Case Study Description of Taking Charge at Dogus Holding (A)
Describes 37-year-old Ferit Sahenk's challenges in taking over his father's traditionally managed $14 billion Turkish conglomerate in a period of economic instability. Leading the large holding company into the 21st century will require the establishment of a more institutionalized structure as opposed to the highly personal style of Ferit's father as he grew the company over the past 50 years. Addresses issues of how to establish credibility as the company's new leader, how to motivate his board members to participate more in the company decisions, how to manage in a period of increasing international competition and Turkey's political and financial instability, and the complexities of succession in family-owned businesses.
Authors :: Rakesh Khurana, Gina M. Carioggia, Simon Johnson
Swot Analysis of "Taking Charge at Dogus Holding (A)" written by Rakesh Khurana, Gina M. Carioggia, Simon Johnson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Instability Ferit facing as an external strategic factors. Some of the topics covered in Taking Charge at Dogus Holding (A) case study are - Strategic Management Strategies, Leadership, Organizational culture, Succession planning and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Taking Charge at Dogus Holding (A) casestudy better are - – increasing transportation and logistics costs, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, there is backlash against globalization, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs,
competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Taking Charge at Dogus Holding (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Taking Charge at Dogus Holding (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Instability Ferit, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Instability Ferit 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 Taking Charge at Dogus Holding (A) can be done for the following purposes –
1. Strategic planning using facts provided in Taking Charge at Dogus Holding (A) case study
2. Improving business portfolio management of Instability Ferit
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 Instability Ferit
Strengths Taking Charge at Dogus Holding (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Instability Ferit in Taking Charge at Dogus Holding (A) Harvard Business Review case study are -
Diverse revenue streams
– Instability Ferit is present in almost all the verticals within the industry. This has provided firm in Taking Charge at Dogus Holding (A) 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Instability Ferit digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Instability Ferit 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.
Organizational Resilience of Instability Ferit
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Instability Ferit does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Instability Ferit 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.
Analytics focus
– Instability Ferit 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 Rakesh Khurana, Gina M. Carioggia, Simon Johnson 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.
Ability to lead change in Leadership & Managing People field
– Instability Ferit 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 Instability Ferit in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Leadership & Managing People industry
– Taking Charge at Dogus Holding (A) firm has clearly differentiated products in the market place. This has enabled Instability Ferit to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Instability Ferit to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Instability Ferit 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 Taking Charge at Dogus Holding (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Instability Ferit has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Instability Ferit to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Instability Ferit has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Instability Ferit 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.
Innovation driven organization
– Instability Ferit is one of the most innovative firm in sector. Manager in Taking Charge at Dogus Holding (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Instability Ferit in the sector have low bargaining power. Taking Charge at Dogus Holding (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Instability Ferit to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Taking Charge at Dogus Holding (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Taking Charge at Dogus Holding (A) are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Taking Charge at Dogus Holding (A) 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 Instability Ferit has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Instability Ferit is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Instability Ferit needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Instability Ferit to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Taking Charge at Dogus Holding (A) 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 Taking Charge at Dogus Holding (A) can leverage the sales team experience to cultivate customer relationships as Instability Ferit is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Instability Ferit 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, Instability Ferit 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.
High cash cycle compare to competitors
Instability Ferit 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Instability Ferit 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Taking Charge at Dogus Holding (A) 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 Instability Ferit 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Instability Ferit 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 bargaining power of channel partners
– Because of the regulatory requirements, Rakesh Khurana, Gina M. Carioggia, Simon Johnson suggests that, Instability Ferit 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Taking Charge at Dogus Holding (A), it seems that the employees of Instability Ferit 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 Taking Charge at Dogus Holding (A) | 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 Taking Charge at Dogus Holding (A) are -
Creating value in data economy
– The success of analytics program of Instability Ferit has opened avenues for new revenue streams for the organization in the industry. This can help Instability Ferit to build a more holistic ecosystem as suggested in the Taking Charge at Dogus Holding (A) case study. Instability Ferit can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Instability Ferit 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, Taking Charge at Dogus Holding (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Instability Ferit 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.
Building a culture of innovation
– managers at Instability Ferit 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. Instability Ferit can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Instability Ferit 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 Instability Ferit to hire the very best people irrespective of their geographical location.
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 Instability Ferit 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.
Using analytics as competitive advantage
– Instability Ferit 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 Taking Charge at Dogus Holding (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Instability Ferit 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 Instability Ferit in the consumer business. Now Instability Ferit can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Instability Ferit 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Instability Ferit can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Instability Ferit is facing challenges because of the dominance of functional experts in the organization. Taking Charge at Dogus Holding (A) 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.
Manufacturing automation
– Instability Ferit 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.
Threats Taking Charge at Dogus Holding (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Taking Charge at Dogus Holding (A) are -
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 Instability Ferit business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Instability Ferit 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 Taking Charge at Dogus Holding (A) .
Technology acceleration in Forth Industrial Revolution
– Instability Ferit has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Instability Ferit 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.
Environmental challenges
– Instability Ferit 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. Instability Ferit can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
High dependence on third party suppliers
– Instability Ferit 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.
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. Instability Ferit can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Instability Ferit
– 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 Instability Ferit.
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.
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. Instability Ferit needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Taking Charge at Dogus Holding (A), Instability Ferit 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 .
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 Instability Ferit is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Instability Ferit.
Weighted SWOT Analysis of Taking Charge at Dogus Holding (A) 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 Taking Charge at Dogus Holding (A) 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 Taking Charge at Dogus Holding (A) 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 Taking Charge at Dogus Holding (A) 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 Taking Charge at Dogus Holding (A) 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 Instability Ferit needs to make to build a sustainable competitive advantage.