EMI: FOR THE TRACK RECORD SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of EMI: FOR THE TRACK RECORD
In Feburary 2006, Luc Gerard and Gerardo LeA?n, comfortably ensconced on their office sofa, were able to take a quiet moment to reflect which was a rare treat these last few months. A US$15.8 million investment had been staring them in the eyes for a while.Within the context of their previous employers, this amount would not have sounded out of place or even material. But for the first time, the two partners were talking about playing with their "own" money.The stakes were significantly higher! A few months earlier, they had joined forces to launch one of the first private equity funds in Colombia. Luc originated the idea: After a globetrotting corporate career engineering and managing mergers and acquisitions for others, he could no longer resist the urge to do his own deals. With their reputations and extensive networks in the corporate world, it would be easy to find potential deals. But finding the funds was a different story; this was a reputation-based business and they had no real personal track records. They would have to start from scratch and rapidly establish one to have a chance of raising the money. One company that looked particularly interesting was EMI (Emergencias Medicas Integrales), a Colombian healthcare company providing emergency services at home. While it had a respected brand, strong operations and healthy finances, it was clearly undermanaged and presented great value-creation opportunities through product development and geographic expansion. A minor problem, however, was that they did not have the money to acquire the company, let alone fund new acquisitions. A last-minute co-investor had saved the day, but they now faced decision time. Was EMI the company that would help them unlock the safes of the local institutional investors they wanted for their private equity fund? Would they be able to generate enough value and visibility quickly through this deal and establish themselves as deal makers? How should they treat this unexpected external investment for the deal? Was this taking them in a very different direction from the intended fund vehicle? Learning objectives: Building and managing a brand globally in the healthcare industry; Developing a micro health insurance system in Latin America; Globalization of brands; Growth financing and management in a global context; Emerging countries globalization; Building a new private equity vehicle.
Swot Analysis of "EMI: FOR THE TRACK RECORD" written by Benoit Leleux, Bryony Jansen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Emi Luc facing as an external strategic factors. Some of the topics covered in EMI: FOR THE TRACK RECORD case study are - Strategic Management Strategies, Entrepreneurial finance, Mergers & acquisitions and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the EMI: FOR THE TRACK RECORD casestudy better are - – talent flight as more people leaving formal jobs, technology disruption, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels,
competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of EMI: FOR THE TRACK RECORD
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in EMI: FOR THE TRACK RECORD case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Emi Luc, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Emi Luc 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 EMI: FOR THE TRACK RECORD can be done for the following purposes –
1. Strategic planning using facts provided in EMI: FOR THE TRACK RECORD case study
2. Improving business portfolio management of Emi Luc
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 Emi Luc
Strengths EMI: FOR THE TRACK RECORD | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Emi Luc in EMI: FOR THE TRACK RECORD Harvard Business Review case study are -
Effective Research and Development (R&D)
– Emi Luc 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 EMI: FOR THE TRACK RECORD - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the EMI: FOR THE TRACK RECORD 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.
Highly skilled collaborators
– Emi Luc 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 EMI: FOR THE TRACK RECORD HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Emi Luc digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Emi Luc 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.
Cross disciplinary teams
– Horizontal connected teams at the Emi Luc 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.
Training and development
– Emi Luc has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in EMI: FOR THE TRACK RECORD 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.
Ability to lead change in Leadership & Managing People field
– Emi Luc 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 Emi Luc in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Emi Luc is one of the leading recruiters in the industry. Managers in the EMI: FOR THE TRACK RECORD are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Emi Luc in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Emi Luc 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 Emi Luc is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in EMI: FOR THE TRACK RECORD Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Emi Luc is present in almost all the verticals within the industry. This has provided firm in EMI: FOR THE TRACK RECORD 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
– Emi Luc has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Emi Luc 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 EMI: FOR THE TRACK RECORD | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of EMI: FOR THE TRACK RECORD are -
Lack of clear differentiation of Emi Luc products
– To increase the profitability and margins on the products, Emi Luc needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Emi Luc is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Emi Luc needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Emi Luc to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study EMI: FOR THE TRACK RECORD, 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.
Slow to strategic competitive environment developments
– As EMI: FOR THE TRACK RECORD HBR case study mentions - Emi Luc 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, Emi Luc 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.
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 Emi Luc supply chain. Even after few cautionary changes mentioned in the HBR case study - EMI: FOR THE TRACK RECORD, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Emi Luc vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Emi Luc, firm in the HBR case study EMI: FOR THE TRACK RECORD needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the EMI: FOR THE TRACK RECORD 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 Emi Luc has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Emi Luc 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. Emi Luc 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.
Products dominated business model
– Even though Emi Luc 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 - EMI: FOR THE TRACK RECORD should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Emi Luc 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.
Opportunities EMI: FOR THE TRACK RECORD | 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 EMI: FOR THE TRACK RECORD are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Emi Luc 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 Emi Luc to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Emi Luc 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Emi Luc 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.
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. Emi Luc can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Emi Luc can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Emi Luc 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Emi Luc 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, EMI: FOR THE TRACK RECORD, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Emi Luc 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. Emi Luc 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.
Better consumer reach
– The expansion of the 5G network will help Emi Luc to increase its market reach. Emi Luc 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.
Loyalty marketing
– Emi Luc 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.
Creating value in data economy
– The success of analytics program of Emi Luc has opened avenues for new revenue streams for the organization in the industry. This can help Emi Luc to build a more holistic ecosystem as suggested in the EMI: FOR THE TRACK RECORD case study. Emi Luc can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Emi Luc 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Emi Luc can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats EMI: FOR THE TRACK RECORD External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study EMI: FOR THE TRACK RECORD are -
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 Emi Luc business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Emi Luc 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study EMI: FOR THE TRACK RECORD, Emi Luc 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 .
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 Emi Luc.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Emi Luc can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Emi Luc 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
– Emi Luc 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 Emi Luc is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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. Emi Luc needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
Technology acceleration in Forth Industrial Revolution
– Emi Luc has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Emi Luc 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.
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.
Consumer confidence and its impact on Emi Luc 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.
Weighted SWOT Analysis of EMI: FOR THE TRACK RECORD 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 EMI: FOR THE TRACK RECORD 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 EMI: FOR THE TRACK RECORD 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 EMI: FOR THE TRACK RECORD 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 EMI: FOR THE TRACK RECORD 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 Emi Luc needs to make to build a sustainable competitive advantage.