Harvard Business School and the Making of a New Profession SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Harvard Business School and the Making of a New Profession
Since its founding in 1908, Harvard Business School's mission has been to perform a much-needed service for American society by turning business management into a profession. One of the most important factors in the founding of HBS and the nation's other new business schools was the demand for managers created by the rise of the modern business corporation in the late 19th and early 20th centuries. Additionally, in the years just after the turn of the century business careers were becoming increasingly attractive to young men who would have previously entered one of the older, more traditional professions: law, medicine, education, and the ministry. The process of formulating "business principles" that would put the study of management on a scientific basis was a crucial part of what the founders had set out to achieve in creating the HBS curriculum and building a faculty. By discovering business principles, HBS would also help lay the foundation of the new profession of business. The HBS founders also believed there was another dimension to professionalism in business--one that involved not just the expertise that students acquired but also the attitudes they held and their contribution to society.
Authors :: Rakesh Khurana, Tarun Khanna, Daniel Penrice
Swot Analysis of "Harvard Business School and the Making of a New Profession" written by Rakesh Khurana, Tarun Khanna, Daniel Penrice includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Profession Hbs facing as an external strategic factors. Some of the topics covered in Harvard Business School and the Making of a New Profession case study are - Strategic Management Strategies, Managing people, Social enterprise and Organizational Development.
Some of the macro environment factors that can be used to understand the Harvard Business School and the Making of a New Profession casestudy better are - – digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, there is backlash against globalization, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models,
increasing household debt because of falling income levels, wage bills are increasing, etc
Introduction to SWOT Analysis of Harvard Business School and the Making of a New Profession
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Harvard Business School and the Making of a New Profession case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Profession Hbs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Profession Hbs 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 Harvard Business School and the Making of a New Profession can be done for the following purposes –
1. Strategic planning using facts provided in Harvard Business School and the Making of a New Profession case study
2. Improving business portfolio management of Profession Hbs
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 Profession Hbs
Strengths Harvard Business School and the Making of a New Profession | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Profession Hbs in Harvard Business School and the Making of a New Profession Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Profession Hbs in the sector have low bargaining power. Harvard Business School and the Making of a New Profession has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Profession Hbs to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Profession Hbs is one of the leading recruiters in the industry. Managers in the Harvard Business School and the Making of a New Profession are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Profession Hbs has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Harvard Business School and the Making of a New Profession 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.
Effective Research and Development (R&D)
– Profession Hbs 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 Harvard Business School and the Making of a New Profession - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Organizational Development industry
– Harvard Business School and the Making of a New Profession firm has clearly differentiated products in the market place. This has enabled Profession Hbs to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Profession Hbs to invest into research and development (R&D) and innovation.
Innovation driven organization
– Profession Hbs is one of the most innovative firm in sector. Manager in Harvard Business School and the Making of a New Profession 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 Profession Hbs has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Cross disciplinary teams
– Horizontal connected teams at the Profession Hbs are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Profession Hbs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Profession Hbs 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.
Operational resilience
– The operational resilience strategy in the Harvard Business School and the Making of a New Profession 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.
Successful track record of launching new products
– Profession Hbs has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Profession Hbs has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Learning organization
- Profession Hbs 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 Profession Hbs is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Harvard Business School and the Making of a New Profession Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Harvard Business School and the Making of a New Profession | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Harvard Business School and the Making of a New Profession are -
Lack of clear differentiation of Profession Hbs products
– To increase the profitability and margins on the products, Profession Hbs needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Profession Hbs 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.
Slow decision making process
– As mentioned earlier in the report, Profession Hbs 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. Profession Hbs 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.
No frontier risks strategy
– After analyzing the HBR case study Harvard Business School and the Making of a New Profession, it seems that company is thinking about the frontier risks that can impact Organizational Development strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Interest costs
– Compare to the competition, Profession Hbs 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Harvard Business School and the Making of a New Profession 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 Profession Hbs 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Harvard Business School and the Making of a New Profession, is just above the industry average. Profession Hbs 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 strategic competitive environment developments
– As Harvard Business School and the Making of a New Profession HBR case study mentions - Profession Hbs takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High 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 Profession Hbs supply chain. Even after few cautionary changes mentioned in the HBR case study - Harvard Business School and the Making of a New Profession, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Profession Hbs vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Rakesh Khurana, Tarun Khanna, Daniel Penrice suggests that, Profession Hbs 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.
Skills based hiring
– The stress on hiring functional specialists at Profession Hbs 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.
Opportunities Harvard Business School and the Making of a New Profession | 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 Harvard Business School and the Making of a New Profession are -
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. Profession Hbs can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Profession Hbs is facing challenges because of the dominance of functional experts in the organization. Harvard Business School and the Making of a New Profession 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Profession Hbs in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Profession Hbs has opened avenues for new revenue streams for the organization in the industry. This can help Profession Hbs to build a more holistic ecosystem as suggested in the Harvard Business School and the Making of a New Profession case study. Profession Hbs can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Profession Hbs 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 Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Profession Hbs 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. Profession Hbs 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.
Better consumer reach
– The expansion of the 5G network will help Profession Hbs to increase its market reach. Profession Hbs 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.
Building a culture of innovation
– managers at Profession Hbs 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 Organizational Development segment.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Profession Hbs 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 Profession Hbs to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Profession Hbs can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Harvard Business School and the Making of a New Profession 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Profession Hbs 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, Profession Hbs 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, Harvard Business School and the Making of a New Profession, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Profession Hbs 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.
Threats Harvard Business School and the Making of a New Profession External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Harvard Business School and the Making of a New Profession are -
Regulatory challenges
– Profession Hbs 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Profession Hbs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Profession Hbs 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.
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.
Shortening product life cycle
– it is one of the major threat that Profession Hbs is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Profession Hbs 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. Profession Hbs can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Increasing wage structure of Profession Hbs
– 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 Profession Hbs.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Profession Hbs 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.
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.
Stagnating economy with rate increase
– Profession Hbs 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 dependence on third party suppliers
– Profession Hbs 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.
Consumer confidence and its impact on Profession Hbs demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
High 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. Profession Hbs needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Harvard Business School and the Making of a New Profession 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 Harvard Business School and the Making of a New Profession 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 Harvard Business School and the Making of a New Profession 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 Harvard Business School and the Making of a New Profession 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 Harvard Business School and the Making of a New Profession 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 Profession Hbs needs to make to build a sustainable competitive advantage.
