An Activist Approach: Confidential Role Assignment for Remingtons Housewares SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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Case Study SWOT Analysis Solution
Case Study Description of An Activist Approach: Confidential Role Assignment for Remingtons Housewares
A three party, multiple-issue negotiation exercise dealing with a potential merger between two leading department stores, called for by an activist investor hedge fund in a letter to both companies. Company management will now attempt to navigate next moves, which are complicated by weak takeover defenses of their corporate boards, hedge fund ownership stake within both companies, and potential anti-trust risk. Meanwhile, the third party, the activist hedge fund, is turning up the heat in planning their next move.
Swot Analysis of "An Activist Approach: Confidential Role Assignment for Remingtons Housewares" written by Guhan Subramanian, Kaitlyn Szydlowski includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Activist Hedge facing as an external strategic factors. Some of the topics covered in An Activist Approach: Confidential Role Assignment for Remingtons Housewares case study are - Strategic Management Strategies, Mergers & acquisitions, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the An Activist Approach: Confidential Role Assignment for Remingtons Housewares casestudy better are - – there is increasing trade war between United States & China, increasing energy prices, wage bills are increasing, geopolitical disruptions, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels,
technology disruption, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of An Activist Approach: Confidential Role Assignment for Remingtons Housewares
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in An Activist Approach: Confidential Role Assignment for Remingtons Housewares case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Activist Hedge, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Activist Hedge 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 An Activist Approach: Confidential Role Assignment for Remingtons Housewares can be done for the following purposes –
1. Strategic planning using facts provided in An Activist Approach: Confidential Role Assignment for Remingtons Housewares case study
2. Improving business portfolio management of Activist Hedge
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 Activist Hedge
Strengths An Activist Approach: Confidential Role Assignment for Remingtons Housewares | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Activist Hedge in An Activist Approach: Confidential Role Assignment for Remingtons Housewares Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Activist Hedge 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.
Superior customer experience
– The customer experience strategy of Activist Hedge in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Activist Hedge 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 Activist Hedge is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in An Activist Approach: Confidential Role Assignment for Remingtons Housewares Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the An Activist Approach: Confidential Role Assignment for Remingtons Housewares Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Low bargaining power of suppliers
– Suppliers of Activist Hedge in the sector have low bargaining power. An Activist Approach: Confidential Role Assignment for Remingtons Housewares has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Activist Hedge to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Activist Hedge 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 An Activist Approach: Confidential Role Assignment for Remingtons Housewares - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Activist Hedge 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 Guhan Subramanian, Kaitlyn Szydlowski 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Activist Hedge digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Activist Hedge 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.
High switching costs
– The high switching costs that Activist Hedge 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 recruit top talent
– Activist Hedge is one of the leading recruiters in the industry. Managers in the An Activist Approach: Confidential Role Assignment for Remingtons Housewares 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
– Activist Hedge has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Activist Hedge to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Activist Hedge has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in An Activist Approach: Confidential Role Assignment for Remingtons Housewares 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 An Activist Approach: Confidential Role Assignment for Remingtons Housewares | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of An Activist Approach: Confidential Role Assignment for Remingtons Housewares are -
Need for greater diversity
– Activist Hedge 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study An Activist Approach: Confidential Role Assignment for Remingtons Housewares, it seems that the employees of Activist Hedge 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.
Slow to strategic competitive environment developments
– As An Activist Approach: Confidential Role Assignment for Remingtons Housewares HBR case study mentions - Activist Hedge 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.
Aligning sales with marketing
– It come across in the case study An Activist Approach: Confidential Role Assignment for Remingtons Housewares 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 An Activist Approach: Confidential Role Assignment for Remingtons Housewares can leverage the sales team experience to cultivate customer relationships as Activist Hedge is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Activist Hedge 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 cash cycle compare to competitors
Activist Hedge 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.
Lack of clear differentiation of Activist Hedge products
– To increase the profitability and margins on the products, Activist Hedge needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the An Activist Approach: Confidential Role Assignment for Remingtons Housewares 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 Activist Hedge has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study An Activist Approach: Confidential Role Assignment for Remingtons Housewares, is just above the industry average. Activist Hedge 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 operating costs
– Compare to the competitors, firm in the HBR case study An Activist Approach: Confidential Role Assignment for Remingtons Housewares 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 Activist Hedge 's lucrative customers.
Products dominated business model
– Even though Activist Hedge 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 - An Activist Approach: Confidential Role Assignment for Remingtons Housewares should strive to include more intangible value offerings along with its core products and services.
Opportunities An Activist Approach: Confidential Role Assignment for Remingtons Housewares | 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 An Activist Approach: Confidential Role Assignment for Remingtons Housewares are -
Learning at scale
– Online learning technologies has now opened space for Activist Hedge 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.
Creating value in data economy
– The success of analytics program of Activist Hedge has opened avenues for new revenue streams for the organization in the industry. This can help Activist Hedge to build a more holistic ecosystem as suggested in the An Activist Approach: Confidential Role Assignment for Remingtons Housewares case study. Activist Hedge 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
– Activist Hedge 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.
Buying journey improvements
– Activist Hedge can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. An Activist Approach: Confidential Role Assignment for Remingtons Housewares 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Activist Hedge 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 Activist Hedge to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Activist Hedge is facing challenges because of the dominance of functional experts in the organization. An Activist Approach: Confidential Role Assignment for Remingtons Housewares 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Activist Hedge 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. Activist Hedge can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Activist Hedge 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.
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 Activist Hedge in the consumer business. Now Activist Hedge 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 Activist Hedge to increase its market reach. Activist Hedge 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.
Using analytics as competitive advantage
– Activist Hedge 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 An Activist Approach: Confidential Role Assignment for Remingtons Housewares - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Activist Hedge to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Activist Hedge 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.
Threats An Activist Approach: Confidential Role Assignment for Remingtons Housewares External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study An Activist Approach: Confidential Role Assignment for Remingtons Housewares are -
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.
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.
High dependence on third party suppliers
– Activist Hedge 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.
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 Activist Hedge.
Increasing wage structure of Activist Hedge
– 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 Activist Hedge.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Activist Hedge with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Activist Hedge is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Activist Hedge has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Activist Hedge 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.
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 Activist Hedge in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Activist Hedge 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 An Activist Approach: Confidential Role Assignment for Remingtons Housewares .
Stagnating economy with rate increase
– Activist Hedge 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study An Activist Approach: Confidential Role Assignment for Remingtons Housewares, Activist Hedge 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 .
Regulatory challenges
– Activist Hedge 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.
Weighted SWOT Analysis of An Activist Approach: Confidential Role Assignment for Remingtons Housewares 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 An Activist Approach: Confidential Role Assignment for Remingtons Housewares 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 An Activist Approach: Confidential Role Assignment for Remingtons Housewares 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 An Activist Approach: Confidential Role Assignment for Remingtons Housewares 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 An Activist Approach: Confidential Role Assignment for Remingtons Housewares 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 Activist Hedge needs to make to build a sustainable competitive advantage.