Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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Case Study SWOT Analysis Solution
Case Study Description of Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version
Seneca is a three-party negotiation-mediation simulation. The context is a product failure crisis in a manufacturing company with highly autonomous units. The heads of two divisions are in a dispute over who has responsibility for failures in a key product. The head of a third division is attempting to mediate a resolution to the dispute. Unlike many mediation simulations, the mediator has both independent interests and some power to influence outcomes. Two versions of the mediator role are available. In Seneca Systems (A), the mediator can make a financial contribution to solving the problem and hence has bargaining power. In Seneca Systems (B), the mediator has some coercive power in the form of influence with the CEO and could impose a solution if the parties are unable to resolve the dispute themselves. The core teaching issues concern the tradeoffs inherent in having vested interests and power as a mediator.
Swot Analysis of "Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version" written by Michael D. Watkins includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mediator Seneca facing as an external strategic factors. Some of the topics covered in Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version case study are - Strategic Management Strategies, Conflict, Influence, Negotiations, Organizational culture and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version casestudy better are - – challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, technology disruption, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy,
geopolitical disruptions, increasing commodity prices, etc
Introduction to SWOT Analysis of Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mediator Seneca, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mediator Seneca 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 Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version can be done for the following purposes –
1. Strategic planning using facts provided in Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version case study
2. Improving business portfolio management of Mediator Seneca
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 Mediator Seneca
Strengths Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mediator Seneca in Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version 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.
Ability to lead change in Strategy & Execution field
– Mediator Seneca 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 Mediator Seneca in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Mediator Seneca 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.
Low bargaining power of suppliers
– Suppliers of Mediator Seneca in the sector have low bargaining power. Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mediator Seneca to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Mediator Seneca is present in almost all the verticals within the industry. This has provided firm in Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version 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.
Strong track record of project management
– Mediator Seneca is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Mediator Seneca 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 Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Mediator Seneca has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version 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.
Effective Research and Development (R&D)
– Mediator Seneca 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 Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Mediator Seneca 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Mediator Seneca digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mediator Seneca 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
– Mediator Seneca has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mediator Seneca 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.
Weaknesses Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version are -
High cash cycle compare to competitors
Mediator Seneca 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version, in the dynamic environment Mediator Seneca has struggled to respond to the nimble upstart competition. Mediator Seneca 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 Mediator Seneca supply chain. Even after few cautionary changes mentioned in the HBR case study - Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mediator Seneca vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Michael D. Watkins suggests that, Mediator Seneca 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.
Increasing silos among functional specialists
– The organizational structure of Mediator Seneca is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Mediator Seneca needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mediator Seneca to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Mediator Seneca 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 - Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version 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 Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version, is just above the industry average. Mediator Seneca 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.
Skills based hiring
– The stress on hiring functional specialists at Mediator Seneca 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.
Aligning sales with marketing
– It come across in the case study Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version 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 Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version can leverage the sales team experience to cultivate customer relationships as Mediator Seneca is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version, 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.
Lack of clear differentiation of Mediator Seneca products
– To increase the profitability and margins on the products, Mediator Seneca needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version | 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 Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version are -
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. Mediator Seneca can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Mediator Seneca 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.
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 Mediator Seneca in the consumer business. Now Mediator Seneca can target international markets with far fewer capital restrictions requirements than the existing system.
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. Mediator Seneca can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Mediator Seneca 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 Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mediator Seneca to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Mediator Seneca has opened avenues for new revenue streams for the organization in the industry. This can help Mediator Seneca to build a more holistic ecosystem as suggested in the Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version case study. Mediator Seneca can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mediator Seneca can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mediator Seneca is facing challenges because of the dominance of functional experts in the organization. Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mediator Seneca 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, Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Mediator Seneca can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version 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.
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. Mediator Seneca 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. Mediator Seneca 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.
Loyalty marketing
– Mediator Seneca 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.
Better consumer reach
– The expansion of the 5G network will help Mediator Seneca to increase its market reach. Mediator Seneca 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 Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version are -
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.
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.
Environmental challenges
– Mediator Seneca 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. Mediator Seneca can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mediator Seneca 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.
Regulatory challenges
– Mediator Seneca needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mediator Seneca 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 Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version .
Stagnating economy with rate increase
– Mediator Seneca 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.
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. Mediator Seneca needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Mediator Seneca 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
– Mediator Seneca has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Mediator Seneca 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.
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 Mediator Seneca.
Consumer confidence and its impact on Mediator Seneca 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 wage structure of Mediator Seneca
– 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 Mediator Seneca.
Weighted SWOT Analysis of Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version 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 Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version 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 Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version 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 Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version 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 Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version 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 Mediator Seneca needs to make to build a sustainable competitive advantage.
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You can download Excel Template of Case Study Solution & Analysis of Seneca Systems (A): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Portuguese Version