TRW's Information Services Division: Strategic Human Resource Management SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of TRW's Information Services Division: Strategic Human Resource Management
Looks at a change effort initiated by a human resources manager within a division of TRW. The effort utilizes a change process to try to deal with some of the division's issues around organizational effectiveness, especially that of a long-term strategy. In so doing, the situation portrays some of the fundamental hurdles in creating change.
Swot Analysis of "TRW's Information Services Division: Strategic Human Resource Management" written by Michael Beer, Gregory C. Rogers includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Trw Trw's facing as an external strategic factors. Some of the topics covered in TRW's Information Services Division: Strategic Human Resource Management case study are - Strategic Management Strategies, Human resource management, Strategic planning and Organizational Development.
Some of the macro environment factors that can be used to understand the TRW's Information Services Division: Strategic Human Resource Management casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption,
geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of TRW's Information Services Division: Strategic Human Resource Management
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TRW's Information Services Division: Strategic Human Resource Management case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Trw Trw's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Trw Trw's 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 TRW's Information Services Division: Strategic Human Resource Management can be done for the following purposes –
1. Strategic planning using facts provided in TRW's Information Services Division: Strategic Human Resource Management case study
2. Improving business portfolio management of Trw Trw's
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 Trw Trw's
Strengths TRW's Information Services Division: Strategic Human Resource Management | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Trw Trw's in TRW's Information Services Division: Strategic Human Resource Management Harvard Business Review case study are -
High brand equity
– Trw Trw's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Trw Trw's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Trw Trw's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Trw Trw's 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.
Effective Research and Development (R&D)
– Trw Trw's 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 TRW's Information Services Division: Strategic Human Resource Management - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Trw Trw's 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.
Superior customer experience
– The customer experience strategy of Trw Trw's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Trw Trw's in the sector have low bargaining power. TRW's Information Services Division: Strategic Human Resource Management has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Trw Trw's to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Trw Trw's 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 Michael Beer, Gregory C. Rogers 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.
High switching costs
– The high switching costs that Trw Trw's 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.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Trw Trw's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Trw Trw's 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.
Training and development
– Trw Trw's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in TRW's Information Services Division: Strategic Human Resource Management 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.
Sustainable margins compare to other players in Organizational Development industry
– TRW's Information Services Division: Strategic Human Resource Management firm has clearly differentiated products in the market place. This has enabled Trw Trw's to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Trw Trw's to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Trw Trw's 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 TRW's Information Services Division: Strategic Human Resource Management HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses TRW's Information Services Division: Strategic Human Resource Management | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TRW's Information Services Division: Strategic Human Resource Management are -
Lack of clear differentiation of Trw Trw's products
– To increase the profitability and margins on the products, Trw Trw's needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Trw Trw's supply chain. Even after few cautionary changes mentioned in the HBR case study - TRW's Information Services Division: Strategic Human Resource Management, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Trw Trw's vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Trw Trw's is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Trw Trw's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Trw Trw's to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Trw Trw's 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.
High cash cycle compare to competitors
Trw Trw's 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, Trw Trw's 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.
Need for greater diversity
– Trw Trw's 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.
No frontier risks strategy
– After analyzing the HBR case study TRW's Information Services Division: Strategic Human Resource Management, 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.
High operating costs
– Compare to the competitors, firm in the HBR case study TRW's Information Services Division: Strategic Human Resource Management 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 Trw Trw's 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Trw Trw's 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. Trw Trw's 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the TRW's Information Services Division: Strategic Human Resource Management 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 Trw Trw's has relatively successful track record of launching new products.
Opportunities TRW's Information Services Division: Strategic Human Resource Management | 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 TRW's Information Services Division: Strategic Human Resource Management are -
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 Trw Trw's 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.
Creating value in data economy
– The success of analytics program of Trw Trw's has opened avenues for new revenue streams for the organization in the industry. This can help Trw Trw's to build a more holistic ecosystem as suggested in the TRW's Information Services Division: Strategic Human Resource Management case study. Trw Trw's can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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, Trw Trw's can use these opportunities to build new business models that can help the communities that Trw Trw's operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Better consumer reach
– The expansion of the 5G network will help Trw Trw's to increase its market reach. Trw Trw's 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.
Buying journey improvements
– Trw Trw's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. TRW's Information Services Division: Strategic Human Resource Management 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.
Manufacturing automation
– Trw Trw's 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.
Developing new processes and practices
– Trw Trw's 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.
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 Trw Trw's in the consumer business. Now Trw Trw's can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Trw Trw's is facing challenges because of the dominance of functional experts in the organization. TRW's Information Services Division: Strategic Human Resource Management 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.
Using analytics as competitive advantage
– Trw Trw's 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 TRW's Information Services Division: Strategic Human Resource Management - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Trw Trw's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Trw Trw's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Trw Trw's 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.
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. Trw Trw's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats TRW's Information Services Division: Strategic Human Resource Management External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TRW's Information Services Division: Strategic Human Resource Management 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 Trw Trw's business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Trw Trw's 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 TRW's Information Services Division: Strategic Human Resource Management .
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. Trw Trw's 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 wage structure of Trw Trw's
– 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 Trw Trw's.
High dependence on third party suppliers
– Trw Trw's 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.
Stagnating economy with rate increase
– Trw Trw's 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.
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.
Environmental challenges
– Trw Trw's 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. Trw Trw's can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
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. Trw Trw's needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Regulatory challenges
– Trw Trw's needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Organizational Development industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Trw Trw's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Trw Trw's is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study TRW's Information Services Division: Strategic Human Resource Management, Trw Trw's 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 .
Weighted SWOT Analysis of TRW's Information Services Division: Strategic Human Resource Management 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 TRW's Information Services Division: Strategic Human Resource Management 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 TRW's Information Services Division: Strategic Human Resource Management 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 TRW's Information Services Division: Strategic Human Resource Management 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 TRW's Information Services Division: Strategic Human Resource Management 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 Trw Trw's needs to make to build a sustainable competitive advantage.
