RESTORING THE BRITISH MUSEUM SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of RESTORING THE BRITISH MUSEUM
This is an unusual turnaround case in that it involves a public sector institution, the British Museum (BM). The case study covers the period from around 1999 to 2010. It focuses more particularly on the arrival of Neil MacGregor, in August 2002, as the new director of the museum. When he took over, the BM was one year short of its 250th anniversary.It was also in debt and out of fashion. It had acquired a reputation as "one of the least user-friendly museums in the world." One senior figure from the museum was even quoted as saying that he didn't want children in there. Compared to rival venues, visiting the BM was like a "trip back in time" - but not in a favorable sense. In the space of nine years, MacGregor reversed its fortunes and restored its sense of pride and purpose. He raised its profile through engaging exhibitions, television shows and the Internet - but most surprisingly of all through the use of radio. He presided over a startling transformation in the image and fortunes of the BM, with net income quadrupling in nine years and donations and legacies growing eight-fold under his watch. Visitor numbers reached record highs and the BM has become a template for other museums. A cultural institution that was once in danger of becoming an embarrassing monument to British imperialism is now viewed with pride. As one commentator put it: "As an exercise in rebranding, it is surely up there with the best." The case considers the methods used by MacGregor to achieve these results and some of the key turning points, as well as the lessons for other organizations, including in the private sector. It also explores the possible complications of following a charismatic leader. Learning objectives: The case covers six key issues to do with leadership and organizational change: 1) The difficulties of changing an entrenched public sector culture, shaped by curatorial divisions and the weight of the BM's heritage. 2) The challenge of managing multiple stakeholders. 3) The various roles adopted by a leader - and changing the scope of the job. 4) The importance of finding a purpose that resonates with employees and visitors alike. 5) The process of institutional transformation and the challenge of building on MacGregor's legacy. 6) The benefits and drawbacks of charismatic leadership.
Swot Analysis of "RESTORING THE BRITISH MUSEUM" written by Anand Narasimhan, Jean-Louis Barsoux includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bm Macgregor facing as an external strategic factors. Some of the topics covered in RESTORING THE BRITISH MUSEUM case study are - Strategic Management Strategies, Customer service, Influence, Leadership, Networking, Operations management, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the RESTORING THE BRITISH MUSEUM casestudy better are - – increasing transportation and logistics costs, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, geopolitical disruptions,
technology disruption, increasing commodity prices, etc
Introduction to SWOT Analysis of RESTORING THE BRITISH MUSEUM
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in RESTORING THE BRITISH MUSEUM case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bm Macgregor, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bm Macgregor 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 RESTORING THE BRITISH MUSEUM can be done for the following purposes –
1. Strategic planning using facts provided in RESTORING THE BRITISH MUSEUM case study
2. Improving business portfolio management of Bm Macgregor
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 Bm Macgregor
Strengths RESTORING THE BRITISH MUSEUM | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bm Macgregor in RESTORING THE BRITISH MUSEUM Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the RESTORING THE BRITISH MUSEUM 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.
High switching costs
– The high switching costs that Bm Macgregor has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Cross disciplinary teams
– Horizontal connected teams at the Bm Macgregor 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Bm Macgregor digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bm Macgregor 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.
Effective Research and Development (R&D)
– Bm Macgregor 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 RESTORING THE BRITISH MUSEUM - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Bm Macgregor in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Bm Macgregor has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bm Macgregor 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.
Learning organization
- Bm Macgregor 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 Bm Macgregor is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in RESTORING THE BRITISH MUSEUM Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Leadership & Managing People field
– Bm Macgregor 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 Bm Macgregor in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Bm Macgregor has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bm Macgregor to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Bm Macgregor is one of the leading recruiters in the industry. Managers in the RESTORING THE BRITISH MUSEUM are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Bm Macgregor 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 RESTORING THE BRITISH MUSEUM HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses RESTORING THE BRITISH MUSEUM | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of RESTORING THE BRITISH MUSEUM are -
Interest costs
– Compare to the competition, Bm Macgregor 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study RESTORING THE BRITISH MUSEUM, in the dynamic environment Bm Macgregor has struggled to respond to the nimble upstart competition. Bm Macgregor has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Bm Macgregor 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 - RESTORING THE BRITISH MUSEUM should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As RESTORING THE BRITISH MUSEUM HBR case study mentions - Bm Macgregor 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.
High operating costs
– Compare to the competitors, firm in the HBR case study RESTORING THE BRITISH MUSEUM 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 Bm Macgregor 's lucrative customers.
Need for greater diversity
– Bm Macgregor has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
No frontier risks strategy
– After analyzing the HBR case study RESTORING THE BRITISH MUSEUM, 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Bm Macgregor 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.
Slow decision making process
– As mentioned earlier in the report, Bm Macgregor 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. Bm Macgregor 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study RESTORING THE BRITISH MUSEUM, is just above the industry average. Bm Macgregor 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study RESTORING THE BRITISH MUSEUM, it seems that the employees of Bm Macgregor 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.
Opportunities RESTORING THE BRITISH MUSEUM | 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 RESTORING THE BRITISH MUSEUM are -
Manufacturing automation
– Bm Macgregor 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.
Developing new processes and practices
– Bm Macgregor 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.
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 Bm Macgregor 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bm Macgregor 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bm Macgregor can use these opportunities to build new business models that can help the communities that Bm Macgregor operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Creating value in data economy
– The success of analytics program of Bm Macgregor has opened avenues for new revenue streams for the organization in the industry. This can help Bm Macgregor to build a more holistic ecosystem as suggested in the RESTORING THE BRITISH MUSEUM case study. Bm Macgregor can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Bm Macgregor can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Bm Macgregor can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Bm Macgregor 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bm Macgregor 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 Bm Macgregor to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bm Macgregor 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, RESTORING THE BRITISH MUSEUM, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bm Macgregor 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bm Macgregor is facing challenges because of the dominance of functional experts in the organization. RESTORING THE BRITISH MUSEUM 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.
Threats RESTORING THE BRITISH MUSEUM External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study RESTORING THE BRITISH MUSEUM are -
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. Bm Macgregor 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 Bm Macgregor 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.
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.
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. Bm Macgregor can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Bm Macgregor business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Bm Macgregor has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Bm Macgregor 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.
Consumer confidence and its impact on Bm Macgregor 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.
High dependence on third party suppliers
– Bm Macgregor 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 Bm Macgregor in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
Regulatory challenges
– Bm Macgregor 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 RESTORING THE BRITISH MUSEUM, Bm Macgregor 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 .
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. Bm Macgregor 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.
Weighted SWOT Analysis of RESTORING THE BRITISH MUSEUM 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 RESTORING THE BRITISH MUSEUM 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 RESTORING THE BRITISH MUSEUM 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 RESTORING THE BRITISH MUSEUM 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 RESTORING THE BRITISH MUSEUM 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 Bm Macgregor needs to make to build a sustainable competitive advantage.