Dr. Semmelweis at Vienna General Hospital SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Dr. Semmelweis at Vienna General Hospital
The case provides an example of an individual who meets harsh criticism, personal attacks, and broad resistance despite clear evidence that what he is proposing is right and could save the lives of thousands of human beings. The case recounts the story of Dr. Ignaz Philip Semmelweis, a pioneer in medical antiseptic procedures who is today known as "the savior of mothers." In 1847, Semmelweis discovered that the practice of hand disinfection in obstetrical clinics can effectively eliminate the outbreak of puerperal fever ("childbed fever"), a condition that killed up to 30 percent of mothers and babies in maternity clinics at the time of the case. The relatively short case - which is designed to be handed out during class - is divided into three parts. Part A describes the situation at Vienna General Hospital in 1846, when Semmelweis is assigned to head one of the two maternity clinics. Much of this part is dedicated to describing the natural experiment that Semmelweis encountered when learning that the two clinics had vastly different mortality rates. Part B lists the many hypotheses that Semmelweis had formulated and refuted, reports on his discovery that the contamination of women by doctors performing anatomical dissections of corpses is causing puerperal fever, and reveals his findings that it can be easily and effectively treated through hand disinfection. Part C provides an account of the resistance he faced from the medical establishment, despite the overwhelming evidence that Semmelweis had collected in support of his findings.
Swot Analysis of "Dr. Semmelweis at Vienna General Hospital" written by Ulf Schaefer includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Semmelweis Clinics facing as an external strategic factors. Some of the topics covered in Dr. Semmelweis at Vienna General Hospital case study are - Strategic Management Strategies, Decision making, Experimentation and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Dr. Semmelweis at Vienna General Hospital casestudy better are - – supply chains are disrupted by pandemic , increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing,
banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, etc
Introduction to SWOT Analysis of Dr. Semmelweis at Vienna General Hospital
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Dr. Semmelweis at Vienna General Hospital case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Semmelweis Clinics, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Semmelweis Clinics 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 Dr. Semmelweis at Vienna General Hospital can be done for the following purposes –
1. Strategic planning using facts provided in Dr. Semmelweis at Vienna General Hospital case study
2. Improving business portfolio management of Semmelweis Clinics
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 Semmelweis Clinics
Strengths Dr. Semmelweis at Vienna General Hospital | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Semmelweis Clinics in Dr. Semmelweis at Vienna General Hospital Harvard Business Review case study are -
Ability to recruit top talent
– Semmelweis Clinics is one of the leading recruiters in the industry. Managers in the Dr. Semmelweis at Vienna General Hospital are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Semmelweis Clinics is present in almost all the verticals within the industry. This has provided firm in Dr. Semmelweis at Vienna General Hospital 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.
Low bargaining power of suppliers
– Suppliers of Semmelweis Clinics in the sector have low bargaining power. Dr. Semmelweis at Vienna General Hospital has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Semmelweis Clinics to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Semmelweis Clinics 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.
Operational resilience
– The operational resilience strategy in the Dr. Semmelweis at Vienna General Hospital 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.
Ability to lead change in Leadership & Managing People field
– Semmelweis Clinics 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 Semmelweis Clinics in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Semmelweis Clinics has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Semmelweis Clinics to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Semmelweis Clinics is one of the most innovative firm in sector. Manager in Dr. Semmelweis at Vienna General Hospital Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Semmelweis Clinics 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.
Training and development
– Semmelweis Clinics has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Dr. Semmelweis at Vienna General Hospital 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.
Strong track record of project management
– Semmelweis Clinics is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Semmelweis Clinics has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Semmelweis Clinics 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.
Weaknesses Dr. Semmelweis at Vienna General Hospital | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Dr. Semmelweis at Vienna General Hospital are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Dr. Semmelweis at Vienna General Hospital, in the dynamic environment Semmelweis Clinics has struggled to respond to the nimble upstart competition. Semmelweis Clinics has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Semmelweis Clinics 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. Semmelweis Clinics 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 operating costs
– Compare to the competitors, firm in the HBR case study Dr. Semmelweis at Vienna General Hospital 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 Semmelweis Clinics 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Dr. Semmelweis at Vienna General Hospital 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 Dr. Semmelweis at Vienna General Hospital can leverage the sales team experience to cultivate customer relationships as Semmelweis Clinics is planning to shift buying processes online.
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 Semmelweis Clinics supply chain. Even after few cautionary changes mentioned in the HBR case study - Dr. Semmelweis at Vienna General Hospital, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Semmelweis Clinics vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Dr. Semmelweis at Vienna General Hospital, is just above the industry average. Semmelweis Clinics 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 cash cycle compare to competitors
Semmelweis Clinics 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.
Capital Spending Reduction
– Even during the low interest decade, Semmelweis Clinics 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 bargaining power of channel partners
– Because of the regulatory requirements, Ulf Schaefer suggests that, Semmelweis Clinics 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.
Interest costs
– Compare to the competition, Semmelweis Clinics 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.
No frontier risks strategy
– After analyzing the HBR case study Dr. Semmelweis at Vienna General Hospital, 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.
Opportunities Dr. Semmelweis at Vienna General Hospital | 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 Dr. Semmelweis at Vienna General Hospital are -
Leveraging digital technologies
– Semmelweis Clinics 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Semmelweis Clinics 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 Semmelweis Clinics to hire the very best people irrespective of their geographical location.
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. Semmelweis Clinics can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Semmelweis Clinics is facing challenges because of the dominance of functional experts in the organization. Dr. Semmelweis at Vienna General Hospital 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Semmelweis Clinics 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Semmelweis Clinics 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, Dr. Semmelweis at Vienna General Hospital, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Semmelweis Clinics can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Dr. Semmelweis at Vienna General Hospital 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.
Building a culture of innovation
– managers at Semmelweis Clinics 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.
Better consumer reach
– The expansion of the 5G network will help Semmelweis Clinics to increase its market reach. Semmelweis Clinics 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Semmelweis Clinics can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Semmelweis Clinics 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.
Using analytics as competitive advantage
– Semmelweis Clinics 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 Dr. Semmelweis at Vienna General Hospital - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Semmelweis Clinics to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Semmelweis Clinics 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.
Threats Dr. Semmelweis at Vienna General Hospital External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Dr. Semmelweis at Vienna General Hospital are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Semmelweis Clinics 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 Dr. Semmelweis at Vienna General Hospital .
Increasing wage structure of Semmelweis Clinics
– 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 Semmelweis Clinics.
High dependence on third party suppliers
– Semmelweis Clinics 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.
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.
Regulatory challenges
– Semmelweis Clinics 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.
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. Semmelweis Clinics can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Semmelweis Clinics.
Environmental challenges
– Semmelweis Clinics 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. Semmelweis Clinics can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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.
Stagnating economy with rate increase
– Semmelweis Clinics 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Dr. Semmelweis at Vienna General Hospital, Semmelweis Clinics 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 .
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. Semmelweis Clinics 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Semmelweis Clinics 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.
Weighted SWOT Analysis of Dr. Semmelweis at Vienna General Hospital 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 Dr. Semmelweis at Vienna General Hospital 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 Dr. Semmelweis at Vienna General Hospital 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 Dr. Semmelweis at Vienna General Hospital 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 Dr. Semmelweis at Vienna General Hospital 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 Semmelweis Clinics needs to make to build a sustainable competitive advantage.