Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm
Hemas Holding PLC (HHPLC) was a Colombo headquartered holding company. It had subsidiaries in a wide range of businesses. HHPLC was headed by Steven Enderby as Chief Executive Officer (CEO) with Husein Esufally as Non-Executive Chairman. The professionally managed but family-controlled conglomerate, which was already one of the dominant private sector entities in Sri Lanka, was attempting to transform into a regional powerhouse in South Asia. The Esufally family held majority shares in HHPLC, and had members of the family on the HHPLC board. The family had also formed a Family Business Board (FBB) consisting of Murtaza Esufally, Abbas Esufally, Husein Esufally, and Imtiaz Esufally, to manage the relationship between the Esufally family and the HHPLC Board. The FBB was a device to ensure that the relationship between the larger family and the top management of HHPLC could be managed smoothly. The members of the FBB were proud of their journey so far. However, they wondered whether there could be further improvements in the mechanisms to ensure that the interests of all the stakeholders associated professionally with HHPLC were met, even as the interests of the current and future generations of the family were protected.
Swot Analysis of "Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm" written by Abhoy Ojha includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Esufally Hhplc facing as an external strategic factors. Some of the topics covered in Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm case study are - Strategic Management Strategies, Leadership transitions and Organizational Development.
Some of the macro environment factors that can be used to understand the Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm casestudy better are - – increasing commodity prices, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, etc
Introduction to SWOT Analysis of Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Esufally Hhplc, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Esufally Hhplc 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 Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm can be done for the following purposes –
1. Strategic planning using facts provided in Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm case study
2. Improving business portfolio management of Esufally Hhplc
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Esufally Hhplc
Strengths Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Esufally Hhplc in Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm Harvard Business Review case study are -
Strong track record of project management
– Esufally Hhplc is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Esufally Hhplc in the sector have low bargaining power. Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Esufally Hhplc to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Esufally Hhplc has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Esufally Hhplc to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Esufally Hhplc is present in almost all the verticals within the industry. This has provided firm in Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm 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.
Cross disciplinary teams
– Horizontal connected teams at the Esufally Hhplc 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.
Effective Research and Development (R&D)
– Esufally Hhplc 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 Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Organizational Development industry
– Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm firm has clearly differentiated products in the market place. This has enabled Esufally Hhplc to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Esufally Hhplc to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Esufally Hhplc 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 Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Esufally Hhplc 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.
Successful track record of launching new products
– Esufally Hhplc has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Esufally Hhplc 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.
Operational resilience
– The operational resilience strategy in the Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm 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.
Analytics focus
– Esufally Hhplc is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Abhoy Ojha can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm are -
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 Esufally Hhplc supply chain. Even after few cautionary changes mentioned in the HBR case study - Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Esufally Hhplc vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm, in the dynamic environment Esufally Hhplc has struggled to respond to the nimble upstart competition. Esufally Hhplc has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Esufally Hhplc has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Esufally Hhplc is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Esufally Hhplc, firm in the HBR case study Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Esufally Hhplc 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 bargaining power of channel partners
– Because of the regulatory requirements, Abhoy Ojha suggests that, Esufally Hhplc 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.
Products dominated business model
– Even though Esufally Hhplc 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 - Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm, it seems that the employees of Esufally Hhplc 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.
Need for greater diversity
– Esufally Hhplc 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 decision making process
– As mentioned earlier in the report, Esufally Hhplc 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. Esufally Hhplc 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.
Opportunities Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm | 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 Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm are -
Using analytics as competitive advantage
– Esufally Hhplc 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 Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Esufally Hhplc to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Esufally Hhplc can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Esufally Hhplc 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. Esufally Hhplc 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Esufally Hhplc 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 Esufally Hhplc to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Esufally Hhplc 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, Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Esufally Hhplc 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.
Learning at scale
– Online learning technologies has now opened space for Esufally Hhplc 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.
Developing new processes and practices
– Esufally Hhplc can develop new processes and procedures in Organizational Development 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.
Loyalty marketing
– Esufally Hhplc 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.
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 Esufally Hhplc in the consumer business. Now Esufally Hhplc 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. Esufally Hhplc can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Esufally Hhplc can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Esufally Hhplc to increase its market reach. Esufally Hhplc 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 Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm are -
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. Esufally Hhplc 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Esufally Hhplc with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Esufally Hhplc can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Esufally Hhplc in the Organizational Development sector and impact the bottomline of the organization.
Environmental challenges
– Esufally Hhplc 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. Esufally Hhplc can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm, Esufally Hhplc may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Technology acceleration in Forth Industrial Revolution
– Esufally Hhplc has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Esufally Hhplc needs to keep up with the evolution of technology in the Organizational Development 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 wage structure of Esufally Hhplc
– 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 Esufally Hhplc.
High dependence on third party suppliers
– Esufally Hhplc 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.
Regulatory challenges
– Esufally Hhplc 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 Organizational Development industry regulations.
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 Esufally Hhplc.
Consumer confidence and its impact on Esufally Hhplc 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.
Weighted SWOT Analysis of Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm 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 Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm 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 Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm 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 Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm 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 Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm 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 Esufally Hhplc needs to make to build a sustainable competitive advantage.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm