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 - – digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels,
supply chains are disrupted by pandemic , 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 -
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.
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.
High brand equity
– Imd446 Glaxosmithkline has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Imd446 Glaxosmithkline to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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.
Ability to recruit top talent
– Imd446 Glaxosmithkline is one of the leading recruiters in the industry. Managers in the GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Imd446 Glaxosmithkline
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Imd446 Glaxosmithkline does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
Learning organization
- Imd446 Glaxosmithkline 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 Imd446 Glaxosmithkline is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Leadership & Managing People field
– Imd446 Glaxosmithkline 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 Imd446 Glaxosmithkline in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Imd446 Glaxosmithkline has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Imd446 Glaxosmithkline 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 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 -
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.
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 Imd446 Glaxosmithkline supply chain. Even after few cautionary changes mentioned in the HBR case study - GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Imd446 Glaxosmithkline vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT 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 Imd446 Glaxosmithkline has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Imd446 Glaxosmithkline 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.
Capital Spending Reduction
– Even during the low interest decade, Imd446 Glaxosmithkline 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.
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.
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.
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.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT, it seems that the employees of Imd446 Glaxosmithkline 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.
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.
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 -
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.
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.
Buying journey improvements
– Imd446 Glaxosmithkline can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Imd446 Glaxosmithkline 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, GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
Using analytics as competitive advantage
– Imd446 Glaxosmithkline 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 GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Imd446 Glaxosmithkline to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
Manufacturing automation
– Imd446 Glaxosmithkline 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.
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 Imd446 Glaxosmithkline 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Imd446 Glaxosmithkline can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Imd446 Glaxosmithkline 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.
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 -
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.
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. Imd446 Glaxosmithkline can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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. Imd446 Glaxosmithkline needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study 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 .
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.
Shortening product life cycle
– it is one of the major threat that Imd446 Glaxosmithkline is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Regulatory challenges
– Imd446 Glaxosmithkline 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.
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.
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.
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.
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.
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.