Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments
This case study describes the culture change process and positive outcomes at one of Genentech's largest divisions, Immunology and Opthamology (GIO). Senior Vice President Jennifer Cook worked with her team to develop a culture that would tie together four brands that previously were not in the same division. Despite various challenges along the way, Cook pursued a culture change approach with definitive and relatively rapid outcomes. This is a story of the role that leaders have in undertaking and inspiring major culture change.
Swot Analysis of "Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments" written by Jennifer Chatman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Culture Cook facing as an external strategic factors. Some of the topics covered in Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments case study are - Strategic Management Strategies, Leadership, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments casestudy better are - – cloud computing is disrupting traditional business models, increasing commodity prices, talent flight as more people leaving formal jobs, geopolitical disruptions, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Culture Cook, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Culture Cook 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments can be done for the following purposes –
1. Strategic planning using facts provided in Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments case study
2. Improving business portfolio management of Culture Cook
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 Culture Cook
Strengths Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Culture Cook in Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments Harvard Business Review case study are -
Diverse revenue streams
– Culture Cook is present in almost all the verticals within the industry. This has provided firm in Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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.
Analytics focus
– Culture Cook 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 Jennifer Chatman 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.
Learning organization
- Culture Cook 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 Culture Cook is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Culture Cook 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Culture Cook
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Culture Cook does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Culture Cook digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Culture Cook 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.
High switching costs
– The high switching costs that Culture Cook 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.
Ability to lead change in Leadership & Managing People field
– Culture Cook 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 Culture Cook in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Culture Cook has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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.
High brand equity
– Culture Cook has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Culture Cook to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Culture Cook is one of the leading recruiters in the industry. Managers in the Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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 Culture Cook in the sector have low bargaining power. Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Culture Cook to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments are -
Slow decision making process
– As mentioned earlier in the report, Culture Cook 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. Culture Cook 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, Culture Cook 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments, in the dynamic environment Culture Cook has struggled to respond to the nimble upstart competition. Culture Cook has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Culture Cook is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments, it seems that the employees of Culture Cook 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.
No frontier risks strategy
– After analyzing the HBR case study Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments, 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.
Aligning sales with marketing
– It come across in the case study Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments can leverage the sales team experience to cultivate customer relationships as Culture Cook is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Culture Cook, firm in the HBR case study Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Culture Cook products
– To increase the profitability and margins on the products, Culture Cook needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Culture Cook 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.
High cash cycle compare to competitors
Culture Cook 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.
Opportunities Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments | 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Culture Cook can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Culture Cook can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Culture Cook 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.
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. Culture Cook can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Culture Cook 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Culture Cook can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Culture Cook can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
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 Culture Cook in the consumer business. Now Culture Cook can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Culture Cook 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, Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments, 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
– Culture Cook can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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.
Learning at scale
– Online learning technologies has now opened space for Culture Cook 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Culture Cook can use these opportunities to build new business models that can help the communities that Culture Cook operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Developing new processes and practices
– Culture Cook 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.
Creating value in data economy
– The success of analytics program of Culture Cook has opened avenues for new revenue streams for the organization in the industry. This can help Culture Cook to build a more holistic ecosystem as suggested in the Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments case study. Culture Cook can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments are -
Stagnating economy with rate increase
– Culture Cook can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Culture Cook with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Culture Cook has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Culture Cook 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.
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. Culture Cook 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments, Culture Cook 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 .
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 Culture Cook.
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.
Shortening product life cycle
– it is one of the major threat that Culture Cook is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Culture Cook 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.
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.
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 Culture Cook in the Leadership & Managing People sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Culture Cook 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Culture Cook 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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 Culture Change at Genentech: Accelerating Strategic and Financial Accomplishments 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 Culture Cook needs to make to build a sustainable competitive advantage.
