Illustrates the potential sources of value creation as well as practical barriers to its achievement. Students analyze five brief scenarios that would yield efficient trades over valuation, discount rates, expectations, and risk tolerance, but that might be thwarted by strategic behavior, misaligned frames, interpersonal conflict, or poor process management. In-class discussion prompts deeper understanding of the tensions between creating and claiming value in negotiation.
Swot Analysis of "Deal-crafting Toolkit" written by Michael A. Wheeler includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Misaligned Toolkit facing as an external strategic factors. Some of the topics covered in Deal-crafting Toolkit case study are - Strategic Management Strategies, Growth strategy, Negotiations, Public relations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Deal-crafting Toolkit casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, technology disruption, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , there is backlash against globalization, increasing household debt because of falling income levels,
increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, etc
Introduction to SWOT Analysis of Deal-crafting Toolkit
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Deal-crafting Toolkit case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Misaligned Toolkit, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Misaligned Toolkit 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 Deal-crafting Toolkit can be done for the following purposes –
1. Strategic planning using facts provided in Deal-crafting Toolkit case study
2. Improving business portfolio management of Misaligned Toolkit
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 Misaligned Toolkit
Strengths Deal-crafting Toolkit | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Misaligned Toolkit in Deal-crafting Toolkit Harvard Business Review case study are -
Strong track record of project management
– Misaligned Toolkit is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Misaligned Toolkit
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Misaligned Toolkit does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Misaligned Toolkit has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Misaligned Toolkit 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.
High brand equity
– Misaligned Toolkit has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Misaligned Toolkit to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Misaligned Toolkit 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 Misaligned Toolkit is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Deal-crafting Toolkit Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Misaligned Toolkit is present in almost all the verticals within the industry. This has provided firm in Deal-crafting Toolkit 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.
Training and development
– Misaligned Toolkit has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Deal-crafting Toolkit 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)
– Misaligned Toolkit 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 Deal-crafting Toolkit - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Misaligned Toolkit 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.
Superior customer experience
– The customer experience strategy of Misaligned Toolkit in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Misaligned Toolkit digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Misaligned Toolkit 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
– Misaligned Toolkit 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 Deal-crafting Toolkit HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Deal-crafting Toolkit | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Deal-crafting Toolkit are -
Aligning sales with marketing
– It come across in the case study Deal-crafting Toolkit 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 Deal-crafting Toolkit can leverage the sales team experience to cultivate customer relationships as Misaligned Toolkit is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Deal-crafting Toolkit, is just above the industry average. Misaligned Toolkit 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.
Products dominated business model
– Even though Misaligned Toolkit 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 - Deal-crafting Toolkit should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Deal-crafting Toolkit, it seems that the employees of Misaligned Toolkit 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Deal-crafting Toolkit, in the dynamic environment Misaligned Toolkit has struggled to respond to the nimble upstart competition. Misaligned Toolkit has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Misaligned Toolkit products
– To increase the profitability and margins on the products, Misaligned Toolkit needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Misaligned Toolkit is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Misaligned Toolkit needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Misaligned Toolkit to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Misaligned Toolkit 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 Misaligned Toolkit supply chain. Even after few cautionary changes mentioned in the HBR case study - Deal-crafting Toolkit, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Misaligned Toolkit vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Misaligned Toolkit 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. Misaligned Toolkit 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.
Low market penetration in new markets
– Outside its home market of Misaligned Toolkit, firm in the HBR case study Deal-crafting Toolkit needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Deal-crafting Toolkit | 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 Deal-crafting Toolkit are -
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. Misaligned Toolkit 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. Misaligned Toolkit 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Misaligned Toolkit 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, Deal-crafting Toolkit, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Misaligned Toolkit can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Misaligned Toolkit 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 Misaligned Toolkit has opened avenues for new revenue streams for the organization in the industry. This can help Misaligned Toolkit to build a more holistic ecosystem as suggested in the Deal-crafting Toolkit case study. Misaligned Toolkit 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 Misaligned Toolkit 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.
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. Misaligned Toolkit can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Misaligned Toolkit 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 Misaligned Toolkit to hire the very best people irrespective of their geographical location.
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. Misaligned Toolkit can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Misaligned Toolkit in the consumer business. Now Misaligned Toolkit can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Misaligned Toolkit can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Deal-crafting Toolkit 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.
Leveraging digital technologies
– Misaligned Toolkit 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.
Learning at scale
– Online learning technologies has now opened space for Misaligned Toolkit 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 Deal-crafting Toolkit External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Deal-crafting Toolkit are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Deal-crafting Toolkit, Misaligned Toolkit may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Misaligned Toolkit 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 Deal-crafting Toolkit .
Technology acceleration in Forth Industrial Revolution
– Misaligned Toolkit has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Misaligned Toolkit 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 Misaligned Toolkit 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.
Regulatory challenges
– Misaligned Toolkit 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.
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.
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 Misaligned Toolkit business can come under increasing regulations regarding data privacy, data security, etc.
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. Misaligned Toolkit 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.
Stagnating economy with rate increase
– Misaligned Toolkit 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.
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. Misaligned Toolkit can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Misaligned Toolkit in the Strategy & Execution sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Misaligned Toolkit with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Misaligned Toolkit 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 Deal-crafting Toolkit 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 Deal-crafting Toolkit 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 Deal-crafting Toolkit 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 Deal-crafting Toolkit 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 Deal-crafting Toolkit 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 Misaligned Toolkit needs to make to build a sustainable competitive advantage.