Division to one of four potential buyers (industrial, financial, U.S., German). This case contains confidential information for the US Industrial ElectroCeramics (US-IND) management role. Challenges include how to set up and implement the most promising sale process, come up with the right deal, and choose the best tactical approach given each party's role and objectives. This negotiation exercise draws on and illustrates the "3-D Negotiation" logic of Lax and Sebenius.
Swot Analysis of "The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND)" written by James K. Sebenius includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Elcer Electroceramics facing as an external strategic factors. Some of the topics covered in The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) case study are - Strategic Management Strategies, Negotiations, Performance measurement and Strategy & Execution.
Some of the macro environment factors that can be used to understand the The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) casestudy better are - – talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, central banks are concerned over increasing inflation, geopolitical disruptions,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Elcer Electroceramics, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Elcer Electroceramics 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 The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) can be done for the following purposes –
1. Strategic planning using facts provided in The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) case study
2. Improving business portfolio management of Elcer Electroceramics
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 Elcer Electroceramics
Strengths The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Elcer Electroceramics in The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Elcer Electroceramics in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Elcer Electroceramics is present in almost all the verticals within the industry. This has provided firm in The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) 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.
Strong track record of project management
– Elcer Electroceramics is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Elcer Electroceramics digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Elcer Electroceramics 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.
Effective Research and Development (R&D)
– Elcer Electroceramics 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 The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) 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.
Training and development
– Elcer Electroceramics has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) 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.
High brand equity
– Elcer Electroceramics has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Elcer Electroceramics to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Elcer Electroceramics 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 Elcer Electroceramics is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Strategy & Execution field
– Elcer Electroceramics 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 Elcer Electroceramics in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Strategy & Execution industry
– The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) firm has clearly differentiated products in the market place. This has enabled Elcer Electroceramics to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Elcer Electroceramics to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Elcer Electroceramics 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 The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) 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 Elcer Electroceramics has relatively successful track record of launching new products.
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 Elcer Electroceramics supply chain. Even after few cautionary changes mentioned in the HBR case study - The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Elcer Electroceramics vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Elcer Electroceramics 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND), in the dynamic environment Elcer Electroceramics has struggled to respond to the nimble upstart competition. Elcer Electroceramics has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Elcer Electroceramics is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) 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 The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND), it seems that the employees of Elcer Electroceramics 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.
Low market penetration in new markets
– Outside its home market of Elcer Electroceramics, firm in the HBR case study The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Elcer Electroceramics 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.
Increasing silos among functional specialists
– The organizational structure of Elcer Electroceramics is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Elcer Electroceramics needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Elcer Electroceramics to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Elcer Electroceramics 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. Elcer Electroceramics 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Elcer Electroceramics needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Opportunities The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) | 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 The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) are -
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 Elcer Electroceramics 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.
Leveraging digital technologies
– Elcer Electroceramics 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Elcer Electroceramics 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.
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 Elcer Electroceramics in the consumer business. Now Elcer Electroceramics can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Elcer Electroceramics is facing challenges because of the dominance of functional experts in the organization. The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Elcer Electroceramics can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Elcer Electroceramics 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Elcer Electroceramics 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 Elcer Electroceramics to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Elcer Electroceramics 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.
Developing new processes and practices
– Elcer Electroceramics 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.
Buying journey improvements
– Elcer Electroceramics can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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. Elcer Electroceramics can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Elcer Electroceramics 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.
Threats The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Elcer Electroceramics with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Elcer Electroceramics 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.
Environmental challenges
– Elcer Electroceramics 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. Elcer Electroceramics can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND), Elcer Electroceramics may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
High dependence on third party suppliers
– Elcer Electroceramics 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.
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. Elcer Electroceramics can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Shortening product life cycle
– it is one of the major threat that Elcer Electroceramics is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Elcer Electroceramics has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Elcer Electroceramics 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Elcer Electroceramics 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 The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) .
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. Elcer Electroceramics 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 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. Elcer Electroceramics needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) 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 The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) 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 The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) 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 The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) 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 The Elcer Products Transaction: Confidential Information for US Industrial ElectroCeramics (US-IND) 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 Elcer Electroceramics needs to make to build a sustainable competitive advantage.
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