PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting
In May 2002, Stephen Langley, CIO of Asia Pacific, PwC Consulting, and his counterparts in the United States and Europe were engaged in pressing issues pertaining to the separation of the fabric of the KnowledgeCurve, the lifeline of the firm, in preparation for a spinoff scheduled for early August. The KnowledgeCurve was an Intranet system that supported the daily business activities of the entire firm. With the emergence of newer technologies and Internet-based applications, it seemed illogical to duplicate the legacy infrastructure upon which the KnowledgeCurve had been built. Furthermore, consulting staff were constantly pushing for newer functionalities that would, for example, allow them to access and retrieve information not only from PwC's knowledge base, but also from the wealth of external information service providers. In response to these changes and emerging demands, PwC Consulting started working on a portal, to be launched in Q4 2002, that would encompass the Intranet as it existed at the time. The migration from the legacy infrastructure posed a few technological challenges. Should it adopt a full portal integration approach, buy middleware to enable the integration of certain applications, or simply link the existing KnowledgeCurve to the portal to provide data access? Other issues arising from the spin-off needing resolution included ownership of intellectual property rights.
Swot Analysis of "PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting" written by Ali F. Farhoomand, Pauline Ng includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Knowledgecurve Pwc facing as an external strategic factors. Some of the topics covered in PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting case study are - Strategic Management Strategies, IT and Strategy & Execution.
Some of the macro environment factors that can be used to understand the PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting casestudy better are - – increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, wage bills are increasing, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, increasing energy prices,
customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Knowledgecurve Pwc, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Knowledgecurve Pwc 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 PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting can be done for the following purposes –
1. Strategic planning using facts provided in PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting case study
2. Improving business portfolio management of Knowledgecurve Pwc
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 Knowledgecurve Pwc
Strengths PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Knowledgecurve Pwc in PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting Harvard Business Review case study are -
High brand equity
– Knowledgecurve Pwc has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Knowledgecurve Pwc to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Knowledgecurve Pwc in the sector have low bargaining power. PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Knowledgecurve Pwc to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Knowledgecurve Pwc is one of the most innovative firm in sector. Manager in PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting 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.
Diverse revenue streams
– Knowledgecurve Pwc is present in almost all the verticals within the industry. This has provided firm in PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting 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.
Training and development
– Knowledgecurve Pwc has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting 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.
Highly skilled collaborators
– Knowledgecurve Pwc 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 PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Strategy & Execution field
– Knowledgecurve Pwc 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 Knowledgecurve Pwc in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Knowledgecurve Pwc digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Knowledgecurve Pwc 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.
Analytics focus
– Knowledgecurve Pwc 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 Ali F. Farhoomand, Pauline Ng 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.
Ability to recruit top talent
– Knowledgecurve Pwc is one of the leading recruiters in the industry. Managers in the PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting 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 switching costs
– The high switching costs that Knowledgecurve Pwc has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting, it seems that the employees of Knowledgecurve Pwc 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, Knowledgecurve Pwc 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.
No frontier risks strategy
– After analyzing the HBR case study PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting, 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.
Slow to strategic competitive environment developments
– As PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting HBR case study mentions - Knowledgecurve Pwc 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.
Need for greater diversity
– Knowledgecurve Pwc 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting, in the dynamic environment Knowledgecurve Pwc has struggled to respond to the nimble upstart competition. Knowledgecurve Pwc 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 Knowledgecurve Pwc 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 - PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting, is just above the industry average. Knowledgecurve Pwc 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Ali F. Farhoomand, Pauline Ng suggests that, Knowledgecurve Pwc 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 decision making process
– As mentioned earlier in the report, Knowledgecurve Pwc 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. Knowledgecurve Pwc 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.
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 Knowledgecurve Pwc supply chain. Even after few cautionary changes mentioned in the HBR case study - PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Knowledgecurve Pwc vulnerable to further global disruptions in South East Asia.
Opportunities PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting | 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 PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting are -
Using analytics as competitive advantage
– Knowledgecurve Pwc 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 PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Knowledgecurve Pwc to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Knowledgecurve Pwc 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.
Creating value in data economy
– The success of analytics program of Knowledgecurve Pwc has opened avenues for new revenue streams for the organization in the industry. This can help Knowledgecurve Pwc to build a more holistic ecosystem as suggested in the PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting case study. Knowledgecurve Pwc can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Knowledgecurve Pwc 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Knowledgecurve Pwc can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Knowledgecurve Pwc 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.
Learning at scale
– Online learning technologies has now opened space for Knowledgecurve Pwc 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.
Loyalty marketing
– Knowledgecurve Pwc 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Knowledgecurve Pwc is facing challenges because of the dominance of functional experts in the organization. PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Knowledgecurve Pwc 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Knowledgecurve Pwc 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, PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Knowledgecurve Pwc can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Knowledgecurve Pwc in the consumer business. Now Knowledgecurve Pwc can target international markets with far fewer capital restrictions requirements than the existing system.
Threats PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting are -
Stagnating economy with rate increase
– Knowledgecurve Pwc 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.
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. Knowledgecurve Pwc needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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. Knowledgecurve Pwc 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.
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 Knowledgecurve Pwc.
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 Knowledgecurve Pwc business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Knowledgecurve Pwc 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.
Regulatory challenges
– Knowledgecurve Pwc 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Knowledgecurve Pwc 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 PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting, Knowledgecurve Pwc 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 .
Environmental challenges
– Knowledgecurve Pwc 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. Knowledgecurve Pwc can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Knowledgecurve Pwc 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.
Weighted SWOT Analysis of PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting 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 PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting 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 PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting 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 PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting 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 PricewaterhouseCoopers KnowledgeCurve and the Spinning Off of PwC Consulting 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 Knowledgecurve Pwc needs to make to build a sustainable competitive advantage.