LinkedIn and Modern Recruiting (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of LinkedIn and Modern Recruiting (A)
In 2015, LinkedIn, the world's largest professional network, was experiencing explosive growth, and it needed to hire the very best people quickly to support and fuel that growth. This case discusses LinkedIn's hiring approach and details how the company used its own online recruiting products, such as LinkedIn Talent Solutions, to attract and retain talent. At the same time, the company was creating new recruiting models that put it at the forefront of modern recruiting. LinkedIn had done well so far in bringing in top talent. Nevertheless, as it rapidly scaled, the challenge was making sure the company could compete with other tech firms to attract enough highly skilled engineers. The case explains specific techniques that LinkedIn's recruiting team of over 100 people used to attract talented candidates for positions in engineering, sales, and other departments. Those techniques included: 1) replacing cold calling potential candidates with finding "warm connections" to them through their LinkedIn networks; 2) using a data-driven approach to identify the best candidates to pursue; and 3) developing personalized online relationships with top candidates. LinkedIn made internal hiring a priority. For external hires, the company focused heavily on recruiting passive candidates-people were who already gainfully employed and not necessarily looking for a new job. The case also discusses LinkedIn's employee value proposition, focusing on the extraordinary opportunities employees were given for "transformation" once they joined the LinkedIn team. These opportunities included personal advancement through a smooth path to change jobs within LinkedIn if they wished, as well as formal and informal programs designed for employees to pursue their passions-and share their experiences. "LinkedIn and Modern Recruiting (B)" goes into more detail about LinkedIn's data-driven approach, new recruitment innovations, and diversity scorecard.
Swot Analysis of "LinkedIn and Modern Recruiting (A)" written by Kathryn Shaw, Debra Schifrin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Linkedin Recruiting facing as an external strategic factors. Some of the topics covered in LinkedIn and Modern Recruiting (A) case study are - Strategic Management Strategies, Data, Diversity, Human resource management, Organizational structure and Organizational Development.
Some of the macro environment factors that can be used to understand the LinkedIn and Modern Recruiting (A) casestudy better are - – cloud computing is disrupting traditional business models, technology disruption, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, wage bills are increasing, talent flight as more people leaving formal jobs,
competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, etc
Introduction to SWOT Analysis of LinkedIn and Modern Recruiting (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in LinkedIn and Modern Recruiting (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Linkedin Recruiting, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Linkedin Recruiting 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 LinkedIn and Modern Recruiting (A) can be done for the following purposes –
1. Strategic planning using facts provided in LinkedIn and Modern Recruiting (A) case study
2. Improving business portfolio management of Linkedin Recruiting
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 Linkedin Recruiting
Strengths LinkedIn and Modern Recruiting (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Linkedin Recruiting in LinkedIn and Modern Recruiting (A) Harvard Business Review case study are -
Strong track record of project management
– Linkedin Recruiting is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Linkedin Recruiting in the sector have low bargaining power. LinkedIn and Modern Recruiting (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Linkedin Recruiting to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Linkedin Recruiting has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Linkedin Recruiting to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Linkedin Recruiting has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in LinkedIn and Modern Recruiting (A) 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.
Highly skilled collaborators
– Linkedin Recruiting 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 LinkedIn and Modern Recruiting (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Linkedin Recruiting in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Linkedin Recruiting 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.
Organizational Resilience of Linkedin Recruiting
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Linkedin Recruiting does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Linkedin Recruiting 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 Linkedin Recruiting is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in LinkedIn and Modern Recruiting (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Linkedin Recruiting digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Linkedin Recruiting 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.
Sustainable margins compare to other players in Organizational Development industry
– LinkedIn and Modern Recruiting (A) firm has clearly differentiated products in the market place. This has enabled Linkedin Recruiting to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Linkedin Recruiting to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Linkedin Recruiting 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.
Weaknesses LinkedIn and Modern Recruiting (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of LinkedIn and Modern Recruiting (A) are -
High bargaining power of channel partners
– Because of the regulatory requirements, Kathryn Shaw, Debra Schifrin suggests that, Linkedin Recruiting 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.
Increasing silos among functional specialists
– The organizational structure of Linkedin Recruiting is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Linkedin Recruiting needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Linkedin Recruiting to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Linkedin Recruiting 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the LinkedIn and Modern Recruiting (A) 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 Linkedin Recruiting has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study LinkedIn and Modern Recruiting (A), it seems that the employees of Linkedin Recruiting 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.
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 Linkedin Recruiting supply chain. Even after few cautionary changes mentioned in the HBR case study - LinkedIn and Modern Recruiting (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Linkedin Recruiting vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Linkedin Recruiting 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
Linkedin Recruiting 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.
High operating costs
– Compare to the competitors, firm in the HBR case study LinkedIn and Modern Recruiting (A) 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 Linkedin Recruiting 's lucrative customers.
Products dominated business model
– Even though Linkedin Recruiting 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 - LinkedIn and Modern Recruiting (A) should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study LinkedIn and Modern Recruiting (A), 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.
Opportunities LinkedIn and Modern Recruiting (A) | 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 LinkedIn and Modern Recruiting (A) are -
Better consumer reach
– The expansion of the 5G network will help Linkedin Recruiting to increase its market reach. Linkedin Recruiting will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Linkedin Recruiting 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 Linkedin Recruiting to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Linkedin Recruiting can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Linkedin Recruiting in the consumer business. Now Linkedin Recruiting can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Linkedin Recruiting 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Linkedin Recruiting is facing challenges because of the dominance of functional experts in the organization. LinkedIn and Modern Recruiting (A) 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.
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 Linkedin Recruiting 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Linkedin Recruiting 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, LinkedIn and Modern Recruiting (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Linkedin Recruiting can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. LinkedIn and Modern Recruiting (A) 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 Linkedin Recruiting 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. Linkedin Recruiting can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Linkedin Recruiting 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 LinkedIn and Modern Recruiting (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Linkedin Recruiting to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Linkedin Recruiting 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. Linkedin Recruiting 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.
Threats LinkedIn and Modern Recruiting (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study LinkedIn and Modern Recruiting (A) are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study LinkedIn and Modern Recruiting (A), Linkedin Recruiting may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Technology acceleration in Forth Industrial Revolution
– Linkedin Recruiting has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Linkedin Recruiting 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.
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. Linkedin Recruiting can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Linkedin Recruiting 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 Linkedin Recruiting 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Linkedin Recruiting 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 LinkedIn and Modern Recruiting (A) .
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. Linkedin Recruiting 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Linkedin Recruiting with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Linkedin Recruiting business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Linkedin Recruiting 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 wage structure of Linkedin Recruiting
– 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 Linkedin Recruiting.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Linkedin Recruiting 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 LinkedIn and Modern Recruiting (A) 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 LinkedIn and Modern Recruiting (A) 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 LinkedIn and Modern Recruiting (A) 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 LinkedIn and Modern Recruiting (A) 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 LinkedIn and Modern Recruiting (A) 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 Linkedin Recruiting needs to make to build a sustainable competitive advantage.