Swot Analysis of "Hubtown (B): Implementing a Bottom-Up Approach to Performance Management" written by Kajari Mukherjee, Meenakshi Aggarwal-Gupta includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that W16873 Hubtown facing as an external strategic factors. Some of the topics covered in Hubtown (B): Implementing a Bottom-Up Approach to Performance Management case study are - Strategic Management Strategies, Developing employees and Organizational Development.
Some of the macro environment factors that can be used to understand the Hubtown (B): Implementing a Bottom-Up Approach to Performance Management casestudy better are - – increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, technology disruption,
geopolitical disruptions, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Hubtown (B): Implementing a Bottom-Up Approach to Performance Management
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Hubtown (B): Implementing a Bottom-Up Approach to Performance Management case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the W16873 Hubtown, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which W16873 Hubtown 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 Hubtown (B): Implementing a Bottom-Up Approach to Performance Management can be done for the following purposes –
1. Strategic planning using facts provided in Hubtown (B): Implementing a Bottom-Up Approach to Performance Management case study
2. Improving business portfolio management of W16873 Hubtown
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 W16873 Hubtown
Strengths Hubtown (B): Implementing a Bottom-Up Approach to Performance Management | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of W16873 Hubtown in Hubtown (B): Implementing a Bottom-Up Approach to Performance Management Harvard Business Review case study are -
High switching costs
– The high switching costs that W16873 Hubtown 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 W16873 Hubtown digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. W16873 Hubtown 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.
Diverse revenue streams
– W16873 Hubtown is present in almost all the verticals within the industry. This has provided firm in Hubtown (B): Implementing a Bottom-Up Approach to Performance Management case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Operational resilience
– The operational resilience strategy in the Hubtown (B): Implementing a Bottom-Up Approach to Performance Management 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.
Superior customer experience
– The customer experience strategy of W16873 Hubtown in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- W16873 Hubtown 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 W16873 Hubtown is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Hubtown (B): Implementing a Bottom-Up Approach to Performance Management Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the W16873 Hubtown 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.
Low bargaining power of suppliers
– Suppliers of W16873 Hubtown in the sector have low bargaining power. Hubtown (B): Implementing a Bottom-Up Approach to Performance Management has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps W16873 Hubtown to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– W16873 Hubtown is one of the most innovative firm in sector. Manager in Hubtown (B): Implementing a Bottom-Up Approach to Performance Management Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– W16873 Hubtown has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled W16873 Hubtown to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– W16873 Hubtown has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Hubtown (B): Implementing a Bottom-Up Approach to Performance 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.
Strong track record of project management
– W16873 Hubtown is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Hubtown (B): Implementing a Bottom-Up Approach to Performance Management | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hubtown (B): Implementing a Bottom-Up Approach to Performance Management are -
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 W16873 Hubtown supply chain. Even after few cautionary changes mentioned in the HBR case study - Hubtown (B): Implementing a Bottom-Up Approach to Performance Management, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left W16873 Hubtown vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of W16873 Hubtown products
– To increase the profitability and margins on the products, W16873 Hubtown needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– W16873 Hubtown 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 operating costs
– Compare to the competitors, firm in the HBR case study Hubtown (B): Implementing a Bottom-Up Approach to Performance 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 W16873 Hubtown 's lucrative customers.
Low market penetration in new markets
– Outside its home market of W16873 Hubtown, firm in the HBR case study Hubtown (B): Implementing a Bottom-Up Approach to Performance Management needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, W16873 Hubtown 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.
Workers concerns about automation
– As automation is fast increasing in the segment, W16873 Hubtown 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 Hubtown (B): Implementing a Bottom-Up Approach to Performance Management, in the dynamic environment W16873 Hubtown has struggled to respond to the nimble upstart competition. W16873 Hubtown has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at W16873 Hubtown 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.
High cash cycle compare to competitors
W16873 Hubtown 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.
Aligning sales with marketing
– It come across in the case study Hubtown (B): Implementing a Bottom-Up Approach to Performance Management 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 Hubtown (B): Implementing a Bottom-Up Approach to Performance Management can leverage the sales team experience to cultivate customer relationships as W16873 Hubtown is planning to shift buying processes online.
Opportunities Hubtown (B): Implementing a Bottom-Up Approach to Performance 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 Hubtown (B): Implementing a Bottom-Up Approach to Performance Management are -
Manufacturing automation
– W16873 Hubtown 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for W16873 Hubtown 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 W16873 Hubtown to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of W16873 Hubtown has opened avenues for new revenue streams for the organization in the industry. This can help W16873 Hubtown to build a more holistic ecosystem as suggested in the Hubtown (B): Implementing a Bottom-Up Approach to Performance Management case study. W16873 Hubtown can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects W16873 Hubtown can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. W16873 Hubtown can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– W16873 Hubtown 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.
Building a culture of innovation
– managers at W16873 Hubtown 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.
Buying journey improvements
– W16873 Hubtown can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Hubtown (B): Implementing a Bottom-Up Approach to Performance 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.
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 W16873 Hubtown in the consumer business. Now W16873 Hubtown can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for W16873 Hubtown 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 W16873 Hubtown to increase its market reach. W16873 Hubtown 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, W16873 Hubtown is facing challenges because of the dominance of functional experts in the organization. Hubtown (B): Implementing a Bottom-Up Approach to Performance 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, W16873 Hubtown 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, Hubtown (B): Implementing a Bottom-Up Approach to Performance Management, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Hubtown (B): Implementing a Bottom-Up Approach to Performance Management External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Hubtown (B): Implementing a Bottom-Up Approach to Performance Management 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. W16873 Hubtown can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– W16873 Hubtown has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, W16873 Hubtown 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.
High dependence on third party suppliers
– W16873 Hubtown 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.
Shortening product life cycle
– it is one of the major threat that W16873 Hubtown is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, W16873 Hubtown 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 Hubtown (B): Implementing a Bottom-Up Approach to Performance Management .
Regulatory challenges
– W16873 Hubtown 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.
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 W16873 Hubtown business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– W16873 Hubtown 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. W16873 Hubtown 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. W16873 Hubtown 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.
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.
Consumer confidence and its impact on W16873 Hubtown 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents W16873 Hubtown with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Weighted SWOT Analysis of Hubtown (B): Implementing a Bottom-Up Approach to Performance 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 Hubtown (B): Implementing a Bottom-Up Approach to Performance 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 Hubtown (B): Implementing a Bottom-Up Approach to Performance 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 Hubtown (B): Implementing a Bottom-Up Approach to Performance 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 Hubtown (B): Implementing a Bottom-Up Approach to Performance 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 W16873 Hubtown needs to make to build a sustainable competitive advantage.