Wolfgang Keller at Konigsbrau-TAK (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Wolfgang Keller at Konigsbrau-TAK (A)
Wolfgang Keller, manager of the Ukrainian subsidiary of a German beer company, faces a managerial dilemma. His subordinate, Dmitri Brodsky, is a talented and experienced commercial director who is not meeting his goals expediently and often requires considerable assistance from Keller. Furthermore, Brodsky's style is causing conflict with clients, other staff members, and with Keller himself. Keller must decide the best course of action to take with this difficult employee in an environment in which the industry is rapidly changing and growing and the war for talent is strong. He must also consider what comprises an effective performance review and how his own behavior impacts Brodsky's poor performance. This case is a modernized revision of the popular case "Wolfgang Keller at KA?nigsbrA?u-Hellas (A)."
Swot Analysis of "Wolfgang Keller at Konigsbrau-TAK (A)" written by John J. Gabarro includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Keller Wolfgang facing as an external strategic factors. Some of the topics covered in Wolfgang Keller at Konigsbrau-TAK (A) case study are - Strategic Management Strategies, Conflict, Financial management, Human resource management, Leadership, Organizational structure and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Wolfgang Keller at Konigsbrau-TAK (A) casestudy better are - – wage bills are increasing, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, technology disruption, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs,
banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Wolfgang Keller at Konigsbrau-TAK (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Wolfgang Keller at Konigsbrau-TAK (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Keller Wolfgang, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Keller Wolfgang 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 Wolfgang Keller at Konigsbrau-TAK (A) can be done for the following purposes –
1. Strategic planning using facts provided in Wolfgang Keller at Konigsbrau-TAK (A) case study
2. Improving business portfolio management of Keller Wolfgang
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 Keller Wolfgang
Strengths Wolfgang Keller at Konigsbrau-TAK (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Keller Wolfgang in Wolfgang Keller at Konigsbrau-TAK (A) Harvard Business Review case study are -
Successful track record of launching new products
– Keller Wolfgang has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Keller Wolfgang 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.
Organizational Resilience of Keller Wolfgang
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Keller Wolfgang does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Keller Wolfgang 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 Keller Wolfgang is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Wolfgang Keller at Konigsbrau-TAK (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Keller Wolfgang 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 Wolfgang Keller at Konigsbrau-TAK (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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Keller Wolfgang digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Keller Wolfgang 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.
Superior customer experience
– The customer experience strategy of Keller Wolfgang 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 Keller Wolfgang 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.
High brand equity
– Keller Wolfgang has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Keller Wolfgang to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Keller Wolfgang is one of the leading recruiters in the industry. Managers in the Wolfgang Keller at Konigsbrau-TAK (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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Wolfgang Keller at Konigsbrau-TAK (A) firm has clearly differentiated products in the market place. This has enabled Keller Wolfgang to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Keller Wolfgang to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Wolfgang Keller at Konigsbrau-TAK (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.
Analytics focus
– Keller Wolfgang 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 John J. Gabarro 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.
Weaknesses Wolfgang Keller at Konigsbrau-TAK (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Wolfgang Keller at Konigsbrau-TAK (A) are -
High operating costs
– Compare to the competitors, firm in the HBR case study Wolfgang Keller at Konigsbrau-TAK (A) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Keller Wolfgang 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Keller Wolfgang, firm in the HBR case study Wolfgang Keller at Konigsbrau-TAK (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Wolfgang Keller at Konigsbrau-TAK (A), it seems that the employees of Keller Wolfgang don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High bargaining power of channel partners
– Because of the regulatory requirements, John J. Gabarro suggests that, Keller Wolfgang 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.
Slow decision making process
– As mentioned earlier in the report, Keller Wolfgang 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. Keller Wolfgang 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.
Lack of clear differentiation of Keller Wolfgang products
– To increase the profitability and margins on the products, Keller Wolfgang needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Wolfgang Keller at Konigsbrau-TAK (A), is just above the industry average. Keller Wolfgang 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 Wolfgang Keller at Konigsbrau-TAK (A) HBR case study mentions - Keller Wolfgang takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Workers concerns about automation
– As automation is fast increasing in the segment, Keller Wolfgang 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.
Capital Spending Reduction
– Even during the low interest decade, Keller Wolfgang has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Aligning sales with marketing
– It come across in the case study Wolfgang Keller at Konigsbrau-TAK (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 Wolfgang Keller at Konigsbrau-TAK (A) can leverage the sales team experience to cultivate customer relationships as Keller Wolfgang is planning to shift buying processes online.
Opportunities Wolfgang Keller at Konigsbrau-TAK (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 Wolfgang Keller at Konigsbrau-TAK (A) are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Keller Wolfgang 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, Wolfgang Keller at Konigsbrau-TAK (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.
Manufacturing automation
– Keller Wolfgang 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Keller Wolfgang can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Keller Wolfgang can develop new processes and procedures in Leadership & Managing People 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.
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 Keller Wolfgang 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.
Learning at scale
– Online learning technologies has now opened space for Keller Wolfgang 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Keller Wolfgang 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. Keller Wolfgang 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Keller Wolfgang 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Keller Wolfgang can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Keller Wolfgang can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Wolfgang Keller at Konigsbrau-TAK (A) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Loyalty marketing
– Keller Wolfgang 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Keller Wolfgang can use these opportunities to build new business models that can help the communities that Keller Wolfgang operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Leveraging digital technologies
– Keller Wolfgang 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.
Threats Wolfgang Keller at Konigsbrau-TAK (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Wolfgang Keller at Konigsbrau-TAK (A) are -
Stagnating economy with rate increase
– Keller Wolfgang 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.
Regulatory challenges
– Keller Wolfgang 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 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.
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. Keller Wolfgang 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.
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 Keller Wolfgang business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Keller Wolfgang 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Keller Wolfgang 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Keller Wolfgang with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Keller Wolfgang
– 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 Keller Wolfgang.
Technology acceleration in Forth Industrial Revolution
– Keller Wolfgang has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Keller Wolfgang 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.
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 Keller Wolfgang.
High dependence on third party suppliers
– Keller Wolfgang 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.
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.
Weighted SWOT Analysis of Wolfgang Keller at Konigsbrau-TAK (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 Wolfgang Keller at Konigsbrau-TAK (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 Wolfgang Keller at Konigsbrau-TAK (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 Wolfgang Keller at Konigsbrau-TAK (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 Wolfgang Keller at Konigsbrau-TAK (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 Keller Wolfgang needs to make to build a sustainable competitive advantage.