Swot Analysis of "Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization" written by Michael Beer, Gregory C. Rogers includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that A3 Rosa facing as an external strategic factors. Some of the topics covered in Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization case study are - Strategic Management Strategies, IT, Organizational culture, Organizational structure and Organizational Development.
Some of the macro environment factors that can be used to understand the Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, increasing energy prices, technology disruption, increasing commodity prices,
competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the A3 Rosa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which A3 Rosa 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 Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization can be done for the following purposes –
1. Strategic planning using facts provided in Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization case study
2. Improving business portfolio management of A3 Rosa
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 A3 Rosa
Strengths Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of A3 Rosa in Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization Harvard Business Review case study are -
Training and development
– A3 Rosa has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization 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.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For A3 Rosa digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. A3 Rosa has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Low bargaining power of suppliers
– Suppliers of A3 Rosa in the sector have low bargaining power. Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps A3 Rosa to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– A3 Rosa is present in almost all the verticals within the industry. This has provided firm in Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization 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.
Operational resilience
– The operational resilience strategy in the Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization 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.
Sustainable margins compare to other players in Organizational Development industry
– Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization firm has clearly differentiated products in the market place. This has enabled A3 Rosa to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped A3 Rosa to invest into research and development (R&D) and innovation.
Strong track record of project management
– A3 Rosa is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the A3 Rosa 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.
Successful track record of launching new products
– A3 Rosa has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. A3 Rosa has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High switching costs
– The high switching costs that A3 Rosa 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.
Organizational Resilience of A3 Rosa
– The covid-19 pandemic has put organizational resilience at the centre of everthing that A3 Rosa does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– A3 Rosa is one of the leading recruiters in the industry. Managers in the Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization are -
Products dominated business model
– Even though A3 Rosa has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, A3 Rosa 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 cash cycle compare to competitors
A3 Rosa 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 bargaining power of channel partners
– Because of the regulatory requirements, Michael Beer, Gregory C. Rogers suggests that, A3 Rosa 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 Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization, it seems that the employees of A3 Rosa 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.
Increasing silos among functional specialists
– The organizational structure of A3 Rosa is dominated by functional specialists. It is not different from other players in the Organizational Development segment. A3 Rosa needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help A3 Rosa to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization, is just above the industry average. A3 Rosa 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 decision making process
– As mentioned earlier in the report, A3 Rosa 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. A3 Rosa 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.
Skills based hiring
– The stress on hiring functional specialists at A3 Rosa 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.
Lack of clear differentiation of A3 Rosa products
– To increase the profitability and margins on the products, A3 Rosa needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization 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 Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization can leverage the sales team experience to cultivate customer relationships as A3 Rosa is planning to shift buying processes online.
Opportunities Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization | 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 Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization 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. A3 Rosa can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– A3 Rosa 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. A3 Rosa can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, A3 Rosa 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, Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, A3 Rosa is facing challenges because of the dominance of functional experts in the organization. Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for A3 Rosa 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 A3 Rosa to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for A3 Rosa 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.
Leveraging digital technologies
– A3 Rosa 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.
Using analytics as competitive advantage
– A3 Rosa has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization - to build a competitive advantage using analytics. The analytics driven competitive advantage can help A3 Rosa to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 A3 Rosa in the consumer business. Now A3 Rosa can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– A3 Rosa 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.
Better consumer reach
– The expansion of the 5G network will help A3 Rosa to increase its market reach. A3 Rosa 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.
Manufacturing automation
– A3 Rosa 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.
Threats Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization are -
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 A3 Rosa business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for A3 Rosa 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.
High dependence on third party suppliers
– A3 Rosa 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.
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. A3 Rosa 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
– A3 Rosa has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, A3 Rosa 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization, A3 Rosa 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 .
Consumer confidence and its impact on A3 Rosa 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.
Regulatory challenges
– A3 Rosa needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Organizational Development industry regulations.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for A3 Rosa in the Organizational Development sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, A3 Rosa 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 Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents A3 Rosa with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Environmental challenges
– A3 Rosa 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. A3 Rosa can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Weighted SWOT Analysis of Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization 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 Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization 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 Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization 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 Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization 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 Hewlett-Packard's Santa Rosa Systems Division (A3): Effects of the Reorganization 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 A3 Rosa needs to make to build a sustainable competitive advantage.