Harvard Case - Coesia (A): Choosing an Operating Model to Support Its Transformation Journey
"Coesia (A): Choosing an Operating Model to Support Its Transformation Journey" Harvard business case study is written by Goutam Challagalla, Valerie Keller-Birrer. It deals with the challenges in the field of Strategy. The case study is 17 page(s) long and it was first published on : Apr 11, 2019
At Fern Fort University, we recommend Coesia adopt a hybrid operating model that leverages the strengths of both centralized and decentralized structures. This model will enable Coesia to achieve its strategic goals of growth, innovation, and efficiency while navigating the complexities of its diverse portfolio of businesses.
2. Background
Coesia is a global leader in industrial automation and packaging solutions, operating through a network of specialized companies. The company faces a strategic challenge: how to manage its diverse portfolio of businesses while fostering innovation and growth. Coesia's current operating model, characterized by a decentralized structure, has allowed for agility and entrepreneurial spirit within individual businesses. However, this structure has also led to inefficiencies and duplication of efforts, hindering the company's ability to achieve economies of scale and leverage its collective expertise.
The case study focuses on Coesia's CEO, who is tasked with finding a new operating model that balances the need for centralized control with the need for decentralized innovation. The CEO wants to ensure that the new model supports the company's growth strategy, fosters a culture of innovation, and enhances operational efficiency.
3. Analysis of the Case Study
To analyze Coesia's situation, we will utilize several strategic frameworks:
1. Porter's Five Forces:
- Threat of New Entrants: The industrial automation and packaging industry is characterized by high barriers to entry due to significant capital investment requirements, technological expertise, and established customer relationships. This force is moderate.
- Bargaining Power of Buyers: Buyers have moderate bargaining power, as they can switch suppliers if prices are too high or quality is inadequate. However, Coesia's specialized solutions and strong brand reputation provide some protection against buyer pressure.
- Bargaining Power of Suppliers: Suppliers have moderate bargaining power, as the industry relies on specialized components and technologies. However, Coesia can mitigate this risk by establishing long-term relationships with key suppliers and diversifying its sourcing.
- Threat of Substitutes: The threat of substitutes is moderate, as alternative solutions may exist for specific applications, but they may not offer the same level of performance or reliability as Coesia's offerings.
- Competitive Rivalry: The industry is characterized by intense competition, with both established players and emerging startups vying for market share. This force is high.
2. SWOT Analysis:
Strengths:
- Strong brand reputation and market leadership
- Diverse portfolio of specialized businesses
- Strong financial position
- Global presence and reach
- Focus on innovation and technology
- Strong leadership team
Weaknesses:
- Decentralized structure leading to inefficiencies and duplication
- Lack of standardization and shared best practices
- Limited cross-business collaboration
- Difficulty in leveraging collective expertise
Opportunities:
- Growing demand for automation and packaging solutions
- Emerging markets offering significant growth potential
- Technological advancements driving innovation
- Increased focus on sustainability and environmental responsibility
- M&A opportunities to expand portfolio
Threats:
- Economic downturn impacting demand
- Competition from emerging players
- Technological disruption
- Fluctuations in raw material prices
- Regulatory changes
3. Value Chain Analysis:
Coesia's value chain is complex, encompassing various stages from research and development to manufacturing, sales, and after-sales service. The analysis reveals that the company's core competencies lie in its product development capabilities, manufacturing expertise, and customer service excellence. However, inefficiencies in its supply chain management and information systems are hindering its ability to achieve optimal performance.
4. Business Model Innovation:
Coesia can leverage business model innovation to enhance its competitive advantage. This includes:
- Value proposition expansion: Offering integrated solutions that go beyond individual products, such as customized packaging solutions combined with automation systems.
- New revenue models: Exploring subscription-based services, outcome-based pricing, or pay-per-use models to create recurring revenue streams.
- Digital transformation: Leveraging data analytics and artificial intelligence to optimize operations, improve customer experience, and develop new product offerings.
4. Recommendations
Coesia should adopt a hybrid operating model that combines the strengths of centralization and decentralization:
1. Centralized Functions:
- Finance and Investing: Establishing a centralized finance function to manage financial reporting, budgeting, and investment decisions.
- IT Management: Implementing a centralized IT infrastructure to ensure data security, system integration, and efficient resource utilization.
- Human Resources: Centralizing talent management, training programs, and performance evaluation processes to foster a unified corporate culture.
- Legal and Compliance: Establishing a centralized legal department to ensure compliance with regulations and manage legal risks.
- Corporate Social Responsibility: Implementing a centralized CSR strategy to promote sustainability and ethical business practices across all businesses.
2. Decentralized Functions:
- Product Development: Empowering individual businesses to develop and launch innovative products tailored to specific market needs.
- Manufacturing Processes: Allowing individual businesses to optimize their manufacturing processes based on local requirements and customer preferences.
- Marketing and Sales: Enabling individual businesses to develop targeted marketing campaigns and sales strategies for their specific customer segments.
- Customer Service: Decentralizing customer service operations to provide localized support and personalized experiences.
3. Cross-Functional Collaboration:
- Strategic Planning: Establishing a centralized strategic planning process that involves representatives from all businesses to ensure alignment with corporate goals.
- Innovation Hub: Creating a central innovation hub where teams from different businesses can collaborate on developing new technologies and solutions.
- Knowledge Sharing: Implementing a knowledge management system to facilitate sharing of best practices, expertise, and lessons learned across the organization.
5. Basis of Recommendations
This hybrid model addresses Coesia's key challenges:
- Core competencies and consistency with mission: This model allows for the development and deployment of core competencies in a centralized manner while fostering innovation and agility at the business level.
- External customers and internal clients: The model ensures that customer needs are met through localized solutions while leveraging centralized resources for efficiency.
- Competitors: The model enables Coesia to respond quickly to competitive threats and capitalize on emerging market opportunities.
- Attractiveness: The model is expected to improve operational efficiency, reduce costs, and enhance profitability.
Assumptions:
- Coesia has the necessary resources and capabilities to implement the hybrid model.
- The company can effectively manage the transition to a new operating model.
- Individual businesses are willing to collaborate and share resources.
6. Conclusion
By adopting a hybrid operating model, Coesia can achieve its strategic goals of growth, innovation, and efficiency. This model will enable the company to leverage its collective expertise, achieve economies of scale, and respond effectively to the dynamic market environment.
7. Discussion
Alternatives:
- Fully centralized model: While this approach could improve efficiency, it might stifle innovation and limit the ability of individual businesses to respond to local market needs.
- Fully decentralized model: This approach could lead to inefficiencies, duplication of efforts, and a lack of coordination across the organization.
Risks:
- Resistance to change from employees and business leaders.
- Difficulty in implementing the hybrid model effectively.
- Potential loss of agility and responsiveness in individual businesses.
Key Assumptions:
- The company has a strong leadership team that can effectively manage the transition.
- Individual businesses are willing to embrace collaboration and share resources.
- The company has the necessary technology and infrastructure to support the hybrid model.
8. Next Steps
- Develop a detailed implementation plan: This plan should outline specific actions, timelines, and responsibilities for each stage of the transition.
- Communicate the new operating model to all stakeholders: This communication should be clear, concise, and address any concerns or questions.
- Provide training and support to employees: Ensure that employees are equipped with the skills and knowledge necessary to operate effectively within the new model.
- Monitor progress and make adjustments as needed: Regularly assess the effectiveness of the hybrid model and make adjustments to ensure it meets the company's evolving needs.
By taking these steps, Coesia can successfully implement its hybrid operating model and achieve its strategic goals for sustainable growth and success.
Hire an expert to write custom solution for HBR Strategy case study - Coesia (A): Choosing an Operating Model to Support Its Transformation Journey
more similar case solutions ...
Case Description
Coesia was a privately owned group of industrial companies based in Bologna, Italy. The group went through a two-phase transformation journey when Isabella Seràgnoli became the full owner of the group. One of her first decisions was to name it Coesia, to symbolize cohesion and shared values among the group companies. Her vision was to build a professionally managed, value-driven, sufficiently diversified global group that would be sustainable in the long term. In 2010, Seràgnoli hired a non-Italian newcomer to the industry, Angelos Papadimitriou, as CEO. Six weeks into his tenure, Papadimitriou presented to the board an aggressive ambition of doubling the business by 2015. Achieving this ambition would require a second phase of transformation in terms of strategy, business model and organization. At that time, only one group company, G.D, was truly global. G.D. accounted for 62% of the group's revenues and 99% of its profits. However, it faced some market challenges and potential risks to its future profitability. Papadimitriou and his leadership team would have to develop an overall strategy to build a more balanced, diversified and global group while strengthening G.D. Coesia operated as a loose federation of independent companies each with its own structure, functions and processes. Aside from reshaping the strategy, the group would have to design a business model and an organizational structure to support its ambition of becoming a larger, more global group.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Write my custom case study solution for Harvard HBR case - Coesia (A): Choosing an Operating Model to Support Its Transformation Journey
Hire an expert to write custom solution for HBR Strategy case study - Coesia (A): Choosing an Operating Model to Support Its Transformation Journey
Coesia (A): Choosing an Operating Model to Support Its Transformation Journey FAQ
What are the qualifications of the writers handling the "Coesia (A): Choosing an Operating Model to Support Its Transformation Journey" case study?
Our writers hold advanced degrees in their respective fields, including MBAs and PhDs from top universities. They have extensive experience in writing and analyzing complex case studies such as " Coesia (A): Choosing an Operating Model to Support Its Transformation Journey ", ensuring high-quality, academically rigorous solutions.
How do you ensure confidentiality and security in handling client information?
We prioritize confidentiality by using secure data encryption, access controls, and strict privacy policies. Apart from an email, we don't collect any information from the client. So there is almost zero risk of breach at our end. Our financial transactions are done by Paypal on their website so all your information is very secure.
What is Fern Fort Univeristy's process for quality control and proofreading in case study solutions?
The Coesia (A): Choosing an Operating Model to Support Its Transformation Journey case study solution undergoes a rigorous quality control process, including multiple rounds of proofreading and editing by experts. We ensure that the content is accurate, well-structured, and free from errors before delivery.
Where can I find free case studies solution for Harvard HBR Strategy Case Studies?
At Fern Fort University provides free case studies solutions for a variety of Harvard HBR case studies. The free solutions are written to build "Wikipedia of case studies on internet". Custom solution services are written based on specific requirements. If free solution helps you with your task then feel free to donate a cup of coffee.
I’m looking for Harvard Business Case Studies Solution for Coesia (A): Choosing an Operating Model to Support Its Transformation Journey. Where can I get it?
You can find the case study solution of the HBR case study "Coesia (A): Choosing an Operating Model to Support Its Transformation Journey" at Fern Fort University.
Can I Buy Case Study Solution for Coesia (A): Choosing an Operating Model to Support Its Transformation Journey & Seek Case Study Help at Fern Fort University?
Yes, you can order your custom case study solution for the Harvard business case - "Coesia (A): Choosing an Operating Model to Support Its Transformation Journey" at Fern Fort University. You can get a comprehensive solution tailored to your requirements.
Can I hire someone only to analyze my Coesia (A): Choosing an Operating Model to Support Its Transformation Journey solution? I have written it, and I want an expert to go through it.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Pay an expert to write my HBR study solution for the case study - Coesia (A): Choosing an Operating Model to Support Its Transformation Journey
Where can I find a case analysis for Harvard Business School or HBR Cases?
You can find the case study solution of the HBR case study "Coesia (A): Choosing an Operating Model to Support Its Transformation Journey" at Fern Fort University.
Which are some of the all-time best Harvard Review Case Studies?
Some of our all time favorite case studies are -
Can I Pay Someone To Solve My Case Study - "Coesia (A): Choosing an Operating Model to Support Its Transformation Journey"?
Yes, you can pay experts at Fern Fort University to write a custom case study solution that meets all your professional and academic needs.
Do I have to upload case material for the case study Coesia (A): Choosing an Operating Model to Support Its Transformation Journey to buy a custom case study solution?
We recommend to upload your case study because Harvard HBR case studies are updated regularly. So for custom solutions it helps to refer to the same document. The uploading of specific case materials for Coesia (A): Choosing an Operating Model to Support Its Transformation Journey ensures that the custom solution is aligned precisely with your needs. This helps our experts to deliver the most accurate, latest, and relevant solution.
What is a Case Research Method? How can it be applied to the Coesia (A): Choosing an Operating Model to Support Its Transformation Journey case study?
The Case Research Method involves in-depth analysis of a situation, identifying key issues, and proposing strategic solutions. For "Coesia (A): Choosing an Operating Model to Support Its Transformation Journey" case study, this method would be applied by examining the case’s context, challenges, and opportunities to provide a robust solution that aligns with academic rigor.
"I’m Seeking Help with Case Studies,” How can Fern Fort University help me with my case study assignments?
Fern Fort University offers comprehensive case study solutions, including writing, analysis, and consulting services. Whether you need help with strategy formulation, problem-solving, or academic compliance, their experts are equipped to assist with your assignments.
Achieve academic excellence with Fern Fort University! 🌟 We offer custom essays, term papers, and Harvard HBR business case studies solutions crafted by top-tier experts. Experience tailored solutions, uncompromised quality, and timely delivery. Elevate your academic performance with our trusted and confidential services. Visit Fern Fort University today! #AcademicSuccess #CustomEssays #MBA #CaseStudies
How do you handle tight deadlines for case study solutions?
We are adept at managing tight deadlines by allocating sufficient resources and prioritizing urgent projects. Our team works efficiently without compromising quality, ensuring that even last-minute requests are delivered on time
What if I need revisions or edits after receiving the case study solution?
We offer free revisions to ensure complete client satisfaction. If any adjustments are needed, our team will work closely with you to refine the solution until it meets your expectations.
How do you ensure that the case study solution is plagiarism-free?
All our case study solutions are crafted from scratch and thoroughly checked using advanced plagiarism detection software. We guarantee 100% originality in every solution delivered
How do you handle references and citations in the case study solutions?
We follow strict academic standards for references and citations, ensuring that all sources are properly credited according to the required citation style (APA, MLA, Chicago, etc.).