Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd.
In July 1992, Mr. Eu, director of Kanzen Berhad (KB), Malaysia, must decide whether to recommend to the company's owner and CEO to accept the offer of Pacific Dunlop Ltd. of Australia to form a joint venture in which Pacific Dunlop would buy 30% of KB's holdings in six subsidiaries in the mattress and bedding industry for RM$28 million. Since its founding in 1978 as Dreamland, KB had been growing rapidly and had been quite profitable. Mr. Lim, however, had plans for expansion into other businesses in Malaysia and, especially, in China. As well, Pacific Dunlop had product and process technology, additional brand names, and management expertise that had the potential to increase the success of KB's subsidiaries.
Swot Analysis of "Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd." written by Donald J. Lecraw, Boon Lim includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dunlop Pacific facing as an external strategic factors. Some of the topics covered in Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. case study are - Strategic Management Strategies, Joint ventures, Negotiations and Global Business.
Some of the macro environment factors that can be used to understand the Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. casestudy better are - – increasing commodity prices, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings,
there is backlash against globalization, technology disruption, etc
Introduction to SWOT Analysis of Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd.
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dunlop Pacific, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dunlop Pacific 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 Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. can be done for the following purposes –
1. Strategic planning using facts provided in Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. case study
2. Improving business portfolio management of Dunlop Pacific
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 Dunlop Pacific
Strengths Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dunlop Pacific in Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. 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 Dunlop Pacific 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.
Ability to lead change in Global Business field
– Dunlop Pacific 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 Dunlop Pacific in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Dunlop Pacific digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Dunlop Pacific has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Diverse revenue streams
– Dunlop Pacific is present in almost all the verticals within the industry. This has provided firm in Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. 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.
Ability to recruit top talent
– Dunlop Pacific is one of the leading recruiters in the industry. Managers in the Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Dunlop Pacific 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 Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Dunlop Pacific in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Dunlop Pacific has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Dunlop Pacific to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Dunlop Pacific 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 Donald J. Lecraw, Boon Lim 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.
Training and development
– Dunlop Pacific has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. 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.
Innovation driven organization
– Dunlop Pacific is one of the most innovative firm in sector. Manager in Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. are -
No frontier risks strategy
– After analyzing the HBR case study Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd., 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.
Increasing silos among functional specialists
– The organizational structure of Dunlop Pacific is dominated by functional specialists. It is not different from other players in the Global Business segment. Dunlop Pacific needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Dunlop Pacific to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Dunlop Pacific 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.
Slow decision making process
– As mentioned earlier in the report, Dunlop Pacific 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. Dunlop Pacific 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.
Interest costs
– Compare to the competition, Dunlop Pacific 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.
Skills based hiring
– The stress on hiring functional specialists at Dunlop Pacific 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd., is just above the industry average. Dunlop Pacific needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High 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 Dunlop Pacific supply chain. Even after few cautionary changes mentioned in the HBR case study - Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd., it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Dunlop Pacific vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Dunlop Pacific 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 - Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. 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 Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. can leverage the sales team experience to cultivate customer relationships as Dunlop Pacific is planning to shift buying processes online.
Lack of clear differentiation of Dunlop Pacific products
– To increase the profitability and margins on the products, Dunlop Pacific needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. | 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 Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Dunlop Pacific 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, Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd., 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 Dunlop Pacific to increase its market reach. Dunlop Pacific 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, Dunlop Pacific is facing challenges because of the dominance of functional experts in the organization. Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Dunlop Pacific 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 Dunlop Pacific to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Dunlop Pacific 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.
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. Dunlop Pacific can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Dunlop Pacific can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Dunlop Pacific 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.
Creating value in data economy
– The success of analytics program of Dunlop Pacific has opened avenues for new revenue streams for the organization in the industry. This can help Dunlop Pacific to build a more holistic ecosystem as suggested in the Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. case study. Dunlop Pacific can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Dunlop Pacific can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. 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.
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 Dunlop Pacific in the consumer business. Now Dunlop Pacific can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Dunlop Pacific can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Global Business segment.
Leveraging digital technologies
– Dunlop Pacific 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.
Threats Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. are -
Consumer confidence and its impact on Dunlop Pacific 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.
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 Dunlop Pacific.
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. Dunlop Pacific needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Dunlop Pacific with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Dunlop Pacific 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.
Technology acceleration in Forth Industrial Revolution
– Dunlop Pacific has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Dunlop Pacific 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd., Dunlop Pacific may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Dunlop Pacific 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 Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. .
Regulatory challenges
– Dunlop Pacific 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.
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. Dunlop Pacific 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.
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.
Environmental challenges
– Dunlop Pacific 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. Dunlop Pacific can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Weighted SWOT Analysis of Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. 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 Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. 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 Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. 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 Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. 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 Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd. 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 Dunlop Pacific needs to make to build a sustainable competitive advantage.