Case Study Description of Gross National Accumulation
Low birth rates, longevity, family disintegration, and other factors have reduced the size of the average household. At the same time household size is shrinking, new housing offers twice the floor space per occupant of old housing. Small households are inefficient users of space, utilities, furniture, and equipment. As these factors converge, the result is overconsumption of durables and vast stockpiles of possessions just awaiting disposal when the baby boom generation passes on. The rightful heirs to these possessions are themselves accumulators and will most likely have little use for what is left to them. What does the future hold for consumption, savings, and demand for housing? Booming flea markets, bigger homes as warehouses, a decline in consumption, or an epidemic of display and collection? Public policies have limited leverage on private behavior.
Swot Analysis of "Gross National Accumulation" written by Charles T. Stewart Jr. includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Possessions Housing facing as an external strategic factors. Some of the topics covered in Gross National Accumulation case study are - Strategic Management Strategies, Customers, Economics, Organizational culture and Management.
Some of the macro environment factors that can be used to understand the Gross National Accumulation casestudy better are - – increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, increasing commodity prices, geopolitical disruptions, increasing transportation and logistics costs,
talent flight as more people leaving formal jobs, there is backlash against globalization, etc
Introduction to SWOT Analysis of Gross National Accumulation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Gross National Accumulation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Possessions Housing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Possessions Housing 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 Gross National Accumulation can be done for the following purposes –
1. Strategic planning using facts provided in Gross National Accumulation case study
2. Improving business portfolio management of Possessions Housing
3. Assessing feasibility of the new initiative in Management field.
4. Making a Management topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Possessions Housing
Strengths Gross National Accumulation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Possessions Housing in Gross National Accumulation Harvard Business Review case study are -
Digital Transformation in Management segment
- digital transformation varies from industry to industry. For Possessions Housing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Possessions Housing 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.
High brand equity
– Possessions Housing has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Possessions Housing to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Possessions Housing is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Management industry
– Gross National Accumulation firm has clearly differentiated products in the market place. This has enabled Possessions Housing to fetch slight price premium compare to the competitors in the Management industry. The sustainable margins have also helped Possessions Housing to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Possessions Housing in the sector have low bargaining power. Gross National Accumulation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Possessions Housing to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Possessions Housing has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Gross National Accumulation 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.
Analytics focus
– Possessions Housing 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 Charles T. Stewart Jr. 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.
Diverse revenue streams
– Possessions Housing is present in almost all the verticals within the industry. This has provided firm in Gross National Accumulation 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.
Successful track record of launching new products
– Possessions Housing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Possessions Housing 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.
Effective Research and Development (R&D)
– Possessions Housing 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 Gross National Accumulation - 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 Possessions Housing in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Possessions Housing 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 Gross National Accumulation HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Gross National Accumulation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gross National Accumulation are -
High cash cycle compare to competitors
Possessions Housing 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Gross National Accumulation 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 Possessions Housing has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Possessions Housing 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. Possessions Housing 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Possessions Housing 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.
Lack of clear differentiation of Possessions Housing products
– To increase the profitability and margins on the products, Possessions Housing needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Gross National Accumulation, it seems that the employees of Possessions Housing 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Gross National Accumulation 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 Possessions Housing 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Gross National Accumulation, is just above the industry average. Possessions Housing 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.
Increasing silos among functional specialists
– The organizational structure of Possessions Housing is dominated by functional specialists. It is not different from other players in the Management segment. Possessions Housing needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Possessions Housing to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Charles T. Stewart Jr. suggests that, Possessions Housing 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.
Slow to strategic competitive environment developments
– As Gross National Accumulation HBR case study mentions - Possessions Housing 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 Gross National Accumulation | 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 Gross National Accumulation are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Management industry, but it has also influenced the consumer preferences. Possessions Housing can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Possessions Housing can use the latest technology developments to improve its manufacturing and designing process in Management 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.
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 Possessions Housing 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.
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. Possessions Housing can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Possessions Housing 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 Possessions Housing to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Possessions Housing 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.
Loyalty marketing
– Possessions Housing has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Developing new processes and practices
– Possessions Housing can develop new processes and procedures in Management 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, Possessions Housing 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, Gross National Accumulation, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Possessions Housing can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Possessions Housing 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, Possessions Housing can use these opportunities to build new business models that can help the communities that Possessions Housing operates in. Secondly it can use opportunities from government spending in Management sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Possessions Housing in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Management segment, and it will provide faster access to the consumers.
Threats Gross National Accumulation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Gross National Accumulation are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Possessions Housing 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 Gross National Accumulation .
Easy access to finance
– Easy access to finance in Management field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Possessions Housing can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Possessions Housing.
Stagnating economy with rate increase
– Possessions Housing 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.
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. Possessions Housing needs to understand the core reasons impacting the Management industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Possessions Housing with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Gross National Accumulation, Possessions Housing may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Management .
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.
Environmental challenges
– Possessions Housing 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. Possessions Housing can take advantage of this fund but it will also bring new competitors in the Management industry.
Technology acceleration in Forth Industrial Revolution
– Possessions Housing has witnessed rapid integration of technology during Covid-19 in the Management industry. As one of the leading players in the industry, Possessions Housing needs to keep up with the evolution of technology in the Management 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. Possessions Housing 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.
High dependence on third party suppliers
– Possessions Housing 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 Possessions Housing in the Management sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Gross National Accumulation 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 Gross National Accumulation 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 Gross National Accumulation 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 Gross National Accumulation 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 Gross National Accumulation 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 Possessions Housing needs to make to build a sustainable competitive advantage.
