Mavesa (A): Business Strategy Amid Economic and Political Turmoil SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mavesa (A): Business Strategy Amid Economic and Political Turmoil
Examines Mavesa's response to external liberalization in 1989. The consumer packaged goods firm, which had been extensively vertically integrated, completely revamps its business strategy in the 1990s.
Swot Analysis of "Mavesa (A): Business Strategy Amid Economic and Political Turmoil" written by Robert E. Kennedy, Brian P. Irwin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Revamps Mavesa facing as an external strategic factors. Some of the topics covered in Mavesa (A): Business Strategy Amid Economic and Political Turmoil case study are - Strategic Management Strategies, Emerging markets, Globalization, Managing uncertainty, Policy, Risk management and Global Business.
Some of the macro environment factors that can be used to understand the Mavesa (A): Business Strategy Amid Economic and Political Turmoil casestudy better are - – increasing household debt because of falling income levels, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google,
banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, etc
Introduction to SWOT Analysis of Mavesa (A): Business Strategy Amid Economic and Political Turmoil
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mavesa (A): Business Strategy Amid Economic and Political Turmoil case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Revamps Mavesa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Revamps Mavesa 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil can be done for the following purposes –
1. Strategic planning using facts provided in Mavesa (A): Business Strategy Amid Economic and Political Turmoil case study
2. Improving business portfolio management of Revamps Mavesa
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 Revamps Mavesa
Strengths Mavesa (A): Business Strategy Amid Economic and Political Turmoil | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Revamps Mavesa in Mavesa (A): Business Strategy Amid Economic and Political Turmoil Harvard Business Review case study are -
High brand equity
– Revamps Mavesa has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Revamps Mavesa to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Revamps Mavesa is one of the leading recruiters in the industry. Managers in the Mavesa (A): Business Strategy Amid Economic and Political Turmoil are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Global Business industry
– Mavesa (A): Business Strategy Amid Economic and Political Turmoil firm has clearly differentiated products in the market place. This has enabled Revamps Mavesa to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Revamps Mavesa to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Revamps Mavesa in the sector have low bargaining power. Mavesa (A): Business Strategy Amid Economic and Political Turmoil has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Revamps Mavesa to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Revamps Mavesa 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.
Operational resilience
– The operational resilience strategy in the Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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)
– Revamps Mavesa 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Revamps Mavesa has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Revamps Mavesa 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
– Revamps Mavesa is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Revamps Mavesa 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
- Revamps Mavesa 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 Revamps Mavesa is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Mavesa (A): Business Strategy Amid Economic and Political Turmoil Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Revamps Mavesa has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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.
Weaknesses Mavesa (A): Business Strategy Amid Economic and Political Turmoil | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mavesa (A): Business Strategy Amid Economic and Political Turmoil are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Mavesa (A): Business Strategy Amid Economic and Political Turmoil, it seems that the employees of Revamps Mavesa don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Increasing silos among functional specialists
– The organizational structure of Revamps Mavesa is dominated by functional specialists. It is not different from other players in the Global Business segment. Revamps Mavesa needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Revamps Mavesa to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Revamps Mavesa 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 - Mavesa (A): Business Strategy Amid Economic and Political Turmoil should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Mavesa (A): Business Strategy Amid Economic and Political Turmoil HBR case study mentions - Revamps Mavesa takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High cash cycle compare to competitors
Revamps Mavesa 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Revamps Mavesa 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, Revamps Mavesa is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mavesa (A): Business Strategy Amid Economic and Political Turmoil can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Mavesa (A): Business Strategy Amid Economic and Political Turmoil, in the dynamic environment Revamps Mavesa has struggled to respond to the nimble upstart competition. Revamps Mavesa has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert E. Kennedy, Brian P. Irwin suggests that, Revamps Mavesa 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.
Skills based hiring
– The stress on hiring functional specialists at Revamps Mavesa 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.
Need for greater diversity
– Revamps Mavesa 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.
Opportunities Mavesa (A): Business Strategy Amid Economic and Political Turmoil | 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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, Revamps Mavesa can use these opportunities to build new business models that can help the communities that Revamps Mavesa operates in. Secondly it can use opportunities from government spending in Global Business sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Revamps Mavesa in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
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 Revamps Mavesa in the consumer business. Now Revamps Mavesa 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 Revamps Mavesa 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 Revamps Mavesa 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 Revamps Mavesa can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Revamps Mavesa 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.
Leveraging digital technologies
– Revamps Mavesa 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.
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. Revamps Mavesa can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Revamps Mavesa 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.
Developing new processes and practices
– Revamps Mavesa 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.
Buying journey improvements
– Revamps Mavesa can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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.
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 Revamps Mavesa 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.
Better consumer reach
– The expansion of the 5G network will help Revamps Mavesa to increase its market reach. Revamps Mavesa 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.
Threats Mavesa (A): Business Strategy Amid Economic and Political Turmoil External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mavesa (A): Business Strategy Amid Economic and Political Turmoil are -
High dependence on third party suppliers
– Revamps Mavesa 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Revamps Mavesa 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Revamps Mavesa with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Revamps Mavesa needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Revamps Mavesa 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.
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.
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 Revamps Mavesa.
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. Revamps Mavesa can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Revamps Mavesa has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Revamps Mavesa 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.
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 Revamps Mavesa in the Global Business 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 Revamps Mavesa 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.
Regulatory challenges
– Revamps Mavesa 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.
Weighted SWOT Analysis of Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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 Revamps Mavesa needs to make to build a sustainable competitive advantage.
