Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company
The case is about a software development company, Telerik, which was based in Sofia, Bulgaria, with offices in the United States, Canada, the United Kingdom, Australia and Germany. The company was founded in 2002 and had become a world-leader in user interface (UI) components for Microsoft's .NET framework. The company was still managed by its original four founders and had grown to 400 employees. In response to rapid growth and to retain its rapid development product process, Telerik adopted agile development in 2006. Agile development is a values-driven process that includes the elements of decentralization, rapid development cycles, intense customer service, teamwork and face-to-face communication. Telerik has fully implemented this process, including the software development components, communication, coordination and management tools that are collaborative and rely heavily upon communication and widespread team interaction and responsibility. Telerik had moved into a new and modern building that included game and quiet rooms, and its physical environment was designed specifically to facilitate agile development. The company's management style was informal, hands-on, consultative and development-driven, and their culture was youth-focused. Telerik's human resource ("human capital") practices were innovative and flexible and its benefits and compensation package had allowed Telerik to attract a high quality workforce. Its recent innovations in benefits, including concierge services and stock options, had given Telerik an edge in human capital with an employee turnover rate of under five per cent. The founders had worked diligently to create a high performing, cohesive organization that was an exciting place to work. They had built a company with an excellent reputation, both in technical achievements and product development, and as an employer. Their success was based upon the rapid deployment of committed human capital in a culture of teamwork and custom.
Swot Analysis of "Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company" written by Lucia Miree, John Galletly includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Telerik Development facing as an external strategic factors. Some of the topics covered in Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company case study are - Strategic Management Strategies, International business, Leadership, Motivating people, Organizational culture, Product development, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company casestudy better are - – geopolitical disruptions, wage bills are increasing, supply chains are disrupted by pandemic , there is backlash against globalization, increasing transportation and logistics costs, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Telerik Development, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Telerik Development 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 Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company can be done for the following purposes –
1. Strategic planning using facts provided in Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company case study
2. Improving business portfolio management of Telerik Development
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 Telerik Development
Strengths Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Telerik Development in Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Telerik Development in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Telerik Development has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Telerik Development to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Telerik Development 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.
Diverse revenue streams
– Telerik Development is present in almost all the verticals within the industry. This has provided firm in Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company 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.
Effective Research and Development (R&D)
– Telerik Development 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 Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Telerik Development has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company 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.
Learning organization
- Telerik Development 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 Telerik Development is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Telerik Development 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 Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company 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.
Low bargaining power of suppliers
– Suppliers of Telerik Development in the sector have low bargaining power. Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Telerik Development to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Telerik Development is one of the leading recruiters in the industry. Managers in the Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Strategy & Execution industry
– Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company firm has clearly differentiated products in the market place. This has enabled Telerik Development to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Telerik Development to invest into research and development (R&D) and innovation.
Weaknesses Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company are -
Aligning sales with marketing
– It come across in the case study Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company 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 Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company can leverage the sales team experience to cultivate customer relationships as Telerik Development is planning to shift buying processes online.
High cash cycle compare to competitors
Telerik Development 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.
Increasing silos among functional specialists
– The organizational structure of Telerik Development is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Telerik Development needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Telerik Development to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Telerik Development 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. Telerik Development 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company 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 Telerik Development 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company, is just above the industry average. Telerik Development 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company, it seems that the employees of Telerik Development don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Need for greater diversity
– Telerik Development 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.
Lack of clear differentiation of Telerik Development products
– To increase the profitability and margins on the products, Telerik Development needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Telerik Development 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company, in the dynamic environment Telerik Development has struggled to respond to the nimble upstart competition. Telerik Development has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company | 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 Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company 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. Telerik Development can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Telerik Development can use these opportunities to build new business models that can help the communities that Telerik Development operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Developing new processes and practices
– Telerik Development can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Telerik Development 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, Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Telerik Development can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Manufacturing automation
– Telerik Development 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.
Better consumer reach
– The expansion of the 5G network will help Telerik Development to increase its market reach. Telerik Development 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.
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 Telerik Development 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.
Buying journey improvements
– Telerik Development can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company 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.
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. Telerik Development can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Telerik Development 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 Telerik Development has opened avenues for new revenue streams for the organization in the industry. This can help Telerik Development to build a more holistic ecosystem as suggested in the Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company case study. Telerik Development 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 Telerik Development 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.
Threats Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company are -
Consumer confidence and its impact on Telerik Development 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 Telerik Development
– 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 Telerik Development.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Telerik Development with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Telerik Development has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Telerik Development 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.
High dependence on third party suppliers
– Telerik Development 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Telerik Development 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
– Telerik Development 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.
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 Telerik Development in the Strategy & Execution sector and impact the bottomline 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. Telerik Development can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Telerik Development 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. Telerik Development can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Stagnating economy with rate increase
– Telerik Development 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.
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. Telerik Development 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.
Weighted SWOT Analysis of Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company 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 Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company 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 Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company 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 Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company 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 Scrums, Sprints, Spikes and Poker: Agility in a Bulgarian Software Company 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 Telerik Development needs to make to build a sustainable competitive advantage.
