John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A)
1980 was a critical time for John Hancock with high inflation, high interest rates, increased competition, and the desertion of policy holders seeking new investment opportunities. A new lower level (of vice presidents) task force was set up by the executive committee (also struggling to build cooperative teamwork) to come up with new strategic visions and directions. The task force has group problems. A rewritten version of an earlier case.
Swot Analysis of "John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A)" written by Louis B. Barnes includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hancock Force facing as an external strategic factors. Some of the topics covered in John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) case study are - Strategic Management Strategies, Economy, Leading teams, Organizational culture, Strategic planning, Strategy execution and Organizational Development.
Some of the macro environment factors that can be used to understand the John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) casestudy better are - – increasing commodity prices, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, there is backlash against globalization, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models,
talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hancock Force, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hancock Force 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 John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) can be done for the following purposes –
1. Strategic planning using facts provided in John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) case study
2. Improving business portfolio management of Hancock Force
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 Hancock Force
Strengths John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hancock Force in John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) Harvard Business Review case study are -
Training and development
– Hancock Force has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) 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.
Operational resilience
– The operational resilience strategy in the John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) 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.
Strong track record of project management
– Hancock Force is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Hancock Force digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hancock Force 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.
Cross disciplinary teams
– Horizontal connected teams at the Hancock Force 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.
Diverse revenue streams
– Hancock Force is present in almost all the verticals within the industry. This has provided firm in John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) 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.
High brand equity
– Hancock Force has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hancock Force to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Hancock Force
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hancock Force does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Organizational Development field
– Hancock Force 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 Hancock Force in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Organizational Development industry
– John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) firm has clearly differentiated products in the market place. This has enabled Hancock Force to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Hancock Force to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Hancock Force in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Hancock Force 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 Louis B. Barnes 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.
Weaknesses John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) 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 Hancock Force has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Hancock Force 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 decision making process
– As mentioned earlier in the report, Hancock Force 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. Hancock Force 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.
Need for greater diversity
– Hancock Force 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.
Skills based hiring
– The stress on hiring functional specialists at Hancock Force 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.
Aligning sales with marketing
– It come across in the case study John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) can leverage the sales team experience to cultivate customer relationships as Hancock Force is planning to shift buying processes online.
Interest costs
– Compare to the competition, Hancock Force 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Hancock Force 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 Hancock Force products
– To increase the profitability and margins on the products, Hancock Force needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Hancock Force, firm in the HBR case study John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A), it seems that the employees of Hancock Force 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 John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) | 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 John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) are -
Manufacturing automation
– Hancock Force 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.
Learning at scale
– Online learning technologies has now opened space for Hancock Force 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hancock Force 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 Hancock Force to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Hancock Force can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) 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.
Creating value in data economy
– The success of analytics program of Hancock Force has opened avenues for new revenue streams for the organization in the industry. This can help Hancock Force to build a more holistic ecosystem as suggested in the John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) case study. Hancock Force can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Hancock Force to increase its market reach. Hancock Force 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.
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 Hancock Force 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hancock Force can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Hancock Force 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.
Building a culture of innovation
– managers at Hancock Force 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.
Leveraging digital technologies
– Hancock Force 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.
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 Hancock Force in the consumer business. Now Hancock Force can target international markets with far fewer capital restrictions requirements than the existing system.
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. Hancock Force can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) are -
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. Hancock Force can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Hancock Force 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. Hancock Force can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Consumer confidence and its impact on Hancock Force 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.
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 Hancock Force in the Organizational Development sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A), Hancock Force may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
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 Hancock Force.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hancock Force 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.
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.
Regulatory challenges
– Hancock Force 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.
Technology acceleration in Forth Industrial Revolution
– Hancock Force has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Hancock Force 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.
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.
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. Hancock Force needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Hancock Force business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) 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 John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) 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 John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) 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 John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) 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 John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A) 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 Hancock Force needs to make to build a sustainable competitive advantage.
