Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger
Helps students understand the principles underlying competition and antitrust policy in the context of the proposed GE-Honeywell merger. The U.S. Department of Justice has already approved the transaction and it is being considered by the European Commission. The Competition Commissioner, Mario Monti, must analyze the economic consequences of the proposed merger and evaluate how it will affect competitors, customers, and product markets. He must also address key policy choices. In understanding the nuances of the transaction, students identify different sources of value and must confront the question of whether the efficiencies generated enhance social welfare in the long run. The decision of whether to approve the merger, and on what terms, provides students with insights into the complexities of operating under multiple regulatory regimes.
Authors :: Mihir A. Desai, Mark F. Veblen, Belen Villalonga
Swot Analysis of "Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger" written by Mihir A. Desai, Mark F. Veblen, Belen Villalonga includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Honeywell Merger facing as an external strategic factors. Some of the topics covered in Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger case study are - Strategic Management Strategies, Competition, Mergers & acquisitions, Policy and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger casestudy better are - – geopolitical disruptions, increasing household debt because of falling income levels, increasing commodity prices, technology disruption, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google,
talent flight as more people leaving formal jobs, wage bills are increasing, etc
Introduction to SWOT Analysis of Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Honeywell Merger, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Honeywell Merger 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 Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger can be done for the following purposes –
1. Strategic planning using facts provided in Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger case study
2. Improving business portfolio management of Honeywell Merger
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Honeywell Merger
Strengths Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Honeywell Merger in Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger Harvard Business Review case study are -
High brand equity
– Honeywell Merger has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Honeywell Merger to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Honeywell Merger is one of the most innovative firm in sector. Manager in Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Honeywell Merger has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Honeywell Merger digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Honeywell Merger 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.
Low bargaining power of suppliers
– Suppliers of Honeywell Merger in the sector have low bargaining power. Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Honeywell Merger to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Honeywell Merger 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.
Learning organization
- Honeywell Merger 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 Honeywell Merger is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Honeywell Merger in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Honeywell Merger 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 Mihir A. Desai, Mark F. Veblen, Belen Villalonga 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.
Ability to lead change in Finance & Accounting field
– Honeywell Merger 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 Honeywell Merger in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Honeywell Merger has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Honeywell Merger 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.
Diverse revenue streams
– Honeywell Merger is present in almost all the verticals within the industry. This has provided firm in Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger 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 Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger 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 Honeywell Merger has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger, is just above the industry average. Honeywell Merger 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.
Slow to strategic competitive environment developments
– As Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger HBR case study mentions - Honeywell Merger 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger, it seems that the employees of Honeywell Merger 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.
Slow decision making process
– As mentioned earlier in the report, Honeywell Merger 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. Honeywell Merger 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.
Skills based hiring
– The stress on hiring functional specialists at Honeywell Merger 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 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 Honeywell Merger supply chain. Even after few cautionary changes mentioned in the HBR case study - Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Honeywell Merger vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Honeywell Merger products
– To increase the profitability and margins on the products, Honeywell Merger needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger 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 Honeywell Merger 's lucrative customers.
Interest costs
– Compare to the competition, Honeywell Merger has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Increasing silos among functional specialists
– The organizational structure of Honeywell Merger is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Honeywell Merger needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Honeywell Merger to focus more on services rather than just following the product oriented approach.
Opportunities Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger | 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 Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Honeywell Merger can use these opportunities to build new business models that can help the communities that Honeywell Merger operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Honeywell Merger in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Leveraging digital technologies
– Honeywell Merger can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Honeywell Merger can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Honeywell Merger can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Honeywell Merger has opened avenues for new revenue streams for the organization in the industry. This can help Honeywell Merger to build a more holistic ecosystem as suggested in the Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger case study. Honeywell Merger can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Honeywell Merger can develop new processes and procedures in Finance & Accounting 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.
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 Honeywell Merger 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.
Loyalty marketing
– Honeywell Merger 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Honeywell Merger is facing challenges because of the dominance of functional experts in the organization. Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Manufacturing automation
– Honeywell Merger can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Honeywell Merger 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, Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Honeywell Merger 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 Honeywell Merger to hire the very best people irrespective of their geographical location.
Threats Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger, Honeywell Merger may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
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. Honeywell Merger needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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. Honeywell Merger 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.
High dependence on third party suppliers
– Honeywell Merger 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.
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 Honeywell Merger.
Consumer confidence and its impact on Honeywell Merger 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.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Honeywell Merger can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Honeywell Merger 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 Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Honeywell Merger with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
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 Honeywell Merger business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Honeywell Merger
– 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 Honeywell Merger.
Weighted SWOT Analysis of Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger 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 Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger 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 Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger 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 Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger 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 Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger 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 Honeywell Merger 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 Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger
