Mavesa (B): International Strategy and Valuation Concerns SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mavesa (B): International Strategy and Valuation Concerns
Examines Mavesa's response to economic liberalization. Looks at Mavesa's efforts to expand into neighboring countries. Also looks at efforts to support the firm's stock price. A rewritten version of an earlier case.
Swot Analysis of "Mavesa (B): International Strategy and Valuation Concerns" written by Robert E. Kennedy includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mavesa's Mavesa facing as an external strategic factors. Some of the topics covered in Mavesa (B): International Strategy and Valuation Concerns case study are - Strategic Management Strategies, Emerging markets, Globalization, Policy and Global Business.
Some of the macro environment factors that can be used to understand the Mavesa (B): International Strategy and Valuation Concerns casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, there is backlash against globalization,
wage bills are increasing, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Mavesa (B): International Strategy and Valuation Concerns
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mavesa (B): International Strategy and Valuation Concerns case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mavesa's Mavesa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mavesa's 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 (B): International Strategy and Valuation Concerns can be done for the following purposes –
1. Strategic planning using facts provided in Mavesa (B): International Strategy and Valuation Concerns case study
2. Improving business portfolio management of Mavesa's 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 Mavesa's Mavesa
Strengths Mavesa (B): International Strategy and Valuation Concerns | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mavesa's Mavesa in Mavesa (B): International Strategy and Valuation Concerns Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Mavesa's Mavesa in the sector have low bargaining power. Mavesa (B): International Strategy and Valuation Concerns has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mavesa's Mavesa to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Mavesa's 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.
Organizational Resilience of Mavesa's Mavesa
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mavesa's Mavesa does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Global Business field
– Mavesa's Mavesa 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 Mavesa's Mavesa in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Global Business industry
– Mavesa (B): International Strategy and Valuation Concerns firm has clearly differentiated products in the market place. This has enabled Mavesa's Mavesa to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Mavesa's Mavesa to invest into research and development (R&D) and innovation.
High brand equity
– Mavesa's Mavesa has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mavesa's Mavesa to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Mavesa's Mavesa 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 Mavesa (B): International Strategy and Valuation Concerns HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Mavesa's Mavesa is present in almost all the verticals within the industry. This has provided firm in Mavesa (B): International Strategy and Valuation Concerns 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.
Effective Research and Development (R&D)
– Mavesa's 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 (B): International Strategy and Valuation Concerns - 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
– Mavesa's Mavesa is one of the leading recruiters in the industry. Managers in the Mavesa (B): International Strategy and Valuation Concerns are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Mavesa's Mavesa 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 Robert E. Kennedy 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
– Mavesa's Mavesa has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mavesa (B): International Strategy and Valuation Concerns 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 (B): International Strategy and Valuation Concerns | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mavesa (B): International Strategy and Valuation Concerns are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Mavesa (B): International Strategy and Valuation Concerns, it seems that the employees of Mavesa's 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.
High cash cycle compare to competitors
Mavesa's 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.
Slow to strategic competitive environment developments
– As Mavesa (B): International Strategy and Valuation Concerns HBR case study mentions - Mavesa's 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Mavesa's 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.
Low market penetration in new markets
– Outside its home market of Mavesa's Mavesa, firm in the HBR case study Mavesa (B): International Strategy and Valuation Concerns needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Mavesa's Mavesa has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Aligning sales with marketing
– It come across in the case study Mavesa (B): International Strategy and Valuation Concerns 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 Mavesa (B): International Strategy and Valuation Concerns can leverage the sales team experience to cultivate customer relationships as Mavesa's Mavesa is planning to shift buying processes online.
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 Mavesa's Mavesa supply chain. Even after few cautionary changes mentioned in the HBR case study - Mavesa (B): International Strategy and Valuation Concerns, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mavesa's Mavesa vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Mavesa (B): International Strategy and Valuation Concerns, in the dynamic environment Mavesa's Mavesa has struggled to respond to the nimble upstart competition. Mavesa's Mavesa has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Mavesa's 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.
Lack of clear differentiation of Mavesa's Mavesa products
– To increase the profitability and margins on the products, Mavesa's Mavesa needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Mavesa (B): International Strategy and Valuation Concerns | 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 (B): International Strategy and Valuation Concerns are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mavesa's Mavesa is facing challenges because of the dominance of functional experts in the organization. Mavesa (B): International Strategy and Valuation Concerns 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.
Creating value in data economy
– The success of analytics program of Mavesa's Mavesa has opened avenues for new revenue streams for the organization in the industry. This can help Mavesa's Mavesa to build a more holistic ecosystem as suggested in the Mavesa (B): International Strategy and Valuation Concerns case study. Mavesa's Mavesa can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Mavesa's Mavesa can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mavesa's Mavesa 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.
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 Mavesa's 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.
Manufacturing automation
– Mavesa's 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.
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. Mavesa's Mavesa can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Mavesa's 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.
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. Mavesa's Mavesa 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. Mavesa's Mavesa 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mavesa's Mavesa can use these opportunities to build new business models that can help the communities that Mavesa's Mavesa operates in. Secondly it can use opportunities from government spending in Global Business sector.
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 Mavesa's Mavesa in the consumer business. Now Mavesa's Mavesa can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Mavesa's Mavesa 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mavesa's 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 Mavesa's Mavesa to hire the very best people irrespective of their geographical location.
Threats Mavesa (B): International Strategy and Valuation Concerns External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mavesa (B): International Strategy and Valuation Concerns are -
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. Mavesa's Mavesa needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mavesa's 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mavesa's Mavesa with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Increasing wage structure of Mavesa's Mavesa
– 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 Mavesa's Mavesa.
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 Mavesa's Mavesa.
Shortening product life cycle
– it is one of the major threat that Mavesa's Mavesa is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mavesa's 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 (B): International Strategy and Valuation Concerns .
Regulatory challenges
– Mavesa's 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.
Environmental challenges
– Mavesa's Mavesa 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. Mavesa's Mavesa can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Stagnating economy with rate increase
– Mavesa's 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.
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. Mavesa's Mavesa can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Mavesa's Mavesa 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.
Weighted SWOT Analysis of Mavesa (B): International Strategy and Valuation Concerns 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 (B): International Strategy and Valuation Concerns 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 (B): International Strategy and Valuation Concerns 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 (B): International Strategy and Valuation Concerns 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 (B): International Strategy and Valuation Concerns 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 Mavesa's Mavesa needs to make to build a sustainable competitive advantage.
