Case Study Description of Schmidt Press and Mekkanischer Wahnsinn
The owner of the small Berlin-based Schmidt Press encounters a dilemma when she is given the opportunity to publish a novel about a Muslim woman who attempts to lead an underground movement to take control of the Kaaba, the holy sanctuary at Mecca. Given the events of the prior 25 years - such as the angry fallout after Salman Rushdie's novel The Satanic Verses, the 2001 terrorist attacks on the United States, the upheaval in many Middle Eastern countries - publishing the novel presents a host of various ethical dilemmas, including whether Schmidt should put her staff at risk. This case discusses the ethics of a free press and challenges to the profit motive in the face of political and religious world affairs.
Swot Analysis of "Schmidt Press and Mekkanischer Wahnsinn" written by Andrew Wicks, Jenny Mead includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Schmidt Press facing as an external strategic factors. Some of the topics covered in Schmidt Press and Mekkanischer Wahnsinn case study are - Strategic Management Strategies, Diversity, Ethics and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Schmidt Press and Mekkanischer Wahnsinn casestudy better are - – wage bills are increasing, there is backlash against globalization, increasing energy prices, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, there is increasing trade war between United States & China,
talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Schmidt Press and Mekkanischer Wahnsinn
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Schmidt Press and Mekkanischer Wahnsinn case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Schmidt Press, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Schmidt Press 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 Schmidt Press and Mekkanischer Wahnsinn can be done for the following purposes –
1. Strategic planning using facts provided in Schmidt Press and Mekkanischer Wahnsinn case study
2. Improving business portfolio management of Schmidt Press
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 Schmidt Press
Strengths Schmidt Press and Mekkanischer Wahnsinn | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Schmidt Press in Schmidt Press and Mekkanischer Wahnsinn Harvard Business Review case study are -
Sustainable margins compare to other players in Leadership & Managing People industry
– Schmidt Press and Mekkanischer Wahnsinn firm has clearly differentiated products in the market place. This has enabled Schmidt Press to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Schmidt Press to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Schmidt Press in the sector have low bargaining power. Schmidt Press and Mekkanischer Wahnsinn has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Schmidt Press to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Schmidt Press is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Schmidt Press
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Schmidt Press does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Schmidt Press is one of the most innovative firm in sector. Manager in Schmidt Press and Mekkanischer Wahnsinn Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Schmidt Press digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Schmidt Press 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.
Diverse revenue streams
– Schmidt Press is present in almost all the verticals within the industry. This has provided firm in Schmidt Press and Mekkanischer Wahnsinn 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.
Learning organization
- Schmidt Press 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 Schmidt Press is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Schmidt Press and Mekkanischer Wahnsinn Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Schmidt Press has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Schmidt Press and Mekkanischer Wahnsinn 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.
Cross disciplinary teams
– Horizontal connected teams at the Schmidt Press are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Operational resilience
– The operational resilience strategy in the Schmidt Press and Mekkanischer Wahnsinn 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.
Analytics focus
– Schmidt Press 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 Andrew Wicks, Jenny Mead 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 Schmidt Press and Mekkanischer Wahnsinn | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Schmidt Press and Mekkanischer Wahnsinn are -
Capital Spending Reduction
– Even during the low interest decade, Schmidt Press 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 cash cycle compare to competitors
Schmidt Press 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Schmidt Press 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.
No frontier risks strategy
– After analyzing the HBR case study Schmidt Press and Mekkanischer Wahnsinn, 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 Schmidt Press 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.
Slow decision making process
– As mentioned earlier in the report, Schmidt Press 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. Schmidt Press 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 bargaining power of channel partners
– Because of the regulatory requirements, Andrew Wicks, Jenny Mead suggests that, Schmidt Press 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.
Lack of clear differentiation of Schmidt Press products
– To increase the profitability and margins on the products, Schmidt Press needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Schmidt Press and Mekkanischer Wahnsinn 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 Schmidt Press and Mekkanischer Wahnsinn can leverage the sales team experience to cultivate customer relationships as Schmidt Press is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Schmidt Press and Mekkanischer Wahnsinn, in the dynamic environment Schmidt Press has struggled to respond to the nimble upstart competition. Schmidt Press has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Schmidt Press supply chain. Even after few cautionary changes mentioned in the HBR case study - Schmidt Press and Mekkanischer Wahnsinn, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Schmidt Press vulnerable to further global disruptions in South East Asia.
Opportunities Schmidt Press and Mekkanischer Wahnsinn | 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 Schmidt Press and Mekkanischer Wahnsinn are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Schmidt Press 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.
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 Schmidt Press 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.
Using analytics as competitive advantage
– Schmidt Press 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 Schmidt Press and Mekkanischer Wahnsinn - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Schmidt Press to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Schmidt Press can use these opportunities to build new business models that can help the communities that Schmidt Press operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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 Schmidt Press in the consumer business. Now Schmidt Press can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Schmidt Press 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 Schmidt Press to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Schmidt Press 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.
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. Schmidt Press can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Schmidt Press to increase its market reach. Schmidt Press 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.
Learning at scale
– Online learning technologies has now opened space for Schmidt Press 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.
Developing new processes and practices
– Schmidt Press 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.
Buying journey improvements
– Schmidt Press can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Schmidt Press and Mekkanischer Wahnsinn suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Schmidt Press 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.
Threats Schmidt Press and Mekkanischer Wahnsinn External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Schmidt Press and Mekkanischer Wahnsinn are -
High dependence on third party suppliers
– Schmidt Press 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Schmidt Press with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Schmidt Press
– 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 Schmidt Press.
Regulatory challenges
– Schmidt Press needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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. Schmidt Press 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.
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. Schmidt Press needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Schmidt Press is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Schmidt Press 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.
Environmental challenges
– Schmidt Press 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. Schmidt Press can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Schmidt Press and Mekkanischer Wahnsinn, Schmidt Press 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 .
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 Schmidt Press business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Schmidt Press 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.
Weighted SWOT Analysis of Schmidt Press and Mekkanischer Wahnsinn 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 Schmidt Press and Mekkanischer Wahnsinn 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 Schmidt Press and Mekkanischer Wahnsinn 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 Schmidt Press and Mekkanischer Wahnsinn 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 Schmidt Press and Mekkanischer Wahnsinn 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 Schmidt Press needs to make to build a sustainable competitive advantage.