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 - – there is increasing trade war between United States & China, geopolitical disruptions, increasing energy prices, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, increasing transportation and logistics costs,
increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, 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 -
Ability to lead change in Leadership & Managing People field
– Schmidt Press 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 Schmidt Press in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Schmidt Press 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 Schmidt Press and Mekkanischer Wahnsinn HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Schmidt Press is one of the leading recruiters in the industry. Managers in the Schmidt Press and Mekkanischer Wahnsinn are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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.
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.
High brand equity
– Schmidt Press has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Schmidt Press to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
Effective Research and Development (R&D)
– Schmidt Press 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 Schmidt Press and Mekkanischer Wahnsinn - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Schmidt Press has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Schmidt Press 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.
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.
Superior customer experience
– The customer experience strategy of Schmidt Press in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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 -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Schmidt Press and Mekkanischer Wahnsinn, it seems that the employees of Schmidt Press 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.
Low market penetration in new markets
– Outside its home market of Schmidt Press, firm in the HBR case study Schmidt Press and Mekkanischer Wahnsinn needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Schmidt Press and Mekkanischer Wahnsinn HBR case study mentions - Schmidt Press 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.
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.
Products dominated business model
– Even though Schmidt Press 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 - Schmidt Press and Mekkanischer Wahnsinn should strive to include more intangible value offerings along with its core products and services.
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.
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 operating costs
– Compare to the competitors, firm in the HBR case study Schmidt Press and Mekkanischer Wahnsinn 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 Schmidt Press 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Schmidt Press is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Schmidt Press and Mekkanischer Wahnsinn can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Schmidt Press and Mekkanischer Wahnsinn 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 Schmidt Press has relatively successful track record of launching new products.
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.
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 -
Manufacturing automation
– Schmidt Press 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.
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.
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.
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. Schmidt Press can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Schmidt Press can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
Building a culture of innovation
– managers at Schmidt Press 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.
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.
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.
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.
Leveraging digital technologies
– Schmidt Press can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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 -
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.
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.
Technology acceleration in Forth Industrial Revolution
– Schmidt Press has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Schmidt Press 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.
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.
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.
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. Schmidt Press can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Schmidt Press in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
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.
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.
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.
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.
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.