MULTIMODE, INC. - Confidential Instructions for T. Boyd SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of MULTIMODE, INC. - Confidential Instructions for T. Boyd
Confidential Instructions for T. Boyd for product #PON343.Two-party intra-organization negotiation between a company's financial and human resources officers regarding the amount of a budget increase. T. Boyd, a Vice President of Budget and Finance at Multimode, Inc., (a manufacturing firm) is about to meet J. Arnold, a Vice President of the Human Resource Development Office at Multimode. T. Boyd has formally met with other departments to discuss the upcoming year's budget as well as expected productivity increases. This is a role play case.
Swot Analysis of "MULTIMODE, INC. - Confidential Instructions for T. Boyd" written by Lawrence Susskind includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Boyd Multimode facing as an external strategic factors. Some of the topics covered in MULTIMODE, INC. - Confidential Instructions for T. Boyd case study are - Strategic Management Strategies, Conflict, Human resource management, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the MULTIMODE, INC. - Confidential Instructions for T. Boyd casestudy better are - – central banks are concerned over increasing inflation, increasing energy prices, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, geopolitical disruptions, technology disruption,
cloud computing is disrupting traditional business models, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of MULTIMODE, INC. - Confidential Instructions for T. Boyd
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in MULTIMODE, INC. - Confidential Instructions for T. Boyd case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Boyd Multimode, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Boyd Multimode 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 MULTIMODE, INC. - Confidential Instructions for T. Boyd can be done for the following purposes –
1. Strategic planning using facts provided in MULTIMODE, INC. - Confidential Instructions for T. Boyd case study
2. Improving business portfolio management of Boyd Multimode
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 Boyd Multimode
Strengths MULTIMODE, INC. - Confidential Instructions for T. Boyd | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Boyd Multimode in MULTIMODE, INC. - Confidential Instructions for T. Boyd Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Boyd Multimode digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Boyd Multimode 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.
Successful track record of launching new products
– Boyd Multimode has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Boyd Multimode 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.
Organizational Resilience of Boyd Multimode
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Boyd Multimode does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Strategy & Execution field
– Boyd Multimode 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 Boyd Multimode in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the MULTIMODE, INC. - Confidential Instructions for T. Boyd 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.
Effective Research and Development (R&D)
– Boyd Multimode 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 MULTIMODE, INC. - Confidential Instructions for T. Boyd - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– MULTIMODE, INC. - Confidential Instructions for T. Boyd firm has clearly differentiated products in the market place. This has enabled Boyd Multimode to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Boyd Multimode to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Boyd Multimode in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Boyd Multimode 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.
Diverse revenue streams
– Boyd Multimode is present in almost all the verticals within the industry. This has provided firm in MULTIMODE, INC. - Confidential Instructions for T. Boyd 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.
Ability to recruit top talent
– Boyd Multimode is one of the leading recruiters in the industry. Managers in the MULTIMODE, INC. - Confidential Instructions for T. Boyd are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Boyd Multimode has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Boyd Multimode to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses MULTIMODE, INC. - Confidential Instructions for T. Boyd | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of MULTIMODE, INC. - Confidential Instructions for T. Boyd are -
Slow to strategic competitive environment developments
– As MULTIMODE, INC. - Confidential Instructions for T. Boyd HBR case study mentions - Boyd Multimode takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the MULTIMODE, INC. - Confidential Instructions for T. Boyd 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 Boyd Multimode has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study MULTIMODE, INC. - Confidential Instructions for T. Boyd, is just above the industry average. Boyd Multimode 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.
Need for greater diversity
– Boyd Multimode 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 bargaining power of channel partners
– Because of the regulatory requirements, Lawrence Susskind suggests that, Boyd Multimode 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study MULTIMODE, INC. - Confidential Instructions for T. Boyd, in the dynamic environment Boyd Multimode has struggled to respond to the nimble upstart competition. Boyd Multimode has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Boyd Multimode supply chain. Even after few cautionary changes mentioned in the HBR case study - MULTIMODE, INC. - Confidential Instructions for T. Boyd, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Boyd Multimode vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Boyd Multimode 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.
Aligning sales with marketing
– It come across in the case study MULTIMODE, INC. - Confidential Instructions for T. Boyd 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 MULTIMODE, INC. - Confidential Instructions for T. Boyd can leverage the sales team experience to cultivate customer relationships as Boyd Multimode is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study MULTIMODE, INC. - Confidential Instructions for T. Boyd 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 Boyd Multimode 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Boyd Multimode 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.
Opportunities MULTIMODE, INC. - Confidential Instructions for T. Boyd | 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 MULTIMODE, INC. - Confidential Instructions for T. Boyd are -
Buying journey improvements
– Boyd Multimode can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. MULTIMODE, INC. - Confidential Instructions for T. Boyd 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 Boyd Multimode in the consumer business. Now Boyd Multimode can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Boyd Multimode 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 MULTIMODE, INC. - Confidential Instructions for T. Boyd - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Boyd Multimode to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Boyd Multimode to increase its market reach. Boyd Multimode 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Boyd Multimode 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, MULTIMODE, INC. - Confidential Instructions for T. Boyd, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Boyd Multimode can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Boyd Multimode can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Boyd Multimode is facing challenges because of the dominance of functional experts in the organization. MULTIMODE, INC. - Confidential Instructions for T. Boyd 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Boyd Multimode 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 Boyd Multimode to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Boyd Multimode 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.
Creating value in data economy
– The success of analytics program of Boyd Multimode has opened avenues for new revenue streams for the organization in the industry. This can help Boyd Multimode to build a more holistic ecosystem as suggested in the MULTIMODE, INC. - Confidential Instructions for T. Boyd case study. Boyd Multimode can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Boyd Multimode 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.
Loyalty marketing
– Boyd Multimode 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.
Threats MULTIMODE, INC. - Confidential Instructions for T. Boyd External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study MULTIMODE, INC. - Confidential Instructions for T. Boyd are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Boyd Multimode with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Boyd Multimode 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Boyd Multimode 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 Boyd Multimode in the Strategy & Execution sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Boyd Multimode has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Boyd Multimode 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.
Consumer confidence and its impact on Boyd Multimode 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Boyd Multimode 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 MULTIMODE, INC. - Confidential Instructions for T. Boyd .
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.
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 Boyd Multimode business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Boyd Multimode
– 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 Boyd Multimode.
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.
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. Boyd Multimode can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Boyd Multimode is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of MULTIMODE, INC. - Confidential Instructions for T. Boyd 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 MULTIMODE, INC. - Confidential Instructions for T. Boyd 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 MULTIMODE, INC. - Confidential Instructions for T. Boyd 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 MULTIMODE, INC. - Confidential Instructions for T. Boyd 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 MULTIMODE, INC. - Confidential Instructions for T. Boyd 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 Boyd Multimode needs to make to build a sustainable competitive advantage.