Learning to Lead in China: Antonio Scarsi Takes Command SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Learning to Lead in China: Antonio Scarsi Takes Command
This case, presented in an interesting cartoon format, describes the first week after Antonio Scarsi (disguised), an expatriate executive, takes on the role of CEO in a poorly performing and demoralized domestic Chinese company. Although Antonio had extensive China experience, including considerable language capabilities, he knew little about this company, in which he was the only non-Chinese employee, and had never before worked outside of the support network of a major multinational corporation. He aimed to turn around the company in six months. His challenge was how to learn about the firm as quickly and effectively as possible and signal his intentions to revitalize it to the employees. This case might be used in conjunction with the case titled "Michael Faye Goes To China" (IMD322). Together the two cases focus on the theme "Learning about Leading in China", and encourage participants to consider the very different learning styles and common leadership traits of two expatriate executives facing compelling managerial challenges in growing their Chinese business. The cases stimulate participants to reflect on: 1) what their own leadership and learning styles are like, and their implications; 2) what they could do to become more effective and efficient leaders and learners in any new assignment; and 3) how to learn from one another during class discussion.
Swot Analysis of "Learning to Lead in China: Antonio Scarsi Takes Command" written by William A. Fischer, Rebecca Chung includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Antonio Scarsi facing as an external strategic factors. Some of the topics covered in Learning to Lead in China: Antonio Scarsi Takes Command case study are - Strategic Management Strategies, Emerging markets, Leadership and Global Business.
Some of the macro environment factors that can be used to understand the Learning to Lead in China: Antonio Scarsi Takes Command casestudy better are - – digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, there is backlash against globalization, cloud computing is disrupting traditional business models,
challanges to central banks by blockchain based private currencies, technology disruption, etc
Introduction to SWOT Analysis of Learning to Lead in China: Antonio Scarsi Takes Command
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Learning to Lead in China: Antonio Scarsi Takes Command case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Antonio Scarsi, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Antonio Scarsi 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 Learning to Lead in China: Antonio Scarsi Takes Command can be done for the following purposes –
1. Strategic planning using facts provided in Learning to Lead in China: Antonio Scarsi Takes Command case study
2. Improving business portfolio management of Antonio Scarsi
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 Antonio Scarsi
Strengths Learning to Lead in China: Antonio Scarsi Takes Command | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Antonio Scarsi in Learning to Lead in China: Antonio Scarsi Takes Command Harvard Business Review case study are -
Training and development
– Antonio Scarsi has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Learning to Lead in China: Antonio Scarsi Takes Command 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
– Antonio Scarsi is one of the most innovative firm in sector. Manager in Learning to Lead in China: Antonio Scarsi Takes Command Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Antonio Scarsi has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Antonio Scarsi to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Antonio Scarsi is present in almost all the verticals within the industry. This has provided firm in Learning to Lead in China: Antonio Scarsi Takes Command 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.
Organizational Resilience of Antonio Scarsi
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Antonio Scarsi does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Antonio Scarsi 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 Learning to Lead in China: Antonio Scarsi Takes Command - 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
– Antonio Scarsi is one of the leading recruiters in the industry. Managers in the Learning to Lead in China: Antonio Scarsi Takes Command 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 switching costs
– The high switching costs that Antonio Scarsi 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.
Analytics focus
– Antonio Scarsi 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 William A. Fischer, Rebecca Chung 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.
Operational resilience
– The operational resilience strategy in the Learning to Lead in China: Antonio Scarsi Takes Command 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.
Learning organization
- Antonio Scarsi 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 Antonio Scarsi is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Learning to Lead in China: Antonio Scarsi Takes Command Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Global Business field
– Antonio Scarsi 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 Antonio Scarsi in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Learning to Lead in China: Antonio Scarsi Takes Command | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Learning to Lead in China: Antonio Scarsi Takes Command are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Antonio Scarsi is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Learning to Lead in China: Antonio Scarsi Takes Command can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Antonio Scarsi 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Learning to Lead in China: Antonio Scarsi Takes Command, is just above the industry average. Antonio Scarsi 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.
Lack of clear differentiation of Antonio Scarsi products
– To increase the profitability and margins on the products, Antonio Scarsi needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Learning to Lead in China: Antonio Scarsi Takes Command, it seems that the employees of Antonio Scarsi 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.
Products dominated business model
– Even though Antonio Scarsi 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 - Learning to Lead in China: Antonio Scarsi Takes Command should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Antonio Scarsi 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Learning to Lead in China: Antonio Scarsi Takes Command 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 Antonio Scarsi has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Learning to Lead in China: Antonio Scarsi Takes Command, 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.
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 Antonio Scarsi supply chain. Even after few cautionary changes mentioned in the HBR case study - Learning to Lead in China: Antonio Scarsi Takes Command, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Antonio Scarsi vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Antonio Scarsi 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 Learning to Lead in China: Antonio Scarsi Takes Command | 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 Learning to Lead in China: Antonio Scarsi Takes Command are -
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. Antonio Scarsi 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 Antonio Scarsi 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.
Manufacturing automation
– Antonio Scarsi 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Antonio Scarsi can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Antonio Scarsi can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Creating value in data economy
– The success of analytics program of Antonio Scarsi has opened avenues for new revenue streams for the organization in the industry. This can help Antonio Scarsi to build a more holistic ecosystem as suggested in the Learning to Lead in China: Antonio Scarsi Takes Command case study. Antonio Scarsi can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Antonio Scarsi can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Learning to Lead in China: Antonio Scarsi Takes Command 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.
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. Antonio Scarsi 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 Antonio Scarsi 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Antonio Scarsi can use these opportunities to build new business models that can help the communities that Antonio Scarsi operates in. Secondly it can use opportunities from government spending in Global Business sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Antonio Scarsi 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, Learning to Lead in China: Antonio Scarsi Takes Command, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Antonio Scarsi 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.
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 Antonio Scarsi in the consumer business. Now Antonio Scarsi 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 Antonio Scarsi 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 Antonio Scarsi to hire the very best people irrespective of their geographical location.
Threats Learning to Lead in China: Antonio Scarsi Takes Command External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Learning to Lead in China: Antonio Scarsi Takes Command are -
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. Antonio Scarsi 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.
Increasing wage structure of Antonio Scarsi
– 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 Antonio Scarsi.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Learning to Lead in China: Antonio Scarsi Takes Command, Antonio Scarsi 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 .
Regulatory challenges
– Antonio Scarsi 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.
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 Antonio Scarsi business can come under increasing regulations regarding data privacy, data security, etc.
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. Antonio Scarsi 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
– Antonio Scarsi has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Antonio Scarsi 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.
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. Antonio Scarsi needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Antonio Scarsi is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Environmental challenges
– Antonio Scarsi 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. Antonio Scarsi can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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 Antonio Scarsi.
High dependence on third party suppliers
– Antonio Scarsi 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.
Weighted SWOT Analysis of Learning to Lead in China: Antonio Scarsi Takes Command 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 Learning to Lead in China: Antonio Scarsi Takes Command 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 Learning to Lead in China: Antonio Scarsi Takes Command 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 Learning to Lead in China: Antonio Scarsi Takes Command 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 Learning to Lead in China: Antonio Scarsi Takes Command 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 Antonio Scarsi needs to make to build a sustainable competitive advantage.
