American Repertory Theatre in the 1990s (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of American Repertory Theatre in the 1990s (A)
In early January 1993, American Repertory Theatre's (ART) Artistic Director Robert Brustein and Managing Director Robert Orchard were concerned about ART's financial situation. Major government funders had communicated plans to cut sharply, and possibly eliminate, their annual support. These threats raised the specter of a reduction in resources that could undermine ART's continued ability to realize its ambitious, but costly, artistic vision. In 13 years, ART's annual budget had grown from just over $1 million to nearly $6 million, with substantial increases in earned income, contributed support, and endowment. Given the deteriorating outlook for contributed support in 1994, Brustein and Orchard faced a limited set of options, all of which were likely to constrain the artistic freedom Brustein and Orchard prized so highly and any one of which could alienate the loyal but discerning audience that ART had cultivated so carefully, damaging its hard-won reputation and eroding the cutting-edge image that appealed to the national funders. As they met to finalize the program planning and budget for the 1994 season, Brustein and Orchard found it increasingly difficult to identify new sources of income to compensate for the cutbacks they expected. The case highlights, in particular, the way in which mission and strategy are executed through choices about policies, activities, and resource allocation.
Authors :: James A. Phills, Ed Martenson, Gregory Scott
Swot Analysis of "American Repertory Theatre in the 1990s (A)" written by James A. Phills, Ed Martenson, Gregory Scott includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Brustein Orchard facing as an external strategic factors. Some of the topics covered in American Repertory Theatre in the 1990s (A) case study are - Strategic Management Strategies, Ethics, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the American Repertory Theatre in the 1990s (A) casestudy better are - – there is backlash against globalization, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, geopolitical disruptions,
increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of American Repertory Theatre in the 1990s (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in American Repertory Theatre in the 1990s (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Brustein Orchard, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Brustein Orchard 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 American Repertory Theatre in the 1990s (A) can be done for the following purposes –
1. Strategic planning using facts provided in American Repertory Theatre in the 1990s (A) case study
2. Improving business portfolio management of Brustein Orchard
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 Brustein Orchard
Strengths American Repertory Theatre in the 1990s (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Brustein Orchard in American Repertory Theatre in the 1990s (A) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Brustein Orchard in the sector have low bargaining power. American Repertory Theatre in the 1990s (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Brustein Orchard to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Brustein Orchard are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Ability to lead change in Strategy & Execution field
– Brustein Orchard 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 Brustein Orchard in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Brustein Orchard 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 James A. Phills, Ed Martenson, Gregory Scott 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.
High switching costs
– The high switching costs that Brustein Orchard 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.
Strong track record of project management
– Brustein Orchard is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Brustein Orchard digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Brustein Orchard 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.
Effective Research and Development (R&D)
– Brustein Orchard 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 American Repertory Theatre in the 1990s (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Brustein Orchard is one of the most innovative firm in sector. Manager in American Repertory Theatre in the 1990s (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Brustein Orchard 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 Brustein Orchard is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in American Repertory Theatre in the 1990s (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Brustein Orchard has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Brustein Orchard to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Strategy & Execution industry
– American Repertory Theatre in the 1990s (A) firm has clearly differentiated products in the market place. This has enabled Brustein Orchard to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Brustein Orchard to invest into research and development (R&D) and innovation.
Weaknesses American Repertory Theatre in the 1990s (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of American Repertory Theatre in the 1990s (A) are -
Products dominated business model
– Even though Brustein Orchard 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 - American Repertory Theatre in the 1990s (A) should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Brustein Orchard 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.
Increasing silos among functional specialists
– The organizational structure of Brustein Orchard is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Brustein Orchard needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Brustein Orchard to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study American Repertory Theatre in the 1990s (A) 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 American Repertory Theatre in the 1990s (A) can leverage the sales team experience to cultivate customer relationships as Brustein Orchard is planning to shift buying processes online.
Need for greater diversity
– Brustein Orchard 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.
Interest costs
– Compare to the competition, Brustein Orchard 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study American Repertory Theatre in the 1990s (A), it seems that the employees of Brustein Orchard 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.
No frontier risks strategy
– After analyzing the HBR case study American Repertory Theatre in the 1990s (A), 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 to strategic competitive environment developments
– As American Repertory Theatre in the 1990s (A) HBR case study mentions - Brustein Orchard 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study American Repertory Theatre in the 1990s (A), is just above the industry average. Brustein Orchard 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 bargaining power of channel partners
– Because of the regulatory requirements, James A. Phills, Ed Martenson, Gregory Scott suggests that, Brustein Orchard 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.
Opportunities American Repertory Theatre in the 1990s (A) | 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 American Repertory Theatre in the 1990s (A) 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 Brustein Orchard 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 Brustein Orchard to increase its market reach. Brustein Orchard 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.
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. Brustein Orchard 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. Brustein Orchard 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Brustein Orchard can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Brustein Orchard is facing challenges because of the dominance of functional experts in the organization. American Repertory Theatre in the 1990s (A) 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Brustein Orchard 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 Brustein Orchard to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Brustein Orchard can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. American Repertory Theatre in the 1990s (A) 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Brustein Orchard can use these opportunities to build new business models that can help the communities that Brustein Orchard operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Developing new processes and practices
– Brustein Orchard 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Brustein Orchard 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, American Repertory Theatre in the 1990s (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Brustein Orchard has opened avenues for new revenue streams for the organization in the industry. This can help Brustein Orchard to build a more holistic ecosystem as suggested in the American Repertory Theatre in the 1990s (A) case study. Brustein Orchard can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Brustein Orchard 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.
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 Brustein Orchard in the consumer business. Now Brustein Orchard can target international markets with far fewer capital restrictions requirements than the existing system.
Threats American Repertory Theatre in the 1990s (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study American Repertory Theatre in the 1990s (A) are -
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. Brustein Orchard needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Brustein Orchard is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Brustein Orchard 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.
Stagnating economy with rate increase
– Brustein Orchard 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 American Repertory Theatre in the 1990s (A), Brustein Orchard 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 .
Technology acceleration in Forth Industrial Revolution
– Brustein Orchard has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Brustein Orchard 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Brustein Orchard 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 American Repertory Theatre in the 1990s (A) .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Brustein Orchard with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Brustein Orchard
– 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 Brustein Orchard.
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. Brustein Orchard can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Brustein Orchard in the Strategy & Execution sector and impact the bottomline of the organization.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Brustein Orchard business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of American Repertory Theatre in the 1990s (A) 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 American Repertory Theatre in the 1990s (A) 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 American Repertory Theatre in the 1990s (A) 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 American Repertory Theatre in the 1990s (A) 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 American Repertory Theatre in the 1990s (A) 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 Brustein Orchard needs to make to build a sustainable competitive advantage.
