Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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Case Study SWOT Analysis Solution
Case Study Description of Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City
In the late 1990s, the leadership of Neighborhood Conservation Services (NCS) of Barberton, Ohio--a nonprofit housing rehabilitation organization founded two decades earlier to help reverse the decline of this aging industrial city--found its once popular mission had suddenly become politically controversial. The long unassailable idea of using public funds to target low-interest loans to lower-income homeowners was being questioned by elected officials in the city of 28,000, officials concerned that limiting loans to those of low-income--in conjunction with a concentration of public housing and rent subsidies--might make Barberton a "magnet" for low-income households. A mayor intent on reviving the city's tax base and attracting and retaining the middle class challenged NCS to demonstrate how its policies could help the city. This new political climate posed a difficult and crucial strategic challenge for the organization--which relied on funds voted by the City Council for the overwhelming majority of its budget. NCS, believed its leadership, would have to find ways to reconcile its mission with the new political climate in town or find a new way to fund its programs--or simply close up shop. This nonprofit management case is meant to allow for discussion of how organizational strategy should adapt to political change. In particular, it raises the question of the extent and nature of the obligation of those receiving public funds to defer to elected officials. The case can also be used in discussion of housing policy per se, to explore the question of when and where housing subsidies are appropriate. HKS Case Number 1707.0
Authors :: Howard Husock, David Brown, Christine W. Letts
Swot Analysis of "Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City" written by Howard Husock, David Brown, Christine W. Letts includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Barberton Ncs facing as an external strategic factors. Some of the topics covered in Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City case study are - Strategic Management Strategies, Financial management, International business, Organizational structure, Policy, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, technology disruption, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels,
increasing government debt because of Covid-19 spendings, there is backlash against globalization, etc
Introduction to SWOT Analysis of Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Barberton Ncs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Barberton Ncs 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 Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City can be done for the following purposes –
1. Strategic planning using facts provided in Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City case study
2. Improving business portfolio management of Barberton Ncs
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 Barberton Ncs
Strengths Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Barberton Ncs in Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City Harvard Business Review case study are -
Successful track record of launching new products
– Barberton Ncs has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Barberton Ncs 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.
Organizational Resilience of Barberton Ncs
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Barberton Ncs does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Barberton Ncs is present in almost all the verticals within the industry. This has provided firm in Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City 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.
Effective Research and Development (R&D)
– Barberton Ncs 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 Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Barberton Ncs 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 Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Barberton Ncs has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Barberton Ncs to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Barberton Ncs is one of the leading recruiters in the industry. Managers in the Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Barberton Ncs in the sector have low bargaining power. Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Barberton Ncs to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Barberton Ncs is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Barberton Ncs is one of the most innovative firm in sector. Manager in Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Strategy & Execution industry
– Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City firm has clearly differentiated products in the market place. This has enabled Barberton Ncs to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Barberton Ncs to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Barberton Ncs 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.
Weaknesses Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City are -
Low market penetration in new markets
– Outside its home market of Barberton Ncs, firm in the HBR case study Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City, it seems that the employees of Barberton Ncs 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City, in the dynamic environment Barberton Ncs has struggled to respond to the nimble upstart competition. Barberton Ncs has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Barberton Ncs supply chain. Even after few cautionary changes mentioned in the HBR case study - Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Barberton Ncs vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Barberton Ncs is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Barberton Ncs has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High bargaining power of channel partners
– Because of the regulatory requirements, Howard Husock, David Brown, Christine W. Letts suggests that, Barberton Ncs 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City, is just above the industry average. Barberton Ncs 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.
Aligning sales with marketing
– It come across in the case study Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City 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 Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City can leverage the sales team experience to cultivate customer relationships as Barberton Ncs is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Barberton Ncs 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.
Skills based hiring
– The stress on hiring functional specialists at Barberton Ncs 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.
Opportunities Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City | 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 Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City are -
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 Barberton Ncs in the consumer business. Now Barberton Ncs can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Barberton Ncs can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Barberton Ncs is facing challenges because of the dominance of functional experts in the organization. Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City 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.
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 Barberton Ncs 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Barberton Ncs 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 Barberton Ncs 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
– Barberton Ncs 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Barberton Ncs 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, Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City, 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 Barberton Ncs 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 Barberton Ncs to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Barberton Ncs 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 Barberton Ncs to increase its market reach. Barberton Ncs 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.
Manufacturing automation
– Barberton Ncs 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.
Loyalty marketing
– Barberton Ncs 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.
Threats Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Barberton Ncs 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.
Regulatory challenges
– Barberton Ncs 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.
Stagnating economy with rate increase
– Barberton Ncs 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.
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. Barberton Ncs needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City, Barberton Ncs 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 .
Increasing wage structure of Barberton Ncs
– 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 Barberton Ncs.
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 Barberton Ncs.
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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Barberton Ncs in the Strategy & Execution sector and impact the bottomline of the organization.
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. Barberton Ncs 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Barberton Ncs 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 Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Barberton Ncs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Barberton Ncs is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City 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 Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City 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 Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City 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 Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City 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 Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City 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 Barberton Ncs needs to make to build a sustainable competitive advantage.
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