MULTIMODE, INC. - Confidential Instructions for J. Arnold SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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Case Study Description of MULTIMODE, INC. - Confidential Instructions for J. Arnold
Confidential Instructions for J. Arnold for product #PON343.Two-party intra-organization negotiation between a company's financial and human resources officers regarding the amount of a budget increase. T. Boyd, a Vice President of Budget and Finance at Multimode, Inc., (a manufacturing firm) is about to meet J. Arnold, a Vice President of the Human Resource Development Office at Multimode. T. Boyd has formally met with other departments to discuss the upcoming year's budget as well as expected productivity increases. This is a role play case.
Swot Analysis of "MULTIMODE, INC. - Confidential Instructions for J. Arnold" written by Lawrence Susskind includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Multimode Arnold facing as an external strategic factors. Some of the topics covered in MULTIMODE, INC. - Confidential Instructions for J. Arnold case study are - Strategic Management Strategies, Conflict, Human resource management, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the MULTIMODE, INC. - Confidential Instructions for J. Arnold casestudy better are - – cloud computing is disrupting traditional business models, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, there is backlash against globalization,
customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, etc
Introduction to SWOT Analysis of MULTIMODE, INC. - Confidential Instructions for J. Arnold
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in MULTIMODE, INC. - Confidential Instructions for J. Arnold case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Multimode Arnold, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Multimode Arnold 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 MULTIMODE, INC. - Confidential Instructions for J. Arnold can be done for the following purposes –
1. Strategic planning using facts provided in MULTIMODE, INC. - Confidential Instructions for J. Arnold case study
2. Improving business portfolio management of Multimode Arnold
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 Multimode Arnold
Strengths MULTIMODE, INC. - Confidential Instructions for J. Arnold | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Multimode Arnold in MULTIMODE, INC. - Confidential Instructions for J. Arnold Harvard Business Review case study are -
Innovation driven organization
– Multimode Arnold is one of the most innovative firm in sector. Manager in MULTIMODE, INC. - Confidential Instructions for J. Arnold 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
– Multimode Arnold has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in MULTIMODE, INC. - Confidential Instructions for J. Arnold 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.
Cross disciplinary teams
– Horizontal connected teams at the Multimode Arnold 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.
High brand equity
– Multimode Arnold has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Multimode Arnold to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Multimode Arnold
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Multimode Arnold does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Multimode Arnold 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 Lawrence Susskind 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.
Strong track record of project management
– Multimode Arnold is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Multimode Arnold has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Multimode Arnold 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.
Ability to recruit top talent
– Multimode Arnold is one of the leading recruiters in the industry. Managers in the MULTIMODE, INC. - Confidential Instructions for J. Arnold are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Multimode Arnold 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 Multimode Arnold is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in MULTIMODE, INC. - Confidential Instructions for J. Arnold Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Multimode Arnold 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 MULTIMODE, INC. - Confidential Instructions for J. Arnold HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Multimode Arnold digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Multimode Arnold 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.
Weaknesses MULTIMODE, INC. - Confidential Instructions for J. Arnold | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of MULTIMODE, INC. - Confidential Instructions for J. Arnold are -
High operating costs
– Compare to the competitors, firm in the HBR case study MULTIMODE, INC. - Confidential Instructions for J. Arnold 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 Multimode Arnold 's lucrative customers.
High cash cycle compare to competitors
Multimode Arnold 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.
Products dominated business model
– Even though Multimode Arnold 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 - MULTIMODE, INC. - Confidential Instructions for J. Arnold should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study MULTIMODE, INC. - Confidential Instructions for J. Arnold, in the dynamic environment Multimode Arnold has struggled to respond to the nimble upstart competition. Multimode Arnold 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 MULTIMODE, INC. - Confidential Instructions for J. Arnold, it seems that the employees of Multimode Arnold 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.
Slow to strategic competitive environment developments
– As MULTIMODE, INC. - Confidential Instructions for J. Arnold HBR case study mentions - Multimode Arnold takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Multimode Arnold is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study MULTIMODE, INC. - Confidential Instructions for J. Arnold can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 Multimode Arnold supply chain. Even after few cautionary changes mentioned in the HBR case study - MULTIMODE, INC. - Confidential Instructions for J. Arnold, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Multimode Arnold vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study MULTIMODE, INC. - Confidential Instructions for J. Arnold, is just above the industry average. Multimode Arnold needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Low market penetration in new markets
– Outside its home market of Multimode Arnold, firm in the HBR case study MULTIMODE, INC. - Confidential Instructions for J. Arnold needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Multimode Arnold 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.
Opportunities MULTIMODE, INC. - Confidential Instructions for J. Arnold | 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 MULTIMODE, INC. - Confidential Instructions for J. Arnold are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Multimode Arnold 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, MULTIMODE, INC. - Confidential Instructions for J. Arnold, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Multimode Arnold 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 Multimode Arnold to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Multimode Arnold 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.
Leveraging digital technologies
– Multimode Arnold 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.
Building a culture of innovation
– managers at Multimode Arnold 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 Multimode Arnold to increase its market reach. Multimode Arnold 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.
Using analytics as competitive advantage
– Multimode Arnold 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 MULTIMODE, INC. - Confidential Instructions for J. Arnold - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Multimode Arnold to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Multimode Arnold can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. MULTIMODE, INC. - Confidential Instructions for J. Arnold 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.
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. Multimode Arnold 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. Multimode Arnold 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.
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 Multimode Arnold 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.
Manufacturing automation
– Multimode Arnold 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.
Developing new processes and practices
– Multimode Arnold 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Multimode Arnold can use these opportunities to build new business models that can help the communities that Multimode Arnold operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats MULTIMODE, INC. - Confidential Instructions for J. Arnold External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study MULTIMODE, INC. - Confidential Instructions for J. Arnold are -
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 Multimode Arnold business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Multimode Arnold 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.
Consumer confidence and its impact on Multimode Arnold 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.
Shortening product life cycle
– it is one of the major threat that Multimode Arnold is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Multimode Arnold 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, Multimode Arnold 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 MULTIMODE, INC. - Confidential Instructions for J. Arnold .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Multimode Arnold with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Multimode Arnold needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Environmental challenges
– Multimode Arnold 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. Multimode Arnold can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Regulatory challenges
– Multimode Arnold 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.
Increasing wage structure of Multimode Arnold
– 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 Multimode Arnold.
Technology acceleration in Forth Industrial Revolution
– Multimode Arnold has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Multimode Arnold 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.
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 Multimode Arnold.
Weighted SWOT Analysis of MULTIMODE, INC. - Confidential Instructions for J. Arnold 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 MULTIMODE, INC. - Confidential Instructions for J. Arnold 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 MULTIMODE, INC. - Confidential Instructions for J. Arnold 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 MULTIMODE, INC. - Confidential Instructions for J. Arnold 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 MULTIMODE, INC. - Confidential Instructions for J. Arnold 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 Multimode Arnold needs to make to build a sustainable competitive advantage.