LinkedIn and Modern Recruiting (B) 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 (B)
This case picks up where "LinkedIn and Modern Recruiting (A)" left off, detailing the company's innovations in hiring practices, which included its highly effective use of LinkedIn profile and resume data. As part of these innovations, LinkedIn's talent acquisition team built a new recruiting model, called the Total Addressable Market (TAM) model. TAM took a page out of sales and marketing models by using data that users provided on LinkedIn, enabling the company to narrow, segment, and prioritize which potential candidates to commit recruiting resources toward. In addition, the case presents LinkedIn's diversity scorecard and efforts to date.
Swot Analysis of "LinkedIn and Modern Recruiting (B)" 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 (B) case study are - Strategic Management Strategies, Data, Diversity, Human resource management and Organizational Development.
Some of the macro environment factors that can be used to understand the LinkedIn and Modern Recruiting (B) casestudy better are - – supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion,
wage bills are increasing, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of LinkedIn and Modern Recruiting (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in LinkedIn and Modern Recruiting (B) 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 (B) can be done for the following purposes –
1. Strategic planning using facts provided in LinkedIn and Modern Recruiting (B) 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 (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Linkedin Recruiting in LinkedIn and Modern Recruiting (B) Harvard Business Review case study are -
Effective Research and Development (R&D)
– Linkedin Recruiting 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 LinkedIn and Modern Recruiting (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Linkedin Recruiting is present in almost all the verticals within the industry. This has provided firm in LinkedIn and Modern Recruiting (B) 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.
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.
Sustainable margins compare to other players in Organizational Development industry
– LinkedIn and Modern Recruiting (B) 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.
Low bargaining power of suppliers
– Suppliers of Linkedin Recruiting in the sector have low bargaining power. LinkedIn and Modern Recruiting (B) 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.
Ability to recruit top talent
– Linkedin Recruiting is one of the leading recruiters in the industry. Managers in the LinkedIn and Modern Recruiting (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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 (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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 (B) 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.
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.
Analytics focus
– Linkedin Recruiting 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 Kathryn Shaw, Debra Schifrin 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.
Ability to lead change in Organizational Development field
– Linkedin Recruiting 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 Linkedin Recruiting in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses LinkedIn and Modern Recruiting (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of LinkedIn and Modern Recruiting (B) are -
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 (B) should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Linkedin Recruiting 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.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study LinkedIn and Modern Recruiting (B) 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.
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 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study LinkedIn and Modern Recruiting (B), is just above the industry average. Linkedin Recruiting 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 LinkedIn and Modern Recruiting (B) 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 LinkedIn and Modern Recruiting (B) can leverage the sales team experience to cultivate customer relationships as Linkedin Recruiting is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study LinkedIn and Modern Recruiting (B), in the dynamic environment Linkedin Recruiting has struggled to respond to the nimble upstart competition. Linkedin Recruiting has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Linkedin Recruiting products
– To increase the profitability and margins on the products, Linkedin Recruiting needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Linkedin Recruiting 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.
Opportunities LinkedIn and Modern Recruiting (B) | 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 (B) are -
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.
Developing new processes and practices
– Linkedin Recruiting 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.
Leveraging digital technologies
– Linkedin Recruiting 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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Linkedin Recruiting 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.
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.
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. Linkedin Recruiting can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
Loyalty marketing
– Linkedin Recruiting 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Linkedin Recruiting can use these opportunities to build new business models that can help the communities that Linkedin Recruiting operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Threats LinkedIn and Modern Recruiting (B) 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 (B) are -
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.
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 (B), 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.
Environmental challenges
– Linkedin Recruiting 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. Linkedin Recruiting can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
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.
Shortening product life cycle
– it is one of the major threat that Linkedin Recruiting is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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.
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.
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 Linkedin Recruiting in the Organizational Development sector and impact the bottomline of the organization.
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.
High dependence on third party suppliers
– Linkedin Recruiting 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.
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.
Weighted SWOT Analysis of LinkedIn and Modern Recruiting (B) 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 (B) 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 (B) 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 (B) 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 (B) 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.