Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille
In the fall of 2013, the family-owned Martin Bauer Group, a German-based company and world leader in the business-to-business market for tea and herbal extracts, became interested in the idea of collaborating with the frugal innovation company EinDollarBrille (OneDollarGlasses). The Martin Bauer Group was engaged in multifaceted corporate social responsibility activities, both domestically and abroad. Specifically, it fostered the development and diffusion of frugal innovations, which were affordable products or services developed under strict financial constraints to cater to low-income individuals in emerging markets. These companies usually worked in collaboration with partners. One such frugal innovation company, OneDollarGlasses, created durable, yet affordable, eyeglasses for people in the African country of Sudan, a prime sourcing market for the Martin Bauer Group. The work of OneDollarGlasses illustrated the reasons, motivations, and challenges that innovators often faced within developed and emerging markets when engaging in corporate social responsibility activities. Should The Martin Bauer Group work with OneDollarGlasses? Could the company be helpful and make a meaningful difference to the people in emerging markets by collaborating with frugal innovators like OneDollarGlasses? What benefits would there be for the Martin Bauer Group if they do? Peter M. Bican is affiliated with WHU - Otto Beisheim School of Management.
Authors :: Carsten Guderian, Peter M. Bican
Topics :: Leadership & Managing People
Tags :: Entrepreneurship, Innovation, International business, Public relations, Strategy, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille" written by Carsten Guderian, Peter M. Bican includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Onedollarglasses Bauer facing as an external strategic factors. Some of the topics covered in Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille case study are - Strategic Management Strategies, Entrepreneurship, Innovation, International business, Public relations, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille casestudy better are - – cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, there is increasing trade war between United States & China, increasing commodity prices, central banks are concerned over increasing inflation,
supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Onedollarglasses Bauer, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Onedollarglasses Bauer 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 Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille can be done for the following purposes –
1. Strategic planning using facts provided in Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille case study
2. Improving business portfolio management of Onedollarglasses Bauer
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 Onedollarglasses Bauer
Strengths Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Onedollarglasses Bauer in Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille Harvard Business Review case study are -
Training and development
– Onedollarglasses Bauer has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille 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.
Successful track record of launching new products
– Onedollarglasses Bauer has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Onedollarglasses Bauer 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
– Onedollarglasses Bauer is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Onedollarglasses Bauer 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 Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Onedollarglasses Bauer digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Onedollarglasses Bauer 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.
Ability to lead change in Leadership & Managing People field
– Onedollarglasses Bauer 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 Onedollarglasses Bauer in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Onedollarglasses Bauer in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Onedollarglasses Bauer 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 Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Onedollarglasses Bauer is one of the leading recruiters in the industry. Managers in the Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Onedollarglasses Bauer 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 Carsten Guderian, Peter M. Bican 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille firm has clearly differentiated products in the market place. This has enabled Onedollarglasses Bauer to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Onedollarglasses Bauer to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Onedollarglasses Bauer is present in almost all the verticals within the industry. This has provided firm in Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille 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.
Weaknesses Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille are -
Products dominated business model
– Even though Onedollarglasses Bauer 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 - Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Onedollarglasses Bauer 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. Onedollarglasses Bauer 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.
Capital Spending Reduction
– Even during the low interest decade, Onedollarglasses Bauer 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.
Interest costs
– Compare to the competition, Onedollarglasses Bauer 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.
Increasing silos among functional specialists
– The organizational structure of Onedollarglasses Bauer is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Onedollarglasses Bauer needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Onedollarglasses Bauer to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Onedollarglasses Bauer is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Onedollarglasses Bauer 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille, is just above the industry average. Onedollarglasses Bauer needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High bargaining power of channel partners
– Because of the regulatory requirements, Carsten Guderian, Peter M. Bican suggests that, Onedollarglasses Bauer 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille 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 Onedollarglasses Bauer has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille, it seems that the employees of Onedollarglasses Bauer don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Opportunities Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille | 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 Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille are -
Manufacturing automation
– Onedollarglasses Bauer 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.
Using analytics as competitive advantage
– Onedollarglasses Bauer 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 Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Onedollarglasses Bauer to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Onedollarglasses Bauer 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.
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 Onedollarglasses Bauer in the consumer business. Now Onedollarglasses Bauer can target international markets with far fewer capital restrictions requirements than the existing system.
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. Onedollarglasses Bauer can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Onedollarglasses Bauer 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Onedollarglasses Bauer can use these opportunities to build new business models that can help the communities that Onedollarglasses Bauer operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Onedollarglasses Bauer 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 Onedollarglasses Bauer to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Onedollarglasses Bauer 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Onedollarglasses Bauer 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, Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Onedollarglasses Bauer to increase its market reach. Onedollarglasses Bauer 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.
Leveraging digital technologies
– Onedollarglasses Bauer 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Onedollarglasses Bauer is facing challenges because of the dominance of functional experts in the organization. Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille 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.
Threats Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille are -
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Technology acceleration in Forth Industrial Revolution
– Onedollarglasses Bauer has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Onedollarglasses Bauer 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Onedollarglasses Bauer 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
– Onedollarglasses Bauer 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.
Shortening product life cycle
– it is one of the major threat that Onedollarglasses Bauer is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Onedollarglasses Bauer will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Onedollarglasses Bauer business can come under increasing regulations regarding data privacy, data security, etc.
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.
Consumer confidence and its impact on Onedollarglasses Bauer 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.
Regulatory challenges
– Onedollarglasses Bauer 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Onedollarglasses Bauer with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Onedollarglasses Bauer needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Onedollarglasses Bauer in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille 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 Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille 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 Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille 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 Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille 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 Martin Bauer Group: Corporate Social Responsibility with EinDollarBrille 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 Onedollarglasses Bauer needs to make to build a sustainable competitive advantage.
