Succession Planning: Surviving the Next Generation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Succession Planning: Surviving the Next Generation
In late May 2009, Albert Bohemier, CEO of Survival Systems Limited (SSL), located in Dartmouth, Nova Scotia, paced the deck of the training pool at Survival Training Simulation Theatre wondering how best to transition the company to new leadership. During the past five years, attempts at succession planning had been unsuccessful. As the leader of the company for over 25 years, Bohemier was ready to retire, but there were many aspects of succession planning to consider. Bohemier's personal criteria for incoming leadership were threefold: it had to be good for SSL's existing clients, a positive move for the company as a whole and good for the current team.
Swot Analysis of "Succession Planning: Surviving the Next Generation" written by Ilan Alon, Kimberley Howard includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bohemier Succession facing as an external strategic factors. Some of the topics covered in Succession Planning: Surviving the Next Generation case study are - Strategic Management Strategies, International business, Manufacturing, Succession planning and Organizational Development.
Some of the macro environment factors that can be used to understand the Succession Planning: Surviving the Next Generation casestudy better are - – increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies,
wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Succession Planning: Surviving the Next Generation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Succession Planning: Surviving the Next Generation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bohemier Succession, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bohemier Succession 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 Succession Planning: Surviving the Next Generation can be done for the following purposes –
1. Strategic planning using facts provided in Succession Planning: Surviving the Next Generation case study
2. Improving business portfolio management of Bohemier Succession
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bohemier Succession
Strengths Succession Planning: Surviving the Next Generation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bohemier Succession in Succession Planning: Surviving the Next Generation Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Succession Planning: Surviving the Next Generation 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.
Innovation driven organization
– Bohemier Succession is one of the most innovative firm in sector. Manager in Succession Planning: Surviving the Next Generation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Bohemier Succession 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.
Ability to lead change in Organizational Development field
– Bohemier Succession 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 Bohemier Succession in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Bohemier Succession 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 Bohemier Succession is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Succession Planning: Surviving the Next Generation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Bohemier Succession digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bohemier Succession 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.
Low bargaining power of suppliers
– Suppliers of Bohemier Succession in the sector have low bargaining power. Succession Planning: Surviving the Next Generation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bohemier Succession to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Bohemier Succession is one of the leading recruiters in the industry. Managers in the Succession Planning: Surviving the Next Generation are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Bohemier Succession
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bohemier Succession does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Bohemier Succession has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bohemier Succession 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.
High brand equity
– Bohemier Succession has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bohemier Succession to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Bohemier Succession in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Succession Planning: Surviving the Next Generation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Succession Planning: Surviving the Next Generation are -
High bargaining power of channel partners
– Because of the regulatory requirements, Ilan Alon, Kimberley Howard suggests that, Bohemier Succession 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.
Products dominated business model
– Even though Bohemier Succession 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 - Succession Planning: Surviving the Next Generation should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Bohemier Succession, firm in the HBR case study Succession Planning: Surviving the Next Generation needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Bohemier Succession 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.
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 Bohemier Succession supply chain. Even after few cautionary changes mentioned in the HBR case study - Succession Planning: Surviving the Next Generation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bohemier Succession vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Succession Planning: Surviving the Next Generation, is just above the industry average. Bohemier Succession 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bohemier Succession is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Succession Planning: Surviving the Next Generation can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Succession Planning: Surviving the Next Generation 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 Bohemier Succession 's lucrative customers.
Slow to strategic competitive environment developments
– As Succession Planning: Surviving the Next Generation HBR case study mentions - Bohemier Succession 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Bohemier Succession 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Succession Planning: Surviving the Next Generation, it seems that the employees of Bohemier Succession 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 Succession Planning: Surviving the Next Generation | 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 Succession Planning: Surviving the Next Generation are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bohemier Succession is facing challenges because of the dominance of functional experts in the organization. Succession Planning: Surviving the Next Generation 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Bohemier Succession can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Bohemier Succession can develop new processes and procedures in Organizational Development 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 Bohemier Succession 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
– Bohemier Succession can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Succession Planning: Surviving the Next Generation 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.
Manufacturing automation
– Bohemier Succession can use the latest technology developments to improve its manufacturing and designing process in Organizational Development 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.
Creating value in data economy
– The success of analytics program of Bohemier Succession has opened avenues for new revenue streams for the organization in the industry. This can help Bohemier Succession to build a more holistic ecosystem as suggested in the Succession Planning: Surviving the Next Generation case study. Bohemier Succession 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. Bohemier Succession 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 Bohemier Succession can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bohemier Succession 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, Succession Planning: Surviving the Next Generation, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Bohemier Succession in the consumer business. Now Bohemier Succession can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Bohemier Succession 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.
Learning at scale
– Online learning technologies has now opened space for Bohemier Succession 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.
Threats Succession Planning: Surviving the Next Generation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Succession Planning: Surviving the Next Generation are -
Environmental challenges
– Bohemier Succession 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. Bohemier Succession can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bohemier Succession 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 Succession Planning: Surviving the Next Generation .
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 Bohemier Succession business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Bohemier Succession 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.
Technology acceleration in Forth Industrial Revolution
– Bohemier Succession has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Bohemier Succession needs to keep up with the evolution of technology in the Organizational Development 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.
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 Bohemier Succession.
Regulatory challenges
– Bohemier Succession 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 Organizational Development industry regulations.
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 Bohemier Succession in the Organizational Development sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Bohemier Succession 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bohemier Succession in the Organizational Development industry. The Organizational Development 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.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Bohemier Succession can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Bohemier Succession needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Bohemier Succession 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.
Weighted SWOT Analysis of Succession Planning: Surviving the Next Generation 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 Succession Planning: Surviving the Next Generation 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 Succession Planning: Surviving the Next Generation 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 Succession Planning: Surviving the Next Generation 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 Succession Planning: Surviving the Next Generation 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 Bohemier Succession needs to make to build a sustainable competitive advantage.