Swot Analysis of "GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT" written by Michael Yaziji, Anna Lindblom includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Imd446 Glaxosmithkline facing as an external strategic factors. Some of the topics covered in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT case study are - Strategic Management Strategies, Intellectual property and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT casestudy better are - – there is backlash against globalization, increasing energy prices, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, increasing household debt because of falling income levels,
challanges to central banks by blockchain based private currencies, wage bills are increasing, etc
Introduction to SWOT Analysis of GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Imd446 Glaxosmithkline, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Imd446 Glaxosmithkline 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT can be done for the following purposes –
1. Strategic planning using facts provided in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT case study
2. Improving business portfolio management of Imd446 Glaxosmithkline
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 Imd446 Glaxosmithkline
Strengths GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Imd446 Glaxosmithkline in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT 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.
High switching costs
– The high switching costs that Imd446 Glaxosmithkline 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.
Strong track record of project management
– Imd446 Glaxosmithkline is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Imd446 Glaxosmithkline digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Imd446 Glaxosmithkline 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.
Training and development
– Imd446 Glaxosmithkline has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT 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.
Effective Research and Development (R&D)
– Imd446 Glaxosmithkline 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Imd446 Glaxosmithkline 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Imd446 Glaxosmithkline in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Imd446 Glaxosmithkline in the sector have low bargaining power. GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Imd446 Glaxosmithkline to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Imd446 Glaxosmithkline is present in almost all the verticals within the industry. This has provided firm in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT 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.
Cross disciplinary teams
– Horizontal connected teams at the Imd446 Glaxosmithkline 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
– Imd446 Glaxosmithkline 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 Michael Yaziji, Anna Lindblom can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT are -
Need for greater diversity
– Imd446 Glaxosmithkline 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT, in the dynamic environment Imd446 Glaxosmithkline has struggled to respond to the nimble upstart competition. Imd446 Glaxosmithkline 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, Imd446 Glaxosmithkline 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.
High operating costs
– Compare to the competitors, firm in the HBR case study GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT 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 Imd446 Glaxosmithkline 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Imd446 Glaxosmithkline has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Increasing silos among functional specialists
– The organizational structure of Imd446 Glaxosmithkline is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Imd446 Glaxosmithkline needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Imd446 Glaxosmithkline to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Imd446 Glaxosmithkline 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 - GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Imd446 Glaxosmithkline is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT, 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.
Low market penetration in new markets
– Outside its home market of Imd446 Glaxosmithkline, firm in the HBR case study GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT can leverage the sales team experience to cultivate customer relationships as Imd446 Glaxosmithkline is planning to shift buying processes online.
Opportunities GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT | 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT are -
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 Imd446 Glaxosmithkline in the consumer business. Now Imd446 Glaxosmithkline can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Imd446 Glaxosmithkline 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Imd446 Glaxosmithkline 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.
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. Imd446 Glaxosmithkline 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. Imd446 Glaxosmithkline 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.
Creating value in data economy
– The success of analytics program of Imd446 Glaxosmithkline has opened avenues for new revenue streams for the organization in the industry. This can help Imd446 Glaxosmithkline to build a more holistic ecosystem as suggested in the GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT case study. Imd446 Glaxosmithkline 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, Imd446 Glaxosmithkline is facing challenges because of the dominance of functional experts in the organization. GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT 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.
Better consumer reach
– The expansion of the 5G network will help Imd446 Glaxosmithkline to increase its market reach. Imd446 Glaxosmithkline 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Imd446 Glaxosmithkline can use these opportunities to build new business models that can help the communities that Imd446 Glaxosmithkline operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Developing new processes and practices
– Imd446 Glaxosmithkline 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 Imd446 Glaxosmithkline 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.
Loyalty marketing
– Imd446 Glaxosmithkline 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.
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. Imd446 Glaxosmithkline 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. Imd446 Glaxosmithkline can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT are -
Technology acceleration in Forth Industrial Revolution
– Imd446 Glaxosmithkline has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Imd446 Glaxosmithkline 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.
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 Imd446 Glaxosmithkline in the Leadership & Managing People sector and impact the bottomline of the organization.
Increasing wage structure of Imd446 Glaxosmithkline
– 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 Imd446 Glaxosmithkline.
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 Imd446 Glaxosmithkline.
Stagnating economy with rate increase
– Imd446 Glaxosmithkline 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT, Imd446 Glaxosmithkline 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 .
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. Imd446 Glaxosmithkline 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Imd446 Glaxosmithkline 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
– Imd446 Glaxosmithkline 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Imd446 Glaxosmithkline can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT .
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Imd446 Glaxosmithkline 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.
Environmental challenges
– Imd446 Glaxosmithkline 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. Imd446 Glaxosmithkline can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Weighted SWOT Analysis of GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT 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 Imd446 Glaxosmithkline needs to make to build a sustainable competitive advantage.
