Using Scenarios to Plan for Tomorrow SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Using Scenarios to Plan for Tomorrow
While business planners often resort to forecasting to estimate outcomes at some future point in time, the author believes forecasting has serious limitations and is not a reliable guide for the long-term future. Instead, he recommends scenario planning as a superior way of envisaging the future, in order to help managers see the business environment more clearly and make better strategic choices. Using the considerable experience of Shell in this area, he sets out a simple seven-step scenario planning process, which managers can use in one day or two half-day workshops. Doing this will bring organizational learning, challenge executive assumptions, broaden management perspectives and help everyone to see the business environment in which they operate as a complex, nonlinear system. This article includes an interview with Angela Wilkinson, who spent a decade as a leading member of Shell's global scenario team. She shares from her own personal experience of using scenario planning, suggesting who and how many should be on the team, and how often scenarios should be revisited. "In today's world of uncertainty, it's not enough just to analyze situations," she says, hinting at a new approach she calls "collaborative futures."
Swot Analysis of "Using Scenarios to Plan for Tomorrow" written by Mike Rosenberg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Scenario Scenarios facing as an external strategic factors. Some of the topics covered in Using Scenarios to Plan for Tomorrow case study are - Strategic Management Strategies, Forecasting, Strategy, Sustainability and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Using Scenarios to Plan for Tomorrow casestudy better are - – cloud computing is disrupting traditional business models, increasing transportation and logistics costs, increasing energy prices, wage bills are increasing, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation,
there is increasing trade war between United States & China, geopolitical disruptions, etc
Introduction to SWOT Analysis of Using Scenarios to Plan for Tomorrow
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Using Scenarios to Plan for Tomorrow case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Scenario Scenarios, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Scenario Scenarios 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 Using Scenarios to Plan for Tomorrow can be done for the following purposes –
1. Strategic planning using facts provided in Using Scenarios to Plan for Tomorrow case study
2. Improving business portfolio management of Scenario Scenarios
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 Scenario Scenarios
Strengths Using Scenarios to Plan for Tomorrow | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Scenario Scenarios in Using Scenarios to Plan for Tomorrow Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Scenario Scenarios in the sector have low bargaining power. Using Scenarios to Plan for Tomorrow has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Scenario Scenarios to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Scenario Scenarios 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.
Ability to lead change in Strategy & Execution field
– Scenario Scenarios 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 Scenario Scenarios in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Scenario Scenarios 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 Mike Rosenberg 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.
Operational resilience
– The operational resilience strategy in the Using Scenarios to Plan for Tomorrow 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.
Successful track record of launching new products
– Scenario Scenarios has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Scenario Scenarios 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.
High brand equity
– Scenario Scenarios has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Scenario Scenarios to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Scenario Scenarios has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Using Scenarios to Plan for Tomorrow 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
– Scenario Scenarios is present in almost all the verticals within the industry. This has provided firm in Using Scenarios to Plan for Tomorrow 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.
Effective Research and Development (R&D)
– Scenario Scenarios 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 Using Scenarios to Plan for Tomorrow - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Scenario Scenarios 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.
Strong track record of project management
– Scenario Scenarios 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 Using Scenarios to Plan for Tomorrow | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Using Scenarios to Plan for Tomorrow are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Using Scenarios to Plan for Tomorrow, it seems that the employees of Scenario Scenarios 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.
Products dominated business model
– Even though Scenario Scenarios 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 - Using Scenarios to Plan for Tomorrow should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Mike Rosenberg suggests that, Scenario Scenarios 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.
Capital Spending Reduction
– Even during the low interest decade, Scenario Scenarios 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Scenario Scenarios needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
No frontier risks strategy
– After analyzing the HBR case study Using Scenarios to Plan for Tomorrow, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
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 Scenario Scenarios supply chain. Even after few cautionary changes mentioned in the HBR case study - Using Scenarios to Plan for Tomorrow, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Scenario Scenarios vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Scenario Scenarios products
– To increase the profitability and margins on the products, Scenario Scenarios needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Using Scenarios to Plan for Tomorrow, in the dynamic environment Scenario Scenarios has struggled to respond to the nimble upstart competition. Scenario Scenarios has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Using Scenarios to Plan for Tomorrow HBR case study mentions - Scenario Scenarios 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Scenario Scenarios is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Using Scenarios to Plan for Tomorrow can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Using Scenarios to Plan for Tomorrow | 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 Using Scenarios to Plan for Tomorrow are -
Leveraging digital technologies
– Scenario Scenarios 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.
Buying journey improvements
– Scenario Scenarios can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Using Scenarios to Plan for Tomorrow 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
– Scenario Scenarios 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Scenario Scenarios 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 Scenario Scenarios to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Scenario Scenarios has opened avenues for new revenue streams for the organization in the industry. This can help Scenario Scenarios to build a more holistic ecosystem as suggested in the Using Scenarios to Plan for Tomorrow case study. Scenario Scenarios can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Scenario Scenarios 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.
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. Scenario Scenarios can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Scenario Scenarios can use these opportunities to build new business models that can help the communities that Scenario Scenarios operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Scenario Scenarios 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. Scenario Scenarios 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Scenario Scenarios is facing challenges because of the dominance of functional experts in the organization. Using Scenarios to Plan for Tomorrow 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.
Building a culture of innovation
– managers at Scenario Scenarios 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Scenario Scenarios can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Scenario Scenarios can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Using Scenarios to Plan for Tomorrow External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Using Scenarios to Plan for Tomorrow are -
Consumer confidence and its impact on Scenario Scenarios 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.
High dependence on third party suppliers
– Scenario Scenarios 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Using Scenarios to Plan for Tomorrow, Scenario Scenarios 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 .
Stagnating economy with rate increase
– Scenario Scenarios 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Scenario Scenarios 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.
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 Scenario Scenarios in the Strategy & Execution sector and impact the bottomline of the organization.
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. Scenario Scenarios can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Scenario Scenarios 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 Using Scenarios to Plan for Tomorrow .
Technology acceleration in Forth Industrial Revolution
– Scenario Scenarios has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Scenario Scenarios 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.
Increasing wage structure of Scenario Scenarios
– 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 Scenario Scenarios.
Environmental challenges
– Scenario Scenarios 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. Scenario Scenarios can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Scenario Scenarios with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Using Scenarios to Plan for Tomorrow 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 Using Scenarios to Plan for Tomorrow 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 Using Scenarios to Plan for Tomorrow 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 Using Scenarios to Plan for Tomorrow 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 Using Scenarios to Plan for Tomorrow 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 Scenario Scenarios needs to make to build a sustainable competitive advantage.
