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 - – increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, wage bills are increasing, geopolitical disruptions, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google,
talent flight as more people leaving formal jobs, increasing energy prices, 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 -
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.
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.
Sustainable margins compare to other players in Leadership & Managing People industry
– GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT firm has clearly differentiated products in the market place. This has enabled Imd446 Glaxosmithkline to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Imd446 Glaxosmithkline to invest into research and development (R&D) and innovation.
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.
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.
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.
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.
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.
Innovation driven organization
– Imd446 Glaxosmithkline is one of the most innovative firm in sector. Manager in GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (B): THE SETTLEMENT Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Imd446 Glaxosmithkline 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 Imd446 Glaxosmithkline to hire the very best people irrespective of their geographical location.
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 -
Consumer confidence and its impact on Imd446 Glaxosmithkline 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.
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.
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.
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.
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.
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.
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.
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.
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.
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 .
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.
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.
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.