Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies

Strategy requires multiple definitions to fully appreciate its implications. Accordingly, this article proposes five definitions--strategy as plan, ploy, pattern, position, and perspective--and analyzes how these definitions interrelate. Part II reconsiders the question of why organizations really do need strategies, and also shows how some long-held beliefs explain why organizations don't, as well as do, need strategies. It considers the needs for strategy to set direction, focus effort, define the organization, and provide consistency.

Authors :: Henry Mintzberg

Topics :: Strategy & Execution

Tags :: Strategy execution, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies" written by Henry Mintzberg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Definitions Ii facing as an external strategic factors. Some of the topics covered in Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies case study are - Strategic Management Strategies, Strategy execution and Strategy & Execution.

Some of the macro environment factors that can be used to understand the Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, etc

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Introduction to SWOT Analysis of Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Definitions Ii, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Definitions Ii 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies can be done for the following purposes –
1. Strategic planning using facts provided in Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies case study
2. Improving business portfolio management of Definitions Ii
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 Definitions Ii

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Strengths Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Definitions Ii in Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies Harvard Business Review case study are -

Diverse revenue streams

– Definitions Ii is present in almost all the verticals within the industry. This has provided firm in Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies 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.

High switching costs

– The high switching costs that Definitions Ii 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.

Superior customer experience

– The customer experience strategy of Definitions Ii in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Ability to recruit top talent

– Definitions Ii is one of the leading recruiters in the industry. Managers in the Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies 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

- Definitions Ii 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 Definitions Ii is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Strong track record of project management

– Definitions Ii is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Operational resilience

– The operational resilience strategy in the Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies 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.

Organizational Resilience of Definitions Ii

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Definitions Ii does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Highly skilled collaborators

– Definitions Ii 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 Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

High brand equity

– Definitions Ii has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Definitions Ii to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Digital Transformation in Strategy & Execution segment

- digital transformation varies from industry to industry. For Definitions Ii digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Definitions Ii 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.

Ability to lead change in Strategy & Execution field

– Definitions Ii 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 Definitions Ii in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

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Weaknesses Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies are -

High operating costs

– Compare to the competitors, firm in the HBR case study Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies 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 Definitions Ii 's lucrative customers.

High cash cycle compare to competitors

Definitions Ii 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.

Lack of clear differentiation of Definitions Ii products

– To increase the profitability and margins on the products, Definitions Ii needs to provide more differentiated products than what it is currently offering in the marketplace.

Interest costs

– Compare to the competition, Definitions Ii 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.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies, it seems that the employees of Definitions Ii 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.

Skills based hiring

– The stress on hiring functional specialists at Definitions Ii 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies, is just above the industry average. Definitions Ii 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Definitions Ii is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Slow decision making process

– As mentioned earlier in the report, Definitions Ii has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Definitions Ii even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

Increasing silos among functional specialists

– The organizational structure of Definitions Ii is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Definitions Ii needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Definitions Ii to focus more on services rather than just following the product oriented approach.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies 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 Definitions Ii has relatively successful track record of launching new products.

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Opportunities Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies | 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 Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies are -

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Definitions Ii can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Building a culture of innovation

– managers at Definitions Ii 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.

Manufacturing automation

– Definitions Ii 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.

Creating value in data economy

– The success of analytics program of Definitions Ii has opened avenues for new revenue streams for the organization in the industry. This can help Definitions Ii to build a more holistic ecosystem as suggested in the Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies case study. Definitions Ii can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

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. Definitions Ii 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. Definitions Ii 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Definitions Ii 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.

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 Definitions Ii 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.

Loyalty marketing

– Definitions Ii 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.

Developing new processes and practices

– Definitions Ii 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Definitions Ii 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 Definitions Ii to hire the very best people irrespective of their geographical location.

Leveraging digital technologies

– Definitions Ii 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.

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 Definitions Ii in the consumer business. Now Definitions Ii can target international markets with far fewer capital restrictions requirements than the existing system.

Better consumer reach

– The expansion of the 5G network will help Definitions Ii to increase its market reach. Definitions Ii 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.

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Threats Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies are -

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Definitions Ii 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 Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies .

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Definitions Ii with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Consumer confidence and its impact on Definitions Ii 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Definitions Ii 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.

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.

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. Definitions Ii 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 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. Definitions Ii needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.

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. Definitions Ii can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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 Definitions Ii in the Strategy & Execution sector and impact the bottomline of the organization.

Environmental challenges

– Definitions Ii 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. Definitions Ii can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.

Technology acceleration in Forth Industrial Revolution

– Definitions Ii has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Definitions Ii 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.

Stagnating economy with rate increase

– Definitions Ii 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.

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Weighted SWOT Analysis of Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies 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 Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies 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 Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies 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 Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies 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 Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies 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 Definitions Ii needs to make to build a sustainable competitive advantage.

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