Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal
Corporate entrepreneurship (CE) strategies are widely recommended for established firms to solve growth- and economic performance-related problems that they encounter in highly competitive business environments. However, relatively little empirical light has been shed on practical CE strategy processes and how they function in the everyday lives of organizations. The case study presented herein addresses this underexplored issue by describing how one long-established firm in dire economic circumstances renewed its strategy, as related by an interview with the company's managing director. The analysis draws on the theoretical ideas of corporate entrepreneurship models and focuses on practical activities within the strategic renewal process: What did the case firm actually do to compensate for decreasing turnover and to improve its longer-term position in the market? The findings underscore the progressive, proactive, and impermanent nature of CE strategies; further, they suggest that firms need clients and other external partners with equally ambitious business objectives in order to successfully implement their CE strategies.
Swot Analysis of "Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal" written by Soili Peltola includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ce Entrepreneurship facing as an external strategic factors. Some of the topics covered in Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal case study are - Strategic Management Strategies, Competitive strategy, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal casestudy better are - – talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs,
increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ce Entrepreneurship, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ce Entrepreneurship 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 Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal can be done for the following purposes –
1. Strategic planning using facts provided in Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal case study
2. Improving business portfolio management of Ce Entrepreneurship
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 Ce Entrepreneurship
Strengths Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ce Entrepreneurship in Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal 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
– Ce Entrepreneurship is present in almost all the verticals within the industry. This has provided firm in Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal 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
– Ce Entrepreneurship has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal 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.
High switching costs
– The high switching costs that Ce Entrepreneurship 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.
Effective Research and Development (R&D)
– Ce Entrepreneurship has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Ce Entrepreneurship is one of the leading recruiters in the industry. Managers in the Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Ce Entrepreneurship 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.
Organizational Resilience of Ce Entrepreneurship
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ce Entrepreneurship does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Ce Entrepreneurship in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Ce Entrepreneurship has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ce Entrepreneurship to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Ce Entrepreneurship digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ce Entrepreneurship 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal firm has clearly differentiated products in the market place. This has enabled Ce Entrepreneurship to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Ce Entrepreneurship to invest into research and development (R&D) and innovation.
Weaknesses Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal are -
Skills based hiring
– The stress on hiring functional specialists at Ce Entrepreneurship has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High cash cycle compare to competitors
Ce Entrepreneurship 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.
Slow to strategic competitive environment developments
– As Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal HBR case study mentions - Ce Entrepreneurship 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.
Aligning sales with marketing
– It come across in the case study Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal 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 Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal can leverage the sales team experience to cultivate customer relationships as Ce Entrepreneurship is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Ce Entrepreneurship, firm in the HBR case study Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Ce Entrepreneurship 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Soili Peltola suggests that, Ce Entrepreneurship 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.
Products dominated business model
– Even though Ce Entrepreneurship 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 - Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Ce Entrepreneurship 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.
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 Ce Entrepreneurship supply chain. Even after few cautionary changes mentioned in the HBR case study - Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ce Entrepreneurship vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal 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 Ce Entrepreneurship 's lucrative customers.
Opportunities Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal | 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 Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal are -
Using analytics as competitive advantage
– Ce Entrepreneurship 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 Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ce Entrepreneurship to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Ce Entrepreneurship 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ce Entrepreneurship 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.
Loyalty marketing
– Ce Entrepreneurship 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ce Entrepreneurship 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ce Entrepreneurship can use these opportunities to build new business models that can help the communities that Ce Entrepreneurship operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Leveraging digital technologies
– Ce Entrepreneurship 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.
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 Ce Entrepreneurship in the consumer business. Now Ce Entrepreneurship can target international markets with far fewer capital restrictions requirements than the existing system.
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. Ce Entrepreneurship 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. Ce Entrepreneurship 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.
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. Ce Entrepreneurship can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ce Entrepreneurship 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, Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Ce Entrepreneurship has opened avenues for new revenue streams for the organization in the industry. This can help Ce Entrepreneurship to build a more holistic ecosystem as suggested in the Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal case study. Ce Entrepreneurship can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Ce Entrepreneurship 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.
Threats Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal are -
Shortening product life cycle
– it is one of the major threat that Ce Entrepreneurship is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal, Ce Entrepreneurship 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 .
Regulatory challenges
– Ce Entrepreneurship 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.
Environmental challenges
– Ce Entrepreneurship 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. Ce Entrepreneurship can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Ce Entrepreneurship.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ce Entrepreneurship with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Ce Entrepreneurship 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.
Stagnating economy with rate increase
– Ce Entrepreneurship can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Ce Entrepreneurship business can come under increasing regulations regarding data privacy, data security, etc.
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. Ce Entrepreneurship can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ce Entrepreneurship 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 Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ce Entrepreneurship 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.
Consumer confidence and its impact on Ce Entrepreneurship 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.
Weighted SWOT Analysis of Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal 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 Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal 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 Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal 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 Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal 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 Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal 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 Ce Entrepreneurship 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 Can an Old Firm learn New Tricks? A Corporate Entrepreneurship approach to Organizational Renewal
