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 - – increasing energy prices, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, wage bills are increasing, increasing commodity prices, geopolitical disruptions,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, 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 -
High switching costs
– The high switching costs that Exaction Manatee 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.
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.
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.
Sustainable margins compare to other players in Strategy & Execution industry
– DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes firm has clearly differentiated products in the market place. This has enabled Exaction Manatee to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Exaction Manatee to invest into research and development (R&D) and innovation.
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.
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.
Ability to recruit top talent
– Exaction Manatee is one of the leading recruiters in the industry. Managers in the DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes 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.
Superior customer experience
– The customer experience strategy of Exaction Manatee in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
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.
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 -
Increasing silos among functional specialists
– The organizational structure of Exaction Manatee is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Exaction Manatee needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Exaction Manatee to focus more on services rather than just following the product oriented approach.
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.
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 Exaction Manatee supply chain. Even after few cautionary changes mentioned in the HBR case study - DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Exaction Manatee vulnerable to further global disruptions in South East Asia.
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.
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.
Lack of clear differentiation of Exaction Manatee products
– To increase the profitability and margins on the products, Exaction Manatee needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
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.
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.
High cash cycle compare to competitors
Exaction Manatee 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 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.
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.
Buying journey improvements
– Exaction Manatee can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes 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.
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. Exaction Manatee can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Exaction Manatee 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Exaction Manatee can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
Leveraging digital technologies
– Exaction Manatee 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.
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.
Developing new processes and practices
– Exaction Manatee 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Exaction Manatee 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.
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.
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.
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.
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.
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.
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 Exaction Manatee in the Strategy & Execution sector and impact the bottomline of the organization.
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 .
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. Exaction Manatee can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Exaction Manatee with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Exaction Manatee business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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 Exaction Manatee.
Technology acceleration in Forth Industrial Revolution
– Exaction Manatee has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Exaction Manatee 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.
High dependence on third party suppliers
– Exaction Manatee 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.
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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