Gary Loveman: Paths to Power (2009) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Gary Loveman: Paths to Power (2009)
Gary Loveman, a former assistant professor at Harvard Graduate School of Business Administration, became Chief Operating Officer of Harrah's Entertainment in 1998. He was an outsider in a very insular business who had no significant administrative or managerial experience. In this video, Loveman discusses how he was profoundly unqualified for the position and what he did to overcome the challenges that he and the company faced. He talks about focusing on activities that would drive performance in the near term and on critical relationships that had to be successful. Loveman also explores why people follow a leader and what he was able to achieve at Harrah's.
Swot Analysis of "Gary Loveman: Paths to Power (2009)" written by Jeffrey Pfeffer includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Loveman Harrah's facing as an external strategic factors. Some of the topics covered in Gary Loveman: Paths to Power (2009) case study are - Strategic Management Strategies, Influence, Leadership, Managing people and Organizational Development.
Some of the macro environment factors that can be used to understand the Gary Loveman: Paths to Power (2009) casestudy better are - – digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels,
talent flight as more people leaving formal jobs, wage bills are increasing, etc
Introduction to SWOT Analysis of Gary Loveman: Paths to Power (2009)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Gary Loveman: Paths to Power (2009) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Loveman Harrah's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Loveman Harrah's 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 Gary Loveman: Paths to Power (2009) can be done for the following purposes –
1. Strategic planning using facts provided in Gary Loveman: Paths to Power (2009) case study
2. Improving business portfolio management of Loveman Harrah's
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 Loveman Harrah's
Strengths Gary Loveman: Paths to Power (2009) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Loveman Harrah's in Gary Loveman: Paths to Power (2009) Harvard Business Review case study are -
Ability to lead change in Organizational Development field
– Loveman Harrah's 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 Loveman Harrah's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Loveman Harrah's 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 Loveman Harrah's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Gary Loveman: Paths to Power (2009) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Loveman Harrah's in the sector have low bargaining power. Gary Loveman: Paths to Power (2009) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Loveman Harrah's to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Loveman Harrah's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Loveman Harrah's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Loveman Harrah's 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 Gary Loveman: Paths to Power (2009) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Loveman Harrah's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Loveman Harrah's 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.
Ability to recruit top talent
– Loveman Harrah's is one of the leading recruiters in the industry. Managers in the Gary Loveman: Paths to Power (2009) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Loveman Harrah's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Organizational Development industry
– Gary Loveman: Paths to Power (2009) firm has clearly differentiated products in the market place. This has enabled Loveman Harrah's to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Loveman Harrah's to invest into research and development (R&D) and innovation.
Training and development
– Loveman Harrah's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Gary Loveman: Paths to Power (2009) 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.
Diverse revenue streams
– Loveman Harrah's is present in almost all the verticals within the industry. This has provided firm in Gary Loveman: Paths to Power (2009) 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.
High brand equity
– Loveman Harrah's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Loveman Harrah's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Gary Loveman: Paths to Power (2009) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gary Loveman: Paths to Power (2009) are -
Products dominated business model
– Even though Loveman Harrah's 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 - Gary Loveman: Paths to Power (2009) should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Gary Loveman: Paths to Power (2009), it seems that the employees of Loveman Harrah's 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.
Interest costs
– Compare to the competition, Loveman Harrah's 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Gary Loveman: Paths to Power (2009) 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 Loveman Harrah's 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Loveman Harrah's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow decision making process
– As mentioned earlier in the report, Loveman Harrah's 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. Loveman Harrah's 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.
Lack of clear differentiation of Loveman Harrah's products
– To increase the profitability and margins on the products, Loveman Harrah's needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Loveman Harrah's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Gary Loveman: Paths to Power (2009) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Loveman Harrah's, firm in the HBR case study Gary Loveman: Paths to Power (2009) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Gary Loveman: Paths to Power (2009) HBR case study mentions - Loveman Harrah's 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Jeffrey Pfeffer suggests that, Loveman Harrah's 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.
Opportunities Gary Loveman: Paths to Power (2009) | 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 Gary Loveman: Paths to Power (2009) are -
Buying journey improvements
– Loveman Harrah's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Gary Loveman: Paths to Power (2009) 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.
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 Loveman Harrah's 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 Loveman Harrah's has opened avenues for new revenue streams for the organization in the industry. This can help Loveman Harrah's to build a more holistic ecosystem as suggested in the Gary Loveman: Paths to Power (2009) case study. Loveman Harrah's can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Loveman Harrah's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Loveman Harrah's in the consumer business. Now Loveman Harrah's can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Loveman Harrah's 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Loveman Harrah's 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.
Building a culture of innovation
– managers at Loveman Harrah's can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Organizational Development segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Loveman Harrah's 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 Loveman Harrah's 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 Loveman Harrah's to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Loveman Harrah's 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.
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. Loveman Harrah's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Loveman Harrah's 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.
Threats Gary Loveman: Paths to Power (2009) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Gary Loveman: Paths to Power (2009) are -
Environmental challenges
– Loveman Harrah's 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. Loveman Harrah's 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 Loveman Harrah's business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Loveman Harrah's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Loveman Harrah's has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Loveman Harrah's 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.
Regulatory challenges
– Loveman Harrah's 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.
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. Loveman Harrah's 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Loveman Harrah's 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.
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 Loveman Harrah's in the Organizational Development sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Gary Loveman: Paths to Power (2009), Loveman Harrah's 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 .
Increasing wage structure of Loveman Harrah's
– 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 Loveman Harrah's.
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.
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. Loveman Harrah's needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Loveman Harrah's 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.
Weighted SWOT Analysis of Gary Loveman: Paths to Power (2009) 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 Gary Loveman: Paths to Power (2009) 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 Gary Loveman: Paths to Power (2009) 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 Gary Loveman: Paths to Power (2009) 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 Gary Loveman: Paths to Power (2009) 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 Loveman Harrah's needs to make to build a sustainable competitive advantage.
