Manuel Tertuliano, head coach of a professional soccer club, must make some difficult decisions about the compensation of six of his players. Specifically, he must decide how to allocate $850,000 among these six players in a way that will benefit his team, which has just finished second to last in the league and faces being eliminated from the league if team performance and game attendance don't improve. Tertuliano realizes that compensation is a key tool in motivating his players. In deciding on these six players' compensation, Tertuliano must ensure that he not only recognizes them, but also the other players on the team for the value each individual contributes to the team.
Authors :: Thomas J. DeLong, David L. Ager, Scott Baldwin, Chris Strong
Topics :: Organizational Development
Tags :: Compensation, Decision making, Human resource management, Leading teams, Motivating people, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Ottawa Voyageurs" written by Thomas J. DeLong, David L. Ager, Scott Baldwin, Chris Strong includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tertuliano Players facing as an external strategic factors. Some of the topics covered in Ottawa Voyageurs case study are - Strategic Management Strategies, Compensation, Decision making, Human resource management, Leading teams, Motivating people and Organizational Development.
Some of the macro environment factors that can be used to understand the Ottawa Voyageurs casestudy better are - – increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy,
central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ottawa Voyageurs case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tertuliano Players, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tertuliano Players 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 Ottawa Voyageurs can be done for the following purposes –
1. Strategic planning using facts provided in Ottawa Voyageurs case study
2. Improving business portfolio management of Tertuliano Players
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 Tertuliano Players
Strengths Ottawa Voyageurs | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tertuliano Players in Ottawa Voyageurs Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Tertuliano Players in the sector have low bargaining power. Ottawa Voyageurs has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tertuliano Players to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Tertuliano Players
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tertuliano Players does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Tertuliano Players in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Organizational Development field
– Tertuliano Players 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 Tertuliano Players in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Organizational Development industry
– Ottawa Voyageurs firm has clearly differentiated products in the market place. This has enabled Tertuliano Players to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Tertuliano Players to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Tertuliano Players 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.
Innovation driven organization
– Tertuliano Players is one of the most innovative firm in sector. Manager in Ottawa Voyageurs Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Tertuliano Players 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 Ottawa Voyageurs - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Tertuliano Players has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tertuliano Players has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Training and development
– Tertuliano Players has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ottawa Voyageurs Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Highly skilled collaborators
– Tertuliano Players 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 Ottawa Voyageurs HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Tertuliano Players has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tertuliano Players to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Ottawa Voyageurs | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ottawa Voyageurs are -
Interest costs
– Compare to the competition, Tertuliano Players 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.
Capital Spending Reduction
– Even during the low interest decade, Tertuliano Players 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Ottawa Voyageurs, is just above the industry average. Tertuliano Players 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.
Increasing silos among functional specialists
– The organizational structure of Tertuliano Players is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Tertuliano Players needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tertuliano Players to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Tertuliano Players, firm in the HBR case study Ottawa Voyageurs needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Tertuliano Players 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. Tertuliano Players 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 Ottawa Voyageurs, in the dynamic environment Tertuliano Players has struggled to respond to the nimble upstart competition. Tertuliano Players has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Tertuliano Players has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High 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 Tertuliano Players supply chain. Even after few cautionary changes mentioned in the HBR case study - Ottawa Voyageurs, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Tertuliano Players vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tertuliano Players is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ottawa Voyageurs can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Ottawa Voyageurs 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 Tertuliano Players 's lucrative customers.
Opportunities Ottawa Voyageurs | 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 Ottawa Voyageurs are -
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 Tertuliano Players in the consumer business. Now Tertuliano Players can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Tertuliano Players 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.
Using analytics as competitive advantage
– Tertuliano Players 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 Ottawa Voyageurs - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tertuliano Players to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Tertuliano Players 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Tertuliano Players 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
– Tertuliano Players 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.
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. Tertuliano Players 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. Tertuliano Players 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tertuliano Players can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Tertuliano Players can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Tertuliano Players can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ottawa Voyageurs 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tertuliano Players can use these opportunities to build new business models that can help the communities that Tertuliano Players operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Manufacturing automation
– Tertuliano Players 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.
Better consumer reach
– The expansion of the 5G network will help Tertuliano Players to increase its market reach. Tertuliano Players 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.
Threats Ottawa Voyageurs External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ottawa Voyageurs are -
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. Tertuliano Players 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Ottawa Voyageurs, Tertuliano Players 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tertuliano Players with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tertuliano Players 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.
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.
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 Tertuliano Players business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Tertuliano Players 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. Tertuliano Players can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tertuliano Players 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 Ottawa Voyageurs .
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 Tertuliano Players in the Organizational Development sector and impact the bottomline of the organization.
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.
Consumer confidence and its impact on Tertuliano Players 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.
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. Tertuliano Players needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Tertuliano Players 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.
Weighted SWOT Analysis of Ottawa Voyageurs 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 Ottawa Voyageurs 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 Ottawa Voyageurs 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 Ottawa Voyageurs 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 Ottawa Voyageurs 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 Tertuliano Players needs to make to build a sustainable competitive advantage.