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 energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, technology disruption, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels,
increasing commodity prices, central banks are concerned over increasing inflation, 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 -
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.
Strong track record of project management
– Keller Wolfgang is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Keller Wolfgang is one of the most innovative firm in sector. Manager in Wolfgang Keller at Konigsbrau-TAK (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Keller Wolfgang in the sector have low bargaining power. Wolfgang Keller at Konigsbrau-TAK (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Keller Wolfgang to manage not only supply disruptions but also source products at highly competitive prices.
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.
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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Keller Wolfgang 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.
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.
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.
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.
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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Wolfgang Keller at Konigsbrau-TAK (A) 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 Keller Wolfgang has relatively successful track record of launching new products.
Products dominated business model
– Even though Keller Wolfgang 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 - Wolfgang Keller at Konigsbrau-TAK (A) should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Keller Wolfgang 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Keller Wolfgang is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Wolfgang Keller at Konigsbrau-TAK (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Wolfgang Keller at Konigsbrau-TAK (A), in the dynamic environment Keller Wolfgang has struggled to respond to the nimble upstart competition. Keller Wolfgang has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
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.
No frontier risks strategy
– After analyzing the HBR case study Wolfgang Keller at Konigsbrau-TAK (A), it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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, 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.
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.
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.
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 -
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Keller Wolfgang 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.
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 Keller Wolfgang in the consumer business. Now Keller Wolfgang can target international markets with far fewer capital restrictions requirements than the existing system.
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.
Building a culture of innovation
– managers at Keller Wolfgang 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.
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.
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.
Using analytics as competitive advantage
– Keller Wolfgang 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 Wolfgang Keller at Konigsbrau-TAK (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Keller Wolfgang to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Keller Wolfgang can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Keller Wolfgang 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 Keller Wolfgang to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Keller Wolfgang has opened avenues for new revenue streams for the organization in the industry. This can help Keller Wolfgang to build a more holistic ecosystem as suggested in the Wolfgang Keller at Konigsbrau-TAK (A) case study. Keller Wolfgang can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects 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.
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.
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 -
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.
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.
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. Keller Wolfgang needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Wolfgang Keller at Konigsbrau-TAK (A), Keller Wolfgang 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 .
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.
Environmental challenges
– Keller Wolfgang 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. Keller Wolfgang can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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.
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.
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.
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.
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.
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 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.
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.