Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century
Florentino Perez, the president of Real Madrid, a leading European soccer team, is preparing for a press conference in which he will be asked about his plans for the coming season. Economic success and some sports mishaps during the prior season represent the scenario in which planning decisions are made.
Authors :: F. Asis Martinez-Jerez, Rosario M. De Albornoz
Swot Analysis of "Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century" written by F. Asis Martinez-Jerez, Rosario M. De Albornoz includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Madrid Season facing as an external strategic factors. Some of the topics covered in Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century case study are - Strategic Management Strategies, Market research, Strategic planning, Strategy execution and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century casestudy better are - – increasing commodity prices, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy,
central banks are concerned over increasing inflation, wage bills are increasing, etc
Introduction to SWOT Analysis of Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Madrid Season, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Madrid Season 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century can be done for the following purposes –
1. Strategic planning using facts provided in Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century case study
2. Improving business portfolio management of Madrid Season
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 Madrid Season
Strengths Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Madrid Season in Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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.
Cross disciplinary teams
– Horizontal connected teams at the Madrid Season 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.
Successful track record of launching new products
– Madrid Season has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Madrid Season 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.
Strong track record of project management
– Madrid Season is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Madrid Season has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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.
Ability to lead change in Finance & Accounting field
– Madrid Season 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 Madrid Season in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Madrid Season in the sector have low bargaining power. Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Madrid Season to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Madrid Season is one of the most innovative firm in sector. Manager in Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Madrid Season digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Madrid Season 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
– Madrid Season 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 F. Asis Martinez-Jerez, Rosario M. De Albornoz 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.
High brand equity
– Madrid Season has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Madrid Season to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Madrid Season 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 Madrid Season is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century are -
High cash cycle compare to competitors
Madrid Season 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.
Aligning sales with marketing
– It come across in the case study Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century can leverage the sales team experience to cultivate customer relationships as Madrid Season is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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 Madrid Season has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.
Interest costs
– Compare to the competition, Madrid Season 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Madrid Season 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.
Low market penetration in new markets
– Outside its home market of Madrid Season, firm in the HBR case study Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Madrid Season supply chain. Even after few cautionary changes mentioned in the HBR case study - Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Madrid Season vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Madrid Season has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Madrid Season is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, F. Asis Martinez-Jerez, Rosario M. De Albornoz suggests that, Madrid Season 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.
Opportunities Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century | 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century are -
Learning at scale
– Online learning technologies has now opened space for Madrid Season 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.
Using analytics as competitive advantage
– Madrid Season 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Madrid Season to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Madrid Season 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, Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Madrid Season to increase its market reach. Madrid Season 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Madrid Season is facing challenges because of the dominance of functional experts in the organization. Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Madrid Season can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Madrid Season 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Madrid Season 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 Madrid Season to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Madrid Season can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Madrid Season 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.
Manufacturing automation
– Madrid Season 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.
Developing new processes and practices
– Madrid Season 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 Madrid Season 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.
Threats Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century are -
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 Madrid Season.
Regulatory challenges
– Madrid Season 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 Finance & Accounting industry regulations.
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. Madrid Season needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Environmental challenges
– Madrid Season needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Madrid Season can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Madrid Season in the Finance & Accounting industry. The Finance & Accounting 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Madrid Season 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century .
Increasing wage structure of Madrid Season
– 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 Madrid Season.
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 Madrid Season business can come under increasing regulations regarding data privacy, data security, etc.
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 Madrid Season in the Finance & Accounting sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Madrid Season has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Madrid Season needs to keep up with the evolution of technology in the Finance & Accounting 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 Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Madrid Season can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Madrid Season with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Weighted SWOT Analysis of Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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 Hala Madrid: Managing Real Madrid Club de Futbol, the Team of the Century 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 Madrid Season needs to make to build a sustainable competitive advantage.