Learning to Lead in China: Michael Faye Goes to China 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: Michael Faye Goes to China
This case, presented in an interesting cartoon format, describes the first two weeks after Michael Faye (disguised), an expatriate executive, takes over as president of the ongoing China operations of a leading Western multinational corporation. A Zimbabwean by birth, with considerable Asian experience, Michael had little first-hand experience in the China market per se. His challenge lay in quickly climbing a steep learning curve to find the easiest and shortest path to fulfill his twin goals of repositioning the operations within the China market and repositioning China within the multinational corporation's mindset. The accompanying video, featuring an interview with Michael, gives participants insight into how he sees his role, as well as his learning and networking approach. This case might be used in conjunction with the case titled "Antonio Scarsi Takes Command" (IMD324). 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: Michael Faye Goes to China" written by William A. Fischer, Rebecca Chung includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Learning China facing as an external strategic factors. Some of the topics covered in Learning to Lead in China: Michael Faye Goes to China 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: Michael Faye Goes to China casestudy better are - – increasing transportation and logistics costs, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google,
talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Learning to Lead in China: Michael Faye Goes to China
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: Michael Faye Goes to China case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Learning China, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Learning China 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: Michael Faye Goes to China can be done for the following purposes –
1. Strategic planning using facts provided in Learning to Lead in China: Michael Faye Goes to China case study
2. Improving business portfolio management of Learning China
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 Learning China
Strengths Learning to Lead in China: Michael Faye Goes to China | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Learning China in Learning to Lead in China: Michael Faye Goes to China Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Learning China in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Learning China digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Learning China 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.
Effective Research and Development (R&D)
– Learning China 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: Michael Faye Goes to China - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Learning China has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Learning to Lead in China: Michael Faye Goes to China HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Learning China 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: Michael Faye Goes to China 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.
High brand equity
– Learning China has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Learning China to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Learning China is one of the leading recruiters in the industry. Managers in the Learning to Lead in China: Michael Faye Goes to China are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Learning to Lead in China: Michael Faye Goes to China 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.
Low bargaining power of suppliers
– Suppliers of Learning China in the sector have low bargaining power. Learning to Lead in China: Michael Faye Goes to China has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Learning China to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Learning China 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.
Diverse revenue streams
– Learning China is present in almost all the verticals within the industry. This has provided firm in Learning to Lead in China: Michael Faye Goes to China 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.
High switching costs
– The high switching costs that Learning China 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.
Weaknesses Learning to Lead in China: Michael Faye Goes to China | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Learning to Lead in China: Michael Faye Goes to China are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Learning to Lead in China: Michael Faye Goes to China 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 Learning China has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Learning to Lead in China: Michael Faye Goes to China has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Learning China 's lucrative customers.
Need for greater diversity
– Learning China 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.
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 Learning China supply chain. Even after few cautionary changes mentioned in the HBR case study - Learning to Lead in China: Michael Faye Goes to China, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Learning China vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Learning to Lead in China: Michael Faye Goes to China HBR case study mentions - Learning China 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.
No frontier risks strategy
– After analyzing the HBR case study Learning to Lead in China: Michael Faye Goes to China, 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Learning to Lead in China: Michael Faye Goes to China, in the dynamic environment Learning China has struggled to respond to the nimble upstart competition. Learning China has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Learning China 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.
High cash cycle compare to competitors
Learning China 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.
Increasing silos among functional specialists
– The organizational structure of Learning China is dominated by functional specialists. It is not different from other players in the Global Business segment. Learning China needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Learning China to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Learning China 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: Michael Faye Goes to China should strive to include more intangible value offerings along with its core products and services.
Opportunities Learning to Lead in China: Michael Faye Goes to China | 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: Michael Faye Goes to China are -
Buying journey improvements
– Learning China can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Learning to Lead in China: Michael Faye Goes to China 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 Learning China has opened avenues for new revenue streams for the organization in the industry. This can help Learning China to build a more holistic ecosystem as suggested in the Learning to Lead in China: Michael Faye Goes to China case study. Learning China can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Learning China 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.
Better consumer reach
– The expansion of the 5G network will help Learning China to increase its market reach. Learning China 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.
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 Learning China 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.
Building a culture of innovation
– managers at Learning China 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Learning China 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.
Developing new processes and practices
– Learning China 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Learning China 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 Learning China to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Learning China has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Learning at scale
– Online learning technologies has now opened space for Learning China 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Learning China can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Learning China in the consumer business. Now Learning China can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Learning to Lead in China: Michael Faye Goes to China 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: Michael Faye Goes to China are -
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Learning China.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Learning China 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 Learning to Lead in China: Michael Faye Goes to China .
Stagnating economy with rate increase
– Learning China 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.
Regulatory challenges
– Learning China 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.
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: Michael Faye Goes to China, Learning China 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 .
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.
Consumer confidence and its impact on Learning China 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.
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.
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. Learning China can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Learning China in the Global Business sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Learning China with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Learning China business can come under increasing regulations regarding data privacy, data security, etc.
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. Learning China needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Learning to Lead in China: Michael Faye Goes to China 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: Michael Faye Goes to China 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: Michael Faye Goes to China 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: Michael Faye Goes to China 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: Michael Faye Goes to China 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 Learning China needs to make to build a sustainable competitive advantage.