Swot Analysis of "Professional Services, Module Seven: Becoming a Professional" written by Thomas J. DeLong, Ashish Nanda, Scot Landry includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Professional Balancing facing as an external strategic factors. Some of the topics covered in Professional Services, Module Seven: Becoming a Professional case study are - Strategic Management Strategies, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Professional Services, Module Seven: Becoming a Professional casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, increasing commodity prices, increasing transportation and logistics costs, there is backlash against globalization, increasing energy prices, wage bills are increasing,
banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Professional Services, Module Seven: Becoming a Professional
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Professional Services, Module Seven: Becoming a Professional case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Professional Balancing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Professional Balancing 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 Professional Services, Module Seven: Becoming a Professional can be done for the following purposes –
1. Strategic planning using facts provided in Professional Services, Module Seven: Becoming a Professional case study
2. Improving business portfolio management of Professional Balancing
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 Professional Balancing
Strengths Professional Services, Module Seven: Becoming a Professional | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Professional Balancing in Professional Services, Module Seven: Becoming a Professional Harvard Business Review case study are -
Organizational Resilience of Professional Balancing
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Professional Balancing does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Professional Services, Module Seven: Becoming a Professional 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.
Diverse revenue streams
– Professional Balancing is present in almost all the verticals within the industry. This has provided firm in Professional Services, Module Seven: Becoming a Professional case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Training and development
– Professional Balancing has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Professional Services, Module Seven: Becoming a Professional 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 lead change in Technology & Operations field
– Professional Balancing 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 Professional Balancing in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Professional Balancing in the sector have low bargaining power. Professional Services, Module Seven: Becoming a Professional has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Professional Balancing to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Professional Balancing 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 Professional Services, Module Seven: Becoming a Professional HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Professional Balancing is one of the most innovative firm in sector. Manager in Professional Services, Module Seven: Becoming a Professional Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Technology & Operations industry
– Professional Services, Module Seven: Becoming a Professional firm has clearly differentiated products in the market place. This has enabled Professional Balancing to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Professional Balancing to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Professional Balancing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Professional Balancing 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Professional Balancing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Professional Balancing 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 Professional Balancing 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.
Weaknesses Professional Services, Module Seven: Becoming a Professional | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Professional Services, Module Seven: Becoming a Professional are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Professional Services, Module Seven: Becoming a Professional 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 Professional Balancing has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Thomas J. DeLong, Ashish Nanda, Scot Landry suggests that, Professional Balancing 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.
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 Professional Balancing supply chain. Even after few cautionary changes mentioned in the HBR case study - Professional Services, Module Seven: Becoming a Professional, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Professional Balancing vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Professional Balancing products
– To increase the profitability and margins on the products, Professional Balancing needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Professional Balancing 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.
Products dominated business model
– Even though Professional Balancing 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 - Professional Services, Module Seven: Becoming a Professional should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Professional Balancing, firm in the HBR case study Professional Services, Module Seven: Becoming a Professional needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Professional Services, Module Seven: Becoming a Professional, it seems that the employees of Professional Balancing 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Professional Balancing 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
Professional Balancing 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.
Interest costs
– Compare to the competition, Professional Balancing 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 Professional Services, Module Seven: Becoming a Professional | 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 Professional Services, Module Seven: Becoming a Professional are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Professional Balancing 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, Professional Services, Module Seven: Becoming a Professional, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Professional Balancing can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Professional Balancing 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.
Developing new processes and practices
– Professional Balancing 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.
Learning at scale
– Online learning technologies has now opened space for Professional Balancing 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 Professional Balancing has opened avenues for new revenue streams for the organization in the industry. This can help Professional Balancing to build a more holistic ecosystem as suggested in the Professional Services, Module Seven: Becoming a Professional case study. Professional Balancing can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Professional Balancing 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 Professional Services, Module Seven: Becoming a Professional - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Professional Balancing to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Professional Balancing 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 Professional Balancing to hire the very best people irrespective of their geographical location.
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 Professional Balancing in the consumer business. Now Professional Balancing can target international markets with far fewer capital restrictions requirements than the existing system.
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 Professional Balancing 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 Professional Balancing to increase its market reach. Professional Balancing 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Professional Balancing can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Professional Balancing in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Threats Professional Services, Module Seven: Becoming a Professional External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Professional Services, Module Seven: Becoming a Professional are -
Stagnating economy with rate increase
– Professional Balancing 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.
Regulatory challenges
– Professional Balancing 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.
Environmental challenges
– Professional Balancing 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. Professional Balancing can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Professional Balancing business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Professional Balancing 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.
Increasing wage structure of Professional Balancing
– 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 Professional Balancing.
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 Professional Balancing in the Technology & Operations sector and impact the bottomline of the organization.
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. Professional Balancing can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Professional Balancing 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Professional Balancing 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 Professional Services, Module Seven: Becoming a Professional .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Professional Balancing in the Technology & Operations industry. The Technology & Operations 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.
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 Professional Balancing.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Professional Balancing with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Professional Services, Module Seven: Becoming a Professional 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 Professional Services, Module Seven: Becoming a Professional 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 Professional Services, Module Seven: Becoming a Professional 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 Professional Services, Module Seven: Becoming a Professional 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 Professional Services, Module Seven: Becoming a Professional 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 Professional Balancing needs to make to build a sustainable competitive advantage.