Swot Analysis of "Star Cablevision Group (B): Adjusting to a Stock Market Correction" written by William A. Sahlman, Burton C. Hurlock includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Correction Adjusts facing as an external strategic factors. Some of the topics covered in Star Cablevision Group (B): Adjusting to a Stock Market Correction case study are - Strategic Management Strategies, Financial markets, Reorganization and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Star Cablevision Group (B): Adjusting to a Stock Market Correction casestudy better are - – technology disruption, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Star Cablevision Group (B): Adjusting to a Stock Market Correction
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Star Cablevision Group (B): Adjusting to a Stock Market Correction case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Correction Adjusts, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Correction Adjusts 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 Star Cablevision Group (B): Adjusting to a Stock Market Correction can be done for the following purposes –
1. Strategic planning using facts provided in Star Cablevision Group (B): Adjusting to a Stock Market Correction case study
2. Improving business portfolio management of Correction Adjusts
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Correction Adjusts
Strengths Star Cablevision Group (B): Adjusting to a Stock Market Correction | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Correction Adjusts in Star Cablevision Group (B): Adjusting to a Stock Market Correction Harvard Business Review case study are -
Diverse revenue streams
– Correction Adjusts is present in almost all the verticals within the industry. This has provided firm in Star Cablevision Group (B): Adjusting to a Stock Market Correction 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 Correction Adjusts 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.
Learning organization
- Correction Adjusts 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 Correction Adjusts is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Star Cablevision Group (B): Adjusting to a Stock Market Correction Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Correction Adjusts has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Correction Adjusts to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Correction Adjusts 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.
Superior customer experience
– The customer experience strategy of Correction Adjusts in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Correction Adjusts
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Correction Adjusts does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Correction Adjusts has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Star Cablevision Group (B): Adjusting to a Stock Market Correction 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 Finance & Accounting industry
– Star Cablevision Group (B): Adjusting to a Stock Market Correction firm has clearly differentiated products in the market place. This has enabled Correction Adjusts to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Correction Adjusts to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Correction Adjusts 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 Star Cablevision Group (B): Adjusting to a Stock Market Correction HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Correction Adjusts is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Correction Adjusts is one of the most innovative firm in sector. Manager in Star Cablevision Group (B): Adjusting to a Stock Market Correction Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Star Cablevision Group (B): Adjusting to a Stock Market Correction | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Star Cablevision Group (B): Adjusting to a Stock Market Correction are -
Aligning sales with marketing
– It come across in the case study Star Cablevision Group (B): Adjusting to a Stock Market Correction 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 Star Cablevision Group (B): Adjusting to a Stock Market Correction can leverage the sales team experience to cultivate customer relationships as Correction Adjusts is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Correction Adjusts 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 operating costs
– Compare to the competitors, firm in the HBR case study Star Cablevision Group (B): Adjusting to a Stock Market Correction 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 Correction Adjusts 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Star Cablevision Group (B): Adjusting to a Stock Market Correction, in the dynamic environment Correction Adjusts has struggled to respond to the nimble upstart competition. Correction Adjusts has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Star Cablevision Group (B): Adjusting to a Stock Market Correction HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Correction Adjusts has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Correction Adjusts 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Correction Adjusts 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.
High cash cycle compare to competitors
Correction Adjusts 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Star Cablevision Group (B): Adjusting to a Stock Market Correction, it seems that the employees of Correction Adjusts 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.
Increasing silos among functional specialists
– The organizational structure of Correction Adjusts is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Correction Adjusts needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Correction Adjusts to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Star Cablevision Group (B): Adjusting to a Stock Market Correction, is just above the industry average. Correction Adjusts 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.
Opportunities Star Cablevision Group (B): Adjusting to a Stock Market Correction | 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 Star Cablevision Group (B): Adjusting to a Stock Market Correction are -
Better consumer reach
– The expansion of the 5G network will help Correction Adjusts to increase its market reach. Correction Adjusts 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.
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. Correction Adjusts can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Correction Adjusts 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.
Building a culture of innovation
– managers at Correction Adjusts 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 Finance & Accounting segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Correction Adjusts can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Correction Adjusts can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Star Cablevision Group (B): Adjusting to a Stock Market Correction 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Correction Adjusts 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 Correction Adjusts to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Correction Adjusts has opened avenues for new revenue streams for the organization in the industry. This can help Correction Adjusts to build a more holistic ecosystem as suggested in the Star Cablevision Group (B): Adjusting to a Stock Market Correction case study. Correction Adjusts can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Correction Adjusts can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
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 Correction Adjusts 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.
Developing new processes and practices
– Correction Adjusts can develop new processes and procedures in Finance & Accounting 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.
Learning at scale
– Online learning technologies has now opened space for Correction Adjusts 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.
Loyalty marketing
– Correction Adjusts 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 Star Cablevision Group (B): Adjusting to a Stock Market Correction External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Star Cablevision Group (B): Adjusting to a Stock Market Correction are -
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.
High dependence on third party suppliers
– Correction Adjusts 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Correction Adjusts 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 Star Cablevision Group (B): Adjusting to a Stock Market Correction .
Regulatory challenges
– Correction Adjusts 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 Finance & Accounting industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Correction Adjusts with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Correction Adjusts business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Correction Adjusts 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.
Shortening product life cycle
– it is one of the major threat that Correction Adjusts is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Correction Adjusts in the Finance & Accounting sector and impact the bottomline of the organization.
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. Correction Adjusts 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 Star Cablevision Group (B): Adjusting to a Stock Market Correction, Correction Adjusts may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
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. Correction Adjusts needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Increasing wage structure of Correction Adjusts
– 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 Correction Adjusts.
Weighted SWOT Analysis of Star Cablevision Group (B): Adjusting to a Stock Market Correction 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 Star Cablevision Group (B): Adjusting to a Stock Market Correction 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 Star Cablevision Group (B): Adjusting to a Stock Market Correction 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 Star Cablevision Group (B): Adjusting to a Stock Market Correction 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 Star Cablevision Group (B): Adjusting to a Stock Market Correction 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 Correction Adjusts needs to make to build a sustainable competitive advantage.