Swot Analysis of "Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework" written by Dorothy Leonard, Carin-Isabel Knoop includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mercer Consulting's facing as an external strategic factors. Some of the topics covered in Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework case study are - Strategic Management Strategies, Organizational culture, Product development and Technology & Operations.
Some of the macro environment factors that can be used to understand the Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework casestudy better are - – increasing energy prices, wage bills are increasing, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, geopolitical disruptions, cloud computing is disrupting traditional business models, increasing transportation and logistics costs,
competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mercer Consulting's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mercer Consulting's 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 Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework can be done for the following purposes –
1. Strategic planning using facts provided in Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework case study
2. Improving business portfolio management of Mercer Consulting's
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mercer Consulting's
Strengths Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mercer Consulting's in Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework Harvard Business Review case study are -
Sustainable margins compare to other players in Technology & Operations industry
– Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework firm has clearly differentiated products in the market place. This has enabled Mercer Consulting's to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Mercer Consulting's to invest into research and development (R&D) and innovation.
Ability to lead change in Technology & Operations field
– Mercer Consulting's 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 Mercer Consulting's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework 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)
– Mercer Consulting's 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 Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Mercer Consulting's 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.
Highly skilled collaborators
– Mercer Consulting's 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 Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Mercer Consulting's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework 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.
Ability to recruit top talent
– Mercer Consulting's is one of the leading recruiters in the industry. Managers in the Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Mercer Consulting's is one of the most innovative firm in sector. Manager in Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Mercer Consulting's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Mercer Consulting's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mercer Consulting's has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High brand equity
– Mercer Consulting's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mercer Consulting's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework are -
High operating costs
– Compare to the competitors, firm in the HBR case study Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework 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 Mercer Consulting's 's lucrative customers.
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 Mercer Consulting's supply chain. Even after few cautionary changes mentioned in the HBR case study - Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mercer Consulting's vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Mercer Consulting's 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 - Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework, it seems that the employees of Mercer Consulting's 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 Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework HBR case study mentions - Mercer Consulting's 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.
Capital Spending Reduction
– Even during the low interest decade, Mercer Consulting's 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.
Slow decision making process
– As mentioned earlier in the report, Mercer Consulting's 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. Mercer Consulting's 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.
Increasing silos among functional specialists
– The organizational structure of Mercer Consulting's is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Mercer Consulting's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mercer Consulting's to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework, is just above the industry average. Mercer Consulting's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework, in the dynamic environment Mercer Consulting's has struggled to respond to the nimble upstart competition. Mercer Consulting's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Mercer Consulting's 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.
Opportunities Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework | 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 Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework are -
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. Mercer Consulting's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Mercer Consulting's 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. Mercer Consulting's 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.
Better consumer reach
– The expansion of the 5G network will help Mercer Consulting's to increase its market reach. Mercer Consulting's 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.
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 Mercer Consulting's 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.
Building a culture of innovation
– managers at Mercer Consulting's 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 Technology & Operations 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 Mercer Consulting's in the consumer business. Now Mercer Consulting's can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Mercer Consulting's can develop new processes and procedures in Technology & Operations 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, Mercer Consulting's 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, Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mercer Consulting's 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
– Mercer Consulting's 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.
Manufacturing automation
– Mercer Consulting's can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Creating value in data economy
– The success of analytics program of Mercer Consulting's has opened avenues for new revenue streams for the organization in the industry. This can help Mercer Consulting's to build a more holistic ecosystem as suggested in the Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework case study. Mercer Consulting's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Mercer Consulting's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework 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.
Threats Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework are -
Environmental challenges
– Mercer Consulting's 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. Mercer Consulting's can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mercer Consulting's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Mercer Consulting's 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 Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework, Mercer Consulting's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
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.
Shortening product life cycle
– it is one of the major threat that Mercer Consulting's is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Mercer Consulting's business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mercer Consulting's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Mercer Consulting's 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 Technology & Operations industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mercer Consulting's 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 Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework .
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.
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 Mercer Consulting's.
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 Mercer Consulting's in the Technology & Operations sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework 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 Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework 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 Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework 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 Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework 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 Mercer Management Consulting's "Grow to Be Great" (D): The Knowledge Management Framework 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 Mercer Consulting's needs to make to build a sustainable competitive advantage.
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