Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement
In 2012, Bill Allen and Maria Pejter, of Maersk Group's Human Resources Department, sat down to consider some key aspects of Maersk's talent management strategy. In this video, Allen and Pejter discuss in some greater detail some of the challenges they faced as outlined in the HBS case, "A.P. Moller - Maersk Group: Evaluating Strategic Talent Management Initiatives."
Swot Analysis of "Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement" written by Boris Groysberg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pejter Maersk facing as an external strategic factors. Some of the topics covered in Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement case study are - Strategic Management Strategies, Collaboration, Developing employees, Diversity, Employee retention, Hiring, Organizational structure, Risk management, Strategy execution, Talent management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement casestudy better are - – increasing household debt because of falling income levels, geopolitical disruptions, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, talent flight as more people leaving formal jobs,
increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pejter Maersk, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pejter Maersk 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 Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement can be done for the following purposes –
1. Strategic planning using facts provided in Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement case study
2. Improving business portfolio management of Pejter Maersk
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 Pejter Maersk
Strengths Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pejter Maersk in Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement Harvard Business Review case study are -
Successful track record of launching new products
– Pejter Maersk has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pejter Maersk 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.
High brand equity
– Pejter Maersk has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pejter Maersk to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Pejter Maersk 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 Boris Groysberg 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.
Low bargaining power of suppliers
– Suppliers of Pejter Maersk in the sector have low bargaining power. Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pejter Maersk to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Pejter Maersk 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.
Cross disciplinary teams
– Horizontal connected teams at the Pejter Maersk 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Pejter Maersk digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pejter Maersk 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement firm has clearly differentiated products in the market place. This has enabled Pejter Maersk to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Pejter Maersk to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Pejter Maersk is present in almost all the verticals within the industry. This has provided firm in Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement 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.
Ability to recruit top talent
– Pejter Maersk is one of the leading recruiters in the industry. Managers in the Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Pejter Maersk is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement 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.
Weaknesses Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement are -
No frontier risks strategy
– After analyzing the HBR case study Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement, 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement, is just above the industry average. Pejter Maersk 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.
Increasing silos among functional specialists
– The organizational structure of Pejter Maersk is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Pejter Maersk needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pejter Maersk to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement, it seems that the employees of Pejter Maersk 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.
Slow to strategic competitive environment developments
– As Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement HBR case study mentions - Pejter Maersk 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.
Aligning sales with marketing
– It come across in the case study Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement 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 Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement can leverage the sales team experience to cultivate customer relationships as Pejter Maersk is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Pejter Maersk, firm in the HBR case study Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Boris Groysberg suggests that, Pejter Maersk 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.
Products dominated business model
– Even though Pejter Maersk 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 - Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement 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 Pejter Maersk has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Pejter Maersk needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Opportunities Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement | 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 Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement are -
Creating value in data economy
– The success of analytics program of Pejter Maersk has opened avenues for new revenue streams for the organization in the industry. This can help Pejter Maersk to build a more holistic ecosystem as suggested in the Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement case study. Pejter Maersk can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Pejter Maersk has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
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. Pejter Maersk can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Pejter Maersk 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.
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. Pejter Maersk can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Pejter Maersk 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, Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Pejter Maersk is facing challenges because of the dominance of functional experts in the organization. Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement 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.
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. Pejter Maersk 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. Pejter Maersk 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.
Using analytics as competitive advantage
– Pejter Maersk 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 Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pejter Maersk to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Pejter Maersk in the consumer business. Now Pejter Maersk can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Pejter Maersk 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.
Building a culture of innovation
– managers at Pejter Maersk 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.
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 Pejter Maersk 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 Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement are -
Regulatory challenges
– Pejter Maersk 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.
Consumer confidence and its impact on Pejter Maersk 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pejter Maersk with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pejter Maersk 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 Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement .
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 Pejter Maersk business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Pejter Maersk 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.
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 Pejter Maersk 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. Pejter Maersk 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.
Increasing wage structure of Pejter Maersk
– 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 Pejter Maersk.
Technology acceleration in Forth Industrial Revolution
– Pejter Maersk has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Pejter Maersk 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.
High dependence on third party suppliers
– Pejter Maersk 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 Pejter Maersk 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 Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement 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 Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement 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 Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement 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 Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement 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 Interview with Bill Allen and Maria Pejter: A.P. Moller - Maersk Group, Video Supplement 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 Pejter Maersk needs to make to build a sustainable competitive advantage.
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