Swot Analysis of "Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy" written by Michael Beer, Gregory C. Rogers includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hewlett Tribulations facing as an external strategic factors. Some of the topics covered in Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy 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 (A): The Trials and Tribulations of a Legacy casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, technology disruption, challanges to central banks by blockchain based private currencies, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion,
cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy
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 (A): The Trials and Tribulations of a Legacy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hewlett Tribulations, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hewlett Tribulations 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 (A): The Trials and Tribulations of a Legacy can be done for the following purposes –
1. Strategic planning using facts provided in Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy case study
2. Improving business portfolio management of Hewlett Tribulations
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 Hewlett Tribulations
Strengths Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hewlett Tribulations in Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy Harvard Business Review case study are -
Successful track record of launching new products
– Hewlett Tribulations has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hewlett Tribulations 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.
Strong track record of project management
– Hewlett Tribulations is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Hewlett Tribulations is present in almost all the verticals within the industry. This has provided firm in Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy 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.
Cross disciplinary teams
– Horizontal connected teams at the Hewlett Tribulations 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.
Sustainable margins compare to other players in Organizational Development industry
– Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy firm has clearly differentiated products in the market place. This has enabled Hewlett Tribulations to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Hewlett Tribulations to invest into research and development (R&D) and innovation.
High brand equity
– Hewlett Tribulations has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hewlett Tribulations to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Hewlett Tribulations 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 (A): The Trials and Tribulations of a Legacy 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.
Analytics focus
– Hewlett Tribulations 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.
Organizational Resilience of Hewlett Tribulations
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hewlett Tribulations does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy 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.
Innovation driven organization
– Hewlett Tribulations is one of the most innovative firm in sector. Manager in Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Hewlett Tribulations in the sector have low bargaining power. Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hewlett Tribulations to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy are -
Capital Spending Reduction
– Even during the low interest decade, Hewlett Tribulations 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.
Products dominated business model
– Even though Hewlett Tribulations 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 (A): The Trials and Tribulations of a Legacy should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Hewlett Tribulations, firm in the HBR case study Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy 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 (A): The Trials and Tribulations of a Legacy can leverage the sales team experience to cultivate customer relationships as Hewlett Tribulations is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy, it seems that the employees of Hewlett Tribulations 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy, in the dynamic environment Hewlett Tribulations has struggled to respond to the nimble upstart competition. Hewlett Tribulations has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Hewlett Tribulations 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.
Slow to strategic competitive environment developments
– As Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy HBR case study mentions - Hewlett Tribulations takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High bargaining power of channel partners
– Because of the regulatory requirements, Michael Beer, Gregory C. Rogers suggests that, Hewlett Tribulations 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
– Hewlett Tribulations 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.
High cash cycle compare to competitors
Hewlett Tribulations 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.
Opportunities Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy | 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 (A): The Trials and Tribulations of a Legacy are -
Creating value in data economy
– The success of analytics program of Hewlett Tribulations has opened avenues for new revenue streams for the organization in the industry. This can help Hewlett Tribulations to build a more holistic ecosystem as suggested in the Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy case study. Hewlett Tribulations can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Hewlett Tribulations can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hewlett Tribulations can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Hewlett Tribulations can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Learning at scale
– Online learning technologies has now opened space for Hewlett Tribulations to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hewlett Tribulations 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 Hewlett Tribulations to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hewlett Tribulations 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hewlett Tribulations 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 (A): The Trials and Tribulations of a Legacy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Hewlett Tribulations to increase its market reach. Hewlett Tribulations 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.
Building a culture of innovation
– managers at Hewlett Tribulations 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.
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. Hewlett Tribulations can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Hewlett Tribulations 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hewlett Tribulations is facing challenges because of the dominance of functional experts in the organization. Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hewlett Tribulations can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy 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 (A): The Trials and Tribulations of a Legacy are -
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hewlett Tribulations can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Hewlett Tribulations is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hewlett Tribulations 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 (A): The Trials and Tribulations of a Legacy .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hewlett Tribulations 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hewlett Tribulations with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Hewlett Tribulations has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Hewlett Tribulations 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.
Increasing wage structure of Hewlett Tribulations
– 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 Hewlett Tribulations.
High dependence on third party suppliers
– Hewlett Tribulations 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.
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 Hewlett Tribulations in the Organizational Development sector and impact the bottomline of the organization.
Environmental challenges
– Hewlett Tribulations 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. Hewlett Tribulations can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
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. Hewlett Tribulations 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.
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. Hewlett Tribulations needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy 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 (A): The Trials and Tribulations of a Legacy 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 (A): The Trials and Tribulations of a Legacy 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 (A): The Trials and Tribulations of a Legacy 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 (A): The Trials and Tribulations of a Legacy 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 Hewlett Tribulations needs to make to build a sustainable competitive advantage.
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