Brief Biographical Note on P. Roy Vagelos SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Brief Biographical Note on P. Roy Vagelos
Provides background biographical information on P. Roy Vagelos, chief executive officer of Merck Pharmaceuticals. Teaching Purpose: To chart the development of a leader in the pharmaceutical industry.
Swot Analysis of "Brief Biographical Note on P. Roy Vagelos" written by Nitin Nohria, Bridget Gurtler includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Vagelos Biographical facing as an external strategic factors. Some of the topics covered in Brief Biographical Note on P. Roy Vagelos case study are - Strategic Management Strategies, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Brief Biographical Note on P. Roy Vagelos casestudy better are - – digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, increasing commodity prices,
cloud computing is disrupting traditional business models, technology disruption, etc
Introduction to SWOT Analysis of Brief Biographical Note on P. Roy Vagelos
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Brief Biographical Note on P. Roy Vagelos case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Vagelos Biographical, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Vagelos Biographical 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 Brief Biographical Note on P. Roy Vagelos can be done for the following purposes –
1. Strategic planning using facts provided in Brief Biographical Note on P. Roy Vagelos case study
2. Improving business portfolio management of Vagelos Biographical
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 Vagelos Biographical
Strengths Brief Biographical Note on P. Roy Vagelos | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Vagelos Biographical in Brief Biographical Note on P. Roy Vagelos Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Vagelos Biographical in the sector have low bargaining power. Brief Biographical Note on P. Roy Vagelos has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Vagelos Biographical to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Vagelos Biographical 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 Nitin Nohria, Bridget Gurtler 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Vagelos Biographical digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Vagelos Biographical 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 Vagelos Biographical 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.
Ability to lead change in Leadership & Managing People field
– Vagelos Biographical 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 Vagelos Biographical in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Vagelos Biographical has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Brief Biographical Note on P. Roy Vagelos 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.
Successful track record of launching new products
– Vagelos Biographical has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Vagelos Biographical 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.
Operational resilience
– The operational resilience strategy in the Brief Biographical Note on P. Roy Vagelos 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.
Superior customer experience
– The customer experience strategy of Vagelos Biographical in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Vagelos Biographical is one of the most innovative firm in sector. Manager in Brief Biographical Note on P. Roy Vagelos Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Leadership & Managing People industry
– Brief Biographical Note on P. Roy Vagelos firm has clearly differentiated products in the market place. This has enabled Vagelos Biographical to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Vagelos Biographical to invest into research and development (R&D) and innovation.
Organizational Resilience of Vagelos Biographical
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Vagelos Biographical does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Brief Biographical Note on P. Roy Vagelos | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Brief Biographical Note on P. Roy Vagelos are -
Aligning sales with marketing
– It come across in the case study Brief Biographical Note on P. Roy Vagelos 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 Brief Biographical Note on P. Roy Vagelos can leverage the sales team experience to cultivate customer relationships as Vagelos Biographical is planning to shift buying processes online.
Products dominated business model
– Even though Vagelos Biographical 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 - Brief Biographical Note on P. Roy Vagelos should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Brief Biographical Note on P. Roy Vagelos 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 Vagelos Biographical 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Vagelos Biographical, firm in the HBR case study Brief Biographical Note on P. Roy Vagelos needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Brief Biographical Note on P. Roy Vagelos HBR case study mentions - Vagelos Biographical 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Nitin Nohria, Bridget Gurtler suggests that, Vagelos Biographical 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.
Capital Spending Reduction
– Even during the low interest decade, Vagelos Biographical 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.
No frontier risks strategy
– After analyzing the HBR case study Brief Biographical Note on P. Roy Vagelos, 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.
Need for greater diversity
– Vagelos Biographical has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Brief Biographical Note on P. Roy Vagelos 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 Vagelos Biographical has relatively successful track record of launching new products.
Lack of clear differentiation of Vagelos Biographical products
– To increase the profitability and margins on the products, Vagelos Biographical needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Brief Biographical Note on P. Roy Vagelos | 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 Brief Biographical Note on P. Roy Vagelos are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Vagelos Biographical can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Vagelos Biographical to increase its market reach. Vagelos Biographical 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.
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. Vagelos Biographical can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Vagelos Biographical 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, Brief Biographical Note on P. Roy Vagelos, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Vagelos Biographical 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 Vagelos Biographical to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Vagelos Biographical 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.
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. Vagelos Biographical 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. Vagelos Biographical 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.
Buying journey improvements
– Vagelos Biographical can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Brief Biographical Note on P. Roy Vagelos 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
– Vagelos Biographical 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 Brief Biographical Note on P. Roy Vagelos - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Vagelos Biographical to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Vagelos Biographical has opened avenues for new revenue streams for the organization in the industry. This can help Vagelos Biographical to build a more holistic ecosystem as suggested in the Brief Biographical Note on P. Roy Vagelos case study. Vagelos Biographical can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Vagelos Biographical is facing challenges because of the dominance of functional experts in the organization. Brief Biographical Note on P. Roy Vagelos 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Vagelos Biographical 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Vagelos Biographical can use these opportunities to build new business models that can help the communities that Vagelos Biographical operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Threats Brief Biographical Note on P. Roy Vagelos External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Brief Biographical Note on P. Roy Vagelos are -
Environmental challenges
– Vagelos Biographical 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. Vagelos Biographical 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 Vagelos Biographical.
Regulatory challenges
– Vagelos Biographical 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.
High dependence on third party suppliers
– Vagelos Biographical 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.
Increasing wage structure of Vagelos Biographical
– 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 Vagelos Biographical.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Brief Biographical Note on P. Roy Vagelos, Vagelos Biographical 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 .
Technology acceleration in Forth Industrial Revolution
– Vagelos Biographical has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Vagelos Biographical 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.
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. Vagelos Biographical 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.
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. Vagelos Biographical can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Vagelos Biographical in the Leadership & Managing People sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Vagelos Biographical is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Vagelos Biographical 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 Vagelos Biographical 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.
Weighted SWOT Analysis of Brief Biographical Note on P. Roy Vagelos 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 Brief Biographical Note on P. Roy Vagelos 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 Brief Biographical Note on P. Roy Vagelos 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 Brief Biographical Note on P. Roy Vagelos 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 Brief Biographical Note on P. Roy Vagelos 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 Vagelos Biographical needs to make to build a sustainable competitive advantage.