THE TENDLEY CONTRACT - Confidential Instructions for the Schools SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of THE TENDLEY CONTRACT - Confidential Instructions for the Schools
Accompanied by product #PON479.Two-party contract negotiation between a computer consultant and a school district representative at an apparent impasse over different expectations over cost of services. A school district and a computer consultant are negotiating a potential contract for repair of the school district's failed computer network. Both parties are eager to work with each other: the consultant's qualifications appear perfect for the school district's needs, and the school district would help the consultant connect with additional governmental clients. After a fair amount of negotiation, however, the parties find themselves at an impasse: the consultant's bid (which the consultant feels is very low) is considerably higher than the school's budget for this project. The consultant and a school representative have agreed to meet one last time in an effort to salvage the deal. This simulation happens to involve a consulting contract, but the negotiation lessons are generic. The exercise can be used simply to illustrate the importance of the creative, option-generating aspect of negotiation. More importantly, it can also be used as the principal vehicle for presenting integrative theory more broadly. This is a role play case.
Swot Analysis of "THE TENDLEY CONTRACT - Confidential Instructions for the Schools" written by Program on Negotiation includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Consultant School facing as an external strategic factors. Some of the topics covered in THE TENDLEY CONTRACT - Confidential Instructions for the Schools case study are - Strategic Management Strategies, IT, Negotiations, Pricing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the THE TENDLEY CONTRACT - Confidential Instructions for the Schools casestudy better are - – digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, geopolitical disruptions, talent flight as more people leaving formal jobs,
increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of THE TENDLEY CONTRACT - Confidential Instructions for the Schools
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in THE TENDLEY CONTRACT - Confidential Instructions for the Schools case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Consultant School, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Consultant School 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 THE TENDLEY CONTRACT - Confidential Instructions for the Schools can be done for the following purposes –
1. Strategic planning using facts provided in THE TENDLEY CONTRACT - Confidential Instructions for the Schools case study
2. Improving business portfolio management of Consultant School
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Consultant School
Strengths THE TENDLEY CONTRACT - Confidential Instructions for the Schools | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Consultant School in THE TENDLEY CONTRACT - Confidential Instructions for the Schools Harvard Business Review case study are -
Analytics focus
– Consultant School 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 Program on Negotiation 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.
Cross disciplinary teams
– Horizontal connected teams at the Consultant School 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.
Operational resilience
– The operational resilience strategy in the THE TENDLEY CONTRACT - Confidential Instructions for the Schools 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.
Training and development
– Consultant School has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in THE TENDLEY CONTRACT - Confidential Instructions for the Schools 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 Strategy & Execution industry
– THE TENDLEY CONTRACT - Confidential Instructions for the Schools firm has clearly differentiated products in the market place. This has enabled Consultant School to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Consultant School to invest into research and development (R&D) and innovation.
Innovation driven organization
– Consultant School is one of the most innovative firm in sector. Manager in THE TENDLEY CONTRACT - Confidential Instructions for the Schools Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Consultant School 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 Consultant School is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in THE TENDLEY CONTRACT - Confidential Instructions for the Schools Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Consultant School in the sector have low bargaining power. THE TENDLEY CONTRACT - Confidential Instructions for the Schools has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Consultant School to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Consultant School is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Consultant School in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Consultant School
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Consultant School does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Consultant School digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Consultant School 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.
Weaknesses THE TENDLEY CONTRACT - Confidential Instructions for the Schools | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of THE TENDLEY CONTRACT - Confidential Instructions for the Schools are -
Aligning sales with marketing
– It come across in the case study THE TENDLEY CONTRACT - Confidential Instructions for the Schools 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 THE TENDLEY CONTRACT - Confidential Instructions for the Schools can leverage the sales team experience to cultivate customer relationships as Consultant School is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Consultant School is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study THE TENDLEY CONTRACT - Confidential Instructions for the Schools can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Consultant School products
– To increase the profitability and margins on the products, Consultant School needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Consultant School 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.
Low market penetration in new markets
– Outside its home market of Consultant School, firm in the HBR case study THE TENDLEY CONTRACT - Confidential Instructions for the Schools needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study THE TENDLEY CONTRACT - Confidential Instructions for the Schools, is just above the industry average. Consultant School 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.
Skills based hiring
– The stress on hiring functional specialists at Consultant School 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.
High cash cycle compare to competitors
Consultant School 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.
Need for greater diversity
– Consultant School 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study THE TENDLEY CONTRACT - Confidential Instructions for the Schools, in the dynamic environment Consultant School has struggled to respond to the nimble upstart competition. Consultant School has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Consultant School is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Consultant School needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Consultant School to focus more on services rather than just following the product oriented approach.
Opportunities THE TENDLEY CONTRACT - Confidential Instructions for the Schools | 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 THE TENDLEY CONTRACT - Confidential Instructions for the Schools are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Consultant School 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.
Better consumer reach
– The expansion of the 5G network will help Consultant School to increase its market reach. Consultant School 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.
Manufacturing automation
– Consultant School can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Developing new processes and practices
– Consultant School can develop new processes and procedures in Strategy & Execution 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.
Building a culture of innovation
– managers at Consultant School 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 Strategy & Execution segment.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Consultant School can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Consultant School can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Consultant School 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 THE TENDLEY CONTRACT - Confidential Instructions for the Schools - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Consultant School to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Consultant School is facing challenges because of the dominance of functional experts in the organization. THE TENDLEY CONTRACT - Confidential Instructions for the Schools case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Consultant School 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 Consultant School to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Consultant School has opened avenues for new revenue streams for the organization in the industry. This can help Consultant School to build a more holistic ecosystem as suggested in the THE TENDLEY CONTRACT - Confidential Instructions for the Schools case study. Consultant School can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Consultant School can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. THE TENDLEY CONTRACT - Confidential Instructions for the Schools 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Consultant School in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Threats THE TENDLEY CONTRACT - Confidential Instructions for the Schools External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study THE TENDLEY CONTRACT - Confidential Instructions for the Schools are -
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.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Consultant School can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Consultant School needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Consultant School is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Consultant School 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.
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 Consultant School business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Consultant School 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Consultant School 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 THE TENDLEY CONTRACT - Confidential Instructions for the Schools .
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. Consultant School 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.
Technology acceleration in Forth Industrial Revolution
– Consultant School has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Consultant School needs to keep up with the evolution of technology in the Strategy & Execution 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.
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 Consultant School.
Increasing wage structure of Consultant School
– 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 Consultant School.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study THE TENDLEY CONTRACT - Confidential Instructions for the Schools, Consultant School may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Weighted SWOT Analysis of THE TENDLEY CONTRACT - Confidential Instructions for the Schools 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 THE TENDLEY CONTRACT - Confidential Instructions for the Schools 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 THE TENDLEY CONTRACT - Confidential Instructions for the Schools 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 THE TENDLEY CONTRACT - Confidential Instructions for the Schools 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 THE TENDLEY CONTRACT - Confidential Instructions for the Schools 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 Consultant School needs to make to build a sustainable competitive advantage.