Peter Welz: When a Marquee Prospect Plays Hardball (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Peter Welz: When a Marquee Prospect Plays Hardball (A)
Describes the hardball tactics facing Peter Welz, who seeks to negotiate a make-or-break contract with a vastly larger potential client. Welz's counterpart team is led by Preston Spitzer, a notoriously tough player who fully understands his side's massive advantages in the process. With the economic fate of Welz's newly public smaller firm in the balance, Welz and his team must figure out how to handle some very tough tactics by Spitzer and his minions aimed at extracting lopsided contract concessions. These tactics include demeaning remarks, repeated threats to opt for a competitor, misrepresentations, repudiation of previously agreed provisions, last-minute demands, divide-and-conquer moves, and a waiting game that exploits the smaller firm's evidently urgent need for a closure. The (A) case sets up the negotiations and poses an immediate tactical challenge in the context of the overall process. The (B) case describes the strategies, tactics, and results of these negotiations, along with Welz's broader insights into a more productive approach to the common challenge of dealing with very hard bargainers.
Swot Analysis of "Peter Welz: When a Marquee Prospect Plays Hardball (A)" written by James K. Sebenius, Ellen Knebel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Welz Welz's facing as an external strategic factors. Some of the topics covered in Peter Welz: When a Marquee Prospect Plays Hardball (A) case study are - Strategic Management Strategies, Conflict, Entrepreneurship, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Peter Welz: When a Marquee Prospect Plays Hardball (A) casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing energy prices, geopolitical disruptions, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%,
technology disruption, increasing commodity prices, etc
Introduction to SWOT Analysis of Peter Welz: When a Marquee Prospect Plays Hardball (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Peter Welz: When a Marquee Prospect Plays Hardball (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Welz Welz's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Welz Welz's 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 Peter Welz: When a Marquee Prospect Plays Hardball (A) can be done for the following purposes –
1. Strategic planning using facts provided in Peter Welz: When a Marquee Prospect Plays Hardball (A) case study
2. Improving business portfolio management of Welz Welz's
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 Welz Welz's
Strengths Peter Welz: When a Marquee Prospect Plays Hardball (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Welz Welz's in Peter Welz: When a Marquee Prospect Plays Hardball (A) Harvard Business Review case study are -
Analytics focus
– Welz Welz's is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by James K. Sebenius, Ellen Knebel can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Cross disciplinary teams
– Horizontal connected teams at the Welz Welz's 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.
Ability to recruit top talent
– Welz Welz's is one of the leading recruiters in the industry. Managers in the Peter Welz: When a Marquee Prospect Plays Hardball (A) 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
– Peter Welz: When a Marquee Prospect Plays Hardball (A) firm has clearly differentiated products in the market place. This has enabled Welz Welz's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Welz Welz's to invest into research and development (R&D) and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Welz Welz's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Welz Welz's 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.
High switching costs
– The high switching costs that Welz Welz's 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.
Highly skilled collaborators
– Welz Welz's 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 Peter Welz: When a Marquee Prospect Plays Hardball (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Welz Welz's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Peter Welz: When a Marquee Prospect Plays Hardball (A) 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.
Ability to lead change in Strategy & Execution field
– Welz Welz's 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 Welz Welz's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Welz Welz's is one of the most innovative firm in sector. Manager in Peter Welz: When a Marquee Prospect Plays Hardball (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Welz Welz's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Welz Welz's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Welz Welz's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Welz Welz's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Peter Welz: When a Marquee Prospect Plays Hardball (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Peter Welz: When a Marquee Prospect Plays Hardball (A) are -
Workers concerns about automation
– As automation is fast increasing in the segment, Welz Welz's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Capital Spending Reduction
– Even during the low interest decade, Welz Welz's 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.
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 Welz Welz's supply chain. Even after few cautionary changes mentioned in the HBR case study - Peter Welz: When a Marquee Prospect Plays Hardball (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Welz Welz's vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Peter Welz: When a Marquee Prospect Plays Hardball (A), is just above the industry average. Welz Welz's needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Welz Welz's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Peter Welz: When a Marquee Prospect Plays Hardball (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Welz Welz's, firm in the HBR case study Peter Welz: When a Marquee Prospect Plays Hardball (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Peter Welz: When a Marquee Prospect Plays Hardball (A), it seems that the employees of Welz Welz's 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.
Lack of clear differentiation of Welz Welz's products
– To increase the profitability and margins on the products, Welz Welz's needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study Peter Welz: When a Marquee Prospect Plays Hardball (A), 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.
Slow to strategic competitive environment developments
– As Peter Welz: When a Marquee Prospect Plays Hardball (A) HBR case study mentions - Welz Welz's 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.
Slow decision making process
– As mentioned earlier in the report, Welz Welz's 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. Welz Welz's 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.
Opportunities Peter Welz: When a Marquee Prospect Plays Hardball (A) | 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 Peter Welz: When a Marquee Prospect Plays Hardball (A) are -
Manufacturing automation
– Welz Welz's 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.
Buying journey improvements
– Welz Welz's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Peter Welz: When a Marquee Prospect Plays Hardball (A) 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Welz Welz's can use these opportunities to build new business models that can help the communities that Welz Welz's operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Welz Welz's 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.
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 Welz Welz's 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.
Creating value in data economy
– The success of analytics program of Welz Welz's has opened avenues for new revenue streams for the organization in the industry. This can help Welz Welz's to build a more holistic ecosystem as suggested in the Peter Welz: When a Marquee Prospect Plays Hardball (A) case study. Welz Welz's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Welz Welz's is facing challenges because of the dominance of functional experts in the organization. Peter Welz: When a Marquee Prospect Plays Hardball (A) 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.
Leveraging digital technologies
– Welz Welz's 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.
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. Welz Welz's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Welz Welz's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Welz Welz's 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 Peter Welz: When a Marquee Prospect Plays Hardball (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Welz Welz's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Welz Welz's 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 Welz Welz's to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Welz Welz's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Peter Welz: When a Marquee Prospect Plays Hardball (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Peter Welz: When a Marquee Prospect Plays Hardball (A) are -
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 Welz Welz's business can come under increasing regulations regarding data privacy, data security, etc.
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.
High dependence on third party suppliers
– Welz Welz's 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.
Stagnating economy with rate increase
– Welz Welz's 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. Welz Welz's needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Welz Welz's.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Welz Welz's 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Peter Welz: When a Marquee Prospect Plays Hardball (A), Welz Welz's 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 .
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. Welz Welz's 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.
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 Welz Welz's in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Welz Welz's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Welz Welz's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Welz Welz's
– 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 Welz Welz's.
Weighted SWOT Analysis of Peter Welz: When a Marquee Prospect Plays Hardball (A) 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 Peter Welz: When a Marquee Prospect Plays Hardball (A) 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 Peter Welz: When a Marquee Prospect Plays Hardball (A) 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 Peter Welz: When a Marquee Prospect Plays Hardball (A) 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 Peter Welz: When a Marquee Prospect Plays Hardball (A) 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 Welz Welz's needs to make to build a sustainable competitive advantage.
