InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting
Teaching Note for Product #MH0004 Following Ray Anderson's guidance and vision, Interface, a modular carpet and commercial broadloom company, had implemented a business model focused on sustainability. The results had been not just good for the environment but also for Interface's costs and bottom line. When larger companies such as Wal-Mart came to see Interface's sustainability practices in person to learn how sustainability could benefit their companies, Anderson started InterfaceRAISE, a sustainability consulting company, and made Jim Hartzfeld Managing Director. Now faced with growing the business, Jim must consider what he will need to do to increase InterfaceRAISE's influence for sustainable business on the corporate world.
Swot Analysis of "InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting" written by Frank T. Rothaermel, Michael Janovec includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sustainability Interface's facing as an external strategic factors. Some of the topics covered in InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting case study are - Strategic Management Strategies, Corporate governance, Leadership, Organizational culture, Supply chain, Sustainability and Strategy & Execution.
Some of the macro environment factors that can be used to understand the InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting casestudy better are - – supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, wage bills are increasing, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs,
increasing energy prices, there is backlash against globalization, etc
Introduction to SWOT Analysis of InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sustainability Interface's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sustainability Interface'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 InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting can be done for the following purposes –
1. Strategic planning using facts provided in InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting case study
2. Improving business portfolio management of Sustainability Interface'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 Sustainability Interface's
Strengths InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sustainability Interface's in InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting Harvard Business Review case study are -
Innovation driven organization
– Sustainability Interface's is one of the most innovative firm in sector. Manager in InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Sustainability Interface's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting 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.
Successful track record of launching new products
– Sustainability Interface's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sustainability Interface's 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 InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to recruit top talent
– Sustainability Interface's is one of the leading recruiters in the industry. Managers in the InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Sustainability Interface's is present in almost all the verticals within the industry. This has provided firm in InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Sustainability Interface's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sustainability Interface'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.
Organizational Resilience of Sustainability Interface's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Sustainability Interface's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Sustainability Interface's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Sustainability Interface's in the sector have low bargaining power. InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sustainability Interface's to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Sustainability Interface'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.
Sustainable margins compare to other players in Strategy & Execution industry
– InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting firm has clearly differentiated products in the market place. This has enabled Sustainability Interface's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Sustainability Interface's to invest into research and development (R&D) and innovation.
Weaknesses InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting are -
Skills based hiring
– The stress on hiring functional specialists at Sustainability Interface's 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.
Products dominated business model
– Even though Sustainability Interface's 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 - InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Sustainability Interface's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Increasing silos among functional specialists
– The organizational structure of Sustainability Interface's is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Sustainability Interface's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sustainability Interface's to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting 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 InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting can leverage the sales team experience to cultivate customer relationships as Sustainability Interface's is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Sustainability Interface'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. Sustainability Interface'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.
Need for greater diversity
– Sustainability Interface's 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Sustainability Interface'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.
Lack of clear differentiation of Sustainability Interface's products
– To increase the profitability and margins on the products, Sustainability Interface's needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Sustainability Interface'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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting, in the dynamic environment Sustainability Interface's has struggled to respond to the nimble upstart competition. Sustainability Interface's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting | 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 InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting are -
Developing new processes and practices
– Sustainability Interface's 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sustainability Interface's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Sustainability Interface's 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.
Learning at scale
– Online learning technologies has now opened space for Sustainability Interface's 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.
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. Sustainability Interface's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Sustainability Interface'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 InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sustainability Interface's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Sustainability Interface's to increase its market reach. Sustainability Interface's 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.
Leveraging digital technologies
– Sustainability Interface'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.
Manufacturing automation
– Sustainability Interface'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.
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. Sustainability Interface's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Sustainability Interface's 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, InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Sustainability Interface'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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sustainability Interface's can use these opportunities to build new business models that can help the communities that Sustainability Interface's operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting 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 InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting, Sustainability Interface'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 .
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. Sustainability Interface's 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. Sustainability Interface's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sustainability Interface'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.
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 Sustainability Interface's in the Strategy & Execution sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Sustainability Interface'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.
Shortening product life cycle
– it is one of the major threat that Sustainability Interface's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sustainability Interface's 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 InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting .
Environmental challenges
– Sustainability Interface's 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. Sustainability Interface's can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Technology acceleration in Forth Industrial Revolution
– Sustainability Interface's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Sustainability Interface's 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.
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. Sustainability Interface'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.
Consumer confidence and its impact on Sustainability Interface's 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.
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 Sustainability Interface's.
Weighted SWOT Analysis of InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting 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 InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting 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 InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting 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 InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting 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 InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting 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 Sustainability Interface's needs to make to build a sustainable competitive advantage.
