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Managing Diversity at Spencer Owens & Co. SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Managing Diversity at Spencer Owens & Co.


Spencer Owens & Co, a disguised consulting firm, focuses on domestic and international economic development. As an extension of the firm's commitment to social justice, 20 years ago, Spencer Owens management introduced an affirmative action hiring and promotion program. Within 10 years, the firm had achieved the most diverse support and professional staff in the industry. Yet, despite management's good intentions, Spencer Owens--and, increasingly, its work--suffered from acrimonious staff relations and frequent recriminations around racial issues. The protagonist of the case tries to diagnose the problem.

Authors :: Robin J. Ely, Ingrid Vargas

Topics :: Organizational Development

Tags :: Cross-cultural management, Diversity, Economics, Leadership, Motivating people, Race, Social responsibility, Talent management, Workspaces, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Managing Diversity at Spencer Owens & Co." written by Robin J. Ely, Ingrid Vargas includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Owens Spencer facing as an external strategic factors. Some of the topics covered in Managing Diversity at Spencer Owens & Co. case study are - Strategic Management Strategies, Cross-cultural management, Diversity, Economics, Leadership, Motivating people, Race, Social responsibility, Talent management, Workspaces and Organizational Development.


Some of the macro environment factors that can be used to understand the Managing Diversity at Spencer Owens & Co. casestudy better are - – there is backlash against globalization, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, increasing transportation and logistics costs, central banks are concerned over increasing inflation, etc



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Introduction to SWOT Analysis of Managing Diversity at Spencer Owens & Co.


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Managing Diversity at Spencer Owens & Co. case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Owens Spencer, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Owens Spencer 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 Managing Diversity at Spencer Owens & Co. can be done for the following purposes –
1. Strategic planning using facts provided in Managing Diversity at Spencer Owens & Co. case study
2. Improving business portfolio management of Owens Spencer
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 Owens Spencer




Strengths Managing Diversity at Spencer Owens & Co. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Owens Spencer in Managing Diversity at Spencer Owens & Co. Harvard Business Review case study are -

Low bargaining power of suppliers

– Suppliers of Owens Spencer in the sector have low bargaining power. Managing Diversity at Spencer Owens & Co. has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Owens Spencer to manage not only supply disruptions but also source products at highly competitive prices.

High switching costs

– The high switching costs that Owens Spencer 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

– Owens Spencer is one of the most innovative firm in sector. Manager in Managing Diversity at Spencer Owens & Co. Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Diverse revenue streams

– Owens Spencer is present in almost all the verticals within the industry. This has provided firm in Managing Diversity at Spencer Owens & Co. 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.

Strong track record of project management

– Owens Spencer is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Ability to lead change in Organizational Development field

– Owens Spencer 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 Owens Spencer in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Digital Transformation in Organizational Development segment

- digital transformation varies from industry to industry. For Owens Spencer digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Owens Spencer 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.

High brand equity

– Owens Spencer has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Owens Spencer to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Highly skilled collaborators

– Owens Spencer 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 Managing Diversity at Spencer Owens & Co. HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Operational resilience

– The operational resilience strategy in the Managing Diversity at Spencer Owens & Co. 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.

Analytics focus

– Owens Spencer 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 Robin J. Ely, Ingrid Vargas 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.

Superior customer experience

– The customer experience strategy of Owens Spencer in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.






Weaknesses Managing Diversity at Spencer Owens & Co. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Managing Diversity at Spencer Owens & Co. are -

Interest costs

– Compare to the competition, Owens Spencer 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.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Managing Diversity at Spencer Owens & Co., it seems that the employees of Owens Spencer don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

Low market penetration in new markets

– Outside its home market of Owens Spencer, firm in the HBR case study Managing Diversity at Spencer Owens & Co. needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

No frontier risks strategy

– After analyzing the HBR case study Managing Diversity at Spencer Owens & Co., 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.

Increasing silos among functional specialists

– The organizational structure of Owens Spencer is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Owens Spencer needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Owens Spencer to focus more on services rather than just following the product oriented approach.

High operating costs

– Compare to the competitors, firm in the HBR case study Managing Diversity at Spencer Owens & Co. 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 Owens Spencer 's lucrative customers.

Lack of clear differentiation of Owens Spencer products

– To increase the profitability and margins on the products, Owens Spencer needs to provide more differentiated products than what it is currently offering in the marketplace.

High bargaining power of channel partners

– Because of the regulatory requirements, Robin J. Ely, Ingrid Vargas suggests that, Owens Spencer 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.

Skills based hiring

– The stress on hiring functional specialists at Owens Spencer 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.

Aligning sales with marketing

– It come across in the case study Managing Diversity at Spencer Owens & Co. 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 Managing Diversity at Spencer Owens & Co. can leverage the sales team experience to cultivate customer relationships as Owens Spencer is planning to shift buying processes online.

Slow to strategic competitive environment developments

– As Managing Diversity at Spencer Owens & Co. HBR case study mentions - Owens Spencer 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.




Opportunities Managing Diversity at Spencer Owens & Co. | 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 Managing Diversity at Spencer Owens & Co. are -

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Owens Spencer can use these opportunities to build new business models that can help the communities that Owens Spencer operates in. Secondly it can use opportunities from government spending in Organizational Development sector.

Using analytics as competitive advantage

– Owens Spencer 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 Managing Diversity at Spencer Owens & Co. - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Owens Spencer to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Learning at scale

– Online learning technologies has now opened space for Owens Spencer 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Owens Spencer can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Loyalty marketing

– Owens Spencer 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Owens Spencer is facing challenges because of the dominance of functional experts in the organization. Managing Diversity at Spencer Owens & Co. 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.

Manufacturing automation

– Owens Spencer 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Owens Spencer can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Creating value in data economy

– The success of analytics program of Owens Spencer has opened avenues for new revenue streams for the organization in the industry. This can help Owens Spencer to build a more holistic ecosystem as suggested in the Managing Diversity at Spencer Owens & Co. case study. Owens Spencer can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Owens Spencer 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.

Developing new processes and practices

– Owens Spencer 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.

Buying journey improvements

– Owens Spencer can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Managing Diversity at Spencer Owens & Co. 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.

Building a culture of innovation

– managers at Owens Spencer 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.




Threats Managing Diversity at Spencer Owens & Co. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Managing Diversity at Spencer Owens & Co. are -

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. Owens Spencer 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.

Stagnating economy with rate increase

– Owens Spencer 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.

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 Owens Spencer in the Organizational Development sector and impact the bottomline of the organization.

Environmental challenges

– Owens Spencer 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. Owens Spencer can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.

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.

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 Owens Spencer.

Regulatory challenges

– Owens Spencer 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.

Shortening product life cycle

– it is one of the major threat that Owens Spencer is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

High dependence on third party suppliers

– Owens Spencer 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. Owens Spencer needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.

Consumer confidence and its impact on Owens Spencer 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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Owens Spencer 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 Managing Diversity at Spencer Owens & Co. .

Increasing wage structure of Owens Spencer

– 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 Owens Spencer.




Weighted SWOT Analysis of Managing Diversity at Spencer Owens & Co. 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 Managing Diversity at Spencer Owens & Co. 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 Managing Diversity at Spencer Owens & Co. 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 Managing Diversity at Spencer Owens & Co. 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 Managing Diversity at Spencer Owens & Co. 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 Owens Spencer needs to make to build a sustainable competitive advantage.



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