KPMG Peat Marwick: The Shadow Partner, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of KPMG Peat Marwick: The Shadow Partner, Spanish Version
KPMG Peat Marwick executives needed to decide whether to fund full development of "The Shadow Partner," the name coined to describe a worldwide information network that would link all KPMG professionals to each other and to a wealth of data bases and information services. Partners, by sharing and gathering information through the network, would be able to use the entire company's knowledge and experience to serve clients. Many partners felt that implementation of the shadow partner was vital, as clients had greater demands and competition in the accounting industry had escalated. Other partners questioned the necessity of the shadow partner. The firm had committed to establishing a technology committee to investigate shadow partner design and cost. Since the firm was a partnership, the partners eventually had to decide whether, and to what extent, to support shadow partner implementation.
Swot Analysis of "KPMG Peat Marwick: The Shadow Partner, Spanish Version" written by Robert G. Eccles, Julie Gladstone includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Shadow Partner facing as an external strategic factors. Some of the topics covered in KPMG Peat Marwick: The Shadow Partner, Spanish Version case study are - Strategic Management Strategies, Decision making, IT, Joint ventures, Knowledge management, Networking, Project management, Strategy execution and Technology & Operations.
Some of the macro environment factors that can be used to understand the KPMG Peat Marwick: The Shadow Partner, Spanish Version casestudy better are - – increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China,
increasing commodity prices, wage bills are increasing, etc
Introduction to SWOT Analysis of KPMG Peat Marwick: The Shadow Partner, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in KPMG Peat Marwick: The Shadow Partner, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Shadow Partner, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Shadow Partner 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 KPMG Peat Marwick: The Shadow Partner, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in KPMG Peat Marwick: The Shadow Partner, Spanish Version case study
2. Improving business portfolio management of Shadow Partner
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 Shadow Partner
Strengths KPMG Peat Marwick: The Shadow Partner, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Shadow Partner in KPMG Peat Marwick: The Shadow Partner, Spanish Version Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Shadow Partner are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High switching costs
– The high switching costs that Shadow Partner 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
– Shadow Partner is one of the leading recruiters in the industry. Managers in the KPMG Peat Marwick: The Shadow Partner, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the KPMG Peat Marwick: The Shadow Partner, Spanish Version 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 Shadow Partner in the sector have low bargaining power. KPMG Peat Marwick: The Shadow Partner, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Shadow Partner to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Shadow Partner 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 KPMG Peat Marwick: The Shadow Partner, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Shadow Partner is one of the most innovative firm in sector. Manager in KPMG Peat Marwick: The Shadow Partner, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Shadow Partner
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Shadow Partner does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Shadow Partner has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in KPMG Peat Marwick: The Shadow Partner, Spanish Version 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Shadow Partner digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Shadow Partner 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 brand equity
– Shadow Partner has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Shadow Partner to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Shadow Partner 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 Robert G. Eccles, Julie Gladstone 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.
Weaknesses KPMG Peat Marwick: The Shadow Partner, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of KPMG Peat Marwick: The Shadow Partner, Spanish Version are -
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 Shadow Partner supply chain. Even after few cautionary changes mentioned in the HBR case study - KPMG Peat Marwick: The Shadow Partner, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Shadow Partner vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study KPMG Peat Marwick: The Shadow Partner, Spanish Version 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 KPMG Peat Marwick: The Shadow Partner, Spanish Version can leverage the sales team experience to cultivate customer relationships as Shadow Partner is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study KPMG Peat Marwick: The Shadow Partner, Spanish Version, it seems that company is thinking about the frontier risks that can impact Technology & Operations 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Shadow Partner 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.
Low market penetration in new markets
– Outside its home market of Shadow Partner, firm in the HBR case study KPMG Peat Marwick: The Shadow Partner, Spanish Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Shadow Partner 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study KPMG Peat Marwick: The Shadow Partner, Spanish Version, it seems that the employees of Shadow Partner 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study KPMG Peat Marwick: The Shadow Partner, Spanish Version, is just above the industry average. Shadow Partner 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.
Interest costs
– Compare to the competition, Shadow Partner 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the KPMG Peat Marwick: The Shadow Partner, Spanish Version 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 Shadow Partner has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Shadow Partner is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Shadow Partner needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Shadow Partner to focus more on services rather than just following the product oriented approach.
Opportunities KPMG Peat Marwick: The Shadow Partner, Spanish Version | 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 KPMG Peat Marwick: The Shadow Partner, Spanish Version are -
Learning at scale
– Online learning technologies has now opened space for Shadow Partner 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.
Better consumer reach
– The expansion of the 5G network will help Shadow Partner to increase its market reach. Shadow Partner 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Shadow Partner 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.
Creating value in data economy
– The success of analytics program of Shadow Partner has opened avenues for new revenue streams for the organization in the industry. This can help Shadow Partner to build a more holistic ecosystem as suggested in the KPMG Peat Marwick: The Shadow Partner, Spanish Version case study. Shadow Partner can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Shadow Partner can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Shadow Partner can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Shadow Partner 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.
Buying journey improvements
– Shadow Partner can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. KPMG Peat Marwick: The Shadow Partner, Spanish Version 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.
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. Shadow Partner 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. Shadow Partner 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Shadow Partner is facing challenges because of the dominance of functional experts in the organization. KPMG Peat Marwick: The Shadow Partner, Spanish Version 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.
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. Shadow Partner can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Shadow Partner 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 KPMG Peat Marwick: The Shadow Partner, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Shadow Partner to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Shadow Partner 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.
Threats KPMG Peat Marwick: The Shadow Partner, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study KPMG Peat Marwick: The Shadow Partner, Spanish Version are -
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Shadow Partner will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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 Shadow Partner.
High dependence on third party suppliers
– Shadow Partner 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study KPMG Peat Marwick: The Shadow Partner, Spanish Version, Shadow Partner 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Shadow Partner 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 KPMG Peat Marwick: The Shadow Partner, Spanish Version .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Shadow Partner 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.
Shortening product life cycle
– it is one of the major threat that Shadow Partner is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Shadow Partner
– 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 Shadow Partner.
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.
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. Shadow Partner needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Shadow Partner has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Shadow Partner needs to keep up with the evolution of technology in the Technology & Operations 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.
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 Shadow Partner business can come under increasing regulations regarding data privacy, data security, etc.
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. Shadow Partner can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of KPMG Peat Marwick: The Shadow Partner, Spanish Version 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 KPMG Peat Marwick: The Shadow Partner, Spanish Version 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 KPMG Peat Marwick: The Shadow Partner, Spanish Version 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 KPMG Peat Marwick: The Shadow Partner, Spanish Version 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 KPMG Peat Marwick: The Shadow Partner, Spanish Version 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 Shadow Partner needs to make to build a sustainable competitive advantage.
