The Art of Subtraction: Doing More with Less SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Art of Subtraction: Doing More with Less
The idea that 'less is often more' is thousands of years old, but the author describes how powerful it is in a modern business setting. He provides three key principles that can be applied in any organization: what isn't there often trumps what is; the simplest rules create the most effective experience; and limiting information engages the imagination. In the end, he shows that by focusing on what to ignore, what to leave out and what not to do, workplace decisions become exponentially simpler.
Swot Analysis of "The Art of Subtraction: Doing More with Less" written by Matthew May includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Subtraction Trumps facing as an external strategic factors. Some of the topics covered in The Art of Subtraction: Doing More with Less case study are - Strategic Management Strategies, Innovation, Leadership, Strategic thinking and Strategy & Execution.
Some of the macro environment factors that can be used to understand the The Art of Subtraction: Doing More with Less casestudy better are - – talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, technology disruption,
increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of The Art of Subtraction: Doing More with Less
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Art of Subtraction: Doing More with Less case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Subtraction Trumps, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Subtraction Trumps 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 The Art of Subtraction: Doing More with Less can be done for the following purposes –
1. Strategic planning using facts provided in The Art of Subtraction: Doing More with Less case study
2. Improving business portfolio management of Subtraction Trumps
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 Subtraction Trumps
Strengths The Art of Subtraction: Doing More with Less | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Subtraction Trumps in The Art of Subtraction: Doing More with Less Harvard Business Review case study are -
Highly skilled collaborators
– Subtraction Trumps 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 The Art of Subtraction: Doing More with Less HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Strategy & Execution field
– Subtraction Trumps 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 Subtraction Trumps in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Subtraction Trumps 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
– Subtraction Trumps has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Subtraction Trumps to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Subtraction Trumps has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Subtraction Trumps 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
– The Art of Subtraction: Doing More with Less firm has clearly differentiated products in the market place. This has enabled Subtraction Trumps to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Subtraction Trumps to invest into research and development (R&D) and innovation.
Learning organization
- Subtraction Trumps 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 Subtraction Trumps is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Art of Subtraction: Doing More with Less Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the The Art of Subtraction: Doing More with Less 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.
Effective Research and Development (R&D)
– Subtraction Trumps 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 The Art of Subtraction: Doing More with Less - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Subtraction Trumps
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Subtraction Trumps does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Subtraction Trumps digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Subtraction Trumps 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.
Low bargaining power of suppliers
– Suppliers of Subtraction Trumps in the sector have low bargaining power. The Art of Subtraction: Doing More with Less has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Subtraction Trumps to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses The Art of Subtraction: Doing More with Less | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Art of Subtraction: Doing More with Less are -
Slow to strategic competitive environment developments
– As The Art of Subtraction: Doing More with Less HBR case study mentions - Subtraction Trumps 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
Subtraction Trumps 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.
Slow decision making process
– As mentioned earlier in the report, Subtraction Trumps 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. Subtraction Trumps 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.
No frontier risks strategy
– After analyzing the HBR case study The Art of Subtraction: Doing More with Less, 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.
Low market penetration in new markets
– Outside its home market of Subtraction Trumps, firm in the HBR case study The Art of Subtraction: Doing More with Less needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Art of Subtraction: Doing More with Less, in the dynamic environment Subtraction Trumps has struggled to respond to the nimble upstart competition. Subtraction Trumps has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Subtraction Trumps 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.
Capital Spending Reduction
– Even during the low interest decade, Subtraction Trumps 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, Subtraction Trumps 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.
High operating costs
– Compare to the competitors, firm in the HBR case study The Art of Subtraction: Doing More with Less 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 Subtraction Trumps 's lucrative customers.
Need for greater diversity
– Subtraction Trumps 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.
Opportunities The Art of Subtraction: Doing More with Less | 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 The Art of Subtraction: Doing More with Less are -
Learning at scale
– Online learning technologies has now opened space for Subtraction Trumps 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.
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 Subtraction Trumps 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.
Better consumer reach
– The expansion of the 5G network will help Subtraction Trumps to increase its market reach. Subtraction Trumps 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.
Developing new processes and practices
– Subtraction Trumps 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.
Using analytics as competitive advantage
– Subtraction Trumps 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 The Art of Subtraction: Doing More with Less - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Subtraction Trumps to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Subtraction Trumps can use these opportunities to build new business models that can help the communities that Subtraction Trumps operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Subtraction Trumps 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 Subtraction Trumps to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Subtraction Trumps can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Art of Subtraction: Doing More with Less 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Subtraction Trumps is facing challenges because of the dominance of functional experts in the organization. The Art of Subtraction: Doing More with Less 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.
Creating value in data economy
– The success of analytics program of Subtraction Trumps has opened avenues for new revenue streams for the organization in the industry. This can help Subtraction Trumps to build a more holistic ecosystem as suggested in the The Art of Subtraction: Doing More with Less case study. Subtraction Trumps 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. Subtraction Trumps can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Subtraction Trumps 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.
Loyalty marketing
– Subtraction Trumps 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.
Threats The Art of Subtraction: Doing More with Less External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Art of Subtraction: Doing More with Less are -
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.
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 Subtraction Trumps business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Subtraction Trumps 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.
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.
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 Subtraction Trumps.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Subtraction Trumps 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 The Art of Subtraction: Doing More with Less .
Regulatory challenges
– Subtraction Trumps 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.
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 Subtraction Trumps in the Strategy & Execution sector and impact the bottomline of the organization.
Environmental challenges
– Subtraction Trumps 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. Subtraction Trumps 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. Subtraction Trumps 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Subtraction Trumps 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.
Increasing wage structure of Subtraction Trumps
– 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 Subtraction Trumps.
High dependence on third party suppliers
– Subtraction Trumps 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.
Weighted SWOT Analysis of The Art of Subtraction: Doing More with Less 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 The Art of Subtraction: Doing More with Less 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 The Art of Subtraction: Doing More with Less 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 The Art of Subtraction: Doing More with Less 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 The Art of Subtraction: Doing More with Less 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 Subtraction Trumps needs to make to build a sustainable competitive advantage.