Harry Susilo: Moral Leadership and Family Business Succession SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Harry Susilo: Moral Leadership and Family Business Succession
Sekar Group (Sekar), based in Surabaya, Indonesia, started in 1966 as a small business purchasing fish and shrimp. Led by its founder Harry Susilo, Sekar grew into a large holding company with several business divisions in the global market. Sekar's achievements were closely linked to Susilo's moral leadership, which was greatly influenced by Eastern culture. As the eldest of a large family, Susilo had cared for his siblings as his own children. Some of these siblings were involved with Sekar, and the last of them was preparing to retire. Susilo, as the company's patriarch, was facing the challenge of ensuring lasting success. A new leader from the next generation needed to be chosen to assume Susilo's moral leadership and to sustain family business management and corporate ethics. Who should become the new leader and how would Susilo pass down his ethical framework to a generation largely raised with Western values? Jean Lee and Liman Zhao are affiliated with China Europe International Business School.
Swot Analysis of "Harry Susilo: Moral Leadership and Family Business Succession" written by Jean Lee, Liman Zhao includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Susilo Sekar facing as an external strategic factors. Some of the topics covered in Harry Susilo: Moral Leadership and Family Business Succession case study are - Strategic Management Strategies, Leadership, Social responsibility, Succession planning and Organizational Development.
Some of the macro environment factors that can be used to understand the Harry Susilo: Moral Leadership and Family Business Succession casestudy better are - – 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, increasing commodity prices, increasing transportation and logistics costs, there is increasing trade war between United States & China, increasing energy prices,
banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Harry Susilo: Moral Leadership and Family Business Succession
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Harry Susilo: Moral Leadership and Family Business Succession case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Susilo Sekar, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Susilo Sekar 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 Harry Susilo: Moral Leadership and Family Business Succession can be done for the following purposes –
1. Strategic planning using facts provided in Harry Susilo: Moral Leadership and Family Business Succession case study
2. Improving business portfolio management of Susilo Sekar
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 Susilo Sekar
Strengths Harry Susilo: Moral Leadership and Family Business Succession | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Susilo Sekar in Harry Susilo: Moral Leadership and Family Business Succession Harvard Business Review case study are -
High switching costs
– The high switching costs that Susilo Sekar 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.
Cross disciplinary teams
– Horizontal connected teams at the Susilo Sekar 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.
Innovation driven organization
– Susilo Sekar is one of the most innovative firm in sector. Manager in Harry Susilo: Moral Leadership and Family Business Succession Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Susilo Sekar 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 Harry Susilo: Moral Leadership and Family Business Succession - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Susilo Sekar in the sector have low bargaining power. Harry Susilo: Moral Leadership and Family Business Succession has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Susilo Sekar to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Susilo Sekar has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Susilo Sekar to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Organizational Development industry
– Harry Susilo: Moral Leadership and Family Business Succession firm has clearly differentiated products in the market place. This has enabled Susilo Sekar to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Susilo Sekar to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Harry Susilo: Moral Leadership and Family Business Succession 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.
Highly skilled collaborators
– Susilo Sekar 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 Harry Susilo: Moral Leadership and Family Business Succession HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Susilo Sekar 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 Jean Lee, Liman Zhao 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.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Susilo Sekar digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Susilo Sekar 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.
Diverse revenue streams
– Susilo Sekar is present in almost all the verticals within the industry. This has provided firm in Harry Susilo: Moral Leadership and Family Business Succession 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.
Weaknesses Harry Susilo: Moral Leadership and Family Business Succession | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Harry Susilo: Moral Leadership and Family Business Succession are -
Capital Spending Reduction
– Even during the low interest decade, Susilo Sekar 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.
Lack of clear differentiation of Susilo Sekar products
– To increase the profitability and margins on the products, Susilo Sekar needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Harry Susilo: Moral Leadership and Family Business Succession 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 Harry Susilo: Moral Leadership and Family Business Succession can leverage the sales team experience to cultivate customer relationships as Susilo Sekar is planning to shift buying processes online.
Need for greater diversity
– Susilo Sekar 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.
High cash cycle compare to competitors
Susilo Sekar 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Harry Susilo: Moral Leadership and Family Business Succession, is just above the industry average. Susilo Sekar 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 operating costs
– Compare to the competitors, firm in the HBR case study Harry Susilo: Moral Leadership and Family Business Succession 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 Susilo Sekar 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Susilo Sekar 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. Susilo Sekar 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.
Increasing silos among functional specialists
– The organizational structure of Susilo Sekar is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Susilo Sekar needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Susilo Sekar to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Harry Susilo: Moral Leadership and Family Business Succession, 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.
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 Susilo Sekar supply chain. Even after few cautionary changes mentioned in the HBR case study - Harry Susilo: Moral Leadership and Family Business Succession, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Susilo Sekar vulnerable to further global disruptions in South East Asia.
Opportunities Harry Susilo: Moral Leadership and Family Business Succession | 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 Harry Susilo: Moral Leadership and Family Business Succession are -
Manufacturing automation
– Susilo Sekar 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.
Using analytics as competitive advantage
– Susilo Sekar 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 Harry Susilo: Moral Leadership and Family Business Succession - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Susilo Sekar to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Susilo Sekar 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.
Buying journey improvements
– Susilo Sekar can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Harry Susilo: Moral Leadership and Family Business Succession 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. Susilo Sekar 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. Susilo Sekar 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.
Learning at scale
– Online learning technologies has now opened space for Susilo Sekar 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.
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 Susilo Sekar 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Susilo Sekar can use these opportunities to build new business models that can help the communities that Susilo Sekar operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Creating value in data economy
– The success of analytics program of Susilo Sekar has opened avenues for new revenue streams for the organization in the industry. This can help Susilo Sekar to build a more holistic ecosystem as suggested in the Harry Susilo: Moral Leadership and Family Business Succession case study. Susilo Sekar can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Susilo Sekar to increase its market reach. Susilo Sekar 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.
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 Susilo Sekar in the consumer business. Now Susilo Sekar can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Susilo Sekar 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Susilo Sekar can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Harry Susilo: Moral Leadership and Family Business Succession External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Harry Susilo: Moral Leadership and Family Business Succession are -
High dependence on third party suppliers
– Susilo Sekar 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.
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 Susilo Sekar in the Organizational Development sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Susilo Sekar 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Harry Susilo: Moral Leadership and Family Business Succession, Susilo Sekar 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 .
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 Susilo Sekar business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Susilo Sekar is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Susilo Sekar 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.
Stagnating economy with rate increase
– Susilo Sekar 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Susilo Sekar 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 Harry Susilo: Moral Leadership and Family Business Succession .
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. Susilo Sekar 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.
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. Susilo Sekar can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Technology acceleration in Forth Industrial Revolution
– Susilo Sekar has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Susilo Sekar 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.
Weighted SWOT Analysis of Harry Susilo: Moral Leadership and Family Business Succession 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 Harry Susilo: Moral Leadership and Family Business Succession 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 Harry Susilo: Moral Leadership and Family Business Succession 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 Harry Susilo: Moral Leadership and Family Business Succession 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 Harry Susilo: Moral Leadership and Family Business Succession 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 Susilo Sekar needs to make to build a sustainable competitive advantage.