Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments
This case study describes the culture change process and positive outcomes at one of Genentech's largest divisions, Immunology and Opthamology (GIO). Senior Vice President Jennifer Cook worked with her team to develop a culture that would tie together four brands that previously were not in the same division. Despite various challenges along the way, Cook pursued a culture change approach with definitive and relatively rapid outcomes. This is a story of the role that leaders have in undertaking and inspiring major culture change.
Swot Analysis of "Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments" written by Jennifer Chatman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Culture Cook facing as an external strategic factors. Some of the topics covered in Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments case study are - Strategic Management Strategies, Leadership, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments casestudy better are - – talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, there is backlash against globalization, technology disruption, increasing household debt because of falling income levels,
competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Culture Cook, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Culture Cook 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments can be done for the following purposes –
1. Strategic planning using facts provided in Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments case study
2. Improving business portfolio management of Culture Cook
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 Culture Cook
Strengths Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Culture Cook in Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments Harvard Business Review case study are -
Organizational Resilience of Culture Cook
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Culture Cook does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Culture Cook 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 Jennifer Chatman 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.
Strong track record of project management
– Culture Cook is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Culture Cook 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 Culture Cook is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Culture Cook is present in almost all the verticals within the industry. This has provided firm in Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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.
Innovation driven organization
– Culture Cook is one of the most innovative firm in sector. Manager in Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Culture Cook 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Leadership & Managing People industry
– Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments firm has clearly differentiated products in the market place. This has enabled Culture Cook to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Culture Cook to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Culture Cook 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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 Culture Cook in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Leadership & Managing People field
– Culture Cook 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 Culture Cook in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Culture Cook 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.
Weaknesses Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments are -
Aligning sales with marketing
– It come across in the case study Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments can leverage the sales team experience to cultivate customer relationships as Culture Cook is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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 Culture Cook has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Culture Cook 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.
Products dominated business model
– Even though Culture Cook 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 - Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Culture Cook 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.
No frontier risks strategy
– After analyzing the HBR case study Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments, 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.
Skills based hiring
– The stress on hiring functional specialists at Culture Cook 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.
Capital Spending Reduction
– Even during the low interest decade, Culture Cook 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments, it seems that the employees of Culture Cook 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments, in the dynamic environment Culture Cook has struggled to respond to the nimble upstart competition. Culture Cook has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Culture Cook is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments | 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments are -
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. Culture Cook 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
– Culture Cook 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.
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 Culture Cook in the consumer business. Now Culture Cook 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 Culture Cook to increase its market reach. Culture Cook 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.
Building a culture of innovation
– managers at Culture Cook 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Culture Cook can use these opportunities to build new business models that can help the communities that Culture Cook 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, Culture Cook 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Culture Cook 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.
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. Culture Cook 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. Culture Cook 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Culture Cook 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, Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Culture Cook 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.
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 Culture Cook 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.
Creating value in data economy
– The success of analytics program of Culture Cook has opened avenues for new revenue streams for the organization in the industry. This can help Culture Cook to build a more holistic ecosystem as suggested in the Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments case study. Culture Cook can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments are -
Increasing wage structure of Culture Cook
– 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 Culture Cook.
Environmental challenges
– Culture Cook 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. Culture Cook can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Culture Cook 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments .
High dependence on third party suppliers
– Culture Cook 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
– Culture Cook has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Culture Cook needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Culture Cook 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.
Shortening product life cycle
– it is one of the major threat that Culture Cook is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Culture Cook can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Culture Cook 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.
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.
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 Culture Cook in the Leadership & Managing People sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Culture Cook with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments, Culture Cook 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 .
Weighted SWOT Analysis of Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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 Culture Cook needs to make to build a sustainable competitive advantage.
