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 - – supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, increasing household debt because of falling income levels,
technology disruption, there is increasing trade war between United States & China, 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 -
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.
Innovation driven organization
– Definitions Ii is one of the most innovative firm in sector. Manager in Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
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.
Analytics focus
– Definitions Ii 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 Henry Mintzberg 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.
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.
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.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
Aligning sales with marketing
– It come across in the case study Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies 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 Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies can leverage the sales team experience to cultivate customer relationships as Definitions Ii is planning to shift buying processes online.
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.
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.
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.
Capital Spending Reduction
– Even during the low interest decade, Definitions Ii 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.
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 -
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.
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.
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.
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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Definitions Ii 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Definitions Ii can use these opportunities to build new business models that can help the communities that Definitions Ii operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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 Definitions Ii business can come under increasing regulations regarding data privacy, data security, etc.
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.
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 .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Strategy Concept I: Five Ps for Strategy, Strategy Concept II: Another Look at Why Organizations Need Strategies, Definitions Ii may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
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.
Regulatory challenges
– Definitions Ii 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.
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.
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.
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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