Swot Analysis of "Doyle's Dealmaking Dilemma (B): Final Negotiations" written by James K. Sebenius includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Doyle's Dealmaking facing as an external strategic factors. Some of the topics covered in Doyle's Dealmaking Dilemma (B): Final Negotiations case study are - Strategic Management Strategies, Compensation, Hiring, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Doyle's Dealmaking Dilemma (B): Final Negotiations casestudy better are - – digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, there is backlash against globalization, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, supply chains are disrupted by pandemic ,
increasing government debt because of Covid-19 spendings, wage bills are increasing, etc
Introduction to SWOT Analysis of Doyle's Dealmaking Dilemma (B): Final Negotiations
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Doyle's Dealmaking Dilemma (B): Final Negotiations case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Doyle's Dealmaking, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Doyle's Dealmaking 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 Doyle's Dealmaking Dilemma (B): Final Negotiations can be done for the following purposes –
1. Strategic planning using facts provided in Doyle's Dealmaking Dilemma (B): Final Negotiations case study
2. Improving business portfolio management of Doyle's Dealmaking
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 Doyle's Dealmaking
Strengths Doyle's Dealmaking Dilemma (B): Final Negotiations | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Doyle's Dealmaking in Doyle's Dealmaking Dilemma (B): Final Negotiations Harvard Business Review case study are -
Strong track record of project management
– Doyle's Dealmaking is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Doyle's Dealmaking has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Doyle's Dealmaking to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Doyle's Dealmaking is one of the leading recruiters in the industry. Managers in the Doyle's Dealmaking Dilemma (B): Final Negotiations are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Doyle's Dealmaking 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.
Successful track record of launching new products
– Doyle's Dealmaking has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Doyle's Dealmaking 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Doyle's Dealmaking Dilemma (B): Final Negotiations firm has clearly differentiated products in the market place. This has enabled Doyle's Dealmaking to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Doyle's Dealmaking to invest into research and development (R&D) and innovation.
Training and development
– Doyle's Dealmaking has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Doyle's Dealmaking Dilemma (B): Final Negotiations 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.
Innovation driven organization
– Doyle's Dealmaking is one of the most innovative firm in sector. Manager in Doyle's Dealmaking Dilemma (B): Final Negotiations Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Doyle's Dealmaking 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 James K. Sebenius 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Doyle's Dealmaking digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Doyle's Dealmaking 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.
Highly skilled collaborators
– Doyle's Dealmaking 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 Doyle's Dealmaking Dilemma (B): Final Negotiations HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Doyle's Dealmaking 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 Doyle's Dealmaking is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Doyle's Dealmaking Dilemma (B): Final Negotiations Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Doyle's Dealmaking Dilemma (B): Final Negotiations | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Doyle's Dealmaking Dilemma (B): Final Negotiations are -
Products dominated business model
– Even though Doyle's Dealmaking 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 - Doyle's Dealmaking Dilemma (B): Final Negotiations should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Doyle's Dealmaking Dilemma (B): Final Negotiations, is just above the industry average. Doyle's Dealmaking 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.
Slow decision making process
– As mentioned earlier in the report, Doyle's Dealmaking 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. Doyle's Dealmaking 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
– Doyle's Dealmaking 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
Doyle's Dealmaking 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.
Capital Spending Reduction
– Even during the low interest decade, Doyle's Dealmaking has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Doyle's Dealmaking is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Doyle's Dealmaking Dilemma (B): Final Negotiations can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Doyle's Dealmaking Dilemma (B): Final Negotiations 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 Doyle's Dealmaking Dilemma (B): Final Negotiations can leverage the sales team experience to cultivate customer relationships as Doyle's Dealmaking is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Doyle's Dealmaking 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.
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 Doyle's Dealmaking supply chain. Even after few cautionary changes mentioned in the HBR case study - Doyle's Dealmaking Dilemma (B): Final Negotiations, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Doyle's Dealmaking vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Doyle's Dealmaking Dilemma (B): Final Negotiations, in the dynamic environment Doyle's Dealmaking has struggled to respond to the nimble upstart competition. Doyle's Dealmaking has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Doyle's Dealmaking Dilemma (B): Final Negotiations | 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 Doyle's Dealmaking Dilemma (B): Final Negotiations are -
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. Doyle's Dealmaking can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Doyle's Dealmaking 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Doyle's Dealmaking 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 Doyle's Dealmaking to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Doyle's Dealmaking is facing challenges because of the dominance of functional experts in the organization. Doyle's Dealmaking Dilemma (B): Final Negotiations 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Doyle's Dealmaking can use these opportunities to build new business models that can help the communities that Doyle's Dealmaking operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Doyle's Dealmaking can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Doyle's Dealmaking has opened avenues for new revenue streams for the organization in the industry. This can help Doyle's Dealmaking to build a more holistic ecosystem as suggested in the Doyle's Dealmaking Dilemma (B): Final Negotiations case study. Doyle's Dealmaking 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 Doyle's Dealmaking in the consumer business. Now Doyle's Dealmaking can target international markets with far fewer capital restrictions requirements than the existing system.
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. Doyle's Dealmaking 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. Doyle's Dealmaking 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.
Manufacturing automation
– Doyle's Dealmaking 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
– Doyle's Dealmaking 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 Doyle's Dealmaking Dilemma (B): Final Negotiations - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Doyle's Dealmaking to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Doyle's Dealmaking 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Doyle's Dealmaking 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, Doyle's Dealmaking Dilemma (B): Final Negotiations, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Doyle's Dealmaking Dilemma (B): Final Negotiations External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Doyle's Dealmaking Dilemma (B): Final Negotiations are -
Increasing wage structure of Doyle's Dealmaking
– 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 Doyle's Dealmaking.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Doyle's Dealmaking 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.
Environmental challenges
– Doyle's Dealmaking 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. Doyle's Dealmaking can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Doyle's Dealmaking needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Doyle's Dealmaking in the Strategy & Execution sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Doyle's Dealmaking 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.
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.
Stagnating economy with rate increase
– Doyle's Dealmaking 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.
Consumer confidence and its impact on Doyle's Dealmaking 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.
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. Doyle's Dealmaking 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 Doyle's Dealmaking is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Doyle's Dealmaking has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Doyle's Dealmaking 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.
Weighted SWOT Analysis of Doyle's Dealmaking Dilemma (B): Final Negotiations 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 Doyle's Dealmaking Dilemma (B): Final Negotiations 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 Doyle's Dealmaking Dilemma (B): Final Negotiations 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 Doyle's Dealmaking Dilemma (B): Final Negotiations 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 Doyle's Dealmaking Dilemma (B): Final Negotiations 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 Doyle's Dealmaking needs to make to build a sustainable competitive advantage.