Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology
In August 2008, Magic Technology ("Magic") launched an initiative to implement the balanced scorecard in its organisation. Alan Lo, the chief executive officer, oversaw the implementation of the balanced scorecard at the company's headquarters. Lo encountered both strategic and execution difficulties during implementation, such as too many strategic objectives, too many strategic performance indicators and a diverse focus of strategic action plans. Yet, such difficulties hinted at a more fundamental issue of too many formulated strategic directions in the first place. In late 2009, Lo was in the middle of the execution phase to push the implementation of the balanced scorecard towards the department level. How would the difficulties encountered influence the initiative of the implementation of the balanced scorecard at the department level?
Swot Analysis of "Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology" written by Neale O'Connor, Ka Wai Shiu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Scorecard Balanced facing as an external strategic factors. Some of the topics covered in Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology case study are - Strategic Management Strategies, Balanced scorecard, Competitive strategy, Costs, IT, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology casestudy better are - – there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, increasing energy prices,
digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Scorecard Balanced, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Scorecard Balanced 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 Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology can be done for the following purposes –
1. Strategic planning using facts provided in Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology case study
2. Improving business portfolio management of Scorecard Balanced
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 Scorecard Balanced
Strengths Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Scorecard Balanced in Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology Harvard Business Review case study are -
Organizational Resilience of Scorecard Balanced
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Scorecard Balanced does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Scorecard Balanced is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Scorecard Balanced 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.
Learning organization
- Scorecard Balanced 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 Scorecard Balanced is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Scorecard Balanced is one of the most innovative firm in sector. Manager in Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Scorecard Balanced 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 Neale O'Connor, Ka Wai Shiu 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Scorecard Balanced digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Scorecard Balanced 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
– Scorecard Balanced has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Scorecard Balanced 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.
Operational resilience
– The operational resilience strategy in the Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology 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 Scorecard Balanced in the sector have low bargaining power. Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Scorecard Balanced to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Scorecard Balanced is present in almost all the verticals within the industry. This has provided firm in Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Ability to recruit top talent
– Scorecard Balanced is one of the leading recruiters in the industry. Managers in the Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology are -
Skills based hiring
– The stress on hiring functional specialists at Scorecard Balanced 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 Scorecard Balanced supply chain. Even after few cautionary changes mentioned in the HBR case study - Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Scorecard Balanced vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology, 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.
Capital Spending Reduction
– Even during the low interest decade, Scorecard Balanced 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 cash cycle compare to competitors
Scorecard Balanced 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.
Slow decision making process
– As mentioned earlier in the report, Scorecard Balanced 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. Scorecard Balanced 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.
Increasing silos among functional specialists
– The organizational structure of Scorecard Balanced is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Scorecard Balanced needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Scorecard Balanced to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Scorecard Balanced 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 - Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology HBR case study mentions - Scorecard Balanced 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 to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Scorecard Balanced is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology 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 Scorecard Balanced, firm in the HBR case study Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology | 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 Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology are -
Better consumer reach
– The expansion of the 5G network will help Scorecard Balanced to increase its market reach. Scorecard Balanced 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.
Building a culture of innovation
– managers at Scorecard Balanced can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Scorecard Balanced can use these opportunities to build new business models that can help the communities that Scorecard Balanced operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Scorecard Balanced 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, Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Scorecard Balanced has opened avenues for new revenue streams for the organization in the industry. This can help Scorecard Balanced to build a more holistic ecosystem as suggested in the Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology case study. Scorecard Balanced 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, Scorecard Balanced is facing challenges because of the dominance of functional experts in the organization. Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Scorecard Balanced can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Scorecard Balanced can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Scorecard Balanced 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. Scorecard Balanced 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 Scorecard Balanced 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 Scorecard Balanced to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Scorecard Balanced 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.
Manufacturing automation
– Scorecard Balanced 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.
Threats Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology are -
High dependence on third party suppliers
– Scorecard Balanced 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.
Technology acceleration in Forth Industrial Revolution
– Scorecard Balanced has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Scorecard Balanced 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.
Environmental challenges
– Scorecard Balanced 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. Scorecard Balanced can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 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. Scorecard Balanced needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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. Scorecard Balanced can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology, Scorecard Balanced 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Scorecard Balanced with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Scorecard Balanced 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.
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. Scorecard Balanced 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.
Shortening product life cycle
– it is one of the major threat that Scorecard Balanced is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Scorecard Balanced in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing wage structure of Scorecard Balanced
– 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 Scorecard Balanced.
Weighted SWOT Analysis of Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology 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 Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology 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 Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology 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 Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology 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 Making Balanced Scorecard Work to Implement Business Strategies at Magic Technology 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 Scorecard Balanced needs to make to build a sustainable competitive advantage.
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