Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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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.
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 - – increasing transportation and logistics costs, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , increasing energy prices,
digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, etc
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.
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
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 -
Training and development
– Definitions Ii has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies 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
– 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies firm has clearly differentiated products in the market place. This has enabled Definitions Ii to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Definitions Ii to invest into research and development (R&D) and innovation.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Definitions Ii 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
– 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.
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.
Successful track record of launching new products
– Definitions Ii has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Definitions Ii 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.
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.
Low bargaining power of suppliers
– Suppliers of Definitions Ii in the sector have low bargaining power. Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Definitions Ii to manage not only supply disruptions but also source products at highly competitive prices.
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.
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 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 Definitions Ii supply chain. Even after few cautionary changes mentioned in the HBR case study - Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Definitions Ii vulnerable to further global disruptions in South East Asia.
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 bargaining power of channel partners
– Because of the regulatory requirements, Henry Mintzberg suggests that, Definitions Ii is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Need for greater diversity
– Definitions Ii 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.
Low market penetration in new markets
– Outside its home market of Definitions Ii, firm in the HBR case study Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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.
Slow to strategic competitive environment developments
– As Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies HBR case study mentions - Definitions Ii 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.
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.
Products dominated business model
– Even though Definitions Ii 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 - Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies should strive to include more intangible value offerings along with its core products and services.
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 -
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. Definitions Ii can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Definitions Ii 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, Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Definitions Ii is facing challenges because of the dominance of functional experts in the organization. Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies 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.
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. Definitions Ii can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Definitions Ii can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies 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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Definitions Ii 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.
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.
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.
Using analytics as competitive advantage
– Definitions Ii 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 Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Definitions Ii to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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 -
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.
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.
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.
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.
Shortening product life cycle
– it is one of the major threat that Definitions Ii is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
High dependence on third party suppliers
– Definitions Ii 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.
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.
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.
Increasing wage structure of Definitions Ii
– 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 Definitions Ii.
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 Definitions Ii.
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.
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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