Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism
This case examines the management of home and host country risk by Beiersdorf during the interwar years. It can be used both in business history courses and more generally to teach political risk management by multinational corporations. Beiersdorf, a German personal products company, expanded globally before 1914, but had its foreign factories and intellectual property expropriated during World War 1. After 1919 ceo Willy Jacobson rebuilt the international business, and sought to protect it by "cloaking" the ultimate ownership. Following the appointment of Adolf Hitler, as German Chancellor in 1933, Beiersdorf and Jacobson personally also came under attack by the anti-Semitic Nazi regime in its home country. The case can be used as a vehicle to understand the rise of both host and home country risk by companies during the interwar years, and more generally to explore the strategies which firms can follow to attempt to manage such risks.
Swot Analysis of "Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism" written by Geoffrey G. Jones, Christina Lubinski includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Beiersdorf Jacobson facing as an external strategic factors. Some of the topics covered in Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism case study are - Strategic Management Strategies, Collaboration, Entrepreneurial management, Ethics, Government, International business, Risk management, Strategy execution and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, challanges to central banks by blockchain based private currencies, increasing energy prices, technology disruption, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy,
supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Beiersdorf Jacobson, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Beiersdorf Jacobson 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 Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism can be done for the following purposes –
1. Strategic planning using facts provided in Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism case study
2. Improving business portfolio management of Beiersdorf Jacobson
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 Beiersdorf Jacobson
Strengths Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Beiersdorf Jacobson in Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism Harvard Business Review case study are -
Analytics focus
– Beiersdorf Jacobson 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 Geoffrey G. Jones, Christina Lubinski 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.
Strong track record of project management
– Beiersdorf Jacobson is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Beiersdorf Jacobson has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism 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.
Effective Research and Development (R&D)
– Beiersdorf Jacobson 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 Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism - 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 Beiersdorf Jacobson in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Beiersdorf Jacobson has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Beiersdorf Jacobson to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Beiersdorf Jacobson
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Beiersdorf Jacobson does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Beiersdorf Jacobson has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Beiersdorf Jacobson 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.
Highly skilled collaborators
– Beiersdorf Jacobson 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 Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Innovation & Entrepreneurship field
– Beiersdorf Jacobson 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 Beiersdorf Jacobson in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Beiersdorf Jacobson 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.
High switching costs
– The high switching costs that Beiersdorf Jacobson 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 Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism are -
Skills based hiring
– The stress on hiring functional specialists at Beiersdorf Jacobson 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.
Products dominated business model
– Even though Beiersdorf Jacobson 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 - Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism 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 Beiersdorf Jacobson has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Beiersdorf Jacobson 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. Beiersdorf Jacobson 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.
Slow to strategic competitive environment developments
– As Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism HBR case study mentions - Beiersdorf Jacobson 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.
Capital Spending Reduction
– Even during the low interest decade, Beiersdorf Jacobson 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.
No frontier risks strategy
– After analyzing the HBR case study Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism, 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Beiersdorf Jacobson 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.
High cash cycle compare to competitors
Beiersdorf Jacobson 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism, in the dynamic environment Beiersdorf Jacobson has struggled to respond to the nimble upstart competition. Beiersdorf Jacobson 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
– Beiersdorf Jacobson has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Opportunities Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism | 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 Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism are -
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 Beiersdorf Jacobson 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Beiersdorf Jacobson can use these opportunities to build new business models that can help the communities that Beiersdorf Jacobson operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Developing new processes and practices
– Beiersdorf Jacobson can develop new processes and procedures in Innovation & Entrepreneurship 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.
Learning at scale
– Online learning technologies has now opened space for Beiersdorf Jacobson 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.
Building a culture of innovation
– managers at Beiersdorf Jacobson 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 Innovation & Entrepreneurship segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Beiersdorf Jacobson can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Beiersdorf Jacobson 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. Beiersdorf Jacobson 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.
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. Beiersdorf Jacobson 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, Beiersdorf Jacobson 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, Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism, 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, Beiersdorf Jacobson is facing challenges because of the dominance of functional experts in the organization. Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Beiersdorf Jacobson 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Beiersdorf Jacobson 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 Beiersdorf Jacobson to hire the very best people irrespective of their geographical location.
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 Beiersdorf Jacobson in the consumer business. Now Beiersdorf Jacobson can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism are -
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. Beiersdorf Jacobson can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism, Beiersdorf Jacobson 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 .
Increasing wage structure of Beiersdorf Jacobson
– 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 Beiersdorf Jacobson.
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 Beiersdorf Jacobson business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Beiersdorf Jacobson 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. Beiersdorf Jacobson can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Beiersdorf Jacobson 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 Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism .
Consumer confidence and its impact on Beiersdorf Jacobson 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.
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 Beiersdorf Jacobson.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Beiersdorf Jacobson in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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 Beiersdorf Jacobson with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Beiersdorf Jacobson 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 Beiersdorf Jacobson is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Beiersdorf Jacobson 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.
Weighted SWOT Analysis of Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism 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 Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism 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 Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism 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 Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism 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 Willy Jacobsohn and Beiersdorf: Managing Expropriation and Anti-Semitism 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 Beiersdorf Jacobson needs to make to build a sustainable competitive advantage.
