DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares 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 the Department of Streets and Thoroughfares
Accompanied by product #PON193.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 the Department of Streets and Thoroughfares" written by Rafael Montalvo, Bruce Stiftel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Exaction Thoroughfares facing as an external strategic factors. Some of the topics covered in DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares 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 the Department of Streets and Thoroughfares casestudy better are - – technology disruption, wage bills are increasing, increasing commodity prices, challanges to central banks by blockchain based private currencies, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions,
there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares
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 the Department of Streets and Thoroughfares case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Exaction Thoroughfares, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Exaction Thoroughfares 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 the Department of Streets and Thoroughfares can be done for the following purposes –
1. Strategic planning using facts provided in DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares case study
2. Improving business portfolio management of Exaction Thoroughfares
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 Thoroughfares
Strengths DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Exaction Thoroughfares in DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares firm has clearly differentiated products in the market place. This has enabled Exaction Thoroughfares to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Exaction Thoroughfares to invest into research and development (R&D) and innovation.
Learning organization
- Exaction Thoroughfares 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 Thoroughfares 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 the Department of Streets and Thoroughfares Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Exaction Thoroughfares 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 the Department of Streets and Thoroughfares - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Exaction Thoroughfares 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 Exaction Thoroughfares digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Exaction Thoroughfares 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.
Ability to recruit top talent
– Exaction Thoroughfares is one of the leading recruiters in the industry. Managers in the DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Exaction Thoroughfares in the sector have low bargaining power. DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Exaction Thoroughfares to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Exaction Thoroughfares 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 Thoroughfares 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 Thoroughfares 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 Thoroughfares 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 the Department of Streets and Thoroughfares 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.
Diverse revenue streams
– Exaction Thoroughfares 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 the Department of Streets and Thoroughfares 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.
High brand equity
– Exaction Thoroughfares has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Exaction Thoroughfares 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 the Department of Streets and Thoroughfares | 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 the Department of Streets and Thoroughfares are -
Slow to strategic competitive environment developments
– As DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares HBR case study mentions - Exaction Thoroughfares 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.
Interest costs
– Compare to the competition, Exaction Thoroughfares 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 cash cycle compare to competitors
Exaction Thoroughfares 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.
Skills based hiring
– The stress on hiring functional specialists at Exaction Thoroughfares 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.
Lack of clear differentiation of Exaction Thoroughfares products
– To increase the profitability and margins on the products, Exaction Thoroughfares needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Rafael Montalvo, Bruce Stiftel suggests that, Exaction Thoroughfares 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.
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 the Department of Streets and Thoroughfares 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 Thoroughfares has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares 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 DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares can leverage the sales team experience to cultivate customer relationships as Exaction Thoroughfares is planning to shift buying processes online.
Need for greater diversity
– Exaction Thoroughfares 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.
Products dominated business model
– Even though Exaction Thoroughfares has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares should strive to include more intangible value offerings along with its core products and services.
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 the Department of Streets and Thoroughfares, in the dynamic environment Exaction Thoroughfares has struggled to respond to the nimble upstart competition. Exaction Thoroughfares has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares | 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 the Department of Streets and Thoroughfares are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Exaction Thoroughfares 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 the Department of Streets and Thoroughfares, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Exaction Thoroughfares has opened avenues for new revenue streams for the organization in the industry. This can help Exaction Thoroughfares to build a more holistic ecosystem as suggested in the DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares case study. Exaction Thoroughfares 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 Exaction Thoroughfares 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.
Better consumer reach
– The expansion of the 5G network will help Exaction Thoroughfares to increase its market reach. Exaction Thoroughfares 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.
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 Thoroughfares can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Exaction Thoroughfares 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.
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 Thoroughfares 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 Thoroughfares 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Exaction Thoroughfares 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.
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 Thoroughfares can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Thoroughfares in the consumer business. Now Exaction Thoroughfares can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Exaction Thoroughfares 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.
Loyalty marketing
– Exaction Thoroughfares 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Exaction Thoroughfares is facing challenges because of the dominance of functional experts in the organization. DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares 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.
Threats DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares 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 the Department of Streets and Thoroughfares are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Exaction Thoroughfares 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 the Department of Streets and Thoroughfares .
Stagnating economy with rate increase
– Exaction Thoroughfares 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.
Environmental challenges
– Exaction Thoroughfares 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 Thoroughfares can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Technology acceleration in Forth Industrial Revolution
– Exaction Thoroughfares has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Exaction Thoroughfares 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. Exaction Thoroughfares 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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Exaction Thoroughfares 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 dependence on third party suppliers
– Exaction Thoroughfares 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.
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 Thoroughfares business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Exaction Thoroughfares with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Exaction Thoroughfares.
Consumer confidence and its impact on Exaction Thoroughfares 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.
Weighted SWOT Analysis of DEVELOPMENT ON BAY ISLAND - Confidential Instructions for the Representative of the Department of Streets and Thoroughfares 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 the Department of Streets and Thoroughfares 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 the Department of Streets and Thoroughfares 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 the Department of Streets and Thoroughfares 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 the Department of Streets and Thoroughfares 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 Thoroughfares needs to make to build a sustainable competitive advantage.
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