Swot Analysis of "Lafarge: Market Entry Into Romania, (Video) DVD" written by Bruce McKern includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lafarge Fleuret facing as an external strategic factors. Some of the topics covered in Lafarge: Market Entry Into Romania, (Video) DVD case study are - Strategic Management Strategies, Financial management, Leadership development, Mergers & acquisitions, Operations management and Global Business.
Some of the macro environment factors that can be used to understand the Lafarge: Market Entry Into Romania, (Video) DVD casestudy better are - – increasing household debt because of falling income levels, wage bills are increasing, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, increasing energy prices,
challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Lafarge: Market Entry Into Romania, (Video) DVD
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Lafarge: Market Entry Into Romania, (Video) DVD case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lafarge Fleuret, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lafarge Fleuret 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 Lafarge: Market Entry Into Romania, (Video) DVD can be done for the following purposes –
1. Strategic planning using facts provided in Lafarge: Market Entry Into Romania, (Video) DVD case study
2. Improving business portfolio management of Lafarge Fleuret
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Lafarge Fleuret
Strengths Lafarge: Market Entry Into Romania, (Video) DVD | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lafarge Fleuret in Lafarge: Market Entry Into Romania, (Video) DVD Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Lafarge: Market Entry Into Romania, (Video) DVD 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.
Effective Research and Development (R&D)
– Lafarge Fleuret 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 Lafarge: Market Entry Into Romania, (Video) DVD - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Lafarge Fleuret is one of the leading recruiters in the industry. Managers in the Lafarge: Market Entry Into Romania, (Video) DVD are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Lafarge Fleuret has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Lafarge Fleuret to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Lafarge Fleuret 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.
Superior customer experience
– The customer experience strategy of Lafarge Fleuret in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Lafarge Fleuret is one of the most innovative firm in sector. Manager in Lafarge: Market Entry Into Romania, (Video) DVD Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Lafarge Fleuret 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 Bruce McKern 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.
Sustainable margins compare to other players in Global Business industry
– Lafarge: Market Entry Into Romania, (Video) DVD firm has clearly differentiated products in the market place. This has enabled Lafarge Fleuret to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Lafarge Fleuret to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Lafarge Fleuret 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.
Training and development
– Lafarge Fleuret has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Lafarge: Market Entry Into Romania, (Video) DVD 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.
Strong track record of project management
– Lafarge Fleuret is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Lafarge: Market Entry Into Romania, (Video) DVD | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Lafarge: Market Entry Into Romania, (Video) DVD are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Lafarge: Market Entry Into Romania, (Video) DVD, is just above the industry average. Lafarge Fleuret 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Lafarge: Market Entry Into Romania, (Video) DVD, in the dynamic environment Lafarge Fleuret has struggled to respond to the nimble upstart competition. Lafarge Fleuret has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Lafarge: Market Entry Into Romania, (Video) DVD, it seems that the employees of Lafarge Fleuret 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.
No frontier risks strategy
– After analyzing the HBR case study Lafarge: Market Entry Into Romania, (Video) DVD, it seems that company is thinking about the frontier risks that can impact Global Business 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.
Capital Spending Reduction
– Even during the low interest decade, Lafarge Fleuret 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Lafarge Fleuret 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Lafarge Fleuret is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Lafarge: Market Entry Into Romania, (Video) DVD can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Lafarge Fleuret 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.
Slow decision making process
– As mentioned earlier in the report, Lafarge Fleuret 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. Lafarge Fleuret 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.
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 Lafarge Fleuret supply chain. Even after few cautionary changes mentioned in the HBR case study - Lafarge: Market Entry Into Romania, (Video) DVD, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Lafarge Fleuret vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Lafarge: Market Entry Into Romania, (Video) DVD HBR case study mentions - Lafarge Fleuret 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.
Opportunities Lafarge: Market Entry Into Romania, (Video) DVD | 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 Lafarge: Market Entry Into Romania, (Video) DVD are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Lafarge Fleuret is facing challenges because of the dominance of functional experts in the organization. Lafarge: Market Entry Into Romania, (Video) DVD 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Lafarge Fleuret 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.
Buying journey improvements
– Lafarge Fleuret can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Lafarge: Market Entry Into Romania, (Video) DVD 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.
Creating value in data economy
– The success of analytics program of Lafarge Fleuret has opened avenues for new revenue streams for the organization in the industry. This can help Lafarge Fleuret to build a more holistic ecosystem as suggested in the Lafarge: Market Entry Into Romania, (Video) DVD case study. Lafarge Fleuret can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Lafarge Fleuret 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.
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 Lafarge Fleuret in the consumer business. Now Lafarge Fleuret can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Lafarge Fleuret 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 Lafarge Fleuret to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Lafarge Fleuret can develop new processes and procedures in Global Business 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Lafarge Fleuret can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Lafarge Fleuret can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Lafarge Fleuret 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. Lafarge Fleuret 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, Lafarge Fleuret 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, Lafarge: Market Entry Into Romania, (Video) DVD, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Lafarge: Market Entry Into Romania, (Video) DVD External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Lafarge: Market Entry Into Romania, (Video) DVD are -
Stagnating economy with rate increase
– Lafarge Fleuret 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 wage structure of Lafarge Fleuret
– 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 Lafarge Fleuret.
Regulatory challenges
– Lafarge Fleuret 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 Global Business industry regulations.
Technology acceleration in Forth Industrial Revolution
– Lafarge Fleuret has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Lafarge Fleuret needs to keep up with the evolution of technology in the Global Business 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 Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Lafarge Fleuret 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.
Shortening product life cycle
– it is one of the major threat that Lafarge Fleuret is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Lafarge Fleuret 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 Lafarge Fleuret.
Environmental challenges
– Lafarge Fleuret 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. Lafarge Fleuret can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Lafarge Fleuret in the Global Business industry. The Global Business 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, Lafarge Fleuret 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 Lafarge: Market Entry Into Romania, (Video) DVD .
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. Lafarge Fleuret will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of Lafarge: Market Entry Into Romania, (Video) DVD 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 Lafarge: Market Entry Into Romania, (Video) DVD 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 Lafarge: Market Entry Into Romania, (Video) DVD 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 Lafarge: Market Entry Into Romania, (Video) DVD 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 Lafarge: Market Entry Into Romania, (Video) DVD 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 Lafarge Fleuret needs to make to build a sustainable competitive advantage.
