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 - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, wage bills are increasing, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic ,
increasing energy prices, 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 -
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.
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.
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.
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.
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.
Strong track record of project management
– Exaction Manatee is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
Effective Research and Development (R&D)
– Exaction Manatee 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 DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
Cross disciplinary teams
– Horizontal connected teams at the Exaction Manatee are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
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.
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.
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 -
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.
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.
Interest costs
– Compare to the competition, Exaction Manatee 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.
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.
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.
No frontier risks strategy
– After analyzing the HBR case study DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes 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 Exaction Manatee has relatively successful track record of launching new products.
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.
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.
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.
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.
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 -
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Exaction Manatee 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, DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of Manatee Townhomes, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Exaction Manatee can use these opportunities to build new business models that can help the communities that Exaction Manatee operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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.
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.
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.
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.
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 -
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.
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 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.
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.
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.
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.
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.
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.
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.
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 .
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.
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 .
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.
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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