Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics
This is the first of a three-case series. Richard Debenham is an operations manager working for the main Australian licensee of a leading global soft drinks producer. In 1990, accompanied by his family, he is transferred from Sydney to the company's European base in Vienna to develop the soft drinks market in Central and Eastern Europe. With little help from his local Austrian colleagues, Richard sets to work negotiating franchise ownership agreements and witnesses the many political changes that occur after the fall of the Iron Curtain and amidst the Velvet Divorce, the dissolution of Czechoslovakia. Over time, the company successfully expands further east. However, due to changes at the headquarters Richard senses increasing difficulties in returning to Sydney until he receives an offer to manage the company's Sydney Olympics program back home. Aware of the temporary nature of this project, Richard has to decide whether or not to accept this offer.
Swot Analysis of "Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics" written by Sebastian Reiche includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sydney Richard facing as an external strategic factors. Some of the topics covered in Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics case study are - Strategic Management Strategies, Growth strategy, Personnel policies and Organizational Development.
Some of the macro environment factors that can be used to understand the Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics casestudy better are - – supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, increasing energy prices, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing,
increasing household debt because of falling income levels, technology disruption, etc
Introduction to SWOT Analysis of Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sydney Richard, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sydney Richard 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 Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics can be done for the following purposes –
1. Strategic planning using facts provided in Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics case study
2. Improving business portfolio management of Sydney Richard
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 Sydney Richard
Strengths Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sydney Richard in Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics Harvard Business Review case study are -
High brand equity
– Sydney Richard has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sydney Richard to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Sydney Richard has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sydney Richard 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.
Superior customer experience
– The customer experience strategy of Sydney Richard in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Sydney Richard 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 Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Sydney Richard has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics 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.
Cross disciplinary teams
– Horizontal connected teams at the Sydney Richard 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.
Organizational Resilience of Sydney Richard
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Sydney Richard does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Sydney Richard is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Organizational Development field
– Sydney Richard 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 Sydney Richard in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Sydney Richard is present in almost all the verticals within the industry. This has provided firm in Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics 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 switching costs
– The high switching costs that Sydney Richard 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.
Analytics focus
– Sydney Richard 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 Sebastian Reiche 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 Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics are -
Aligning sales with marketing
– It come across in the case study Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics 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 Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics can leverage the sales team experience to cultivate customer relationships as Sydney Richard is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Sydney Richard 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. Sydney Richard 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Sebastian Reiche suggests that, Sydney Richard 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics, it seems that the employees of Sydney Richard 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 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 Sydney Richard supply chain. Even after few cautionary changes mentioned in the HBR case study - Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sydney Richard vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Sydney Richard 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.
High cash cycle compare to competitors
Sydney Richard 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 Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics 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 Sydney Richard has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Sydney Richard is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Sydney Richard needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sydney Richard to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics 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 Sydney Richard 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics, 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.
Opportunities Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics | 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 Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Sydney Richard 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, Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Sydney Richard 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 Sydney Richard to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Sydney Richard is facing challenges because of the dominance of functional experts in the organization. Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sydney Richard can use these opportunities to build new business models that can help the communities that Sydney Richard operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Developing new processes and practices
– Sydney Richard 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 Sydney Richard 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.
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 Sydney Richard in the consumer business. Now Sydney Richard can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Sydney Richard 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.
Manufacturing automation
– Sydney Richard 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.
Better consumer reach
– The expansion of the 5G network will help Sydney Richard to increase its market reach. Sydney Richard 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.
Creating value in data economy
– The success of analytics program of Sydney Richard has opened avenues for new revenue streams for the organization in the industry. This can help Sydney Richard to build a more holistic ecosystem as suggested in the Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics case study. Sydney Richard can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Sydney Richard 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Sydney Richard 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.
Threats Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics are -
Stagnating economy with rate increase
– Sydney Richard 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.
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.
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 Sydney Richard.
Increasing wage structure of Sydney Richard
– 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 Sydney Richard.
Regulatory challenges
– Sydney Richard 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.
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. Sydney Richard can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Sydney Richard 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sydney Richard 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 Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics .
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 Sydney Richard business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Sydney Richard 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
– Sydney Richard has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Sydney Richard 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.
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 Sydney Richard in the Organizational Development sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sydney Richard 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.
Weighted SWOT Analysis of Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics 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 Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics 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 Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics 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 Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics 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 Richard Debenham in Vienna (A): Between Velvet Divorce and the Sydney Olympics 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 Sydney Richard needs to make to build a sustainable competitive advantage.