Discipline of Teams: Magma Metals Co., Video (DVD) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Discipline of Teams: Magma Metals Co., Video (DVD)
Part of a series on the Discipline of Teams. The series examines successful high-performance teams in best-practice product and service companies and shows how traditionally structured organizations can use teams. Magma Metals reorganized itself into teams in a desperate and successful turnaround.
Swot Analysis of "Discipline of Teams: Magma Metals Co., Video (DVD)" written by Douglas K. Smith includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Teams Magma facing as an external strategic factors. Some of the topics covered in Discipline of Teams: Magma Metals Co., Video (DVD) case study are - Strategic Management Strategies, Leading teams, Motivating people, Reorganization and Organizational Development.
Some of the macro environment factors that can be used to understand the Discipline of Teams: Magma Metals Co., Video (DVD) casestudy better are - – increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, technology disruption, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy,
competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Discipline of Teams: Magma Metals Co., Video (DVD)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Discipline of Teams: Magma Metals Co., Video (DVD) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Teams Magma, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Teams Magma 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 Discipline of Teams: Magma Metals Co., Video (DVD) can be done for the following purposes –
1. Strategic planning using facts provided in Discipline of Teams: Magma Metals Co., Video (DVD) case study
2. Improving business portfolio management of Teams Magma
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 Teams Magma
Strengths Discipline of Teams: Magma Metals Co., Video (DVD) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Teams Magma in Discipline of Teams: Magma Metals Co., Video (DVD) Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Teams Magma 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.
Innovation driven organization
– Teams Magma is one of the most innovative firm in sector. Manager in Discipline of Teams: Magma Metals Co., Video (DVD) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Teams Magma 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 Teams Magma is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Discipline of Teams: Magma Metals Co., Video (DVD) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Teams Magma in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Teams Magma has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Discipline of Teams: Magma Metals Co., Video (DVD) 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)
– Teams Magma 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 Discipline of Teams: Magma Metals Co., Video (DVD) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Teams Magma has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Teams Magma to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Teams Magma has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Teams Magma 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.
Sustainable margins compare to other players in Organizational Development industry
– Discipline of Teams: Magma Metals Co., Video (DVD) firm has clearly differentiated products in the market place. This has enabled Teams Magma to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Teams Magma to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Teams Magma is present in almost all the verticals within the industry. This has provided firm in Discipline of Teams: Magma Metals Co., Video (DVD) 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.
Organizational Resilience of Teams Magma
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Teams Magma does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Teams Magma has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Discipline of Teams: Magma Metals Co., Video (DVD) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Discipline of Teams: Magma Metals Co., Video (DVD) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Discipline of Teams: Magma Metals Co., Video (DVD) are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Discipline of Teams: Magma Metals Co., Video (DVD), it seems that the employees of Teams Magma 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.
Low market penetration in new markets
– Outside its home market of Teams Magma, firm in the HBR case study Discipline of Teams: Magma Metals Co., Video (DVD) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Teams Magma 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.
Aligning sales with marketing
– It come across in the case study Discipline of Teams: Magma Metals Co., Video (DVD) 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 Discipline of Teams: Magma Metals Co., Video (DVD) can leverage the sales team experience to cultivate customer relationships as Teams Magma is planning to shift buying processes online.
Interest costs
– Compare to the competition, Teams Magma 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.
Capital Spending Reduction
– Even during the low interest decade, Teams Magma 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 to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Teams Magma is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Discipline of Teams: Magma Metals Co., Video (DVD) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Discipline of Teams: Magma Metals Co., Video (DVD), in the dynamic environment Teams Magma has struggled to respond to the nimble upstart competition. Teams Magma has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Discipline of Teams: Magma Metals Co., Video (DVD) 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 Teams Magma 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Discipline of Teams: Magma Metals Co., Video (DVD), is just above the industry average. Teams Magma 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.
Lack of clear differentiation of Teams Magma products
– To increase the profitability and margins on the products, Teams Magma needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Discipline of Teams: Magma Metals Co., Video (DVD) | 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 Discipline of Teams: Magma Metals Co., Video (DVD) are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Teams Magma 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 Teams Magma to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Teams Magma 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Teams Magma is facing challenges because of the dominance of functional experts in the organization. Discipline of Teams: Magma Metals Co., Video (DVD) 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.
Leveraging digital technologies
– Teams Magma 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.
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 Teams Magma 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.
Loyalty marketing
– Teams Magma 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.
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. Teams Magma can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Teams Magma has opened avenues for new revenue streams for the organization in the industry. This can help Teams Magma to build a more holistic ecosystem as suggested in the Discipline of Teams: Magma Metals Co., Video (DVD) case study. Teams Magma 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 Teams Magma 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.
Building a culture of innovation
– managers at Teams Magma 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
– Teams Magma 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Teams Magma can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Teams Magma 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 Discipline of Teams: Magma Metals Co., Video (DVD) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Discipline of Teams: Magma Metals Co., Video (DVD) are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Discipline of Teams: Magma Metals Co., Video (DVD), Teams Magma 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 .
Shortening product life cycle
– it is one of the major threat that Teams Magma is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Teams Magma needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Teams Magma has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Teams Magma 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.
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. Teams Magma can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Teams Magma 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Teams Magma with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Teams Magma 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.
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 Teams Magma.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Teams Magma 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 Discipline of Teams: Magma Metals Co., Video (DVD) .
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.
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. Teams Magma 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.
Weighted SWOT Analysis of Discipline of Teams: Magma Metals Co., Video (DVD) 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 Discipline of Teams: Magma Metals Co., Video (DVD) 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 Discipline of Teams: Magma Metals Co., Video (DVD) 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 Discipline of Teams: Magma Metals Co., Video (DVD) 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 Discipline of Teams: Magma Metals Co., Video (DVD) 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 Teams Magma needs to make to build a sustainable competitive advantage.