How Much and From Whom?: An Exercise in Seed-Stage Financing SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of How Much and From Whom?: An Exercise in Seed-Stage Financing
The founders of start-up biotech company Chiral Intermediates have an important decision to make. How much money to raise? When? And from what kinds of funding sources? This exercise walks through the market for chiral intermediates (a material that reduces harmful drug side effects), this new company's business model, and its quest for seed-stage financing.
Swot Analysis of "How Much and From Whom?: An Exercise in Seed-Stage Financing" written by Thomas S. Porter includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Chiral Intermediates facing as an external strategic factors. Some of the topics covered in How Much and From Whom?: An Exercise in Seed-Stage Financing case study are - Strategic Management Strategies, Financial management and Finance & Accounting.
Some of the macro environment factors that can be used to understand the How Much and From Whom?: An Exercise in Seed-Stage Financing casestudy better are - – technology disruption, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation,
there is backlash against globalization, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of How Much and From Whom?: An Exercise in Seed-Stage Financing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in How Much and From Whom?: An Exercise in Seed-Stage Financing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Chiral Intermediates, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Chiral Intermediates 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 How Much and From Whom?: An Exercise in Seed-Stage Financing can be done for the following purposes –
1. Strategic planning using facts provided in How Much and From Whom?: An Exercise in Seed-Stage Financing case study
2. Improving business portfolio management of Chiral Intermediates
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Chiral Intermediates
Strengths How Much and From Whom?: An Exercise in Seed-Stage Financing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Chiral Intermediates in How Much and From Whom?: An Exercise in Seed-Stage Financing Harvard Business Review case study are -
Diverse revenue streams
– Chiral Intermediates is present in almost all the verticals within the industry. This has provided firm in How Much and From Whom?: An Exercise in Seed-Stage Financing 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.
Learning organization
- Chiral Intermediates 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 Chiral Intermediates is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in How Much and From Whom?: An Exercise in Seed-Stage Financing Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Finance & Accounting industry
– How Much and From Whom?: An Exercise in Seed-Stage Financing firm has clearly differentiated products in the market place. This has enabled Chiral Intermediates to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Chiral Intermediates to invest into research and development (R&D) and innovation.
Organizational Resilience of Chiral Intermediates
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Chiral Intermediates does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Chiral Intermediates has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Chiral Intermediates to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Chiral Intermediates has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Chiral Intermediates has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Low bargaining power of suppliers
– Suppliers of Chiral Intermediates in the sector have low bargaining power. How Much and From Whom?: An Exercise in Seed-Stage Financing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Chiral Intermediates to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the How Much and From Whom?: An Exercise in Seed-Stage Financing 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.
Analytics focus
– Chiral Intermediates 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 Thomas S. Porter 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.
Effective Research and Development (R&D)
– Chiral Intermediates 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 How Much and From Whom?: An Exercise in Seed-Stage Financing - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Chiral Intermediates in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Chiral Intermediates 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 How Much and From Whom?: An Exercise in Seed-Stage Financing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of How Much and From Whom?: An Exercise in Seed-Stage Financing are -
Interest costs
– Compare to the competition, Chiral Intermediates 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.
Aligning sales with marketing
– It come across in the case study How Much and From Whom?: An Exercise in Seed-Stage Financing 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 How Much and From Whom?: An Exercise in Seed-Stage Financing can leverage the sales team experience to cultivate customer relationships as Chiral Intermediates 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 Chiral Intermediates supply chain. Even after few cautionary changes mentioned in the HBR case study - How Much and From Whom?: An Exercise in Seed-Stage Financing, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Chiral Intermediates vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Thomas S. Porter suggests that, Chiral Intermediates 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.
Products dominated business model
– Even though Chiral Intermediates 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 - How Much and From Whom?: An Exercise in Seed-Stage Financing should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Chiral Intermediates 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.
Skills based hiring
– The stress on hiring functional specialists at Chiral Intermediates 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.
Increasing silos among functional specialists
– The organizational structure of Chiral Intermediates is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Chiral Intermediates needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Chiral Intermediates to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Chiral Intermediates 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.
No frontier risks strategy
– After analyzing the HBR case study How Much and From Whom?: An Exercise in Seed-Stage Financing, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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 to strategic competitive environment developments
– As How Much and From Whom?: An Exercise in Seed-Stage Financing HBR case study mentions - Chiral Intermediates 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.
Opportunities How Much and From Whom?: An Exercise in Seed-Stage Financing | 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 How Much and From Whom?: An Exercise in Seed-Stage Financing are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Chiral Intermediates can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Chiral Intermediates can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Chiral Intermediates 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, How Much and From Whom?: An Exercise in Seed-Stage Financing, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Chiral Intermediates is facing challenges because of the dominance of functional experts in the organization. How Much and From Whom?: An Exercise in Seed-Stage Financing 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.
Developing new processes and practices
– Chiral Intermediates can develop new processes and procedures in Finance & Accounting 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 Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Chiral Intermediates 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. Chiral Intermediates 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, Chiral Intermediates can use these opportunities to build new business models that can help the communities that Chiral Intermediates operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Creating value in data economy
– The success of analytics program of Chiral Intermediates has opened avenues for new revenue streams for the organization in the industry. This can help Chiral Intermediates to build a more holistic ecosystem as suggested in the How Much and From Whom?: An Exercise in Seed-Stage Financing case study. Chiral Intermediates can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Chiral Intermediates 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Chiral Intermediates in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Chiral Intermediates can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Chiral Intermediates 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 Chiral Intermediates to increase its market reach. Chiral Intermediates 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.
Threats How Much and From Whom?: An Exercise in Seed-Stage Financing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study How Much and From Whom?: An Exercise in Seed-Stage Financing are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Chiral Intermediates 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.
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.
High dependence on third party suppliers
– Chiral Intermediates 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.
Shortening product life cycle
– it is one of the major threat that Chiral Intermediates is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Chiral Intermediates in the Finance & Accounting sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Chiral Intermediates 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 Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Chiral Intermediates can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Chiral Intermediates in the Finance & Accounting industry. The Finance & Accounting 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.
Consumer confidence and its impact on Chiral Intermediates 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.
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 Chiral Intermediates business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Chiral Intermediates 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 How Much and From Whom?: An Exercise in Seed-Stage Financing .
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. Chiral Intermediates needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Weighted SWOT Analysis of How Much and From Whom?: An Exercise in Seed-Stage Financing 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 How Much and From Whom?: An Exercise in Seed-Stage Financing 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 How Much and From Whom?: An Exercise in Seed-Stage Financing 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 How Much and From Whom?: An Exercise in Seed-Stage Financing 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 How Much and From Whom?: An Exercise in Seed-Stage Financing 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 Chiral Intermediates needs to make to build a sustainable competitive advantage.
