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 - – challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, there is backlash against globalization, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion,
cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , 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 -
Analytics focus
– Emi Luc 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 Benoit Leleux, Bryony Jansen 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.
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.
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.
Innovation driven organization
– Emi Luc is one of the most innovative firm in sector. Manager in EMI: FOR THE TRACK RECORD Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Emi Luc
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Emi Luc does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
High switching costs
– The high switching costs that Emi Luc 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.
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.
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.
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.
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 -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study EMI: FOR THE TRACK RECORD, in the dynamic environment Emi Luc has struggled to respond to the nimble upstart competition. Emi Luc has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Emi Luc 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 EMI: FOR THE TRACK RECORD, is just above the industry average. Emi Luc 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 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.
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.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study EMI: FOR THE TRACK RECORD, it seems that the employees of Emi Luc 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 cash cycle compare to competitors
Emi Luc 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Benoit Leleux, Bryony Jansen suggests that, Emi Luc 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.
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.
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.
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 -
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.
Buying journey improvements
– Emi Luc can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. EMI: FOR THE TRACK RECORD 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.
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.
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.
Leveraging digital technologies
– Emi Luc 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.
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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Emi Luc 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.
Using analytics as competitive advantage
– Emi Luc 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 EMI: FOR THE TRACK RECORD - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Emi Luc to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Emi Luc is facing challenges because of the dominance of functional experts in the organization. EMI: FOR THE TRACK RECORD 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.
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 -
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.
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.
Increasing wage structure of Emi Luc
– 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 Emi Luc.
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.
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.
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 Emi Luc in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Emi Luc 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.
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 .
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.
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.
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.
