IBM and the Reinvention of High School (A): Proving the P-TECH Concept SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of IBM and the Reinvention of High School (A): Proving the P-TECH Concept
IBM's Corporate Citizenship office created a social and organizational innovation in public education through a business-school partnership. IBM's Stanley Litow was the key architect in designing Pathways in Technology Early College High School, known as P-TECH. The open enrollment high school located in New York City's Brooklyn was launched in 2011 through a joint partnership between IBM, City University of New York (CUNY), and the New York City Department of Education (NYCDOE). The innovative design incorporated career and technical education (CTE), STEM (science, technology, engineering, and math), and early college. Students could graduate with an associate degree (essentially, two free years of college) and be "first in line" for jobs at IBM. The school was already seeing remarkable results; one third of the inaugural class entered P-TECH below grade level and nearly all students were promoted to the 10th grade and more than half of them took college courses before the end of their sophomore year. This case explores the motivation behind P-TECH (a growing skills gap), how it was developed along with the challenges, and the attention generated by the unique school design.
Swot Analysis of "IBM and the Reinvention of High School (A): Proving the P-TECH Concept" written by Rosabeth Moss Kanter, Ai-Ling Jamila Malone includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that School Tech facing as an external strategic factors. Some of the topics covered in IBM and the Reinvention of High School (A): Proving the P-TECH Concept case study are - Strategic Management Strategies, Joint ventures, Leadership, Marketing, Technology and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the IBM and the Reinvention of High School (A): Proving the P-TECH Concept casestudy better are - – increasing transportation and logistics costs, increasing household debt because of falling income levels, there is backlash against globalization, increasing commodity prices, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy,
banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of IBM and the Reinvention of High School (A): Proving the P-TECH Concept
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in IBM and the Reinvention of High School (A): Proving the P-TECH Concept case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the School Tech, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which School Tech 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 IBM and the Reinvention of High School (A): Proving the P-TECH Concept can be done for the following purposes –
1. Strategic planning using facts provided in IBM and the Reinvention of High School (A): Proving the P-TECH Concept case study
2. Improving business portfolio management of School Tech
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 School Tech
Strengths IBM and the Reinvention of High School (A): Proving the P-TECH Concept | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of School Tech in IBM and the Reinvention of High School (A): Proving the P-TECH Concept Harvard Business Review case study are -
Strong track record of project management
– School Tech is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– School Tech has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in IBM and the Reinvention of High School (A): Proving the P-TECH Concept 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.
Ability to lead change in Leadership & Managing People field
– School Tech 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 School Tech in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– School Tech is one of the most innovative firm in sector. Manager in IBM and the Reinvention of High School (A): Proving the P-TECH Concept Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– School Tech is one of the leading recruiters in the industry. Managers in the IBM and the Reinvention of High School (A): Proving the P-TECH Concept are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– School Tech has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. School Tech has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Analytics focus
– School Tech 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 Rosabeth Moss Kanter, Ai-Ling Jamila Malone 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.
Superior customer experience
– The customer experience strategy of School Tech in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– School Tech has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled School Tech to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For School Tech digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. School Tech 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.
Learning organization
- School Tech 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 School Tech is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in IBM and the Reinvention of High School (A): Proving the P-TECH Concept Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– School Tech 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 IBM and the Reinvention of High School (A): Proving the P-TECH Concept - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses IBM and the Reinvention of High School (A): Proving the P-TECH Concept | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of IBM and the Reinvention of High School (A): Proving the P-TECH Concept are -
Capital Spending Reduction
– Even during the low interest decade, School Tech has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Interest costs
– Compare to the competition, School Tech 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 decision making process
– As mentioned earlier in the report, School Tech 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. School Tech 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.
Products dominated business model
– Even though School Tech 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 - IBM and the Reinvention of High School (A): Proving the P-TECH Concept should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study IBM and the Reinvention of High School (A): Proving the P-TECH Concept 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 School Tech 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, School Tech 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.
Need for greater diversity
– School Tech 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, School Tech is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study IBM and the Reinvention of High School (A): Proving the P-TECH Concept can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study IBM and the Reinvention of High School (A): Proving the P-TECH Concept, in the dynamic environment School Tech has struggled to respond to the nimble upstart competition. School Tech has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Rosabeth Moss Kanter, Ai-Ling Jamila Malone suggests that, School Tech 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.
Increasing silos among functional specialists
– The organizational structure of School Tech is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. School Tech needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help School Tech to focus more on services rather than just following the product oriented approach.
Opportunities IBM and the Reinvention of High School (A): Proving the P-TECH Concept | 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 IBM and the Reinvention of High School (A): Proving the P-TECH Concept are -
Better consumer reach
– The expansion of the 5G network will help School Tech to increase its market reach. School Tech 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.
Learning at scale
– Online learning technologies has now opened space for School Tech to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Low interest rates
– Even though inflation is raising its head in most developed economies, School Tech 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for School Tech in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, School Tech can use these opportunities to build new business models that can help the communities that School Tech operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Using analytics as competitive advantage
– School Tech 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 IBM and the Reinvention of High School (A): Proving the P-TECH Concept - to build a competitive advantage using analytics. The analytics driven competitive advantage can help School Tech to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. School Tech can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at School Tech 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.
Developing new processes and practices
– School Tech 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, School Tech 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, IBM and the Reinvention of High School (A): Proving the P-TECH Concept, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for School Tech 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 School Tech to hire the very best people irrespective of their geographical location.
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 School Tech 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.
Buying journey improvements
– School Tech can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. IBM and the Reinvention of High School (A): Proving the P-TECH Concept 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.
Threats IBM and the Reinvention of High School (A): Proving the P-TECH Concept External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study IBM and the Reinvention of High School (A): Proving the P-TECH Concept are -
Shortening product life cycle
– it is one of the major threat that School Tech is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of School Tech
– 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 School Tech.
Regulatory challenges
– School Tech 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.
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. School Tech can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study IBM and the Reinvention of High School (A): Proving the P-TECH Concept, School Tech 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 School Tech in the Leadership & Managing People sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for School Tech 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.
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.
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 School Tech.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, School Tech 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 IBM and the Reinvention of High School (A): Proving the P-TECH Concept .
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. School Tech needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 School Tech business can come under increasing regulations regarding data privacy, data security, etc.
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. School Tech 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 IBM and the Reinvention of High School (A): Proving the P-TECH Concept 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 IBM and the Reinvention of High School (A): Proving the P-TECH Concept 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 IBM and the Reinvention of High School (A): Proving the P-TECH Concept 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 IBM and the Reinvention of High School (A): Proving the P-TECH Concept 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 IBM and the Reinvention of High School (A): Proving the P-TECH Concept 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 School Tech needs to make to build a sustainable competitive advantage.