Sanford C. Bernstein CEO Robert van Brugge, Video SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Sanford C. Bernstein CEO Robert van Brugge, Video
Sanford C. Bernstein CEO (and former Global Director of Research) Robert van Brugge answers questions about organizational culture, change management, and collaboration, in this video supplement to the HBS case series "Global Expansion at Sanford C. Bernstein." Sanford C. Bernstein is a premier sell-side research firm.
Swot Analysis of "Sanford C. Bernstein CEO Robert van Brugge, Video" written by Linda A. Hill, Allison J. Wigen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bernstein Sanford facing as an external strategic factors. Some of the topics covered in Sanford C. Bernstein CEO Robert van Brugge, Video case study are - Strategic Management Strategies, Organizational culture and Organizational Development.
Some of the macro environment factors that can be used to understand the Sanford C. Bernstein CEO Robert van Brugge, Video casestudy better are - – there is increasing trade war between United States & China, increasing energy prices, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, technology disruption, competitive advantages are harder to sustain because of technology dispersion,
there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Sanford C. Bernstein CEO Robert van Brugge, Video
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sanford C. Bernstein CEO Robert van Brugge, Video case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bernstein Sanford, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bernstein Sanford 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 Sanford C. Bernstein CEO Robert van Brugge, Video can be done for the following purposes –
1. Strategic planning using facts provided in Sanford C. Bernstein CEO Robert van Brugge, Video case study
2. Improving business portfolio management of Bernstein Sanford
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 Bernstein Sanford
Strengths Sanford C. Bernstein CEO Robert van Brugge, Video | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bernstein Sanford in Sanford C. Bernstein CEO Robert van Brugge, Video Harvard Business Review case study are -
Analytics focus
– Bernstein Sanford 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 Linda A. Hill, Allison J. Wigen 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.
Sustainable margins compare to other players in Organizational Development industry
– Sanford C. Bernstein CEO Robert van Brugge, Video firm has clearly differentiated products in the market place. This has enabled Bernstein Sanford to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Bernstein Sanford to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Bernstein Sanford is one of the leading recruiters in the industry. Managers in the Sanford C. Bernstein CEO Robert van Brugge, Video are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Bernstein Sanford 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 Bernstein Sanford is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Sanford C. Bernstein CEO Robert van Brugge, Video Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Bernstein Sanford 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 Sanford C. Bernstein CEO Robert van Brugge, Video - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Bernstein Sanford has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Sanford C. Bernstein CEO Robert van Brugge, Video 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.
Operational resilience
– The operational resilience strategy in the Sanford C. Bernstein CEO Robert van Brugge, Video 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.
Ability to lead change in Organizational Development field
– Bernstein Sanford 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 Bernstein Sanford 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 Bernstein Sanford digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bernstein Sanford 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.
Innovation driven organization
– Bernstein Sanford is one of the most innovative firm in sector. Manager in Sanford C. Bernstein CEO Robert van Brugge, Video Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Bernstein Sanford 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.
Organizational Resilience of Bernstein Sanford
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bernstein Sanford does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Sanford C. Bernstein CEO Robert van Brugge, Video | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sanford C. Bernstein CEO Robert van Brugge, Video are -
High operating costs
– Compare to the competitors, firm in the HBR case study Sanford C. Bernstein CEO Robert van Brugge, Video 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 Bernstein Sanford 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Linda A. Hill, Allison J. Wigen suggests that, Bernstein Sanford 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.
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 Bernstein Sanford supply chain. Even after few cautionary changes mentioned in the HBR case study - Sanford C. Bernstein CEO Robert van Brugge, Video, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bernstein Sanford vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Sanford C. Bernstein CEO Robert van Brugge, Video HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Bernstein Sanford has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Bernstein Sanford 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.
Increasing silos among functional specialists
– The organizational structure of Bernstein Sanford is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Bernstein Sanford needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bernstein Sanford to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Bernstein Sanford has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Low market penetration in new markets
– Outside its home market of Bernstein Sanford, firm in the HBR case study Sanford C. Bernstein CEO Robert van Brugge, Video needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Sanford C. Bernstein CEO Robert van Brugge, Video, in the dynamic environment Bernstein Sanford has struggled to respond to the nimble upstart competition. Bernstein Sanford has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Sanford C. Bernstein CEO Robert van Brugge, Video, it seems that the employees of Bernstein Sanford 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.
Products dominated business model
– Even though Bernstein Sanford 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 - Sanford C. Bernstein CEO Robert van Brugge, Video should strive to include more intangible value offerings along with its core products and services.
Opportunities Sanford C. Bernstein CEO Robert van Brugge, Video | 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 Sanford C. Bernstein CEO Robert van Brugge, Video 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, Bernstein Sanford can use these opportunities to build new business models that can help the communities that Bernstein Sanford operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Creating value in data economy
– The success of analytics program of Bernstein Sanford has opened avenues for new revenue streams for the organization in the industry. This can help Bernstein Sanford to build a more holistic ecosystem as suggested in the Sanford C. Bernstein CEO Robert van Brugge, Video case study. Bernstein Sanford 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, Bernstein Sanford is facing challenges because of the dominance of functional experts in the organization. Sanford C. Bernstein CEO Robert van Brugge, Video 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 Bernstein Sanford 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.
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. Bernstein Sanford can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Bernstein Sanford in the consumer business. Now Bernstein Sanford can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Bernstein Sanford can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Bernstein Sanford 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.
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. Bernstein Sanford can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Bernstein Sanford 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.
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. Bernstein Sanford 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. Bernstein Sanford 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.
Buying journey improvements
– Bernstein Sanford can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Sanford C. Bernstein CEO Robert van Brugge, Video 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.
Leveraging digital technologies
– Bernstein Sanford 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 Sanford C. Bernstein CEO Robert van Brugge, Video External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sanford C. Bernstein CEO Robert van Brugge, Video are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bernstein Sanford with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Regulatory challenges
– Bernstein Sanford 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.
Consumer confidence and its impact on Bernstein Sanford 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, Bernstein Sanford 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 Sanford C. Bernstein CEO Robert van Brugge, Video .
Stagnating economy with rate increase
– Bernstein Sanford 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 Bernstein Sanford in the Organizational Development sector and impact the bottomline of the organization.
Increasing wage structure of Bernstein Sanford
– 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 Bernstein Sanford.
Environmental challenges
– Bernstein Sanford 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. Bernstein Sanford can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
High dependence on third party suppliers
– Bernstein Sanford 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.
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. Bernstein Sanford 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.
Shortening product life cycle
– it is one of the major threat that Bernstein Sanford is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bernstein Sanford 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.
Weighted SWOT Analysis of Sanford C. Bernstein CEO Robert van Brugge, Video 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 Sanford C. Bernstein CEO Robert van Brugge, Video 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 Sanford C. Bernstein CEO Robert van Brugge, Video 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 Sanford C. Bernstein CEO Robert van Brugge, Video 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 Sanford C. Bernstein CEO Robert van Brugge, Video 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 Bernstein Sanford needs to make to build a sustainable competitive advantage.
