Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division
Seneca is a three-party negotiation-mediation simulation. The context is a product failure crisis in a manufacturing company with highly autonomous units. The heads of two divisions are in a dispute over who has responsibility for failures in a key product. The head of a third division is attempting to mediate a resolution to the dispute. Unlike many mediation simulations, the mediator has both independent interests and some power to influence outcomes. Two versions of the mediator role are available. In Seneca Systems (A), the mediator can make a financial contribution to solving the problem and hence has bargaining power. In Seneca Systems (B), the mediator has some coercive power in the form of influence with the CEO and could impose a solution if the parties are unable to resolve the dispute themselves. The core teaching issues concern the tradeoffs inherent in having vested interests and power as a mediator.
Swot Analysis of "Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division" written by Michael D. Watkins includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mediator Seneca facing as an external strategic factors. Some of the topics covered in Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division case study are - Strategic Management Strategies, Conflict, Influence, Negotiations, Organizational culture and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division casestudy better are - – digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing transportation and logistics costs,
supply chains are disrupted by pandemic , increasing energy prices, etc
Introduction to SWOT Analysis of Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mediator Seneca, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mediator Seneca 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 Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division can be done for the following purposes –
1. Strategic planning using facts provided in Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division case study
2. Improving business portfolio management of Mediator Seneca
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 Mediator Seneca
Strengths Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mediator Seneca in Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division Harvard Business Review case study are -
Successful track record of launching new products
– Mediator Seneca has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mediator Seneca 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.
Low bargaining power of suppliers
– Suppliers of Mediator Seneca in the sector have low bargaining power. Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mediator Seneca to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Mediator Seneca 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 Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Mediator Seneca 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 Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Mediator Seneca is one of the leading recruiters in the industry. Managers in the Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Mediator Seneca has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mediator Seneca to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Mediator Seneca 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 Mediator Seneca is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Mediator Seneca digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mediator Seneca 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.
Strong track record of project management
– Mediator Seneca is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Mediator Seneca 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 Michael D. Watkins 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 Mediator Seneca 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.
Innovation driven organization
– Mediator Seneca is one of the most innovative firm in sector. Manager in Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mediator Seneca is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division 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 Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division can leverage the sales team experience to cultivate customer relationships as Mediator Seneca is planning to shift buying processes online.
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 Mediator Seneca supply chain. Even after few cautionary changes mentioned in the HBR case study - Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mediator Seneca vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Mediator Seneca 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.
Low market penetration in new markets
– Outside its home market of Mediator Seneca, firm in the HBR case study Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Mediator Seneca 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.
Interest costs
– Compare to the competition, Mediator Seneca 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Mediator Seneca 's lucrative customers.
Lack of clear differentiation of Mediator Seneca products
– To increase the profitability and margins on the products, Mediator Seneca needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, in the dynamic environment Mediator Seneca has struggled to respond to the nimble upstart competition. Mediator Seneca has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, it seems that the employees of Mediator Seneca 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.
Opportunities Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division | 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 Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division are -
Creating value in data economy
– The success of analytics program of Mediator Seneca has opened avenues for new revenue streams for the organization in the industry. This can help Mediator Seneca to build a more holistic ecosystem as suggested in the Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division case study. Mediator Seneca can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Mediator Seneca can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Mediator Seneca has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mediator Seneca 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 Mediator Seneca to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Mediator Seneca 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.
Learning at scale
– Online learning technologies has now opened space for Mediator Seneca 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.
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. Mediator Seneca 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. Mediator Seneca 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, Mediator Seneca 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, Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Mediator Seneca in the consumer business. Now Mediator Seneca can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Mediator Seneca 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 Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mediator Seneca to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mediator Seneca can use these opportunities to build new business models that can help the communities that Mediator Seneca operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Building a culture of innovation
– managers at Mediator Seneca 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mediator Seneca 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.
Threats Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division are -
Environmental challenges
– Mediator Seneca 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. Mediator Seneca can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Technology acceleration in Forth Industrial Revolution
– Mediator Seneca has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Mediator Seneca 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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. Mediator Seneca can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Mediator Seneca
– 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 Mediator Seneca.
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 Mediator Seneca.
Regulatory challenges
– Mediator Seneca 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.
High dependence on third party suppliers
– Mediator Seneca high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mediator Seneca 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mediator Seneca 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 Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mediator Seneca 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 Mediator Seneca is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Mediator Seneca 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.
Weighted SWOT Analysis of Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division 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 Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division 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 Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division 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 Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division 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 Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division 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 Mediator Seneca needs to make to build a sustainable competitive advantage.
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You can download Excel Template of Case Study Solution & Analysis of Seneca Systems (B): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division