Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged)
To maximize their effectiveness, color cases should be printed in color.Since the 1970s, the Minneapolis-St. Paul metropolitan region (MSP) had outpaced the nation in job creation and income per capita. MSP's diversified base of industry clusters had enabled the region to adapt to economic downturns and an exodus of major corporate headquarters, earning it the accolade "Minnesota Miracle." Starting in 2003, however, MSP lagged the rest of the U.S. in job creation (see Exhibit 1). Alarmed business and civic leaders coalesced around a loose-knit group that congregated annually as the Itasca Project. In 2009 these leaders launched the Itasca Jobs Task Force, and its 2010 report set in motion a series of actions by groups of CEOs and politicians aimed at reversing these trends by creating jobs in all sectors of the economy. In the fall of 2011, however, it was unclear whether these efforts would achieve their intended results (see Exhibit 2), or whether longer-term corrective actions in education and skills training would need to take hold first.
Swot Analysis of "Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged)" written by William W. George includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Itasca Msp facing as an external strategic factors. Some of the topics covered in Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) case study are - Strategic Management Strategies, Economy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing commodity prices, increasing energy prices, etc
Introduction to SWOT Analysis of Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Itasca Msp, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Itasca Msp 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 Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) can be done for the following purposes –
1. Strategic planning using facts provided in Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) case study
2. Improving business portfolio management of Itasca Msp
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 Itasca Msp
Strengths Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Itasca Msp in Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Itasca Msp 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 switching costs
– The high switching costs that Itasca Msp 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.
Operational resilience
– The operational resilience strategy in the Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) 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.
Effective Research and Development (R&D)
– Itasca Msp 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 Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Itasca Msp in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Itasca Msp in the sector have low bargaining power. Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Itasca Msp to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Itasca Msp has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Itasca Msp 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.
Analytics focus
– Itasca Msp 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 William W. George 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.
Diverse revenue streams
– Itasca Msp is present in almost all the verticals within the industry. This has provided firm in Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) 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.
Learning organization
- Itasca Msp 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 Itasca Msp is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Itasca Msp digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Itasca Msp 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.
Highly skilled collaborators
– Itasca Msp 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 Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) are -
Low market penetration in new markets
– Outside its home market of Itasca Msp, firm in the HBR case study Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged), is just above the industry average. Itasca Msp 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) 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 Itasca Msp has relatively successful track record of launching new products.
Need for greater diversity
– Itasca Msp 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.
Capital Spending Reduction
– Even during the low interest decade, Itasca Msp 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 cash cycle compare to competitors
Itasca Msp has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High 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 Itasca Msp supply chain. Even after few cautionary changes mentioned in the HBR case study - Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Itasca Msp vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Itasca Msp 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. Itasca Msp 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged), in the dynamic environment Itasca Msp has struggled to respond to the nimble upstart competition. Itasca Msp has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Itasca Msp is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Itasca Msp needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Itasca Msp to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Itasca Msp products
– To increase the profitability and margins on the products, Itasca Msp needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) | 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 Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Itasca Msp is facing challenges because of the dominance of functional experts in the organization. Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Itasca Msp 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 Itasca Msp to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Itasca Msp 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, Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Itasca Msp 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. Itasca Msp 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.
Buying journey improvements
– Itasca Msp can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) 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.
Learning at scale
– Online learning technologies has now opened space for Itasca Msp 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.
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 Itasca Msp 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Itasca Msp 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.
Building a culture of innovation
– managers at Itasca Msp 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 Itasca Msp to increase its market reach. Itasca Msp 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Itasca Msp can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Itasca Msp in the consumer business. Now Itasca Msp can target international markets with far fewer capital restrictions requirements than the existing system.
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. Itasca Msp can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) are -
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. Itasca Msp can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Itasca Msp needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Itasca Msp 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 Itasca Msp with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Itasca Msp 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. Itasca Msp 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 Itasca Msp.
Shortening product life cycle
– it is one of the major threat that Itasca Msp is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Itasca Msp business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Itasca Msp 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged), Itasca Msp may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Consumer confidence and its impact on Itasca Msp demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Itasca Msp 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 Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Itasca Msp 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 Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) 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 Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) 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 Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) 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 Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) 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 Greater Minneapolis-St. Paul: Building on a Diversified Base (Abridged) 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 Itasca Msp needs to make to build a sustainable competitive advantage.