Swot Analysis of "Andersen Consulting - EMEAI: Bill Barnard on Organizational Change" written by Ashish Nanda, Michael Y. Yoshino includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Andersen Barnard facing as an external strategic factors. Some of the topics covered in Andersen Consulting - EMEAI: Bill Barnard on Organizational Change case study are - Strategic Management Strategies, Corporate governance, International business, Managing people, Organizational structure and Organizational Development.
Some of the macro environment factors that can be used to understand the Andersen Consulting - EMEAI: Bill Barnard on Organizational Change casestudy better are - – talent flight as more people leaving formal jobs, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, there is backlash against globalization, central banks are concerned over increasing inflation,
increasing household debt because of falling income levels, increasing energy prices, etc
Introduction to SWOT Analysis of Andersen Consulting - EMEAI: Bill Barnard on Organizational Change
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Andersen Consulting - EMEAI: Bill Barnard on Organizational Change case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Andersen Barnard, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Andersen Barnard 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 Andersen Consulting - EMEAI: Bill Barnard on Organizational Change can be done for the following purposes –
1. Strategic planning using facts provided in Andersen Consulting - EMEAI: Bill Barnard on Organizational Change case study
2. Improving business portfolio management of Andersen Barnard
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 Andersen Barnard
Strengths Andersen Consulting - EMEAI: Bill Barnard on Organizational Change | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Andersen Barnard in Andersen Consulting - EMEAI: Bill Barnard on Organizational Change Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Andersen Barnard 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 Andersen Barnard in the sector have low bargaining power. Andersen Consulting - EMEAI: Bill Barnard on Organizational Change has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Andersen Barnard to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Andersen Barnard 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 Andersen Barnard is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Andersen Consulting - EMEAI: Bill Barnard on Organizational Change Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Andersen Barnard has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Andersen Consulting - EMEAI: Bill Barnard on Organizational Change 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.
Organizational Resilience of Andersen Barnard
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Andersen Barnard does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Organizational Development field
– Andersen Barnard is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Andersen Barnard in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Andersen Barnard is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Andersen Barnard 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 Andersen Consulting - EMEAI: Bill Barnard on Organizational Change - 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
– Andersen Barnard has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Andersen Barnard to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Andersen Barnard 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.
Innovation driven organization
– Andersen Barnard is one of the most innovative firm in sector. Manager in Andersen Consulting - EMEAI: Bill Barnard on Organizational Change Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Andersen Barnard digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Andersen Barnard 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.
Weaknesses Andersen Consulting - EMEAI: Bill Barnard on Organizational Change | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Andersen Consulting - EMEAI: Bill Barnard on Organizational Change are -
High cash cycle compare to competitors
Andersen Barnard 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.
Increasing silos among functional specialists
– The organizational structure of Andersen Barnard is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Andersen Barnard needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Andersen Barnard to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Andersen Barnard 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 - Andersen Consulting - EMEAI: Bill Barnard on Organizational Change should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Andersen Barnard 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. Andersen Barnard 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.
Aligning sales with marketing
– It come across in the case study Andersen Consulting - EMEAI: Bill Barnard on Organizational Change 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 Andersen Consulting - EMEAI: Bill Barnard on Organizational Change can leverage the sales team experience to cultivate customer relationships as Andersen Barnard is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Andersen Barnard, firm in the HBR case study Andersen Consulting - EMEAI: Bill Barnard on Organizational Change needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Andersen Consulting - EMEAI: Bill Barnard on Organizational Change, is just above the industry average. Andersen Barnard 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.
No frontier risks strategy
– After analyzing the HBR case study Andersen Consulting - EMEAI: Bill Barnard on Organizational Change, 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 Andersen Consulting - EMEAI: Bill Barnard on Organizational Change 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 Andersen Barnard 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Andersen Barnard 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Andersen Consulting - EMEAI: Bill Barnard on Organizational Change, in the dynamic environment Andersen Barnard has struggled to respond to the nimble upstart competition. Andersen Barnard has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Andersen Consulting - EMEAI: Bill Barnard on Organizational Change | 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 Andersen Consulting - EMEAI: Bill Barnard on Organizational Change are -
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. Andersen Barnard can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Andersen Barnard 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.
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. Andersen Barnard can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Andersen Barnard has opened avenues for new revenue streams for the organization in the industry. This can help Andersen Barnard to build a more holistic ecosystem as suggested in the Andersen Consulting - EMEAI: Bill Barnard on Organizational Change case study. Andersen Barnard can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Andersen Barnard is facing challenges because of the dominance of functional experts in the organization. Andersen Consulting - EMEAI: Bill Barnard on Organizational Change 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.
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 Andersen Barnard in the consumer business. Now Andersen Barnard can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Andersen Barnard 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.
Learning at scale
– Online learning technologies has now opened space for Andersen Barnard 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.
Better consumer reach
– The expansion of the 5G network will help Andersen Barnard to increase its market reach. Andersen Barnard 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Andersen Barnard 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 Andersen Barnard to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Andersen Barnard 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.
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. Andersen Barnard 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. Andersen Barnard 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Andersen Barnard can use these opportunities to build new business models that can help the communities that Andersen Barnard operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Threats Andersen Consulting - EMEAI: Bill Barnard on Organizational Change External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Andersen Consulting - EMEAI: Bill Barnard on Organizational Change are -
Technology acceleration in Forth Industrial Revolution
– Andersen Barnard has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Andersen Barnard 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Andersen Barnard with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Andersen Barnard 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.
Increasing wage structure of Andersen Barnard
– 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 Andersen Barnard.
Environmental challenges
– Andersen Barnard 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. Andersen Barnard can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Andersen Consulting - EMEAI: Bill Barnard on Organizational Change, Andersen Barnard 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 .
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.
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 Andersen Barnard in the Organizational Development sector and impact the bottomline of the organization.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Andersen Barnard.
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 Andersen Barnard business can come under increasing regulations regarding data privacy, data security, etc.
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. Andersen Barnard 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.
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. Andersen Barnard can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Andersen Barnard 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 Andersen Consulting - EMEAI: Bill Barnard on Organizational Change .
Weighted SWOT Analysis of Andersen Consulting - EMEAI: Bill Barnard on Organizational Change 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 Andersen Consulting - EMEAI: Bill Barnard on Organizational Change 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 Andersen Consulting - EMEAI: Bill Barnard on Organizational Change 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 Andersen Consulting - EMEAI: Bill Barnard on Organizational Change 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 Andersen Consulting - EMEAI: Bill Barnard on Organizational Change 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 Andersen Barnard needs to make to build a sustainable competitive advantage.