Taking Charge: JA?rgen Klinsmann at FC Bayern Munich SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Taking Charge: JA?rgen Klinsmann at FC Bayern Munich
The case opens with a brief overview of the successful past of the soccer club FC Bayern. It introduces the major members of its leadership team, gives an insight into their aspirations for the European Champions League, and illustrates the club's indispensable demand for short-term success. It continues describing the many changes that Klinsmann introduced to the club and team leading to Klinsmann's dismissal and the club management's return to the exact same philosophies that were valid before Klinsmann's arrival.
Swot Analysis of "Taking Charge: JA?rgen Klinsmann at FC Bayern Munich" written by Ulf Schaefer, Christoph Burger includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Klinsmann's Bayern facing as an external strategic factors. Some of the topics covered in Taking Charge: JA?rgen Klinsmann at FC Bayern Munich case study are - Strategic Management Strategies, Leadership and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Taking Charge: JA?rgen Klinsmann at FC Bayern Munich casestudy better are - – cloud computing is disrupting traditional business models, technology disruption, there is backlash against globalization, increasing government debt because of Covid-19 spendings, increasing energy prices, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%,
digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Taking Charge: JA?rgen Klinsmann at FC Bayern Munich
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Taking Charge: JA?rgen Klinsmann at FC Bayern Munich case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Klinsmann's Bayern, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Klinsmann's Bayern 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 Taking Charge: JA?rgen Klinsmann at FC Bayern Munich can be done for the following purposes –
1. Strategic planning using facts provided in Taking Charge: JA?rgen Klinsmann at FC Bayern Munich case study
2. Improving business portfolio management of Klinsmann's Bayern
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 Klinsmann's Bayern
Strengths Taking Charge: JA?rgen Klinsmann at FC Bayern Munich | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Klinsmann's Bayern in Taking Charge: JA?rgen Klinsmann at FC Bayern Munich Harvard Business Review case study are -
Ability to lead change in Leadership & Managing People field
– Klinsmann's Bayern 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 Klinsmann's Bayern 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
– Klinsmann's Bayern has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Klinsmann's Bayern 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Klinsmann's Bayern digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Klinsmann's Bayern 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.
Strong track record of project management
– Klinsmann's Bayern 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
- Klinsmann's Bayern 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 Klinsmann's Bayern is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Taking Charge: JA?rgen Klinsmann at FC Bayern Munich Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Taking Charge: JA?rgen Klinsmann at FC Bayern Munich Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Diverse revenue streams
– Klinsmann's Bayern is present in almost all the verticals within the industry. This has provided firm in Taking Charge: JA?rgen Klinsmann at FC Bayern Munich 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.
Training and development
– Klinsmann's Bayern has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Taking Charge: JA?rgen Klinsmann at FC Bayern Munich 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)
– Klinsmann's Bayern 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 Taking Charge: JA?rgen Klinsmann at FC Bayern Munich - 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 switching costs
– The high switching costs that Klinsmann's Bayern 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.
High brand equity
– Klinsmann's Bayern has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Klinsmann's Bayern to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Klinsmann's Bayern 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 Ulf Schaefer, Christoph Burger can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses Taking Charge: JA?rgen Klinsmann at FC Bayern Munich | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Taking Charge: JA?rgen Klinsmann at FC Bayern Munich are -
High bargaining power of channel partners
– Because of the regulatory requirements, Ulf Schaefer, Christoph Burger suggests that, Klinsmann's Bayern is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Products dominated business model
– Even though Klinsmann's Bayern 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 - Taking Charge: JA?rgen Klinsmann at FC Bayern Munich should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study Taking Charge: JA?rgen Klinsmann at FC Bayern Munich, 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.
Increasing silos among functional specialists
– The organizational structure of Klinsmann's Bayern is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Klinsmann's Bayern needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Klinsmann's Bayern to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Klinsmann's Bayern 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Taking Charge: JA?rgen Klinsmann at FC Bayern Munich 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 Klinsmann's Bayern 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Taking Charge: JA?rgen Klinsmann at FC Bayern Munich 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 Klinsmann's Bayern has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Taking Charge: JA?rgen Klinsmann at FC Bayern Munich HBR case study mentions - Klinsmann's Bayern takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Taking Charge: JA?rgen Klinsmann at FC Bayern Munich, it seems that the employees of Klinsmann's Bayern 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.
Interest costs
– Compare to the competition, Klinsmann's Bayern 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Taking Charge: JA?rgen Klinsmann at FC Bayern Munich, in the dynamic environment Klinsmann's Bayern has struggled to respond to the nimble upstart competition. Klinsmann's Bayern has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Taking Charge: JA?rgen Klinsmann at FC Bayern Munich | 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 Taking Charge: JA?rgen Klinsmann at FC Bayern Munich are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Klinsmann's Bayern 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 Klinsmann's Bayern to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Klinsmann's Bayern 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, Taking Charge: JA?rgen Klinsmann at FC Bayern Munich, 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. Klinsmann's Bayern can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Klinsmann's Bayern in the consumer business. Now Klinsmann's Bayern can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Klinsmann's Bayern to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Creating value in data economy
– The success of analytics program of Klinsmann's Bayern has opened avenues for new revenue streams for the organization in the industry. This can help Klinsmann's Bayern to build a more holistic ecosystem as suggested in the Taking Charge: JA?rgen Klinsmann at FC Bayern Munich case study. Klinsmann's Bayern can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Klinsmann's Bayern can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Klinsmann's Bayern can use these opportunities to build new business models that can help the communities that Klinsmann's Bayern operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Klinsmann's Bayern can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Klinsmann's Bayern 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, Klinsmann's Bayern is facing challenges because of the dominance of functional experts in the organization. Taking Charge: JA?rgen Klinsmann at FC Bayern Munich 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.
Loyalty marketing
– Klinsmann's Bayern 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.
Developing new processes and practices
– Klinsmann's Bayern 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.
Threats Taking Charge: JA?rgen Klinsmann at FC Bayern Munich External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Taking Charge: JA?rgen Klinsmann at FC Bayern Munich are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Klinsmann's Bayern in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Consumer confidence and its impact on Klinsmann's Bayern 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.
Stagnating economy with rate increase
– Klinsmann's Bayern 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Klinsmann's Bayern 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.
High dependence on third party suppliers
– Klinsmann's Bayern 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. Klinsmann's Bayern can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Klinsmann's Bayern is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Klinsmann's Bayern business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Taking Charge: JA?rgen Klinsmann at FC Bayern Munich, Klinsmann's Bayern 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 .
Increasing wage structure of Klinsmann's Bayern
– 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 Klinsmann's Bayern.
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 Klinsmann's Bayern in the Leadership & Managing People sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Klinsmann's Bayern 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 Taking Charge: JA?rgen Klinsmann at FC Bayern Munich .
Weighted SWOT Analysis of Taking Charge: JA?rgen Klinsmann at FC Bayern Munich 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 Taking Charge: JA?rgen Klinsmann at FC Bayern Munich 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 Taking Charge: JA?rgen Klinsmann at FC Bayern Munich 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 Taking Charge: JA?rgen Klinsmann at FC Bayern Munich 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 Taking Charge: JA?rgen Klinsmann at FC Bayern Munich 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 Klinsmann's Bayern needs to make to build a sustainable competitive advantage.
