Truly Human Leadership at Barry-Wehmiller SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Truly Human Leadership at Barry-Wehmiller
The chief executive of Barry-Wehmiller, a large maker of industrial equipment, has resolved to run the company via "truly human leadership" in which "success is measured by the way we touch the lives of people." With unusual people practices and a distinctive strategy, the company has generated enviable financial results. During the Great Recession of 2007-2009, the company went to great lengths to avoid layoffs. But as the case opens in 2013, one division of the company faces a sharp downturn, and the head of the division must decide whether to let employees go. In light of Barry-Wehmiller's people practices and strategy, what should he do?
Swot Analysis of "Truly Human Leadership at Barry-Wehmiller" written by Dylan Minor, Jan W. Rivkin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Barry Wehmiller facing as an external strategic factors. Some of the topics covered in Truly Human Leadership at Barry-Wehmiller case study are - Strategic Management Strategies, Manufacturing, Organizational culture, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Truly Human Leadership at Barry-Wehmiller casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, increasing energy prices, technology disruption, wage bills are increasing,
central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Truly Human Leadership at Barry-Wehmiller
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Truly Human Leadership at Barry-Wehmiller case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Barry Wehmiller, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Barry Wehmiller 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 Truly Human Leadership at Barry-Wehmiller can be done for the following purposes –
1. Strategic planning using facts provided in Truly Human Leadership at Barry-Wehmiller case study
2. Improving business portfolio management of Barry Wehmiller
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 Barry Wehmiller
Strengths Truly Human Leadership at Barry-Wehmiller | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Barry Wehmiller in Truly Human Leadership at Barry-Wehmiller Harvard Business Review case study are -
Training and development
– Barry Wehmiller has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Truly Human Leadership at Barry-Wehmiller 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.
Effective Research and Development (R&D)
– Barry Wehmiller 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 Truly Human Leadership at Barry-Wehmiller - 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 Barry Wehmiller 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.
Diverse revenue streams
– Barry Wehmiller is present in almost all the verticals within the industry. This has provided firm in Truly Human Leadership at Barry-Wehmiller 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
– Truly Human Leadership at Barry-Wehmiller firm has clearly differentiated products in the market place. This has enabled Barry Wehmiller to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Barry Wehmiller to invest into research and development (R&D) and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Barry Wehmiller digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Barry Wehmiller 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
– Barry Wehmiller 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 Barry Wehmiller in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Barry Wehmiller in the sector have low bargaining power. Truly Human Leadership at Barry-Wehmiller has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Barry Wehmiller to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Barry Wehmiller in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Barry Wehmiller is one of the leading recruiters in the industry. Managers in the Truly Human Leadership at Barry-Wehmiller are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Barry Wehmiller has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Barry Wehmiller to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Barry Wehmiller 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 Dylan Minor, Jan W. Rivkin 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.
Weaknesses Truly Human Leadership at Barry-Wehmiller | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Truly Human Leadership at Barry-Wehmiller are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Truly Human Leadership at Barry-Wehmiller, it seems that the employees of Barry Wehmiller 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.
High cash cycle compare to competitors
Barry Wehmiller 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 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 Barry Wehmiller supply chain. Even after few cautionary changes mentioned in the HBR case study - Truly Human Leadership at Barry-Wehmiller, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Barry Wehmiller vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Truly Human Leadership at Barry-Wehmiller, 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.
Slow decision making process
– As mentioned earlier in the report, Barry Wehmiller 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. Barry Wehmiller 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.
Low market penetration in new markets
– Outside its home market of Barry Wehmiller, firm in the HBR case study Truly Human Leadership at Barry-Wehmiller needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Barry Wehmiller is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Barry Wehmiller needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Barry Wehmiller to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Barry Wehmiller 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Dylan Minor, Jan W. Rivkin suggests that, Barry Wehmiller 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, Barry Wehmiller 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Truly Human Leadership at Barry-Wehmiller 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 Barry Wehmiller has relatively successful track record of launching new products.
Opportunities Truly Human Leadership at Barry-Wehmiller | 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 Truly Human Leadership at Barry-Wehmiller are -
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 Barry Wehmiller 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.
Developing new processes and practices
– Barry Wehmiller 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Barry Wehmiller 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.
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. Barry Wehmiller 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. Barry Wehmiller 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.
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 Barry Wehmiller in the consumer business. Now Barry Wehmiller 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 Barry Wehmiller to increase its market reach. Barry Wehmiller 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.
Loyalty marketing
– Barry Wehmiller 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Barry Wehmiller 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, Truly Human Leadership at Barry-Wehmiller, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Barry Wehmiller 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 Truly Human Leadership at Barry-Wehmiller - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Barry Wehmiller to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Barry Wehmiller 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 Barry Wehmiller to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Barry Wehmiller has opened avenues for new revenue streams for the organization in the industry. This can help Barry Wehmiller to build a more holistic ecosystem as suggested in the Truly Human Leadership at Barry-Wehmiller case study. Barry Wehmiller can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Barry Wehmiller can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Barry Wehmiller 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.
Threats Truly Human Leadership at Barry-Wehmiller External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Truly Human Leadership at Barry-Wehmiller are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Barry Wehmiller with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Barry Wehmiller 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 Truly Human Leadership at Barry-Wehmiller .
High dependence on third party suppliers
– Barry Wehmiller 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.
Regulatory challenges
– Barry Wehmiller 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.
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 Barry Wehmiller.
Technology acceleration in Forth Industrial Revolution
– Barry Wehmiller has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Barry Wehmiller 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.
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.
Consumer confidence and its impact on Barry Wehmiller 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.
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.
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 Barry Wehmiller business can come under increasing regulations regarding data privacy, data security, etc.
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. Barry Wehmiller needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Environmental challenges
– Barry Wehmiller 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. Barry Wehmiller can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Barry Wehmiller 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.
Weighted SWOT Analysis of Truly Human Leadership at Barry-Wehmiller 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 Truly Human Leadership at Barry-Wehmiller 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 Truly Human Leadership at Barry-Wehmiller 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 Truly Human Leadership at Barry-Wehmiller 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 Truly Human Leadership at Barry-Wehmiller 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 Barry Wehmiller needs to make to build a sustainable competitive advantage.
