Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version

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.

Authors :: Michael D. Watkins

Topics :: Strategy & Execution

Tags :: Conflict, Influence, Negotiations, Organizational culture, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version" 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 (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version 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 (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, geopolitical disruptions, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, etc

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Introduction to SWOT Analysis of Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version can be done for the following purposes –
1. Strategic planning using facts provided in Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version 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

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Strengths Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Mediator Seneca in Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version Harvard Business Review case study are -

Organizational Resilience of Mediator Seneca

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mediator Seneca does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

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 (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Ability to recruit top talent

– Mediator Seneca is one of the leading recruiters in the industry. Managers in the Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version 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.

Ability to lead change in Strategy & Execution field

– Mediator Seneca 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 Mediator Seneca in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Operational resilience

– The operational resilience strategy in the Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version 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.

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.

Training and development

– Mediator Seneca has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version 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

– 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.

Diverse revenue streams

– Mediator Seneca is present in almost all the verticals within the industry. This has provided firm in Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version 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.

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.

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Weaknesses Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version are -

Increasing silos among functional specialists

– The organizational structure of Mediator Seneca is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Mediator Seneca needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mediator Seneca to focus more on services rather than just following the product oriented approach.

Need for greater diversity

– Mediator Seneca 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.

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.

High bargaining power of channel partners

– Because of the regulatory requirements, Michael D. Watkins suggests that, Mediator Seneca is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Mediator Seneca has relatively successful track record of launching new products.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version, 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.

Skills based hiring

– The stress on hiring functional specialists at Mediator Seneca 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 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.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version, 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.

Slow to strategic competitive environment developments

– As Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version HBR case study mentions - Mediator Seneca 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.

No frontier risks strategy

– After analyzing the HBR case study Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version, 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.

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Opportunities Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version | 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 (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version are -

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.

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 (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version - 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Mediator Seneca can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Mediator Seneca can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Mediator Seneca is facing challenges because of the dominance of functional experts in the organization. Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version 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.

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 Mediator Seneca 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.

Buying journey improvements

– Mediator Seneca can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version 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.

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 (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version case study. Mediator Seneca can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Manufacturing automation

– Mediator Seneca 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.

Leveraging digital technologies

– Mediator Seneca 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.

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.

Better consumer reach

– The expansion of the 5G network will help Mediator Seneca to increase its market reach. Mediator Seneca 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.

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.

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Threats Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version 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 (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version are -

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. Mediator Seneca 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.

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.

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.

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.

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.

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.

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.

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 Mediator Seneca business can come under increasing regulations regarding data privacy, data security, etc.

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.

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 (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version .

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.

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.

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Weighted SWOT Analysis of Seneca Systems (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version 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 (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version 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 (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version 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 (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version 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 (A): General and Confidential Instructions for Dr. D. Monosoff, Vice President, Data Devices Division, Portuguese Version 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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