Case Study Description of Addleshaw Goddard LLP (Abridged)
Addleshaw-Goddard (AG), the 15th largest law firm in the UK, is seeking ways to serve larger clients on more important legal matters. Part of this strategy involves its "Client Development Centre (CDC)," an innovative idea and set of services launched by Dr. Jim Hever who holds a Ph.D. in Strategic Leadership Development. The mission of the CDC is to improve the capabilities of clients' in-house legal departments by making them better partners with the business units and improving their leadership skills. The CDC has adopted an innovative pricing structure. Rather than charging direct fees for these consulting services, it proposed to the client that it contract with the firm for five times this amount in legal fees that might otherwise have gone to another law firm. It is in this way, AG hopes to increase its position with its larger clients. AG has also developed a very systematic program for identifying and serving its key clients, developed in collaboration with Cranfield School of Management. It is these clients that will be the focus of the efforts for the CDC. In addition, the firm has co-developed a training program with Cranfield to improve the skills of its own partners. The case explores whether these initiatives will lead to a long-term competitive advantage. The firm believes what really will produce competitive advantage is its "Me-To-You Mindset" initiative that encourages partners to look at the world through their clients' eyes. At the end of the case Hever is reflecting on a proposal he submitted for providing CDC services to one of the largest UK companies. The general counsel wants to pay for these services in cash should he decide to accept the proposal, rather than hiring AG for more legal work. Hever is wondering if this is a good way to take advantage of recent reforms allowing law firms to provide other professional services, like consulting, or if this is "off-strategy" for the mission of the CDC.
Authors :: Robert G. Eccles, Amy C. Edmondson, James Weber
Swot Analysis of "Addleshaw Goddard LLP (Abridged)" written by Robert G. Eccles, Amy C. Edmondson, James Weber includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cdc Hever facing as an external strategic factors. Some of the topics covered in Addleshaw Goddard LLP (Abridged) case study are - Strategic Management Strategies, Joint ventures, Pricing, Risk management, Supply chain and Organizational Development.
Some of the macro environment factors that can be used to understand the Addleshaw Goddard LLP (Abridged) casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, increasing household debt because of falling income levels, increasing commodity prices, increasing government debt because of Covid-19 spendings,
central banks are concerned over increasing inflation, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Addleshaw Goddard LLP (Abridged)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Addleshaw Goddard LLP (Abridged) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cdc Hever, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cdc Hever 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 Addleshaw Goddard LLP (Abridged) can be done for the following purposes –
1. Strategic planning using facts provided in Addleshaw Goddard LLP (Abridged) case study
2. Improving business portfolio management of Cdc Hever
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 Cdc Hever
Strengths Addleshaw Goddard LLP (Abridged) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cdc Hever in Addleshaw Goddard LLP (Abridged) Harvard Business Review case study are -
Effective Research and Development (R&D)
– Cdc Hever 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 Addleshaw Goddard LLP (Abridged) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Organizational Development industry
– Addleshaw Goddard LLP (Abridged) firm has clearly differentiated products in the market place. This has enabled Cdc Hever to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Cdc Hever to invest into research and development (R&D) and innovation.
Ability to lead change in Organizational Development field
– Cdc Hever 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 Cdc Hever in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Cdc Hever
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cdc Hever does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Cdc Hever 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 recruit top talent
– Cdc Hever is one of the leading recruiters in the industry. Managers in the Addleshaw Goddard LLP (Abridged) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Cdc Hever has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cdc Hever 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.
Highly skilled collaborators
– Cdc Hever 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 Addleshaw Goddard LLP (Abridged) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Cdc Hever 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 Cdc Hever is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Addleshaw Goddard LLP (Abridged) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Cdc Hever is one of the most innovative firm in sector. Manager in Addleshaw Goddard LLP (Abridged) 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
– Cdc Hever has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cdc Hever to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Cdc Hever in the sector have low bargaining power. Addleshaw Goddard LLP (Abridged) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cdc Hever to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Addleshaw Goddard LLP (Abridged) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Addleshaw Goddard LLP (Abridged) 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 Cdc Hever supply chain. Even after few cautionary changes mentioned in the HBR case study - Addleshaw Goddard LLP (Abridged), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cdc Hever vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Cdc Hever 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.
Lack of clear differentiation of Cdc Hever products
– To increase the profitability and margins on the products, Cdc Hever needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Cdc Hever 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. Cdc Hever 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Addleshaw Goddard LLP (Abridged), in the dynamic environment Cdc Hever has struggled to respond to the nimble upstart competition. Cdc Hever has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cdc Hever is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Addleshaw Goddard LLP (Abridged) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Addleshaw Goddard LLP (Abridged), is just above the industry average. Cdc Hever 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.
Aligning sales with marketing
– It come across in the case study Addleshaw Goddard LLP (Abridged) 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 Addleshaw Goddard LLP (Abridged) can leverage the sales team experience to cultivate customer relationships as Cdc Hever is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Cdc Hever is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Cdc Hever needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cdc Hever to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Cdc Hever, firm in the HBR case study Addleshaw Goddard LLP (Abridged) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Addleshaw Goddard LLP (Abridged) 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 Cdc Hever 's lucrative customers.
Opportunities Addleshaw Goddard LLP (Abridged) | 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 Addleshaw Goddard LLP (Abridged) are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cdc Hever 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cdc Hever can use these opportunities to build new business models that can help the communities that Cdc Hever operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
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 Cdc Hever in the consumer business. Now Cdc Hever can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Cdc Hever 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cdc Hever 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 Cdc Hever has opened avenues for new revenue streams for the organization in the industry. This can help Cdc Hever to build a more holistic ecosystem as suggested in the Addleshaw Goddard LLP (Abridged) case study. Cdc Hever 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, Cdc Hever is facing challenges because of the dominance of functional experts in the organization. Addleshaw Goddard LLP (Abridged) 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.
Learning at scale
– Online learning technologies has now opened space for Cdc Hever 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 Cdc Hever to increase its market reach. Cdc Hever 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.
Manufacturing automation
– Cdc Hever 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.
Using analytics as competitive advantage
– Cdc Hever 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 Addleshaw Goddard LLP (Abridged) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cdc Hever to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Cdc Hever can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Cdc Hever 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.
Threats Addleshaw Goddard LLP (Abridged) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Addleshaw Goddard LLP (Abridged) are -
Shortening product life cycle
– it is one of the major threat that Cdc Hever is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Cdc Hever 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.
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 Cdc Hever business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Cdc Hever 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. Cdc Hever can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cdc Hever with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cdc Hever 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.
High dependence on third party suppliers
– Cdc Hever 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.
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.
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 Cdc Hever.
Stagnating economy with rate increase
– Cdc Hever 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cdc Hever 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 Addleshaw Goddard LLP (Abridged) .
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. Cdc Hever can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Cdc Hever 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.
Weighted SWOT Analysis of Addleshaw Goddard LLP (Abridged) 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 Addleshaw Goddard LLP (Abridged) 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 Addleshaw Goddard LLP (Abridged) 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 Addleshaw Goddard LLP (Abridged) 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 Addleshaw Goddard LLP (Abridged) 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 Cdc Hever needs to make to build a sustainable competitive advantage.
