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 - – there is increasing trade war between United States & China, there is backlash against globalization, wage bills are increasing, geopolitical disruptions, cloud computing is disrupting traditional business models, technology disruption, supply chains are disrupted by pandemic ,
increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, 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 -
Sustainable margins compare to other players in Leadership & Managing People industry
– Mergers and People: Key Factors for an Effective Acquisition and for Surviving One firm has clearly differentiated products in the market place. This has enabled Mergers Evidence to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Mergers Evidence to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Mergers Evidence in the sector have low bargaining power. Mergers and People: Key Factors for an Effective Acquisition and for Surviving One has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mergers Evidence to manage not only supply disruptions but also source products at highly competitive prices.
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.
Ability to recruit top talent
– Mergers Evidence is one of the leading recruiters in the industry. Managers in the Mergers and People: Key Factors for an Effective Acquisition and for Surviving One are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Mergers Evidence 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 Mergers and People: Key Factors for an Effective Acquisition and for Surviving One - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Mergers Evidence is one of the most innovative firm in sector. Manager in Mergers and People: Key Factors for an Effective Acquisition and for Surviving One Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
Learning organization
- Mergers Evidence 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 Mergers Evidence is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Mergers and People: Key Factors for an Effective Acquisition and for Surviving One Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
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.
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.
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 -
Products dominated business model
– Even though Mergers Evidence 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 - Mergers and People: Key Factors for an Effective Acquisition and for Surviving One should strive to include more intangible value offerings along with its core products and services.
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.
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.
High cash cycle compare to competitors
Mergers Evidence 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.
Slow to strategic competitive environment developments
– As Mergers and People: Key Factors for an Effective Acquisition and for Surviving One HBR case study mentions - Mergers Evidence 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Mergers and People: Key Factors for an Effective Acquisition and for Surviving One, it seems that the employees of Mergers Evidence 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.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mergers Evidence is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mergers and People: Key Factors for an Effective Acquisition and for Surviving One 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 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.
Lack of clear differentiation of Mergers Evidence products
– To increase the profitability and margins on the products, Mergers Evidence needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Mergers Evidence is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Mergers Evidence needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mergers Evidence to focus more on services rather than just following the product oriented approach.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mergers Evidence can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mergers Evidence is facing challenges because of the dominance of functional experts in the organization. Mergers and People: Key Factors for an Effective Acquisition and for Surviving One 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.
Buying journey improvements
– Mergers Evidence can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mergers and People: Key Factors for an Effective Acquisition and for Surviving One suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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.
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 -
Stagnating economy with rate increase
– Mergers Evidence 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.
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.
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.
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.
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.
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. Mergers Evidence needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mergers Evidence 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.
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.
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 .
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Mergers Evidence in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Mergers Evidence can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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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