Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly Division casestudy better are - – cloud computing is disrupting traditional business models, increasing energy prices, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing household debt because of falling income levels, increasing commodity prices, etc
Introduction to SWOT Analysis of Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly Division can be done for the following purposes –
1. Strategic planning using facts provided in Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly Division Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division firm has clearly differentiated products in the market place. This has enabled Mediator Seneca to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Mediator Seneca to invest into research and development (R&D) and innovation.
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 C. Stevens, Vice President, Assembly Division HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
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 C. Stevens, Vice President, Assembly 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.
Diverse revenue streams
– Mediator Seneca is present in almost all the verticals within the industry. This has provided firm in Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division 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.
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.
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 C. Stevens, Vice President, Assembly Division Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Mediator Seneca is one of the most innovative firm in sector. Manager in Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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 C. Stevens, Vice President, Assembly 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.
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 (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division 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.
Weaknesses Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly Division are -
Products dominated business model
– Even though Mediator Seneca 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 - Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division should strive to include more intangible value offerings along with its core products and services.
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 C. Stevens, Vice President, Assembly 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.
Slow decision making process
– As mentioned earlier in the report, Mediator Seneca 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. Mediator Seneca 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.
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.
Aligning sales with marketing
– It come across in the case study Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly Division can leverage the sales team experience to cultivate customer relationships as Mediator Seneca is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Mediator Seneca 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.
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.
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.
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.
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 C. Stevens, Vice President, Assembly 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.
No frontier risks strategy
– After analyzing the HBR case study Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, 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.
Opportunities Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly 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.
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.
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.
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.
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 C. Stevens, Vice President, Assembly 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.
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 (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division 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.
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.
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.
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.
Buying journey improvements
– Mediator Seneca can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division 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.
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.
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.
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.
Threats Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly Division are -
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 Mediator Seneca in the Strategy & Execution sector and impact the bottomline of the organization.
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.
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.
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.
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. Mediator Seneca needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Mediator Seneca.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division, Mediator Seneca 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 .
Consumer confidence and its impact on Mediator Seneca 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.
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 C. Stevens, Vice President, Assembly Division .
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.
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.
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.
Weighted SWOT Analysis of Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly 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 C. Stevens, Vice President, Assembly 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.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Seneca Systems (B): General and Confidential Instructions for C. Stevens, Vice President, Assembly Division