Bancolombia: Talent, Culture and Value Creation Management in Mergers SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Bancolombia: Talent, Culture and Value Creation Management in Mergers
The case presents a review of the main facts related to the merger process experienced by three companies, Bancolombia, Conavi and Corfinsura, in the Colombian financial market during 2005 and 2006. The merger decision emerges from directors and senior executives visualizing an incoming significant market transformation - adjustment in industry regulation, improvement in international competence and consolidation of main players - and their further response in order to adapt to the new economic conditions. Considering the fact that the success rate of merger processes is not above 30 per cent, the sustained financial results achieved by Bancolombia from the very beginning of the integration process are robust indicators that invite exploration into what was done and how it was done.
Swot Analysis of "Bancolombia: Talent, Culture and Value Creation Management in Mergers" written by Juanita Cajiao includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bancolombia Merger facing as an external strategic factors. Some of the topics covered in Bancolombia: Talent, Culture and Value Creation Management in Mergers case study are - Strategic Management Strategies, Human resource management, International business, Leadership, Mergers & acquisitions, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Bancolombia: Talent, Culture and Value Creation Management in Mergers casestudy better are - – there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, talent flight as more people leaving formal jobs,
increasing energy prices, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Bancolombia: Talent, Culture and Value Creation Management in Mergers
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bancolombia: Talent, Culture and Value Creation Management in Mergers case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bancolombia Merger, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bancolombia Merger 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 Bancolombia: Talent, Culture and Value Creation Management in Mergers can be done for the following purposes –
1. Strategic planning using facts provided in Bancolombia: Talent, Culture and Value Creation Management in Mergers case study
2. Improving business portfolio management of Bancolombia Merger
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bancolombia Merger
Strengths Bancolombia: Talent, Culture and Value Creation Management in Mergers | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bancolombia Merger in Bancolombia: Talent, Culture and Value Creation Management in Mergers Harvard Business Review case study are -
Ability to recruit top talent
– Bancolombia Merger is one of the leading recruiters in the industry. Managers in the Bancolombia: Talent, Culture and Value Creation Management in Mergers are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Bancolombia Merger in the sector have low bargaining power. Bancolombia: Talent, Culture and Value Creation Management in Mergers has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bancolombia Merger to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Bancolombia Merger has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Bancolombia: Talent, Culture and Value Creation Management in Mergers 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.
Operational resilience
– The operational resilience strategy in the Bancolombia: Talent, Culture and Value Creation Management in Mergers 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.
Effective Research and Development (R&D)
– Bancolombia Merger 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 Bancolombia: Talent, Culture and Value Creation Management in Mergers - 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 lead change in Leadership & Managing People field
– Bancolombia Merger 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 Bancolombia Merger in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Bancolombia Merger 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 Bancolombia: Talent, Culture and Value Creation Management in Mergers HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Bancolombia Merger has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bancolombia Merger to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Bancolombia Merger digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bancolombia Merger 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.
Strong track record of project management
– Bancolombia Merger is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Bancolombia Merger is present in almost all the verticals within the industry. This has provided firm in Bancolombia: Talent, Culture and Value Creation Management in Mergers 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.
Successful track record of launching new products
– Bancolombia Merger has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bancolombia Merger 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.
Weaknesses Bancolombia: Talent, Culture and Value Creation Management in Mergers | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bancolombia: Talent, Culture and Value Creation Management in Mergers are -
High cash cycle compare to competitors
Bancolombia Merger 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.
Products dominated business model
– Even though Bancolombia Merger 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 - Bancolombia: Talent, Culture and Value Creation Management in Mergers should strive to include more intangible value offerings along with its core products and services.
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 Bancolombia Merger supply chain. Even after few cautionary changes mentioned in the HBR case study - Bancolombia: Talent, Culture and Value Creation Management in Mergers, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bancolombia Merger vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bancolombia Merger is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Bancolombia: Talent, Culture and Value Creation Management in Mergers can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Juanita Cajiao suggests that, Bancolombia Merger 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Bancolombia Merger 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.
Increasing silos among functional specialists
– The organizational structure of Bancolombia Merger is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Bancolombia Merger needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bancolombia Merger to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Bancolombia: Talent, Culture and Value Creation Management in Mergers 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 Bancolombia Merger has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Bancolombia: Talent, Culture and Value Creation Management in Mergers, is just above the industry average. Bancolombia Merger needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow to strategic competitive environment developments
– As Bancolombia: Talent, Culture and Value Creation Management in Mergers HBR case study mentions - Bancolombia Merger 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.
Need for greater diversity
– Bancolombia Merger 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 Bancolombia: Talent, Culture and Value Creation Management in Mergers | 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 Bancolombia: Talent, Culture and Value Creation Management in Mergers are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bancolombia Merger can use these opportunities to build new business models that can help the communities that Bancolombia Merger operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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. Bancolombia Merger can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Bancolombia Merger 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bancolombia Merger is facing challenges because of the dominance of functional experts in the organization. Bancolombia: Talent, Culture and Value Creation Management in Mergers 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.
Manufacturing automation
– Bancolombia Merger can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bancolombia Merger 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, Bancolombia: Talent, Culture and Value Creation Management in Mergers, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bancolombia Merger in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Leveraging digital technologies
– Bancolombia Merger 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.
Building a culture of innovation
– managers at Bancolombia Merger 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 Leadership & Managing People segment.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bancolombia Merger 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 Bancolombia Merger to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Bancolombia Merger to increase its market reach. Bancolombia Merger 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.
Using analytics as competitive advantage
– Bancolombia Merger 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 Bancolombia: Talent, Culture and Value Creation Management in Mergers - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bancolombia Merger to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Bancolombia Merger 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.
Threats Bancolombia: Talent, Culture and Value Creation Management in Mergers External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Bancolombia: Talent, Culture and Value Creation Management in Mergers are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bancolombia Merger 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 Bancolombia: Talent, Culture and Value Creation Management in Mergers .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Bancolombia: Talent, Culture and Value Creation Management in Mergers, Bancolombia Merger may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
High dependence on third party suppliers
– Bancolombia Merger 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.
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 Bancolombia Merger in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Bancolombia Merger needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Regulatory challenges
– Bancolombia Merger 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 Leadership & Managing People industry regulations.
Technology acceleration in Forth Industrial Revolution
– Bancolombia Merger has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Bancolombia Merger needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Environmental challenges
– Bancolombia Merger 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. Bancolombia Merger can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Bancolombia Merger 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.
Shortening product life cycle
– it is one of the major threat that Bancolombia Merger is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Bancolombia Merger 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bancolombia Merger in the Leadership & Managing People industry. The Leadership & Managing People 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.
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.
Weighted SWOT Analysis of Bancolombia: Talent, Culture and Value Creation Management in Mergers 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 Bancolombia: Talent, Culture and Value Creation Management in Mergers 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 Bancolombia: Talent, Culture and Value Creation Management in Mergers 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 Bancolombia: Talent, Culture and Value Creation Management in Mergers 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 Bancolombia: Talent, Culture and Value Creation Management in Mergers 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 Bancolombia Merger needs to make to build a sustainable competitive advantage.
