Harvard Business School Social Enterprise Initiative at the Ten-Year Mark SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Harvard Business School Social Enterprise Initiative at the Ten-Year Mark
In mid-2003, as the 10-year anniversary of Harvard Business School's Social Enterprise Initiative approached, the group's faculty and staff decided to analyze its past performance and to formulate its future strategy.
Authors :: James E. Austin, Cate Reavis, Stacey Childress
Swot Analysis of "Harvard Business School Social Enterprise Initiative at the Ten-Year Mark" written by James E. Austin, Cate Reavis, Stacey Childress includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Harvard Initiative facing as an external strategic factors. Some of the topics covered in Harvard Business School Social Enterprise Initiative at the Ten-Year Mark case study are - Strategic Management Strategies, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Harvard Business School Social Enterprise Initiative at the Ten-Year Mark casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, geopolitical disruptions, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google,
increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Harvard Business School Social Enterprise Initiative at the Ten-Year Mark
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Harvard Business School Social Enterprise Initiative at the Ten-Year Mark case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Harvard Initiative, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Harvard Initiative 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 Harvard Business School Social Enterprise Initiative at the Ten-Year Mark can be done for the following purposes –
1. Strategic planning using facts provided in Harvard Business School Social Enterprise Initiative at the Ten-Year Mark case study
2. Improving business portfolio management of Harvard Initiative
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 Harvard Initiative
Strengths Harvard Business School Social Enterprise Initiative at the Ten-Year Mark | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Harvard Initiative in Harvard Business School Social Enterprise Initiative at the Ten-Year Mark Harvard Business Review case study are -
High brand equity
– Harvard Initiative has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Harvard Initiative to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Harvard Initiative 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 Harvard Business School Social Enterprise Initiative at the Ten-Year Mark HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Harvard Initiative has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Harvard Initiative has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Organizational Resilience of Harvard Initiative
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Harvard Initiative does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Harvard Initiative is present in almost all the verticals within the industry. This has provided firm in Harvard Business School Social Enterprise Initiative at the Ten-Year Mark 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.
Operational resilience
– The operational resilience strategy in the Harvard Business School Social Enterprise Initiative at the Ten-Year Mark 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.
Effective Research and Development (R&D)
– Harvard Initiative 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 Harvard Business School Social Enterprise Initiative at the Ten-Year Mark - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Harvard Initiative is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Harvard Initiative in the sector have low bargaining power. Harvard Business School Social Enterprise Initiative at the Ten-Year Mark has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Harvard Initiative to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Harvard Initiative is one of the leading recruiters in the industry. Managers in the Harvard Business School Social Enterprise Initiative at the Ten-Year Mark 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 switching costs
– The high switching costs that Harvard Initiative 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 Harvard Initiative in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Harvard Business School Social Enterprise Initiative at the Ten-Year Mark | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Harvard Business School Social Enterprise Initiative at the Ten-Year Mark are -
High bargaining power of channel partners
– Because of the regulatory requirements, James E. Austin, Cate Reavis, Stacey Childress suggests that, Harvard Initiative 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Harvard Initiative is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Harvard Business School Social Enterprise Initiative at the Ten-Year Mark can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Harvard Initiative 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. Harvard Initiative 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 Harvard Initiative products
– To increase the profitability and margins on the products, Harvard Initiative needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Harvard Initiative 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.
Capital Spending Reduction
– Even during the low interest decade, Harvard Initiative 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Harvard Business School Social Enterprise Initiative at the Ten-Year Mark, in the dynamic environment Harvard Initiative has struggled to respond to the nimble upstart competition. Harvard Initiative has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Harvard Initiative 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.
Increasing silos among functional specialists
– The organizational structure of Harvard Initiative is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Harvard Initiative needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Harvard Initiative to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Harvard Business School Social Enterprise Initiative at the Ten-Year Mark 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 Harvard Business School Social Enterprise Initiative at the Ten-Year Mark can leverage the sales team experience to cultivate customer relationships as Harvard Initiative is planning to shift buying processes online.
Products dominated business model
– Even though Harvard Initiative 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 - Harvard Business School Social Enterprise Initiative at the Ten-Year Mark should strive to include more intangible value offerings along with its core products and services.
Opportunities Harvard Business School Social Enterprise Initiative at the Ten-Year Mark | 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 Harvard Business School Social Enterprise Initiative at the Ten-Year Mark are -
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. Harvard Initiative can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Harvard Initiative 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Harvard Initiative 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Harvard Initiative 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, Harvard Business School Social Enterprise Initiative at the Ten-Year Mark, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Harvard Initiative 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. Harvard Initiative 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.
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 Harvard Initiative in the consumer business. Now Harvard Initiative can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Harvard Initiative can use these opportunities to build new business models that can help the communities that Harvard Initiative operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Buying journey improvements
– Harvard Initiative can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Harvard Business School Social Enterprise Initiative at the Ten-Year Mark 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.
Leveraging digital technologies
– Harvard Initiative 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Harvard Initiative 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 Harvard Initiative to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Harvard Initiative 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Harvard Initiative is facing challenges because of the dominance of functional experts in the organization. Harvard Business School Social Enterprise Initiative at the Ten-Year Mark 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Harvard Initiative can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Harvard Business School Social Enterprise Initiative at the Ten-Year Mark External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Harvard Business School Social Enterprise Initiative at the Ten-Year Mark are -
Stagnating economy with rate increase
– Harvard Initiative 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.
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. Harvard Initiative can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Harvard Initiative with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Harvard Initiative in the Strategy & Execution sector and impact the bottomline of the organization.
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. Harvard Initiative needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Environmental challenges
– Harvard Initiative 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. Harvard Initiative can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
Technology acceleration in Forth Industrial Revolution
– Harvard Initiative has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Harvard Initiative 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.
Consumer confidence and its impact on Harvard Initiative demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
High dependence on third party suppliers
– Harvard Initiative 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 wage structure of Harvard Initiative
– 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 Harvard Initiative.
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.
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 Harvard Initiative.
Weighted SWOT Analysis of Harvard Business School Social Enterprise Initiative at the Ten-Year Mark 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 Harvard Business School Social Enterprise Initiative at the Ten-Year Mark 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 Harvard Business School Social Enterprise Initiative at the Ten-Year Mark 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 Harvard Business School Social Enterprise Initiative at the Ten-Year Mark 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 Harvard Business School Social Enterprise Initiative at the Ten-Year Mark 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 Harvard Initiative needs to make to build a sustainable competitive advantage.
