Swot Analysis of "Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP)" written by Tarun Khanna, Stephanie R. Khurana, Robyn C. Davis includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Exercise Gmp facing as an external strategic factors. Some of the topics covered in Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) casestudy better are - – geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, wage bills are increasing, supply chains are disrupted by pandemic ,
central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Exercise Gmp, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Exercise Gmp 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 Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) can be done for the following purposes –
1. Strategic planning using facts provided in Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) case study
2. Improving business portfolio management of Exercise Gmp
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 Exercise Gmp
Strengths Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Exercise Gmp in Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) Harvard Business Review case study are -
Diverse revenue streams
– Exercise Gmp is present in almost all the verticals within the industry. This has provided firm in Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) 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.
Operational resilience
– The operational resilience strategy in the Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) 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.
Innovation driven organization
– Exercise Gmp is one of the most innovative firm in sector. Manager in Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Exercise Gmp 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 Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) - 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
– Exercise Gmp has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) 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 recruit top talent
– Exercise Gmp is one of the leading recruiters in the industry. Managers in the Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Exercise Gmp 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 Exercise Gmp is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Strategy & Execution industry
– Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) firm has clearly differentiated products in the market place. This has enabled Exercise Gmp to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Exercise Gmp to invest into research and development (R&D) and innovation.
Analytics focus
– Exercise Gmp is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Tarun Khanna, Stephanie R. Khurana, Robyn C. Davis can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Superior customer experience
– The customer experience strategy of Exercise Gmp in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Exercise Gmp has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Exercise Gmp to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Exercise Gmp 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.
Weaknesses Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) are -
Increasing silos among functional specialists
– The organizational structure of Exercise Gmp is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Exercise Gmp needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Exercise Gmp to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP), in the dynamic environment Exercise Gmp has struggled to respond to the nimble upstart competition. Exercise Gmp has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) 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 Exercise Gmp 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Exercise Gmp 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.
Aligning sales with marketing
– It come across in the case study Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) 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 Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) can leverage the sales team experience to cultivate customer relationships as Exercise Gmp is planning to shift buying processes online.
Products dominated business model
– Even though Exercise Gmp has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Exercise Gmp 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.
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 Exercise Gmp supply chain. Even after few cautionary changes mentioned in the HBR case study - Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Exercise Gmp vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Exercise Gmp, firm in the HBR case study Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP), is just above the industry average. Exercise Gmp 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 Exercise Gmp products
– To increase the profitability and margins on the products, Exercise Gmp needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) | 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 Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Exercise Gmp 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, Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Exercise Gmp 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 Exercise Gmp has opened avenues for new revenue streams for the organization in the industry. This can help Exercise Gmp to build a more holistic ecosystem as suggested in the Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) case study. Exercise Gmp can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Exercise Gmp 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Exercise Gmp 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 Exercise Gmp to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Exercise Gmp 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.
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 Exercise Gmp 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.
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. Exercise Gmp can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Exercise Gmp can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) 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.
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. Exercise Gmp can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Exercise Gmp is facing challenges because of the dominance of functional experts in the organization. Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) 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.
Using analytics as competitive advantage
– Exercise Gmp 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 Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Exercise Gmp to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Exercise Gmp to increase its market reach. Exercise Gmp 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.
Threats Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) 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. Exercise Gmp needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Exercise Gmp 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.
Technology acceleration in Forth Industrial Revolution
– Exercise Gmp has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Exercise Gmp 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.
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 Exercise Gmp.
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 Exercise Gmp business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Exercise Gmp 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. Exercise Gmp can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Exercise Gmp can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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. Exercise Gmp 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.
High dependence on third party suppliers
– Exercise Gmp 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.
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 Exercise Gmp in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Exercise Gmp is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Exercise Gmp
– 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 Exercise Gmp.
Weighted SWOT Analysis of Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) 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 Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) 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 Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) 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 Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) 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 Your Strategy--A Strategy Formulation Exercise for the General Management Program (GMP) 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 Exercise Gmp needs to make to build a sustainable competitive advantage.
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