Universita' Bocconi: Transformation in the New Millennium SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Universita' Bocconi: Transformation in the New Millennium
Since its foundation in 1902, Bocconi has been a teaching institution with a dominant domestic presence. The case examines the currently unfolding attempt at transforming Bocconi University into a research powerhouse with the ambition to build a strong position among Europe's leading business schools. The case offers a detailed analysis of Bocconi's transformational journey, and illustrates the challenges of changing the mindset of a large portion of the faculty.
Swot Analysis of "Universita' Bocconi: Transformation in the New Millennium" written by Giovanni Gavetti, Anna Canato includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bocconi Bocconi's facing as an external strategic factors. Some of the topics covered in Universita' Bocconi: Transformation in the New Millennium case study are - Strategic Management Strategies, Growth strategy, Influence, Psychology, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Universita' Bocconi: Transformation in the New Millennium casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices,
digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Universita' Bocconi: Transformation in the New Millennium
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Universita' Bocconi: Transformation in the New Millennium case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bocconi Bocconi's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bocconi Bocconi'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 Universita' Bocconi: Transformation in the New Millennium can be done for the following purposes –
1. Strategic planning using facts provided in Universita' Bocconi: Transformation in the New Millennium case study
2. Improving business portfolio management of Bocconi Bocconi's
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 Bocconi Bocconi's
Strengths Universita' Bocconi: Transformation in the New Millennium | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bocconi Bocconi's in Universita' Bocconi: Transformation in the New Millennium Harvard Business Review case study are -
Ability to recruit top talent
– Bocconi Bocconi's is one of the leading recruiters in the industry. Managers in the Universita' Bocconi: Transformation in the New Millennium are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Bocconi Bocconi's is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Bocconi Bocconi's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Universita' Bocconi: Transformation in the New Millennium Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Strategy & Execution field
– Bocconi Bocconi'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 Bocconi Bocconi's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Bocconi Bocconi's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– Universita' Bocconi: Transformation in the New Millennium firm has clearly differentiated products in the market place. This has enabled Bocconi Bocconi's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Bocconi Bocconi's to invest into research and development (R&D) and innovation.
Training and development
– Bocconi Bocconi's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Universita' Bocconi: Transformation in the New Millennium 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
– Bocconi Bocconi'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 Giovanni Gavetti, Anna Canato 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.
High brand equity
– Bocconi Bocconi's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bocconi Bocconi's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Bocconi Bocconi's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bocconi Bocconi's 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.
Highly skilled collaborators
– Bocconi Bocconi's 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 Universita' Bocconi: Transformation in the New Millennium HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Bocconi Bocconi's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Bocconi Bocconi's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bocconi Bocconi'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.
Weaknesses Universita' Bocconi: Transformation in the New Millennium | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Universita' Bocconi: Transformation in the New Millennium 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 Bocconi Bocconi's supply chain. Even after few cautionary changes mentioned in the HBR case study - Universita' Bocconi: Transformation in the New Millennium, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bocconi Bocconi's vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Bocconi Bocconi's is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Bocconi Bocconi's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bocconi Bocconi's to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Bocconi Bocconi'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.
Slow to strategic competitive environment developments
– As Universita' Bocconi: Transformation in the New Millennium HBR case study mentions - Bocconi Bocconi's takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High bargaining power of channel partners
– Because of the regulatory requirements, Giovanni Gavetti, Anna Canato suggests that, Bocconi Bocconi'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.
Interest costs
– Compare to the competition, Bocconi Bocconi's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Universita' Bocconi: Transformation in the New Millennium 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 Bocconi Bocconi's has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Bocconi Bocconi's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Aligning sales with marketing
– It come across in the case study Universita' Bocconi: Transformation in the New Millennium 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 Universita' Bocconi: Transformation in the New Millennium can leverage the sales team experience to cultivate customer relationships as Bocconi Bocconi's is planning to shift buying processes online.
Lack of clear differentiation of Bocconi Bocconi's products
– To increase the profitability and margins on the products, Bocconi Bocconi's needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Bocconi Bocconi'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.
Opportunities Universita' Bocconi: Transformation in the New Millennium | 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 Universita' Bocconi: Transformation in the New Millennium are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Bocconi Bocconi's can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Building a culture of innovation
– managers at Bocconi Bocconi'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 Strategy & Execution segment.
Buying journey improvements
– Bocconi Bocconi's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Universita' Bocconi: Transformation in the New Millennium 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.
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 Bocconi Bocconi's in the consumer business. Now Bocconi Bocconi's can target international markets with far fewer capital restrictions requirements than the existing system.
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. Bocconi Bocconi's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Bocconi Bocconi's has opened avenues for new revenue streams for the organization in the industry. This can help Bocconi Bocconi's to build a more holistic ecosystem as suggested in the Universita' Bocconi: Transformation in the New Millennium case study. Bocconi Bocconi's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Bocconi Bocconi's to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bocconi Bocconi's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Bocconi Bocconi's to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Bocconi Bocconi's to increase its market reach. Bocconi Bocconi's 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.
Leveraging digital technologies
– Bocconi Bocconi'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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bocconi Bocconi's is facing challenges because of the dominance of functional experts in the organization. Universita' Bocconi: Transformation in the New Millennium 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 Bocconi Bocconi's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bocconi Bocconi's can use these opportunities to build new business models that can help the communities that Bocconi Bocconi's operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats Universita' Bocconi: Transformation in the New Millennium External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Universita' Bocconi: Transformation in the New Millennium are -
Shortening product life cycle
– it is one of the major threat that Bocconi Bocconi's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Bocconi Bocconi'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. Bocconi Bocconi's can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Technology acceleration in Forth Industrial Revolution
– Bocconi Bocconi's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Bocconi Bocconi's 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.
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. Bocconi Bocconi'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.
Regulatory challenges
– Bocconi Bocconi'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 Strategy & Execution industry regulations.
Increasing wage structure of Bocconi Bocconi's
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Bocconi Bocconi's.
Consumer confidence and its impact on Bocconi Bocconi's 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bocconi Bocconi's in the Strategy & Execution industry. The Strategy & Execution 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.
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. Bocconi Bocconi's needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Universita' Bocconi: Transformation in the New Millennium, Bocconi Bocconi'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 Strategy & Execution .
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. Bocconi Bocconi's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Bocconi Bocconi's in the Strategy & Execution sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bocconi Bocconi's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Universita' Bocconi: Transformation in the New Millennium 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 Universita' Bocconi: Transformation in the New Millennium 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 Universita' Bocconi: Transformation in the New Millennium 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 Universita' Bocconi: Transformation in the New Millennium 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 Universita' Bocconi: Transformation in the New Millennium 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 Bocconi Bocconi's needs to make to build a sustainable competitive advantage.
