Christina Gold Leading Change at Western Union SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Christina Gold Leading Change at Western Union
The chief executive officer of Western Union had just begun implementing a new organization structure. Changing the structure sent a clear message about Gold's desire to change the company's mindset to a new more global one. Already the CEO was finding that leaders in the United States were reluctant to give up control of product lines. At the regional level, she had good leaders in place who wanted to push out the responsibility within their own regions and move toward a decentralized plan. Although the CEO supported this notion in principle, she wanted to ensure that the right leaders could be placed in decentralized offices to execute on the six strategic pillars that she had laid out for the organization. One thing was certain--the CEO had made it clear that no revenue decreases would be forgiven amidst the change. Many considerations had arisen: What pace of change should she take? How would she deal with resistance to change? How could she ensure that the new structure would support Western Union's global expansion?
Swot Analysis of "Christina Gold Leading Change at Western Union" written by Alison Konrad, Jordan Mitchell includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Western Change facing as an external strategic factors. Some of the topics covered in Christina Gold Leading Change at Western Union case study are - Strategic Management Strategies, Globalization, Leadership, Organizational culture, Organizational structure and Organizational Development.
Some of the macro environment factors that can be used to understand the Christina Gold Leading Change at Western Union casestudy better are - – supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, wage bills are increasing, cloud computing is disrupting traditional business models,
increasing commodity prices, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Christina Gold Leading Change at Western Union
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Christina Gold Leading Change at Western Union case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Western Change, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Western Change 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 Christina Gold Leading Change at Western Union can be done for the following purposes –
1. Strategic planning using facts provided in Christina Gold Leading Change at Western Union case study
2. Improving business portfolio management of Western Change
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 Western Change
Strengths Christina Gold Leading Change at Western Union | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Western Change in Christina Gold Leading Change at Western Union Harvard Business Review case study are -
Diverse revenue streams
– Western Change is present in almost all the verticals within the industry. This has provided firm in Christina Gold Leading Change at Western Union 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.
Cross disciplinary teams
– Horizontal connected teams at the Western Change 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.
Sustainable margins compare to other players in Organizational Development industry
– Christina Gold Leading Change at Western Union firm has clearly differentiated products in the market place. This has enabled Western Change to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Western Change to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Western Change 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.
Strong track record of project management
– Western Change is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Western Change digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Western Change 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.
Effective Research and Development (R&D)
– Western Change 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 Christina Gold Leading Change at Western Union - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Western Change 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 Alison Konrad, Jordan Mitchell 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.
Organizational Resilience of Western Change
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Western Change does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Western Change is one of the leading recruiters in the industry. Managers in the Christina Gold Leading Change at Western Union 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
- Western Change 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 Western Change is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Christina Gold Leading Change at Western Union Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Western Change is one of the most innovative firm in sector. Manager in Christina Gold Leading Change at Western Union Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Christina Gold Leading Change at Western Union | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Christina Gold Leading Change at Western Union are -
High bargaining power of channel partners
– Because of the regulatory requirements, Alison Konrad, Jordan Mitchell suggests that, Western Change 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.
Need for greater diversity
– Western Change 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.
Products dominated business model
– Even though Western Change 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 - Christina Gold Leading Change at Western Union should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Western Change 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.
Increasing silos among functional specialists
– The organizational structure of Western Change is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Western Change needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Western Change to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Western Change products
– To increase the profitability and margins on the products, Western Change needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Christina Gold Leading Change at Western Union 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 Western Change 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Christina Gold Leading Change at Western Union 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 Christina Gold Leading Change at Western Union can leverage the sales team experience to cultivate customer relationships as Western Change is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Western Change 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. Western Change 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 Christina Gold Leading Change at Western Union, in the dynamic environment Western Change has struggled to respond to the nimble upstart competition. Western Change has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Western Change supply chain. Even after few cautionary changes mentioned in the HBR case study - Christina Gold Leading Change at Western Union, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Western Change vulnerable to further global disruptions in South East Asia.
Opportunities Christina Gold Leading Change at Western Union | 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 Christina Gold Leading Change at Western Union are -
Leveraging digital technologies
– Western Change 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Western Change is facing challenges because of the dominance of functional experts in the organization. Christina Gold Leading Change at Western Union 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.
Creating value in data economy
– The success of analytics program of Western Change has opened avenues for new revenue streams for the organization in the industry. This can help Western Change to build a more holistic ecosystem as suggested in the Christina Gold Leading Change at Western Union case study. Western Change can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Western Change in the consumer business. Now Western Change can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Western Change 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.
Loyalty marketing
– Western Change 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.
Buying journey improvements
– Western Change can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Christina Gold Leading Change at Western Union 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.
Manufacturing automation
– Western Change 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Western Change 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Western Change can use these opportunities to build new business models that can help the communities that Western Change operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
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 Western Change 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.
Developing new processes and practices
– Western Change 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.
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. Western Change can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Christina Gold Leading Change at Western Union External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Christina Gold Leading Change at Western Union are -
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.
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 Western Change.
Stagnating economy with rate increase
– Western Change 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Western Change with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Western Change can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Western Change needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Western Change 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.
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 Western Change business can come under increasing regulations regarding data privacy, data security, etc.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Western Change 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 Christina Gold Leading Change at Western Union .
Consumer confidence and its impact on Western Change 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.
Environmental challenges
– Western Change 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. Western Change can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Regulatory challenges
– Western Change 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.
Weighted SWOT Analysis of Christina Gold Leading Change at Western Union 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 Christina Gold Leading Change at Western Union 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 Christina Gold Leading Change at Western Union 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 Christina Gold Leading Change at Western Union 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 Christina Gold Leading Change at Western Union 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 Western Change needs to make to build a sustainable competitive advantage.
