Gary Loveman -- Paths to Power, (Video) DVD 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, (Video) DVD
When then CEO of Harrah's, Phil Satre, offered Gary Loveman the chief operating officer (COO) position, Loveman's life changed. Bringing Gary Loveman into Harrah's was not the most obvious move and caused some internal and external rumblings. Loveman, an untenured associate professor at Harvard Business School who had little management experience, was now going to manage 15 casinos with more than 10,000 hotel rooms and over 35,000 employees. The gaming industry was dominated by insiders who had spent their careers in gaming, working their way up from the bottom. In the video, Loveman highlights what factors helped him succeed. He brought with him a competitive spirit, a bundle of energy, and the notion that as a team Harrah's would succeed. Loveman narrowed areas of responsibility, pushed urgent issues, and worked hard at gaining everyone's trust. This video is intended for use with the written case OB45 Gary Loveman and Harrah's Entertainment and is part of Jeffery Pfeffer's Paths to Power series. Other titles available in this series include: OB56V-05 and OB56V-04 Rudy Crew, OB44 Keith Ferrazzi and accompanying video OB44V, OB55V Jack Valenti, OB42A and OB42B Dr. Laura Esserman and accompanying videos OB42V-04 and OB42V-05
Swot Analysis of "Gary Loveman -- Paths to Power, (Video) DVD" 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, (Video) DVD 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, (Video) DVD casestudy better are - – there is backlash against globalization, increasing commodity prices, increasing household debt because of falling income levels, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, geopolitical disruptions,
technology disruption, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Gary Loveman -- Paths to Power, (Video) DVD
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, (Video) DVD 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, (Video) DVD can be done for the following purposes –
1. Strategic planning using facts provided in Gary Loveman -- Paths to Power, (Video) DVD 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, (Video) DVD | 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, (Video) DVD Harvard Business Review case study are -
Sustainable margins compare to other players in Organizational Development industry
– Gary Loveman -- Paths to Power, (Video) DVD 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.
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, (Video) DVD - 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.
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, (Video) DVD case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Cross disciplinary teams
– Horizontal connected teams at the Loveman Harrah's 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.
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.
Operational resilience
– The operational resilience strategy in the Gary Loveman -- Paths to Power, (Video) DVD 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.
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.
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, (Video) DVD 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.
Analytics focus
– Loveman Harrah's 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 Jeffrey Pfeffer 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.
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, (Video) DVD 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 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, (Video) DVD | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gary Loveman -- Paths to Power, (Video) DVD are -
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 Loveman Harrah's supply chain. Even after few cautionary changes mentioned in the HBR case study - Gary Loveman -- Paths to Power, (Video) DVD, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Loveman Harrah's vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Gary Loveman -- Paths to Power, (Video) DVD 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.
Aligning sales with marketing
– It come across in the case study Gary Loveman -- Paths to Power, (Video) DVD 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 Gary Loveman -- Paths to Power, (Video) DVD can leverage the sales team experience to cultivate customer relationships as Loveman Harrah's is planning to shift buying processes online.
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.
Need for greater diversity
– Loveman Harrah's 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.
Capital Spending Reduction
– Even during the low interest decade, Loveman Harrah's 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 Gary Loveman -- Paths to Power, (Video) DVD, is just above the industry average. Loveman Harrah's 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.
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, (Video) DVD should strive to include more intangible value offerings along with its core products and services.
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.
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, (Video) DVD needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Loveman Harrah's 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.
Opportunities Gary Loveman -- Paths to Power, (Video) DVD | 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, (Video) DVD are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Loveman Harrah's 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, Gary Loveman -- Paths to Power, (Video) DVD, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Loveman Harrah's can use these opportunities to build new business models that can help the communities that Loveman Harrah's operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
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.
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. Loveman Harrah's 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. Loveman Harrah's 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.
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.
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.
Manufacturing automation
– Loveman Harrah's 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.
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, (Video) DVD 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.
Developing new processes and practices
– Loveman Harrah's 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Loveman Harrah's 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.
Threats Gary Loveman -- Paths to Power, (Video) DVD 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, (Video) DVD are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Loveman Harrah's 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 Gary Loveman -- Paths to Power, (Video) DVD .
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. Loveman Harrah's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Loveman Harrah's is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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.
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.
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.
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.
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 Loveman Harrah's.
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.
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.
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.
Stagnating economy with rate increase
– Loveman Harrah's 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.
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, (Video) DVD, 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 .
Weighted SWOT Analysis of Gary Loveman -- Paths to Power, (Video) DVD 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, (Video) DVD 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, (Video) DVD 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, (Video) DVD 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, (Video) DVD 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.
