Well-Timed Strategy: Managing the Business Cycle SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Well-Timed Strategy: Managing the Business Cycle
To manage the business cycle to gain competitive advantage over rivals, firms must develop a "business cycle orientation." Such an orientation must include five important capabilities: the "business cycle literacy" of the top management team; the skillful deployment of various forecasting tools; an organizational structure that facilitates the timely acquisition, processing, and dissemination of macroeconomic information; application of a set of business cycle-sensitive management principles; and an organizational culture that supports business cycle-sensitive management activities. Successfully managing the business cycle does not necessarily depend on the ability to forecast its movements accurately. Rather, all that is required in many cases is for a firm to strategically or tactically respond more swiftly than its rivals.
Swot Analysis of "Well-Timed Strategy: Managing the Business Cycle" written by Peter Navarro includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cycle Orientation facing as an external strategic factors. Some of the topics covered in Well-Timed Strategy: Managing the Business Cycle case study are - Strategic Management Strategies, Forecasting, IT, Organizational culture, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Well-Timed Strategy: Managing the Business Cycle casestudy better are - – increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, wage bills are increasing, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google,
talent flight as more people leaving formal jobs, there is backlash against globalization, etc
Introduction to SWOT Analysis of Well-Timed Strategy: Managing the Business Cycle
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Well-Timed Strategy: Managing the Business Cycle case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cycle Orientation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cycle Orientation 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 Well-Timed Strategy: Managing the Business Cycle can be done for the following purposes –
1. Strategic planning using facts provided in Well-Timed Strategy: Managing the Business Cycle case study
2. Improving business portfolio management of Cycle Orientation
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 Cycle Orientation
Strengths Well-Timed Strategy: Managing the Business Cycle | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cycle Orientation in Well-Timed Strategy: Managing the Business Cycle Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Cycle Orientation is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Cycle Orientation in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Well-Timed Strategy: Managing the Business Cycle 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.
High switching costs
– The high switching costs that Cycle Orientation 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.
Cross disciplinary teams
– Horizontal connected teams at the Cycle Orientation 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.
Innovation driven organization
– Cycle Orientation is one of the most innovative firm in sector. Manager in Well-Timed Strategy: Managing the Business Cycle Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Cycle Orientation is one of the leading recruiters in the industry. Managers in the Well-Timed Strategy: Managing the Business Cycle are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Cycle Orientation is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– Well-Timed Strategy: Managing the Business Cycle firm has clearly differentiated products in the market place. This has enabled Cycle Orientation to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Cycle Orientation to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Cycle Orientation 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 Well-Timed Strategy: Managing the Business Cycle - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Cycle Orientation has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Well-Timed Strategy: Managing the Business Cycle 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.
Diverse revenue streams
– Cycle Orientation is present in almost all the verticals within the industry. This has provided firm in Well-Timed Strategy: Managing the Business Cycle 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Cycle Orientation digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cycle Orientation 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.
Weaknesses Well-Timed Strategy: Managing the Business Cycle | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Well-Timed Strategy: Managing the Business Cycle are -
High operating costs
– Compare to the competitors, firm in the HBR case study Well-Timed Strategy: Managing the Business Cycle 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 Cycle Orientation 's lucrative customers.
Interest costs
– Compare to the competition, Cycle Orientation 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Cycle Orientation 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 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 Cycle Orientation supply chain. Even after few cautionary changes mentioned in the HBR case study - Well-Timed Strategy: Managing the Business Cycle, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cycle Orientation vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Cycle Orientation is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Cycle Orientation needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cycle Orientation to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Cycle Orientation products
– To increase the profitability and margins on the products, Cycle Orientation needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Cycle Orientation 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.
Aligning sales with marketing
– It come across in the case study Well-Timed Strategy: Managing the Business Cycle 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 Well-Timed Strategy: Managing the Business Cycle can leverage the sales team experience to cultivate customer relationships as Cycle Orientation is planning to shift buying processes online.
High cash cycle compare to competitors
Cycle Orientation 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cycle Orientation is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Well-Timed Strategy: Managing the Business Cycle can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Well-Timed Strategy: Managing the Business Cycle, in the dynamic environment Cycle Orientation has struggled to respond to the nimble upstart competition. Cycle Orientation has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Well-Timed Strategy: Managing the Business Cycle | 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 Well-Timed Strategy: Managing the Business Cycle are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cycle Orientation 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.
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 Cycle Orientation 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.
Leveraging digital technologies
– Cycle Orientation 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.
Creating value in data economy
– The success of analytics program of Cycle Orientation has opened avenues for new revenue streams for the organization in the industry. This can help Cycle Orientation to build a more holistic ecosystem as suggested in the Well-Timed Strategy: Managing the Business Cycle case study. Cycle Orientation can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Cycle Orientation can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cycle Orientation is facing challenges because of the dominance of functional experts in the organization. Well-Timed Strategy: Managing the Business Cycle 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.
Loyalty marketing
– Cycle Orientation 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.
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 Cycle Orientation in the consumer business. Now Cycle Orientation can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Cycle Orientation 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.
Learning at scale
– Online learning technologies has now opened space for Cycle Orientation 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.
Buying journey improvements
– Cycle Orientation can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Well-Timed Strategy: Managing the Business Cycle 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.
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. Cycle Orientation 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. Cycle Orientation 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cycle Orientation 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 Cycle Orientation to hire the very best people irrespective of their geographical location.
Threats Well-Timed Strategy: Managing the Business Cycle External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Well-Timed Strategy: Managing the Business Cycle are -
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. Cycle Orientation needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Increasing wage structure of Cycle Orientation
– 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 Cycle Orientation.
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. Cycle Orientation 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.
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 Cycle Orientation in the Strategy & Execution sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Cycle Orientation has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Cycle Orientation 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.
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 Cycle Orientation business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cycle Orientation 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 Well-Timed Strategy: Managing the Business Cycle .
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 Cycle Orientation.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Well-Timed Strategy: Managing the Business Cycle, Cycle Orientation 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cycle Orientation 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
– Cycle Orientation 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.
Shortening product life cycle
– it is one of the major threat that Cycle Orientation 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 Well-Timed Strategy: Managing the Business Cycle 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 Well-Timed Strategy: Managing the Business Cycle 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 Well-Timed Strategy: Managing the Business Cycle 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 Well-Timed Strategy: Managing the Business Cycle 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 Well-Timed Strategy: Managing the Business Cycle 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 Cycle Orientation needs to make to build a sustainable competitive advantage.