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 - – banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, technology disruption, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models,
increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, 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.
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.
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.
Diverse revenue streams
– Multimode Arnold is present in almost all the verticals within the industry. This has provided firm in MULTIMODE, INC. - Confidential Instructions for J. Arnold 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.
Low bargaining power of suppliers
– Suppliers of Multimode Arnold in the sector have low bargaining power. MULTIMODE, INC. - Confidential Instructions for J. Arnold has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Multimode Arnold to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Strategy & Execution field
– Multimode Arnold 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 Multimode Arnold in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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.
Operational resilience
– The operational resilience strategy in the MULTIMODE, INC. - Confidential Instructions for J. Arnold 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.
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.
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.
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.
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 -
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.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Multimode Arnold 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.
Slow decision making process
– As mentioned earlier in the report, Multimode Arnold 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. Multimode Arnold 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 Multimode Arnold 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.
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.
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.
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.
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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the MULTIMODE, INC. - Confidential Instructions for J. Arnold 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 Multimode Arnold has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Lawrence Susskind suggests that, Multimode Arnold 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.
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 -
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. Multimode Arnold can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Multimode Arnold 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.
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 Multimode Arnold in the consumer business. Now Multimode Arnold can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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.
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.
Loyalty marketing
– Multimode Arnold 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.
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.
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.
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.
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.
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.
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 -
High dependence on third party suppliers
– Multimode Arnold 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.
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. Multimode Arnold 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 MULTIMODE, INC. - Confidential Instructions for J. Arnold, Multimode Arnold 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 .
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.