Organizing for Innovation at Glenmark (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Organizing for Innovation at Glenmark (A)
The case traces the journey of an Indian pharmaceutical firm, Glenmark Pharmaceuticals, which had traditionally focused on generic drugs, into the area of discovery research. After India entered the global product patent system with the signing of the WTO TRIPs agreement in 1994, a number of Indian companies sought to move into discovery research. Glenmark invested heavily in developing its capabilities to undertake high-risk pharmaceutical research, and within three years developed several promising molecules. The company signed out-licensing agreements for the molecules with international companies two agreements with U.S.-based Eli Lilly and Company and one each with U.S.-based Forest Laboratories and Germany-based Merck KGaA. The case takes students back to 2008, one of the most critical periods in the company's evolution. Three of Glenmark's four drug development projects have failed and the fourth is showing signs of failure. The company's stock price has plummeted and the management is under pressure from financial analysts to drop discovery research and focus on what they had always done best generics. The case puts participants in the chair of Glenmark's CEO Glenn Saldanha, who must, amid the building pressure and resource constraints on the company, develop a future plan of action for its R&D. To be or not to be the innovation company? That is the question before Saldanha and the class.
Swot Analysis of "Organizing for Innovation at Glenmark (A)" written by Nita Sachan, Charles Dhanaraj includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Glenmark Glenmark's facing as an external strategic factors. Some of the topics covered in Organizing for Innovation at Glenmark (A) case study are - Strategic Management Strategies, Innovation, Joint ventures, Leadership, Risk management and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Organizing for Innovation at Glenmark (A) casestudy better are - – increasing commodity prices, there is backlash against globalization, geopolitical disruptions, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, increasing energy prices,
talent flight as more people leaving formal jobs, technology disruption, etc
Introduction to SWOT Analysis of Organizing for Innovation at Glenmark (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Organizing for Innovation at Glenmark (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Glenmark Glenmark's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Glenmark Glenmark's 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 Organizing for Innovation at Glenmark (A) can be done for the following purposes –
1. Strategic planning using facts provided in Organizing for Innovation at Glenmark (A) case study
2. Improving business portfolio management of Glenmark Glenmark's
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Glenmark Glenmark's
Strengths Organizing for Innovation at Glenmark (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Glenmark Glenmark's in Organizing for Innovation at Glenmark (A) Harvard Business Review case study are -
Effective Research and Development (R&D)
– Glenmark Glenmark's 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 Organizing for Innovation at Glenmark (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Glenmark Glenmark's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Organizing for Innovation at Glenmark (A) 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.
Ability to recruit top talent
– Glenmark Glenmark's is one of the leading recruiters in the industry. Managers in the Organizing for Innovation at Glenmark (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Glenmark Glenmark's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Glenmark Glenmark's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Organizing for Innovation at Glenmark (A) firm has clearly differentiated products in the market place. This has enabled Glenmark Glenmark's to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Glenmark Glenmark's to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Glenmark Glenmark's in the sector have low bargaining power. Organizing for Innovation at Glenmark (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Glenmark Glenmark's to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Innovation & Entrepreneurship field
– Glenmark Glenmark's 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 Glenmark Glenmark's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Organizing for Innovation at Glenmark (A) 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
- Glenmark Glenmark's 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 Glenmark Glenmark's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Organizing for Innovation at Glenmark (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Glenmark Glenmark's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Glenmark Glenmark's 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.
Analytics focus
– Glenmark Glenmark's 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 Nita Sachan, Charles Dhanaraj 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.
Innovation driven organization
– Glenmark Glenmark's is one of the most innovative firm in sector. Manager in Organizing for Innovation at Glenmark (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Organizing for Innovation at Glenmark (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Organizing for Innovation at Glenmark (A) are -
Need for greater diversity
– Glenmark Glenmark's 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.
Capital Spending Reduction
– Even during the low interest decade, Glenmark Glenmark's 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.
Products dominated business model
– Even though Glenmark Glenmark's 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 - Organizing for Innovation at Glenmark (A) should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Organizing for Innovation at Glenmark (A), it seems that the employees of Glenmark Glenmark's 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.
Aligning sales with marketing
– It come across in the case study Organizing for Innovation at Glenmark (A) 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 Organizing for Innovation at Glenmark (A) can leverage the sales team experience to cultivate customer relationships as Glenmark Glenmark's is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Nita Sachan, Charles Dhanaraj suggests that, Glenmark Glenmark's is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Lack of clear differentiation of Glenmark Glenmark's products
– To increase the profitability and margins on the products, Glenmark Glenmark's needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Organizing for Innovation at Glenmark (A), in the dynamic environment Glenmark Glenmark's has struggled to respond to the nimble upstart competition. Glenmark Glenmark's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Organizing for Innovation at Glenmark (A), it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.
Slow decision making process
– As mentioned earlier in the report, Glenmark Glenmark's 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. Glenmark Glenmark's 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.
Skills based hiring
– The stress on hiring functional specialists at Glenmark Glenmark's 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.
Opportunities Organizing for Innovation at Glenmark (A) | 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 Organizing for Innovation at Glenmark (A) are -
Loyalty marketing
– Glenmark Glenmark's 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Glenmark Glenmark's 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, Organizing for Innovation at Glenmark (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Glenmark Glenmark's 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.
Leveraging digital technologies
– Glenmark Glenmark's 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.
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 Glenmark Glenmark's in the consumer business. Now Glenmark Glenmark's can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Glenmark Glenmark's can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
Better consumer reach
– The expansion of the 5G network will help Glenmark Glenmark's to increase its market reach. Glenmark Glenmark's 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Glenmark Glenmark's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Glenmark Glenmark's has opened avenues for new revenue streams for the organization in the industry. This can help Glenmark Glenmark's to build a more holistic ecosystem as suggested in the Organizing for Innovation at Glenmark (A) case study. Glenmark Glenmark's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Glenmark Glenmark's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Glenmark Glenmark's has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Organizing for Innovation at Glenmark (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Glenmark Glenmark's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Glenmark Glenmark's can use these opportunities to build new business models that can help the communities that Glenmark Glenmark's operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Glenmark Glenmark's 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 Glenmark Glenmark's to hire the very best people irrespective of their geographical location.
Threats Organizing for Innovation at Glenmark (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Organizing for Innovation at Glenmark (A) are -
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 Glenmark Glenmark's in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Glenmark Glenmark's 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 Organizing for Innovation at Glenmark (A) .
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. Glenmark Glenmark's needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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 Glenmark Glenmark's business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Glenmark Glenmark's
– 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 Glenmark Glenmark's.
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. Glenmark Glenmark's 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.
Regulatory challenges
– Glenmark Glenmark's 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 Innovation & Entrepreneurship industry regulations.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Organizing for Innovation at Glenmark (A), Glenmark Glenmark's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Glenmark Glenmark's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Glenmark Glenmark's 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. Glenmark Glenmark's can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Stagnating economy with rate increase
– Glenmark Glenmark's 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.
Shortening product life cycle
– it is one of the major threat that Glenmark Glenmark's is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Organizing for Innovation at Glenmark (A) 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 Organizing for Innovation at Glenmark (A) 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 Organizing for Innovation at Glenmark (A) 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 Organizing for Innovation at Glenmark (A) 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 Organizing for Innovation at Glenmark (A) 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 Glenmark Glenmark's needs to make to build a sustainable competitive advantage.
