Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A)
Kurt Landgraf, newly named CEO of Du Pont Merck Pharmaceutical Co., addresses complaints of discrimination from African-American scientists in R&D during significant downsizing and dramatic changes within the pharmaceutical industry.
Swot Analysis of "Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A)" written by Mary Gentile, Sarah B. Gant includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Landgraf Kurt facing as an external strategic factors. Some of the topics covered in Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) case study are - Strategic Management Strategies, Diversity, Downsizing, Gender, Leadership, Personnel policies and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) casestudy better are - – challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google,
increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, etc
Introduction to SWOT Analysis of Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Landgraf Kurt, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Landgraf Kurt 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 Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) can be done for the following purposes –
1. Strategic planning using facts provided in Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) case study
2. Improving business portfolio management of Landgraf Kurt
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 Landgraf Kurt
Strengths Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Landgraf Kurt in Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) Harvard Business Review case study are -
High switching costs
– The high switching costs that Landgraf Kurt 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.
Ability to lead change in Leadership & Managing People field
– Landgraf Kurt 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 Landgraf Kurt in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Landgraf Kurt has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) 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)
– Landgraf Kurt 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 Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Landgraf Kurt is present in almost all the verticals within the industry. This has provided firm in Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) 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.
Low bargaining power of suppliers
– Suppliers of Landgraf Kurt in the sector have low bargaining power. Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Landgraf Kurt to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Landgraf Kurt 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 Landgraf Kurt is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Landgraf Kurt is one of the most innovative firm in sector. Manager in Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Landgraf Kurt 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 Mary Gentile, Sarah B. Gant 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
– Landgraf Kurt has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Landgraf Kurt to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Landgraf Kurt is one of the leading recruiters in the industry. Managers in the Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) 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 Landgraf Kurt
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Landgraf Kurt does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) are -
Capital Spending Reduction
– Even during the low interest decade, Landgraf Kurt 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.
Aligning sales with marketing
– It come across in the case study Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) 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 Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) can leverage the sales team experience to cultivate customer relationships as Landgraf Kurt is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Landgraf Kurt is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A), in the dynamic environment Landgraf Kurt has struggled to respond to the nimble upstart competition. Landgraf Kurt has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Landgraf Kurt, firm in the HBR case study Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Landgraf Kurt products
– To increase the profitability and margins on the products, Landgraf Kurt needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A), is just above the industry average. Landgraf Kurt needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) 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 Landgraf Kurt has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Landgraf Kurt has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Landgraf Kurt even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High cash cycle compare to competitors
Landgraf Kurt has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A), it seems that the employees of Landgraf Kurt 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.
Opportunities Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) | 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 Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) are -
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 Landgraf Kurt 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Landgraf Kurt can use these opportunities to build new business models that can help the communities that Landgraf Kurt operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Manufacturing automation
– Landgraf Kurt 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Landgraf Kurt can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Landgraf Kurt 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 Landgraf Kurt to hire the very best people irrespective of their geographical location.
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. Landgraf Kurt 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, Landgraf Kurt 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, Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Landgraf Kurt 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.
Developing new processes and practices
– Landgraf Kurt 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Landgraf Kurt is facing challenges because of the dominance of functional experts in the organization. Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) 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.
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 Landgraf Kurt in the consumer business. Now Landgraf Kurt can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Landgraf Kurt to increase its market reach. Landgraf Kurt 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.
Creating value in data economy
– The success of analytics program of Landgraf Kurt has opened avenues for new revenue streams for the organization in the industry. This can help Landgraf Kurt to build a more holistic ecosystem as suggested in the Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) case study. Landgraf Kurt can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) are -
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.
High dependence on third party suppliers
– Landgraf Kurt 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.
Technology acceleration in Forth Industrial Revolution
– Landgraf Kurt has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Landgraf Kurt 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.
Environmental challenges
– Landgraf Kurt 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. Landgraf Kurt 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. Landgraf Kurt needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Increasing wage structure of Landgraf Kurt
– 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 Landgraf Kurt.
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 Landgraf Kurt.
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. Landgraf Kurt can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Landgraf Kurt 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.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Landgraf Kurt business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Landgraf Kurt 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 Landgraf Kurt is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Landgraf Kurt with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) 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 Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) 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 Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) 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 Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) 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 Kurt Landgraf and Du Pont Merck Pharmaceutical Co. (A) 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 Landgraf Kurt needs to make to build a sustainable competitive advantage.