Building a Capable Organization: The Eight Levers of Strategy Implementation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Building a Capable Organization: The Eight Levers of Strategy Implementation
The habitual mode of poor strategy implementation shaping the next round of strategy formulation weakens the subsequent planning cycle. Unfortunately, decades of company interactions consisting of research, teaching, and consulting suggest that strategy implementation has become a catchall of phrases and recommendations, with little clarity as to what comprises this necessary cornerstone of a capable organization. Strategists tend to use powerful terminology when referring to implementation efforts. Descriptors such as killers, confrontation, and engagement are linked with actions like conquering, blocking, tackling, and honing when discussing strategy implementation. Our contention is that implementation is a critical cornerstone or ally in the building of a capable organization, and the use of the appropriate levers of implementation is the pivotal hinge in the development of the organization. Ultimately, strategy implementation helps create the future, not inhibit it.
Authors :: William F. Crittenden, Victoria L. Crittenden
Swot Analysis of "Building a Capable Organization: The Eight Levers of Strategy Implementation" written by William F. Crittenden, Victoria L. Crittenden includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Implementation Capable facing as an external strategic factors. Some of the topics covered in Building a Capable Organization: The Eight Levers of Strategy Implementation case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Building a Capable Organization: The Eight Levers of Strategy Implementation casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption,
supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Building a Capable Organization: The Eight Levers of Strategy Implementation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Building a Capable Organization: The Eight Levers of Strategy Implementation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Implementation Capable, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Implementation Capable 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 Building a Capable Organization: The Eight Levers of Strategy Implementation can be done for the following purposes –
1. Strategic planning using facts provided in Building a Capable Organization: The Eight Levers of Strategy Implementation case study
2. Improving business portfolio management of Implementation Capable
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 Implementation Capable
Strengths Building a Capable Organization: The Eight Levers of Strategy Implementation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Implementation Capable in Building a Capable Organization: The Eight Levers of Strategy Implementation Harvard Business Review case study are -
Highly skilled collaborators
– Implementation Capable 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 Building a Capable Organization: The Eight Levers of Strategy Implementation HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Implementation Capable has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Implementation Capable 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.
Cross disciplinary teams
– Horizontal connected teams at the Implementation Capable 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 brand equity
– Implementation Capable has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Implementation Capable to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Implementation Capable in the sector have low bargaining power. Building a Capable Organization: The Eight Levers of Strategy Implementation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Implementation Capable to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Implementation Capable is present in almost all the verticals within the industry. This has provided firm in Building a Capable Organization: The Eight Levers of Strategy Implementation case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Training and development
– Implementation Capable has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Building a Capable Organization: The Eight Levers of Strategy Implementation 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.
Ability to lead change in Strategy & Execution field
– Implementation Capable 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 Implementation Capable in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Implementation Capable 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 Building a Capable Organization: The Eight Levers of Strategy Implementation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Implementation Capable is one of the most innovative firm in sector. Manager in Building a Capable Organization: The Eight Levers of Strategy Implementation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Implementation Capable is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Implementation Capable 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 Implementation Capable is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Building a Capable Organization: The Eight Levers of Strategy Implementation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Building a Capable Organization: The Eight Levers of Strategy Implementation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Building a Capable Organization: The Eight Levers of Strategy Implementation are -
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 Implementation Capable supply chain. Even after few cautionary changes mentioned in the HBR case study - Building a Capable Organization: The Eight Levers of Strategy Implementation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Implementation Capable vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Implementation Capable 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.
Interest costs
– Compare to the competition, Implementation Capable 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.
Aligning sales with marketing
– It come across in the case study Building a Capable Organization: The Eight Levers of Strategy Implementation 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 Building a Capable Organization: The Eight Levers of Strategy Implementation can leverage the sales team experience to cultivate customer relationships as Implementation Capable is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Building a Capable Organization: The Eight Levers of Strategy Implementation 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 Implementation Capable 's lucrative customers.
Slow to strategic competitive environment developments
– As Building a Capable Organization: The Eight Levers of Strategy Implementation HBR case study mentions - Implementation Capable takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Capital Spending Reduction
– Even during the low interest decade, Implementation Capable 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.
No frontier risks strategy
– After analyzing the HBR case study Building a Capable Organization: The Eight Levers of Strategy Implementation, 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Building a Capable Organization: The Eight Levers of Strategy Implementation, it seems that the employees of Implementation Capable 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Building a Capable Organization: The Eight Levers of Strategy Implementation, is just above the industry average. Implementation Capable 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.
Lack of clear differentiation of Implementation Capable products
– To increase the profitability and margins on the products, Implementation Capable needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Building a Capable Organization: The Eight Levers of Strategy Implementation | 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 Building a Capable Organization: The Eight Levers of Strategy Implementation are -
Leveraging digital technologies
– Implementation Capable 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.
Building a culture of innovation
– managers at Implementation Capable 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 Implementation Capable to increase its market reach. Implementation Capable 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.
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 Implementation Capable in the consumer business. Now Implementation Capable can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Implementation Capable 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 Building a Capable Organization: The Eight Levers of Strategy Implementation - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Implementation Capable to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Implementation Capable 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.
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. Implementation Capable can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Implementation Capable 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.
Loyalty marketing
– Implementation Capable 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.
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. Implementation Capable can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Implementation Capable 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Implementation Capable 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 Implementation Capable to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Implementation Capable 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.
Threats Building a Capable Organization: The Eight Levers of Strategy Implementation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Building a Capable Organization: The Eight Levers of Strategy Implementation are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Implementation Capable with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Implementation Capable 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Implementation Capable 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 Building a Capable Organization: The Eight Levers of Strategy Implementation .
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 Implementation Capable business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Implementation Capable 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.
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. Implementation Capable 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.
Environmental challenges
– Implementation Capable 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. Implementation Capable 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 Implementation Capable.
Regulatory challenges
– Implementation Capable 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.
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. Implementation Capable can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Implementation Capable
– 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 Implementation Capable.
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.
High dependence on third party suppliers
– Implementation Capable 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.
Weighted SWOT Analysis of Building a Capable Organization: The Eight Levers of Strategy Implementation 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 Building a Capable Organization: The Eight Levers of Strategy Implementation 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 Building a Capable Organization: The Eight Levers of Strategy Implementation 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 Building a Capable Organization: The Eight Levers of Strategy Implementation 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 Building a Capable Organization: The Eight Levers of Strategy Implementation 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 Implementation Capable needs to make to build a sustainable competitive advantage.