Knowlton Roberts II (B): Epilogue SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Knowlton Roberts II (B): Epilogue
This second part of the two-part case updated from the Knowlton Roberts case series (UVA-OB-0737 and 0738) provides an epilogue to the manager's ultimate decision of whether or not to take a new job. His decision and how it is communicated to his boss and his boss's reaction are the meat of the B case.
Swot Analysis of "Knowlton Roberts II (B): Epilogue" written by Lynn A. Isabella, Gerry Yemen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Knowlton Roberts facing as an external strategic factors. Some of the topics covered in Knowlton Roberts II (B): Epilogue case study are - Strategic Management Strategies, Emotional intelligence, Leadership, Managing people, Organizational culture and Organizational Development.
Some of the macro environment factors that can be used to understand the Knowlton Roberts II (B): Epilogue casestudy better are - – increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , technology disruption, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion,
challanges to central banks by blockchain based private currencies, geopolitical disruptions, etc
Introduction to SWOT Analysis of Knowlton Roberts II (B): Epilogue
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Knowlton Roberts II (B): Epilogue case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Knowlton Roberts, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Knowlton Roberts 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 Knowlton Roberts II (B): Epilogue can be done for the following purposes –
1. Strategic planning using facts provided in Knowlton Roberts II (B): Epilogue case study
2. Improving business portfolio management of Knowlton Roberts
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 Knowlton Roberts
Strengths Knowlton Roberts II (B): Epilogue | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Knowlton Roberts in Knowlton Roberts II (B): Epilogue Harvard Business Review case study are -
Highly skilled collaborators
– Knowlton Roberts 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 Knowlton Roberts II (B): Epilogue HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Knowlton Roberts 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 Lynn A. Isabella, Gerry Yemen 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.
Innovation driven organization
– Knowlton Roberts is one of the most innovative firm in sector. Manager in Knowlton Roberts II (B): Epilogue Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Knowlton Roberts has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Knowlton Roberts II (B): Epilogue 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.
Sustainable margins compare to other players in Organizational Development industry
– Knowlton Roberts II (B): Epilogue firm has clearly differentiated products in the market place. This has enabled Knowlton Roberts to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Knowlton Roberts to invest into research and development (R&D) and innovation.
High brand equity
– Knowlton Roberts has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Knowlton Roberts to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Knowlton Roberts is one of the leading recruiters in the industry. Managers in the Knowlton Roberts II (B): Epilogue are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Knowlton Roberts 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
– Knowlton Roberts 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 Knowlton Roberts in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Knowlton Roberts digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Knowlton Roberts 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.
Operational resilience
– The operational resilience strategy in the Knowlton Roberts II (B): Epilogue 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.
Learning organization
- Knowlton Roberts 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 Knowlton Roberts is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Knowlton Roberts II (B): Epilogue Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Knowlton Roberts II (B): Epilogue | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Knowlton Roberts II (B): Epilogue are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Knowlton Roberts II (B): Epilogue, in the dynamic environment Knowlton Roberts has struggled to respond to the nimble upstart competition. Knowlton Roberts has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Knowlton Roberts II (B): Epilogue HBR case study mentions - Knowlton Roberts takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Interest costs
– Compare to the competition, Knowlton Roberts has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Need for greater diversity
– Knowlton Roberts 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.
Increasing silos among functional specialists
– The organizational structure of Knowlton Roberts is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Knowlton Roberts needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Knowlton Roberts to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Knowlton Roberts 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.
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 Knowlton Roberts supply chain. Even after few cautionary changes mentioned in the HBR case study - Knowlton Roberts II (B): Epilogue, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Knowlton Roberts vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Knowlton Roberts II (B): Epilogue, 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.
Slow decision making process
– As mentioned earlier in the report, Knowlton Roberts 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. Knowlton Roberts 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.
Skills based hiring
– The stress on hiring functional specialists at Knowlton Roberts 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.
Low market penetration in new markets
– Outside its home market of Knowlton Roberts, firm in the HBR case study Knowlton Roberts II (B): Epilogue needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Knowlton Roberts II (B): Epilogue | 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 Knowlton Roberts II (B): Epilogue are -
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 Knowlton Roberts 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Knowlton Roberts is facing challenges because of the dominance of functional experts in the organization. Knowlton Roberts II (B): Epilogue 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 Knowlton Roberts has opened avenues for new revenue streams for the organization in the industry. This can help Knowlton Roberts to build a more holistic ecosystem as suggested in the Knowlton Roberts II (B): Epilogue case study. Knowlton Roberts can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Knowlton Roberts 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.
Leveraging digital technologies
– Knowlton Roberts 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Knowlton Roberts 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
– Knowlton Roberts 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Knowlton Roberts can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Knowlton Roberts 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 Knowlton Roberts to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Knowlton Roberts to increase its market reach. Knowlton Roberts 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.
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. Knowlton Roberts can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Knowlton Roberts 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.
Manufacturing automation
– Knowlton Roberts 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.
Threats Knowlton Roberts II (B): Epilogue External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Knowlton Roberts II (B): Epilogue are -
Environmental challenges
– Knowlton Roberts 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. Knowlton Roberts can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
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 Knowlton Roberts business can come under increasing regulations regarding data privacy, data security, etc.
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. Knowlton Roberts can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Knowlton Roberts 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 Knowlton Roberts II (B): Epilogue .
Shortening product life cycle
– it is one of the major threat that Knowlton Roberts 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
– Knowlton Roberts 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.
High dependence on third party suppliers
– Knowlton Roberts 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.
Regulatory challenges
– Knowlton Roberts 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.
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 Knowlton Roberts.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Knowlton Roberts 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.
Consumer confidence and its impact on Knowlton Roberts 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.
Technology acceleration in Forth Industrial Revolution
– Knowlton Roberts has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Knowlton Roberts 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Knowlton Roberts with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Knowlton Roberts II (B): Epilogue 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 Knowlton Roberts II (B): Epilogue 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 Knowlton Roberts II (B): Epilogue 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 Knowlton Roberts II (B): Epilogue 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 Knowlton Roberts II (B): Epilogue 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 Knowlton Roberts needs to make to build a sustainable competitive advantage.
