Workbrain Corp. - A Case in Exit Strategy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Workbrain Corp. - A Case in Exit Strategy
The chief financial officer (CFO) of Workbrain Corporation (Workbrain) must prepare a memo for the upcoming board of directors meeting. Workbrain, a venture-backed company, has grown substantially since its founding in November 1999. Now the CFO must communicate to the board whether it is time to consider an initial public offering (IPO) and, if so, in which exchange market the stock should be offered. The company must also consider what financing alternatives are available (including maintaining the current venture financing arrangement) and whether the company needs to raise money at all. The CFO is thinking about the memo, knowing that his words will have considerable impact on the company.
Swot Analysis of "Workbrain Corp. - A Case in Exit Strategy" written by Tevya Rosenberg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Workbrain Cfo facing as an external strategic factors. Some of the topics covered in Workbrain Corp. - A Case in Exit Strategy case study are - Strategic Management Strategies, Financial markets, Strategy, Venture capital and Organizational Development.
Some of the macro environment factors that can be used to understand the Workbrain Corp. - A Case in Exit Strategy casestudy better are - – central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels,
increasing government debt because of Covid-19 spendings, increasing energy prices, etc
Introduction to SWOT Analysis of Workbrain Corp. - A Case in Exit Strategy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Workbrain Corp. - A Case in Exit Strategy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Workbrain Cfo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Workbrain Cfo 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 Workbrain Corp. - A Case in Exit Strategy can be done for the following purposes –
1. Strategic planning using facts provided in Workbrain Corp. - A Case in Exit Strategy case study
2. Improving business portfolio management of Workbrain Cfo
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 Workbrain Cfo
Strengths Workbrain Corp. - A Case in Exit Strategy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Workbrain Cfo in Workbrain Corp. - A Case in Exit Strategy Harvard Business Review case study are -
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Workbrain Cfo digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Workbrain Cfo 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.
Training and development
– Workbrain Cfo has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Workbrain Corp. - A Case in Exit Strategy 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.
High brand equity
– Workbrain Cfo has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Workbrain Cfo to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Workbrain Cfo in the sector have low bargaining power. Workbrain Corp. - A Case in Exit Strategy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Workbrain Cfo to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Workbrain Cfo 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 Workbrain Corp. - A Case in Exit Strategy - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Organizational Development industry
– Workbrain Corp. - A Case in Exit Strategy firm has clearly differentiated products in the market place. This has enabled Workbrain Cfo to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Workbrain Cfo to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Workbrain Corp. - A Case in Exit Strategy 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.
High switching costs
– The high switching costs that Workbrain Cfo 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.
Ability to lead change in Organizational Development field
– Workbrain Cfo 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 Workbrain Cfo in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Workbrain Cfo 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.
Superior customer experience
– The customer experience strategy of Workbrain Cfo in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Workbrain Cfo
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Workbrain Cfo does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Workbrain Corp. - A Case in Exit Strategy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Workbrain Corp. - A Case in Exit Strategy are -
High cash cycle compare to competitors
Workbrain Cfo 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Workbrain Corp. - A Case in Exit Strategy, in the dynamic environment Workbrain Cfo has struggled to respond to the nimble upstart competition. Workbrain Cfo has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Workbrain Cfo 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Workbrain Corp. - A Case in Exit Strategy, it seems that the employees of Workbrain Cfo 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.
Lack of clear differentiation of Workbrain Cfo products
– To increase the profitability and margins on the products, Workbrain Cfo needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Workbrain Corp. - A Case in Exit Strategy 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 Workbrain Corp. - A Case in Exit Strategy can leverage the sales team experience to cultivate customer relationships as Workbrain Cfo is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Workbrain Corp. - A Case in Exit Strategy, 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Workbrain Corp. - A Case in Exit Strategy 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 Workbrain Cfo 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Tevya Rosenberg suggests that, Workbrain Cfo 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.
Products dominated business model
– Even though Workbrain Cfo 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 - Workbrain Corp. - A Case in Exit Strategy should strive to include more intangible value offerings along with its core products and services.
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 Workbrain Cfo supply chain. Even after few cautionary changes mentioned in the HBR case study - Workbrain Corp. - A Case in Exit Strategy, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Workbrain Cfo vulnerable to further global disruptions in South East Asia.
Opportunities Workbrain Corp. - A Case in Exit Strategy | 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 Workbrain Corp. - A Case in Exit Strategy are -
Developing new processes and practices
– Workbrain Cfo 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.
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. Workbrain Cfo can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Workbrain Cfo can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Workbrain Cfo 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, Workbrain Corp. - A Case in Exit Strategy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Workbrain Cfo is facing challenges because of the dominance of functional experts in the organization. Workbrain Corp. - A Case in Exit Strategy 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.
Manufacturing automation
– Workbrain Cfo 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.
Leveraging digital technologies
– Workbrain Cfo 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.
Using analytics as competitive advantage
– Workbrain Cfo 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 Workbrain Corp. - A Case in Exit Strategy - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Workbrain Cfo to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Workbrain Cfo to increase its market reach. Workbrain Cfo 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Workbrain Cfo can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Workbrain Cfo 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.
Creating value in data economy
– The success of analytics program of Workbrain Cfo has opened avenues for new revenue streams for the organization in the industry. This can help Workbrain Cfo to build a more holistic ecosystem as suggested in the Workbrain Corp. - A Case in Exit Strategy case study. Workbrain Cfo can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Workbrain Cfo 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.
Threats Workbrain Corp. - A Case in Exit Strategy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Workbrain Corp. - A Case in Exit Strategy are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Workbrain Cfo 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.
Regulatory challenges
– Workbrain Cfo 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.
Stagnating economy with rate increase
– Workbrain Cfo 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 Workbrain Cfo with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Workbrain Cfo
– 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 Workbrain Cfo.
Technology acceleration in Forth Industrial Revolution
– Workbrain Cfo has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Workbrain Cfo 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Workbrain Corp. - A Case in Exit Strategy, Workbrain Cfo 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 .
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 Workbrain Cfo in the Organizational Development sector and impact the bottomline of the organization.
Environmental challenges
– Workbrain Cfo 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. Workbrain Cfo can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
High dependence on third party suppliers
– Workbrain Cfo 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.
Shortening product life cycle
– it is one of the major threat that Workbrain Cfo is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Workbrain Cfo.
Consumer confidence and its impact on Workbrain Cfo 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.
Weighted SWOT Analysis of Workbrain Corp. - A Case in Exit Strategy 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 Workbrain Corp. - A Case in Exit Strategy 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 Workbrain Corp. - A Case in Exit Strategy 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 Workbrain Corp. - A Case in Exit Strategy 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 Workbrain Corp. - A Case in Exit Strategy 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 Workbrain Cfo needs to make to build a sustainable competitive advantage.