Veridian: Putting a Value on Values SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Veridian: Putting a Value on Values
David Langstaff, the CEO of Veridian, a defense company, struggles with the decision of selling the company. Langstaff has concerned himself with inculcalating his organization with the values necessary for superior achievement over the long term. But as a fiduciary, he had to come up with a single value to monetize the reputation the company had built. Langstaff wondered what was best for the firm and its customers and what his other options were. He also was concerned with how the prospect of selling the firm would square with Veridian's commitment to its constituencies and values-based leadership.
Authors :: Rakesh Khurana, Joel Podolny, Jaan Elias
Swot Analysis of "Veridian: Putting a Value on Values" written by Rakesh Khurana, Joel Podolny, Jaan Elias includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Langstaff Veridian facing as an external strategic factors. Some of the topics covered in Veridian: Putting a Value on Values case study are - Strategic Management Strategies, Leadership, Mergers & acquisitions, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Veridian: Putting a Value on Values casestudy better are - – there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google,
geopolitical disruptions, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Veridian: Putting a Value on Values
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Veridian: Putting a Value on Values case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Langstaff Veridian, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Langstaff Veridian 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 Veridian: Putting a Value on Values can be done for the following purposes –
1. Strategic planning using facts provided in Veridian: Putting a Value on Values case study
2. Improving business portfolio management of Langstaff Veridian
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 Langstaff Veridian
Strengths Veridian: Putting a Value on Values | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Langstaff Veridian in Veridian: Putting a Value on Values Harvard Business Review case study are -
Strong track record of project management
– Langstaff Veridian is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Leadership & Managing People field
– Langstaff Veridian 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 Langstaff Veridian in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Langstaff Veridian is present in almost all the verticals within the industry. This has provided firm in Veridian: Putting a Value on Values 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.
Highly skilled collaborators
– Langstaff Veridian has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Veridian: Putting a Value on Values HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Veridian: Putting a Value on Values 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 recruit top talent
– Langstaff Veridian is one of the leading recruiters in the industry. Managers in the Veridian: Putting a Value on Values are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Langstaff Veridian has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Veridian: Putting a Value on Values 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.
Innovation driven organization
– Langstaff Veridian is one of the most innovative firm in sector. Manager in Veridian: Putting a Value on Values Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Langstaff Veridian is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Rakesh Khurana, Joel Podolny, Jaan Elias 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Veridian: Putting a Value on Values firm has clearly differentiated products in the market place. This has enabled Langstaff Veridian to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Langstaff Veridian to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Langstaff Veridian in the sector have low bargaining power. Veridian: Putting a Value on Values has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Langstaff Veridian to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Langstaff Veridian has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Langstaff Veridian 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.
Weaknesses Veridian: Putting a Value on Values | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Veridian: Putting a Value on Values are -
Interest costs
– Compare to the competition, Langstaff Veridian has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High operating costs
– Compare to the competitors, firm in the HBR case study Veridian: Putting a Value on Values 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 Langstaff Veridian 's lucrative customers.
High cash cycle compare to competitors
Langstaff Veridian 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.
Skills based hiring
– The stress on hiring functional specialists at Langstaff Veridian has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Products dominated business model
– Even though Langstaff Veridian 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 - Veridian: Putting a Value on Values should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Langstaff Veridian needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Increasing silos among functional specialists
– The organizational structure of Langstaff Veridian is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Langstaff Veridian needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Langstaff Veridian to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Langstaff Veridian 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. Langstaff Veridian 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 bargaining power of channel partners
– Because of the regulatory requirements, Rakesh Khurana, Joel Podolny, Jaan Elias suggests that, Langstaff Veridian 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.
No frontier risks strategy
– After analyzing the HBR case study Veridian: Putting a Value on Values, 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Veridian: Putting a Value on Values 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 Langstaff Veridian has relatively successful track record of launching new products.
Opportunities Veridian: Putting a Value on Values | 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 Veridian: Putting a Value on Values are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Langstaff Veridian 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, Veridian: Putting a Value on Values, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Langstaff Veridian can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Veridian: Putting a Value on Values 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.
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. Langstaff Veridian can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Langstaff Veridian can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Langstaff Veridian can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Better consumer reach
– The expansion of the 5G network will help Langstaff Veridian to increase its market reach. Langstaff Veridian 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.
Developing new processes and practices
– Langstaff Veridian 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.
Using analytics as competitive advantage
– Langstaff Veridian 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 Veridian: Putting a Value on Values - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Langstaff Veridian to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Langstaff Veridian is facing challenges because of the dominance of functional experts in the organization. Veridian: Putting a Value on Values 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Langstaff Veridian 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 Langstaff Veridian to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Langstaff Veridian can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
Leveraging digital technologies
– Langstaff Veridian 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 Langstaff Veridian can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Langstaff Veridian in the consumer business. Now Langstaff Veridian can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Veridian: Putting a Value on Values External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Veridian: Putting a Value on Values are -
Shortening product life cycle
– it is one of the major threat that Langstaff Veridian is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Langstaff Veridian has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Langstaff Veridian 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.
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. Langstaff Veridian can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Langstaff Veridian 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 Veridian: Putting a Value on Values .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Langstaff Veridian with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Langstaff Veridian
– 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 Langstaff Veridian.
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 Langstaff Veridian business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Langstaff Veridian 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.
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 Langstaff Veridian in the Leadership & Managing People sector and impact the bottomline of the organization.
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 Langstaff Veridian.
Stagnating economy with rate increase
– Langstaff Veridian 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.
Environmental challenges
– Langstaff Veridian 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. Langstaff Veridian can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Regulatory challenges
– Langstaff Veridian 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.
Weighted SWOT Analysis of Veridian: Putting a Value on Values 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 Veridian: Putting a Value on Values 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 Veridian: Putting a Value on Values 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 Veridian: Putting a Value on Values 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 Veridian: Putting a Value on Values 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 Langstaff Veridian needs to make to build a sustainable competitive advantage.
