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 energy prices, increasing government debt because of Covid-19 spendings, geopolitical disruptions, technology disruption, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%,
talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, 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 -
Ability to lead change in Organizational Development field
– Esufally Hhplc 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 Esufally Hhplc in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
Innovation driven organization
– Esufally Hhplc is one of the most innovative firm in sector. Manager in Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm 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 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.
Superior customer experience
– The customer experience strategy of Esufally Hhplc in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Esufally Hhplc digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Esufally Hhplc 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.
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.
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.
Learning organization
- Esufally Hhplc 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 Esufally Hhplc is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Esufally Hhplc is one of the leading recruiters in the industry. Managers in the Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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 cash cycle compare to competitors
Esufally Hhplc 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.
No frontier risks strategy
– After analyzing the HBR case study Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm, it seems that company is thinking about the frontier risks that can impact Organizational Development 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.
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.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Esufally Hhplc 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm, is just above the industry average. Esufally Hhplc 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.
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.
Increasing silos among functional specialists
– The organizational structure of Esufally Hhplc is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Esufally Hhplc needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Esufally Hhplc to focus more on services rather than just following the product oriented approach.
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.
Slow to strategic competitive environment developments
– As Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm HBR case study mentions - Esufally Hhplc 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.
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.
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 -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Esufally Hhplc in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Esufally Hhplc is facing challenges because of the dominance of functional experts in the organization. Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm 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.
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.
Building a culture of innovation
– managers at Esufally Hhplc 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 Organizational Development segment.
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.
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.
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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Esufally Hhplc 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, Esufally Hhplc can use these opportunities to build new business models that can help the communities that Esufally Hhplc operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Manufacturing automation
– Esufally Hhplc can use the latest technology developments to improve its manufacturing and designing process in Organizational Development 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 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 -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Esufally Hhplc in the Organizational Development industry. The Organizational Development 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.
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.
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 Esufally Hhplc business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Esufally Hhplc is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
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.
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 .
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.
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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Esufally Hhplc 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 Hemas Holding PLC: Managing Leadership Transition in a Family Controlled Publicly Listed Firm .
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.
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.
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.
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