Sattva eTech: Managing Uncertainties in the Project Network SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Sattva eTech: Managing Uncertainties in the Project Network
SATTVA eTECH is an electronics company involved in design and development of embedded new products. The senior manager of the company is working on the planning and execution of a defense project. Further, the manager is also evaluating the various alternative strategies to tackle uncertainties in the project network.
Swot Analysis of "Sattva eTech: Managing Uncertainties in the Project Network" written by Tarun Jain, Jishnu Hazra includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Etech Sattva facing as an external strategic factors. Some of the topics covered in Sattva eTech: Managing Uncertainties in the Project Network case study are - Strategic Management Strategies, Manufacturing, Project management, Time management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Sattva eTech: Managing Uncertainties in the Project Network casestudy better are - – increasing energy prices, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, technology disruption, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies,
competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Sattva eTech: Managing Uncertainties in the Project Network
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sattva eTech: Managing Uncertainties in the Project Network case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Etech Sattva, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Etech Sattva 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 Sattva eTech: Managing Uncertainties in the Project Network can be done for the following purposes –
1. Strategic planning using facts provided in Sattva eTech: Managing Uncertainties in the Project Network case study
2. Improving business portfolio management of Etech Sattva
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 Etech Sattva
Strengths Sattva eTech: Managing Uncertainties in the Project Network | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Etech Sattva in Sattva eTech: Managing Uncertainties in the Project Network Harvard Business Review case study are -
Diverse revenue streams
– Etech Sattva is present in almost all the verticals within the industry. This has provided firm in Sattva eTech: Managing Uncertainties in the Project Network 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.
Successful track record of launching new products
– Etech Sattva has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Etech Sattva 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.
Organizational Resilience of Etech Sattva
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Etech Sattva 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 Sattva eTech: Managing Uncertainties in the Project Network 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Etech Sattva digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Etech Sattva 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.
Learning organization
- Etech Sattva 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 Etech Sattva is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Sattva eTech: Managing Uncertainties in the Project Network Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Etech Sattva 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 Sattva eTech: Managing Uncertainties in the Project Network - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Etech Sattva 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 Sattva eTech: Managing Uncertainties in the Project Network HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Etech Sattva in the sector have low bargaining power. Sattva eTech: Managing Uncertainties in the Project Network has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Etech Sattva to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Etech Sattva is one of the most innovative firm in sector. Manager in Sattva eTech: Managing Uncertainties in the Project Network 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
– Sattva eTech: Managing Uncertainties in the Project Network firm has clearly differentiated products in the market place. This has enabled Etech Sattva to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Etech Sattva to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Etech Sattva 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 Sattva eTech: Managing Uncertainties in the Project Network | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sattva eTech: Managing Uncertainties in the Project Network are -
High operating costs
– Compare to the competitors, firm in the HBR case study Sattva eTech: Managing Uncertainties in the Project Network 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 Etech Sattva 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Etech Sattva 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. Etech Sattva 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.
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 Etech Sattva supply chain. Even after few cautionary changes mentioned in the HBR case study - Sattva eTech: Managing Uncertainties in the Project Network, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Etech Sattva vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Etech Sattva is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Sattva eTech: Managing Uncertainties in the Project Network can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Etech Sattva 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 - Sattva eTech: Managing Uncertainties in the Project Network should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Sattva eTech: Managing Uncertainties in the Project Network 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 Sattva eTech: Managing Uncertainties in the Project Network can leverage the sales team experience to cultivate customer relationships as Etech Sattva is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Sattva eTech: Managing Uncertainties in the Project Network, it seems that the employees of Etech Sattva 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.
High cash cycle compare to competitors
Etech Sattva 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Sattva eTech: Managing Uncertainties in the Project Network, is just above the industry average. Etech Sattva 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.
Slow to strategic competitive environment developments
– As Sattva eTech: Managing Uncertainties in the Project Network HBR case study mentions - Etech Sattva 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Etech Sattva 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.
Opportunities Sattva eTech: Managing Uncertainties in the Project Network | 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 Sattva eTech: Managing Uncertainties in the Project Network are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Etech Sattva 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, Sattva eTech: Managing Uncertainties in the Project Network, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Etech Sattva 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.
Developing new processes and practices
– Etech Sattva 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.
Better consumer reach
– The expansion of the 5G network will help Etech Sattva to increase its market reach. Etech Sattva 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 Etech Sattva can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Etech Sattva 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 Etech Sattva to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Etech Sattva 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.
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 Etech Sattva 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Etech Sattva can use these opportunities to build new business models that can help the communities that Etech Sattva operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Etech Sattva is facing challenges because of the dominance of functional experts in the organization. Sattva eTech: Managing Uncertainties in the Project Network 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.
Loyalty marketing
– Etech Sattva 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Etech Sattva 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Etech Sattva 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.
Threats Sattva eTech: Managing Uncertainties in the Project Network External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sattva eTech: Managing Uncertainties in the Project Network are -
Consumer confidence and its impact on Etech Sattva 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.
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 Etech Sattva in the Technology & Operations sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Etech Sattva 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.
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 Etech Sattva business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Etech Sattva 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.
High dependence on third party suppliers
– Etech Sattva 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.
Regulatory challenges
– Etech Sattva 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Etech Sattva with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Etech Sattva has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Etech Sattva 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.
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.
Environmental challenges
– Etech Sattva 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. Etech Sattva can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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. Etech Sattva 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.
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. Etech Sattva needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Sattva eTech: Managing Uncertainties in the Project Network 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 Sattva eTech: Managing Uncertainties in the Project Network 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 Sattva eTech: Managing Uncertainties in the Project Network 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 Sattva eTech: Managing Uncertainties in the Project Network 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 Sattva eTech: Managing Uncertainties in the Project Network 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 Etech Sattva needs to make to build a sustainable competitive advantage.