Driving Innovation Through Intrapreneurship at Chiesi SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Driving Innovation Through Intrapreneurship at Chiesi
Chiesi Farmacuetici developed a new program to create a more entrepreneurial culture in its Spanish division. The program was based on Lean Startup principles with employees moving from selecting an idea to developing a business. However, at the end of the program, unexpected challenges arose.
Swot Analysis of "Driving Innovation Through Intrapreneurship at Chiesi" written by Albert Castelltort, Antonio Davila includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Chiesi Farmacuetici facing as an external strategic factors. Some of the topics covered in Driving Innovation Through Intrapreneurship at Chiesi case study are - Strategic Management Strategies, Health, Innovation and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Driving Innovation Through Intrapreneurship at Chiesi casestudy better are - – digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, technology disruption, supply chains are disrupted by pandemic , geopolitical disruptions, increasing transportation and logistics costs,
there is backlash against globalization, increasing energy prices, etc
Introduction to SWOT Analysis of Driving Innovation Through Intrapreneurship at Chiesi
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Driving Innovation Through Intrapreneurship at Chiesi case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Chiesi Farmacuetici, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Chiesi Farmacuetici 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 Driving Innovation Through Intrapreneurship at Chiesi can be done for the following purposes –
1. Strategic planning using facts provided in Driving Innovation Through Intrapreneurship at Chiesi case study
2. Improving business portfolio management of Chiesi Farmacuetici
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Chiesi Farmacuetici
Strengths Driving Innovation Through Intrapreneurship at Chiesi | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Chiesi Farmacuetici in Driving Innovation Through Intrapreneurship at Chiesi Harvard Business Review case study are -
Strong track record of project management
– Chiesi Farmacuetici is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Chiesi Farmacuetici is one of the leading recruiters in the industry. Managers in the Driving Innovation Through Intrapreneurship at Chiesi are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Chiesi Farmacuetici
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Chiesi Farmacuetici does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Chiesi Farmacuetici 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 Albert Castelltort, Antonio Davila 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.
Training and development
– Chiesi Farmacuetici has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Driving Innovation Through Intrapreneurship at Chiesi 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
– Chiesi Farmacuetici has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Chiesi Farmacuetici to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Chiesi Farmacuetici 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.
Ability to lead change in Innovation & Entrepreneurship field
– Chiesi Farmacuetici 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 Chiesi Farmacuetici 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 Chiesi Farmacuetici 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 Chiesi Farmacuetici in the sector have low bargaining power. Driving Innovation Through Intrapreneurship at Chiesi has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Chiesi Farmacuetici to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Chiesi Farmacuetici 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 Chiesi Farmacuetici is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Driving Innovation Through Intrapreneurship at Chiesi Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Chiesi Farmacuetici is one of the most innovative firm in sector. Manager in Driving Innovation Through Intrapreneurship at Chiesi Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Driving Innovation Through Intrapreneurship at Chiesi | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Driving Innovation Through Intrapreneurship at Chiesi are -
Skills based hiring
– The stress on hiring functional specialists at Chiesi Farmacuetici 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Driving Innovation Through Intrapreneurship at Chiesi, is just above the industry average. Chiesi Farmacuetici 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Driving Innovation Through Intrapreneurship at Chiesi, it seems that the employees of Chiesi Farmacuetici 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.
Increasing silos among functional specialists
– The organizational structure of Chiesi Farmacuetici is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Chiesi Farmacuetici needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Chiesi Farmacuetici to focus more on services rather than just following the product oriented approach.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Chiesi Farmacuetici supply chain. Even after few cautionary changes mentioned in the HBR case study - Driving Innovation Through Intrapreneurship at Chiesi, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Chiesi Farmacuetici vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Driving Innovation Through Intrapreneurship at Chiesi HBR case study mentions - Chiesi Farmacuetici 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Driving Innovation Through Intrapreneurship at Chiesi 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 Chiesi Farmacuetici has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Chiesi Farmacuetici is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Driving Innovation Through Intrapreneurship at Chiesi can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Driving Innovation Through Intrapreneurship at Chiesi, in the dynamic environment Chiesi Farmacuetici has struggled to respond to the nimble upstart competition. Chiesi Farmacuetici has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Chiesi Farmacuetici 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.
Aligning sales with marketing
– It come across in the case study Driving Innovation Through Intrapreneurship at Chiesi 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 Driving Innovation Through Intrapreneurship at Chiesi can leverage the sales team experience to cultivate customer relationships as Chiesi Farmacuetici is planning to shift buying processes online.
Opportunities Driving Innovation Through Intrapreneurship at Chiesi | 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 Driving Innovation Through Intrapreneurship at Chiesi are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Chiesi Farmacuetici can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Chiesi Farmacuetici 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 Driving Innovation Through Intrapreneurship at Chiesi - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Chiesi Farmacuetici to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Chiesi Farmacuetici can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Chiesi Farmacuetici 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, Driving Innovation Through Intrapreneurship at Chiesi, 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 Chiesi Farmacuetici in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Chiesi Farmacuetici has opened avenues for new revenue streams for the organization in the industry. This can help Chiesi Farmacuetici to build a more holistic ecosystem as suggested in the Driving Innovation Through Intrapreneurship at Chiesi case study. Chiesi Farmacuetici can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Chiesi Farmacuetici 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Chiesi Farmacuetici 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 Chiesi Farmacuetici to hire the very best people irrespective of their geographical location.
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 Chiesi Farmacuetici in the consumer business. Now Chiesi Farmacuetici can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Chiesi Farmacuetici to increase its market reach. Chiesi Farmacuetici 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Chiesi Farmacuetici 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Chiesi Farmacuetici 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. Chiesi Farmacuetici 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, Chiesi Farmacuetici can use these opportunities to build new business models that can help the communities that Chiesi Farmacuetici operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Threats Driving Innovation Through Intrapreneurship at Chiesi External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Driving Innovation Through Intrapreneurship at Chiesi are -
Regulatory challenges
– Chiesi Farmacuetici 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 Innovation & Entrepreneurship industry regulations.
Stagnating economy with rate increase
– Chiesi Farmacuetici can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
High dependence on third party suppliers
– Chiesi Farmacuetici 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.
Technology acceleration in Forth Industrial Revolution
– Chiesi Farmacuetici has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Chiesi Farmacuetici needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Chiesi Farmacuetici can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Chiesi Farmacuetici needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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 Chiesi Farmacuetici in the Innovation & Entrepreneurship sector and impact the bottomline 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 Driving Innovation Through Intrapreneurship at Chiesi, Chiesi Farmacuetici may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
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 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 Chiesi Farmacuetici with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Chiesi Farmacuetici
– 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 Chiesi Farmacuetici.
Consumer confidence and its impact on Chiesi Farmacuetici 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 Driving Innovation Through Intrapreneurship at Chiesi 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 Driving Innovation Through Intrapreneurship at Chiesi 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 Driving Innovation Through Intrapreneurship at Chiesi 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 Driving Innovation Through Intrapreneurship at Chiesi 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 Driving Innovation Through Intrapreneurship at Chiesi 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 Chiesi Farmacuetici needs to make to build a sustainable competitive advantage.