DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes
Accompanied by product #PON194.Two-party negotiation between a developer and a city representative over the amount of money the developer will pay the city to defray costs associated with development. Manatee Townhomes, Inc., has proposed a residential development for a harbor island in Bay City. Before proceeding it must obtain the approval of Bay City's Department of Streets and Thoroughfares. Streets and Thoroughfares will grant approval only if Manatee agrees to pay a sum money in the form of a traffic impact exaction. In this exercise, the two groups meet to determine the amount of the exaction. Manatee wants a low exaction in order to keep its profits high; Streets and Thoroughfares wants a high exaction in order to minimize future tax levies. Neither side knows too much about the interests of the other side. This is a role play case.
Swot Analysis of "DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes" written by Rafael Montalvo, Bruce Stiftel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Exaction Manatee facing as an external strategic factors. Some of the topics covered in DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes case study are - Strategic Management Strategies, Financial management, Government, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes casestudy better are - – cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings,
digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Exaction Manatee, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Exaction Manatee 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 DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes can be done for the following purposes –
1. Strategic planning using facts provided in DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes case study
2. Improving business portfolio management of Exaction Manatee
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 Exaction Manatee
Strengths DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Exaction Manatee in DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes Harvard Business Review case study are -
Diverse revenue streams
– Exaction Manatee is present in almost all the verticals within the industry. This has provided firm in DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes 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.
Low bargaining power of suppliers
– Suppliers of Exaction Manatee in the sector have low bargaining power. DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Exaction Manatee to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Exaction Manatee
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Exaction Manatee does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Exaction Manatee has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Exaction Manatee 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
– Exaction Manatee 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 DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Exaction Manatee digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Exaction Manatee 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.
Learning organization
- Exaction Manatee 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 Exaction Manatee is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Exaction Manatee is one of the most innovative firm in sector. Manager in DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Exaction Manatee has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes 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
– Exaction Manatee 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 Rafael Montalvo, Bruce Stiftel can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to lead change in Strategy & Execution field
– Exaction Manatee 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 Exaction Manatee in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Exaction Manatee has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Exaction Manatee to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes, in the dynamic environment Exaction Manatee has struggled to respond to the nimble upstart competition. Exaction Manatee has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes HBR case study mentions - Exaction Manatee 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 operating costs
– Compare to the competitors, firm in the HBR case study DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes 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 Exaction Manatee 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Exaction Manatee 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes, is just above the industry average. Exaction Manatee 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Exaction Manatee 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Exaction Manatee is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Exaction Manatee, firm in the HBR case study DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Exaction Manatee 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.
Slow decision making process
– As mentioned earlier in the report, Exaction Manatee 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. Exaction Manatee 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes, it seems that the employees of Exaction Manatee 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.
Opportunities DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes | 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 DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes are -
Creating value in data economy
– The success of analytics program of Exaction Manatee has opened avenues for new revenue streams for the organization in the industry. This can help Exaction Manatee to build a more holistic ecosystem as suggested in the DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes case study. Exaction Manatee can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Exaction Manatee in the consumer business. Now Exaction Manatee 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. Exaction Manatee can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Exaction Manatee 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.
Building a culture of innovation
– managers at Exaction Manatee 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.
Loyalty marketing
– Exaction Manatee 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.
Learning at scale
– Online learning technologies has now opened space for Exaction Manatee 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Exaction Manatee is facing challenges because of the dominance of functional experts in the organization. DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes 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.
Better consumer reach
– The expansion of the 5G network will help Exaction Manatee to increase its market reach. Exaction Manatee 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.
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. Exaction Manatee 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. Exaction Manatee 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Exaction Manatee 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Exaction Manatee 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 Exaction Manatee to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Exaction Manatee 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 DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Exaction Manatee to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes are -
Consumer confidence and its impact on Exaction Manatee 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.
Regulatory challenges
– Exaction Manatee 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.
Environmental challenges
– Exaction Manatee 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. Exaction Manatee can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes, Exaction Manatee 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 .
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. Exaction Manatee 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.
Shortening product life cycle
– it is one of the major threat that Exaction Manatee is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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. Exaction Manatee needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Increasing wage structure of Exaction Manatee
– 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 Exaction Manatee.
Stagnating economy with rate increase
– Exaction Manatee 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 Exaction Manatee business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Exaction Manatee 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Exaction Manatee 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 DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes .
Weighted SWOT Analysis of DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes 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 DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes 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 DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes 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 DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes 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 DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes 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 Exaction Manatee needs to make to build a sustainable competitive advantage.
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