Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance
This two-part case study describes the initial merger and cultural transformation of Aviva's Norwich Union (NUI) operation in the UK. It examines the complexities of integration that arose following a series of mergers that created NUI from 1998 to 2000. Case A describes how, after CGU Plc and Norwich Union joined forces to become NUI, top management's priority was to restore profits. Behind the scenes, however, the need for a whole new corporate culture was becoming increasingly imperative. It shows the tension between the need for immediate gains in efficiencies vs. longer-term approaches to the business that required careful nurturing and attention. It ends as the executive team's announcement of the new corporate philosophy - "to be a service provider with insurance at our core and care at our heart" - is greeted with complete disbelief by employees. Case B describes the actions taken to overcome their skepticism and successfully implement the new philosophy - actions that required significant change to the organisational culture.
Swot Analysis of "Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance" written by D. Charles Galunic, Anne-Marie Carrick includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Norwich Nui facing as an external strategic factors. Some of the topics covered in Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance case study are - Strategic Management Strategies, Corporate governance, Growth strategy, International business, Leadership, Mergers & acquisitions, Organizational culture, Strategy execution and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance casestudy better are - – wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%,
supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Norwich Nui, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Norwich Nui 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 Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance can be done for the following purposes –
1. Strategic planning using facts provided in Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance case study
2. Improving business portfolio management of Norwich Nui
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 Norwich Nui
Strengths Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Norwich Nui in Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance Harvard Business Review case study are -
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Norwich Nui digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Norwich Nui 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.
Successful track record of launching new products
– Norwich Nui has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Norwich Nui 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.
Superior customer experience
– The customer experience strategy of Norwich Nui in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Norwich Nui in the sector have low bargaining power. Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Norwich Nui to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Norwich Nui has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance 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.
Learning organization
- Norwich Nui 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 Norwich Nui is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Norwich Nui is one of the leading recruiters in the industry. Managers in the Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Leadership & Managing People industry
– Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance firm has clearly differentiated products in the market place. This has enabled Norwich Nui to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Norwich Nui to invest into research and development (R&D) and innovation.
High brand equity
– Norwich Nui has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Norwich Nui to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Norwich Nui 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.
High switching costs
– The high switching costs that Norwich Nui 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.
Strong track record of project management
– Norwich Nui is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance, is just above the industry average. Norwich Nui 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance, in the dynamic environment Norwich Nui has struggled to respond to the nimble upstart competition. Norwich Nui has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance HBR case study mentions - Norwich Nui 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.
Low market penetration in new markets
– Outside its home market of Norwich Nui, firm in the HBR case study Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Norwich Nui is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance 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 Norwich Nui has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance 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 Norwich Nui 's lucrative customers.
Interest costs
– Compare to the competition, Norwich Nui 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.
Capital Spending Reduction
– Even during the low interest decade, Norwich Nui 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.
Lack of clear differentiation of Norwich Nui products
– To increase the profitability and margins on the products, Norwich Nui needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Norwich Nui supply chain. Even after few cautionary changes mentioned in the HBR case study - Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Norwich Nui vulnerable to further global disruptions in South East Asia.
Opportunities Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance | 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 Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance are -
Manufacturing automation
– Norwich Nui 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Norwich Nui 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, Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Norwich Nui in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
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 Norwich Nui in the consumer business. Now Norwich Nui can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Norwich Nui is facing challenges because of the dominance of functional experts in the organization. Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance 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.
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. Norwich Nui can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Norwich Nui 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 Norwich Nui 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 Norwich Nui 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.
Creating value in data economy
– The success of analytics program of Norwich Nui has opened avenues for new revenue streams for the organization in the industry. This can help Norwich Nui to build a more holistic ecosystem as suggested in the Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance case study. Norwich Nui can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Norwich Nui 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.
Learning at scale
– Online learning technologies has now opened space for Norwich Nui 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, Norwich Nui can use these opportunities to build new business models that can help the communities that Norwich Nui operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Using analytics as competitive advantage
– Norwich Nui 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 Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Norwich Nui to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance are -
High dependence on third party suppliers
– Norwich Nui 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. Norwich Nui 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 Norwich Nui.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance, Norwich Nui 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 .
Consumer confidence and its impact on Norwich Nui demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Regulatory challenges
– Norwich Nui 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.
Environmental challenges
– Norwich Nui 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. Norwich Nui can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Norwich Nui 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 Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance .
Increasing wage structure of Norwich Nui
– 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 Norwich Nui.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Norwich Nui 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.
Shortening product life cycle
– it is one of the major threat that Norwich Nui is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Norwich Nui 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.
Weighted SWOT Analysis of Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance 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 Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance 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 Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance 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 Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance 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 Leadership, Culture Change and Transformation at AVIVA (B): Norwich Union Insurance 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 Norwich Nui needs to make to build a sustainable competitive advantage.
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