A Strategic Risk Approach to Knowledge Management SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of A Strategic Risk Approach to Knowledge Management
In today's business environment, strong forces of competition and globalization have created an urgency to focus how an organization controls and nurtures its intellectual capital. The concept of knowledge and its management has gained currency and momentum as technology has enabled thoughts and ideas to be more easily generated and distributed. With an increased application of technologies such as Internet, customer relationship management (CRM), and advanced software capabilities, it has been suggested the time has come for discussion of a new paradigm for knowledge management. Toward that end, this article examines the knowledge literature and reviews the experience of a leading private health care group, with the objective of gaining a better understanding of the issues that confront effective knowledge management in contemporary organizations. Finally, a tentative knowledge process model is developed herein, one which is intended to guide future discussion in the ongoing knowledge debate.
Swot Analysis of "A Strategic Risk Approach to Knowledge Management" written by Bruce E Perrott includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Knowledge Nurtures facing as an external strategic factors. Some of the topics covered in A Strategic Risk Approach to Knowledge Management case study are - Strategic Management Strategies, Knowledge management, Risk management and Strategy & Execution.
Some of the macro environment factors that can be used to understand the A Strategic Risk Approach to Knowledge Management casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, technology disruption, central banks are concerned over increasing inflation, geopolitical disruptions, increasing energy prices, there is increasing trade war between United States & China,
increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of A Strategic Risk Approach to Knowledge Management
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in A Strategic Risk Approach to Knowledge Management case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Knowledge Nurtures, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Knowledge Nurtures 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 A Strategic Risk Approach to Knowledge Management can be done for the following purposes –
1. Strategic planning using facts provided in A Strategic Risk Approach to Knowledge Management case study
2. Improving business portfolio management of Knowledge Nurtures
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 Knowledge Nurtures
Strengths A Strategic Risk Approach to Knowledge Management | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Knowledge Nurtures in A Strategic Risk Approach to Knowledge Management Harvard Business Review case study are -
Effective Research and Development (R&D)
– Knowledge Nurtures 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 A Strategic Risk Approach to Knowledge Management - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the A Strategic Risk Approach to Knowledge Management 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.
Superior customer experience
– The customer experience strategy of Knowledge Nurtures in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Knowledge Nurtures 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.
Innovation driven organization
– Knowledge Nurtures is one of the most innovative firm in sector. Manager in A Strategic Risk Approach to Knowledge Management Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Knowledge Nurtures has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Knowledge Nurtures 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.
Training and development
– Knowledge Nurtures has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in A Strategic Risk Approach to Knowledge Management 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.
Sustainable margins compare to other players in Strategy & Execution industry
– A Strategic Risk Approach to Knowledge Management firm has clearly differentiated products in the market place. This has enabled Knowledge Nurtures to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Knowledge Nurtures to invest into research and development (R&D) and innovation.
High brand equity
– Knowledge Nurtures has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Knowledge Nurtures to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Knowledge Nurtures is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Knowledge Nurtures
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Knowledge Nurtures does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Knowledge Nurtures 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 A Strategic Risk Approach to Knowledge Management HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses A Strategic Risk Approach to Knowledge Management | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of A Strategic Risk Approach to Knowledge Management are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study A Strategic Risk Approach to Knowledge Management, it seems that the employees of Knowledge Nurtures 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.
Interest costs
– Compare to the competition, Knowledge Nurtures 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 cash cycle compare to competitors
Knowledge Nurtures 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 bargaining power of channel partners
– Because of the regulatory requirements, Bruce E Perrott suggests that, Knowledge Nurtures 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Knowledge Nurtures 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the A Strategic Risk Approach to Knowledge Management 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 Knowledge Nurtures has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study A Strategic Risk Approach to Knowledge Management, is just above the industry average. Knowledge Nurtures 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.
No frontier risks strategy
– After analyzing the HBR case study A Strategic Risk Approach to Knowledge Management, 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.
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 Knowledge Nurtures supply chain. Even after few cautionary changes mentioned in the HBR case study - A Strategic Risk Approach to Knowledge Management, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Knowledge Nurtures vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Knowledge Nurtures, firm in the HBR case study A Strategic Risk Approach to Knowledge Management needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Knowledge Nurtures is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study A Strategic Risk Approach to Knowledge Management can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities A Strategic Risk Approach to Knowledge Management | 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 A Strategic Risk Approach to Knowledge Management are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Knowledge Nurtures is facing challenges because of the dominance of functional experts in the organization. A Strategic Risk Approach to Knowledge Management 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, Knowledge Nurtures 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.
Developing new processes and practices
– Knowledge Nurtures 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Knowledge Nurtures 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.
Learning at scale
– Online learning technologies has now opened space for Knowledge Nurtures 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.
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. Knowledge Nurtures can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Knowledge Nurtures 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Knowledge Nurtures 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 Knowledge Nurtures to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Knowledge Nurtures to increase its market reach. Knowledge Nurtures 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.
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. Knowledge Nurtures can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Knowledge Nurtures 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.
Using analytics as competitive advantage
– Knowledge Nurtures 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 A Strategic Risk Approach to Knowledge Management - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Knowledge Nurtures to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Knowledge Nurtures 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. Knowledge Nurtures 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.
Threats A Strategic Risk Approach to Knowledge Management External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study A Strategic Risk Approach to Knowledge Management are -
Increasing wage structure of Knowledge Nurtures
– 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 Knowledge Nurtures.
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.
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. Knowledge Nurtures 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 A Strategic Risk Approach to Knowledge Management, Knowledge Nurtures 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 .
High dependence on third party suppliers
– Knowledge Nurtures 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.
Environmental challenges
– Knowledge Nurtures 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. Knowledge Nurtures can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Consumer confidence and its impact on Knowledge Nurtures 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Knowledge Nurtures with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Knowledge Nurtures 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 A Strategic Risk Approach to Knowledge Management .
Technology acceleration in Forth Industrial Revolution
– Knowledge Nurtures has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Knowledge Nurtures needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Knowledge Nurtures 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.
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. Knowledge Nurtures 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.
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 Knowledge Nurtures in the Strategy & Execution sector and impact the bottomline of the organization.
Weighted SWOT Analysis of A Strategic Risk Approach to Knowledge Management 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 A Strategic Risk Approach to Knowledge Management 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 A Strategic Risk Approach to Knowledge Management 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 A Strategic Risk Approach to Knowledge Management 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 A Strategic Risk Approach to Knowledge Management 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 Knowledge Nurtures needs to make to build a sustainable competitive advantage.
