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 - – challanges to central banks by blockchain based private currencies, geopolitical disruptions, supply chains are disrupted by pandemic , wage bills are increasing, talent flight as more people leaving formal jobs, increasing energy prices, there is increasing trade war between United States & China,
technology disruption, increasing household debt because of falling income levels, 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 -
Operational resilience
– The operational resilience strategy in the IBM and the Reinvention of High School (A): Proving the P-TECH Concept 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 School Tech 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.
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.
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.
Low bargaining power of suppliers
– Suppliers of School Tech in the sector have low bargaining power. IBM and the Reinvention of High School (A): Proving the P-TECH Concept has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps School Tech to manage not only supply disruptions but also source products at highly competitive prices.
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.
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.
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.
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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the School Tech are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Weaknesses 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 -
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.
Skills based hiring
– The stress on hiring functional specialists at School Tech 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.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of School Tech supply chain. Even after few cautionary changes mentioned in the HBR case study - IBM and the Reinvention of High School (A): Proving the P-TECH Concept, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left School Tech vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of School Tech products
– To increase the profitability and margins on the products, School Tech needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study IBM and the Reinvention of High School (A): Proving the P-TECH Concept, is just above the industry average. School Tech 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.
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.
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.
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.
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.
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.
Slow to strategic competitive environment developments
– As IBM and the Reinvention of High School (A): Proving the P-TECH Concept HBR case study mentions - School Tech 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.
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 -
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.
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.
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.
Manufacturing automation
– School Tech 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.
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 School Tech in the consumer business. Now School Tech can target international markets with far fewer capital restrictions requirements than the existing system.
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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. School Tech can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. School Tech 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. School Tech 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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, School Tech is facing challenges because of the dominance of functional experts in the organization. IBM and the Reinvention of High School (A): Proving the P-TECH Concept case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Buying journey improvements
– 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.
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.
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 -
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 .
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.
High dependence on third party suppliers
– School Tech 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.
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.
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.
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.
Environmental challenges
– School Tech 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. School Tech can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Consumer confidence and its impact on School Tech 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.
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.
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.
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.
Technology acceleration in Forth Industrial Revolution
– School Tech has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, School Tech 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.
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.