UCB (A): Managing Information for Globalization and Innovation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of UCB (A): Managing Information for Globalization and Innovation
This case presents a complex total MIS strategy case for a $3 billion European pharmaceutical/chemicals company based in Brussels. It covers corporate strategy alignment of IT portfolio, IT operations issues, and global coordination of IT.
Swot Analysis of "UCB (A): Managing Information for Globalization and Innovation" written by F. Warren McFarlan, Brian J. Delacey includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ucb Brussels facing as an external strategic factors. Some of the topics covered in UCB (A): Managing Information for Globalization and Innovation case study are - Strategic Management Strategies, IT, Operations management and Technology & Operations.
Some of the macro environment factors that can be used to understand the UCB (A): Managing Information for Globalization and Innovation casestudy better are - – central banks are concerned over increasing inflation, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, geopolitical disruptions, technology disruption, there is increasing trade war between United States & China,
competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, etc
Introduction to SWOT Analysis of UCB (A): Managing Information for Globalization and Innovation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in UCB (A): Managing Information for Globalization and Innovation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ucb Brussels, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ucb Brussels 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 UCB (A): Managing Information for Globalization and Innovation can be done for the following purposes –
1. Strategic planning using facts provided in UCB (A): Managing Information for Globalization and Innovation case study
2. Improving business portfolio management of Ucb Brussels
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Ucb Brussels
Strengths UCB (A): Managing Information for Globalization and Innovation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ucb Brussels in UCB (A): Managing Information for Globalization and Innovation Harvard Business Review case study are -
Strong track record of project management
– Ucb Brussels 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 Technology & Operations segment
- digital transformation varies from industry to industry. For Ucb Brussels digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ucb Brussels 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.
Ability to lead change in Technology & Operations field
– Ucb Brussels 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 Ucb Brussels in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Ucb Brussels in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Ucb Brussels 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.
Low bargaining power of suppliers
– Suppliers of Ucb Brussels in the sector have low bargaining power. UCB (A): Managing Information for Globalization and Innovation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ucb Brussels to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Ucb Brussels is one of the most innovative firm in sector. Manager in UCB (A): Managing Information for Globalization and Innovation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Technology & Operations industry
– UCB (A): Managing Information for Globalization and Innovation firm has clearly differentiated products in the market place. This has enabled Ucb Brussels to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Ucb Brussels to invest into research and development (R&D) and innovation.
Organizational Resilience of Ucb Brussels
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ucb Brussels does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Ucb Brussels has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ucb Brussels to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Ucb Brussels is present in almost all the verticals within the industry. This has provided firm in UCB (A): Managing Information for Globalization and Innovation 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.
Operational resilience
– The operational resilience strategy in the UCB (A): Managing Information for Globalization and Innovation 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.
Weaknesses UCB (A): Managing Information for Globalization and Innovation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of UCB (A): Managing Information for Globalization and Innovation are -
Aligning sales with marketing
– It come across in the case study UCB (A): Managing Information for Globalization and Innovation 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 UCB (A): Managing Information for Globalization and Innovation can leverage the sales team experience to cultivate customer relationships as Ucb Brussels is planning to shift buying processes online.
High cash cycle compare to competitors
Ucb Brussels 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.
Products dominated business model
– Even though Ucb Brussels 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 - UCB (A): Managing Information for Globalization and Innovation should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study UCB (A): Managing Information for Globalization and Innovation, is just above the industry average. Ucb Brussels 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.
No frontier risks strategy
– After analyzing the HBR case study UCB (A): Managing Information for Globalization and Innovation, it seems that company is thinking about the frontier risks that can impact Technology & Operations 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 Ucb Brussels is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Ucb Brussels needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ucb Brussels to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As UCB (A): Managing Information for Globalization and Innovation HBR case study mentions - Ucb Brussels 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 Ucb Brussels, firm in the HBR case study UCB (A): Managing Information for Globalization and Innovation needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study UCB (A): Managing Information for Globalization and Innovation has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Ucb Brussels 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Ucb Brussels 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. Ucb Brussels 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.
Interest costs
– Compare to the competition, Ucb Brussels 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.
Opportunities UCB (A): Managing Information for Globalization and Innovation | 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 UCB (A): Managing Information for Globalization and Innovation are -
Building a culture of innovation
– managers at Ucb Brussels 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 Technology & Operations segment.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ucb Brussels 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, UCB (A): Managing Information for Globalization and Innovation, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ucb Brussels in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ucb Brussels is facing challenges because of the dominance of functional experts in the organization. UCB (A): Managing Information for Globalization and Innovation 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
– Ucb Brussels can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
Better consumer reach
– The expansion of the 5G network will help Ucb Brussels to increase its market reach. Ucb Brussels 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.
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. Ucb Brussels can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Ucb Brussels has opened avenues for new revenue streams for the organization in the industry. This can help Ucb Brussels to build a more holistic ecosystem as suggested in the UCB (A): Managing Information for Globalization and Innovation case study. Ucb Brussels can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Ucb Brussels 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. Ucb Brussels 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ucb Brussels can use these opportunities to build new business models that can help the communities that Ucb Brussels operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ucb Brussels can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ucb Brussels 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 Ucb Brussels to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Ucb Brussels can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. UCB (A): Managing Information for Globalization and Innovation 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.
Threats UCB (A): Managing Information for Globalization and Innovation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study UCB (A): Managing Information for Globalization and Innovation are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ucb Brussels in the Technology & Operations industry. The Technology & Operations 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.
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. Ucb Brussels 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.
Shortening product life cycle
– it is one of the major threat that Ucb Brussels is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ucb Brussels 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 UCB (A): Managing Information for Globalization and Innovation .
Increasing wage structure of Ucb Brussels
– 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 Ucb Brussels.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Ucb Brussels can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Ucb Brussels 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.
Consumer confidence and its impact on Ucb Brussels 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ucb Brussels with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Ucb Brussels 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 Technology & Operations industry regulations.
Environmental challenges
– Ucb Brussels 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. Ucb Brussels can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Ucb Brussels in the Technology & Operations sector and impact the bottomline of the organization.
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 Ucb Brussels business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of UCB (A): Managing Information for Globalization and Innovation 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 UCB (A): Managing Information for Globalization and Innovation 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 UCB (A): Managing Information for Globalization and Innovation 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 UCB (A): Managing Information for Globalization and Innovation 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 UCB (A): Managing Information for Globalization and Innovation 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 Ucb Brussels needs to make to build a sustainable competitive advantage.
