Mergers and People: Key Factors for an Effective Acquisition and for Surviving One SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mergers and People: Key Factors for an Effective Acquisition and for Surviving One
The aim of this technical note is to consider the human dimension of mergers and acquisitions and the way these processes impact people. In the substantial body of scientific literature that exists on this topic, authors discuss the rules and "magic" formulas that lead to a successful acquisition, grounding their arguments in empirical evidence. One of the first conclusions that can be drawn from examining this literature is that the authors cite a wide variety of empirical evidence in each case, and that this evidence serves to support different, and even contradictory, theses concerning the key aspects and elements of company acquisitions. Rationalizations are made a posteriori and seek to offer rules, or something close to that. They should be taken as broad approximations, but do point in the right direction. As a result, they are perhaps more useful for those whose work involves taking action than they are for academics concerned with scientific rigor.Acquisitions affect everyone involved to one degree or another. They are not neutral transactions in any sense: not from a financial, tax, legal, operational or commercial perspective, and especially not in terms of how they impact the people in both companies involved and other stakeholders (shareholders, suppliers, customers, etc.).For many companies, mergers by acquisition have become a recurrent strategy for dealing with competition, gaining market share, or simply ensuring their survival. Their impact on stock markets is noted within hours, but their consequences for the people who live though them are rarely reflected in the media.In this technical note we will address a number of issues related to mergers. First, we will look at the key reasons why companies decide to pursue them and the reasons why many fail. Second, we will consider the inevitable realities associated with mergers. We will also discuss human due diligence and devote a section to the importance of merger and integration committees. Finally
Swot Analysis of "Mergers and People: Key Factors for an Effective Acquisition and for Surviving One" written by Guido Stein Martinez, Marta Cuadrado includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mergers Evidence facing as an external strategic factors. Some of the topics covered in Mergers and People: Key Factors for an Effective Acquisition and for Surviving One case study are - Strategic Management Strategies, Leadership, Mergers & acquisitions, Organizational structure and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Mergers and People: Key Factors for an Effective Acquisition and for Surviving One casestudy better are - – increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, wage bills are increasing, increasing commodity prices,
talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Mergers and People: Key Factors for an Effective Acquisition and for Surviving One
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mergers and People: Key Factors for an Effective Acquisition and for Surviving One case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mergers Evidence, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mergers Evidence 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 Mergers and People: Key Factors for an Effective Acquisition and for Surviving One can be done for the following purposes –
1. Strategic planning using facts provided in Mergers and People: Key Factors for an Effective Acquisition and for Surviving One case study
2. Improving business portfolio management of Mergers Evidence
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 Mergers Evidence
Strengths Mergers and People: Key Factors for an Effective Acquisition and for Surviving One | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mergers Evidence in Mergers and People: Key Factors for an Effective Acquisition and for Surviving One Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Mergers and People: Key Factors for an Effective Acquisition and for Surviving One Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to lead change in Leadership & Managing People field
– Mergers Evidence 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 Mergers Evidence in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Mergers Evidence
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mergers Evidence does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Mergers Evidence is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Mergers Evidence 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.
Successful track record of launching new products
– Mergers Evidence has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mergers Evidence 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.
Analytics focus
– Mergers Evidence 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 Guido Stein Martinez, Marta Cuadrado 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.
High brand equity
– Mergers Evidence has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mergers Evidence to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Mergers Evidence is present in almost all the verticals within the industry. This has provided firm in Mergers and People: Key Factors for an Effective Acquisition and for Surviving One 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 Mergers Evidence digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mergers Evidence 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.
Training and development
– Mergers Evidence has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mergers and People: Key Factors for an Effective Acquisition and for Surviving One 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.
Superior customer experience
– The customer experience strategy of Mergers Evidence in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Mergers and People: Key Factors for an Effective Acquisition and for Surviving One | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mergers and People: Key Factors for an Effective Acquisition and for Surviving One are -
Slow decision making process
– As mentioned earlier in the report, Mergers Evidence 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. Mergers Evidence 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.
Aligning sales with marketing
– It come across in the case study Mergers and People: Key Factors for an Effective Acquisition and for Surviving One 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 Mergers and People: Key Factors for an Effective Acquisition and for Surviving One can leverage the sales team experience to cultivate customer relationships as Mergers Evidence is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Mergers and People: Key Factors for an Effective Acquisition and for Surviving One 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 Mergers Evidence has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Guido Stein Martinez, Marta Cuadrado suggests that, Mergers Evidence 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.
Capital Spending Reduction
– Even during the low interest decade, Mergers Evidence 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.
No frontier risks strategy
– After analyzing the HBR case study Mergers and People: Key Factors for an Effective Acquisition and for Surviving One, 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.
Low market penetration in new markets
– Outside its home market of Mergers Evidence, firm in the HBR case study Mergers and People: Key Factors for an Effective Acquisition and for Surviving One needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Mergers and People: Key Factors for an Effective Acquisition and for Surviving One, in the dynamic environment Mergers Evidence has struggled to respond to the nimble upstart competition. Mergers Evidence has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Mergers and People: Key Factors for an Effective Acquisition and for Surviving One 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 Mergers Evidence 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Mergers and People: Key Factors for an Effective Acquisition and for Surviving One, is just above the industry average. Mergers Evidence 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.
Interest costs
– Compare to the competition, Mergers Evidence 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.
Opportunities Mergers and People: Key Factors for an Effective Acquisition and for Surviving One | 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 Mergers and People: Key Factors for an Effective Acquisition and for Surviving One are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Mergers Evidence 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.
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 Mergers Evidence 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
– Mergers Evidence 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 Mergers and People: Key Factors for an Effective Acquisition and for Surviving One - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mergers Evidence to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Mergers Evidence can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Mergers Evidence in the consumer business. Now Mergers Evidence can target international markets with far fewer capital restrictions requirements than the existing system.
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. Mergers Evidence 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 Mergers Evidence 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 Mergers Evidence to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Mergers Evidence 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.
Developing new processes and practices
– Mergers Evidence 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.
Manufacturing automation
– Mergers Evidence 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mergers Evidence 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mergers Evidence can use these opportunities to build new business models that can help the communities that Mergers Evidence operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Better consumer reach
– The expansion of the 5G network will help Mergers Evidence to increase its market reach. Mergers Evidence will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Threats Mergers and People: Key Factors for an Effective Acquisition and for Surviving One External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mergers and People: Key Factors for an Effective Acquisition and for Surviving One are -
Increasing wage structure of Mergers Evidence
– 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 Mergers Evidence.
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. Mergers Evidence needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mergers Evidence 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 Mergers and People: Key Factors for an Effective Acquisition and for Surviving One .
Regulatory challenges
– Mergers Evidence 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mergers and People: Key Factors for an Effective Acquisition and for Surviving One, Mergers Evidence 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 .
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 Mergers Evidence business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Mergers Evidence has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Mergers Evidence 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. Mergers Evidence 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.
High dependence on third party suppliers
– Mergers Evidence high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Environmental challenges
– Mergers Evidence 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. Mergers Evidence can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Consumer confidence and its impact on Mergers Evidence 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.
Weighted SWOT Analysis of Mergers and People: Key Factors for an Effective Acquisition and for Surviving One 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 Mergers and People: Key Factors for an Effective Acquisition and for Surviving One 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 Mergers and People: Key Factors for an Effective Acquisition and for Surviving One 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 Mergers and People: Key Factors for an Effective Acquisition and for Surviving One 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 Mergers and People: Key Factors for an Effective Acquisition and for Surviving One 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 Mergers Evidence needs to make to build a sustainable competitive advantage.
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