Professional Services, Module One: Introduction to the Challenges Facing PSFs SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Professional Services, Module One: Introduction to the Challenges Facing PSFs
This initial module was meant to clarify how the course would be useful to students who would be starting PSFs, working for them as an employee or contractor, managing them, or hiring them from the client side.
Authors :: Thomas J. DeLong, Ashish Nanda, Scot Landry
Swot Analysis of "Professional Services, Module One: Introduction to the Challenges Facing PSFs" 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 Psfs Module facing as an external strategic factors. Some of the topics covered in Professional Services, Module One: Introduction to the Challenges Facing PSFs 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 One: Introduction to the Challenges Facing PSFs casestudy better are - – technology disruption, there is backlash against globalization, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion,
central banks are concerned over increasing inflation, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Professional Services, Module One: Introduction to the Challenges Facing PSFs
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Professional Services, Module One: Introduction to the Challenges Facing PSFs case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Psfs Module, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Psfs Module 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 One: Introduction to the Challenges Facing PSFs can be done for the following purposes –
1. Strategic planning using facts provided in Professional Services, Module One: Introduction to the Challenges Facing PSFs case study
2. Improving business portfolio management of Psfs Module
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 Psfs Module
Strengths Professional Services, Module One: Introduction to the Challenges Facing PSFs | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Psfs Module in Professional Services, Module One: Introduction to the Challenges Facing PSFs Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Psfs Module 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.
Organizational Resilience of Psfs Module
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Psfs Module does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Psfs Module has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Psfs Module 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 Psfs Module digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Psfs Module 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.
Strong track record of project management
– Psfs Module is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Psfs Module in the sector have low bargaining power. Professional Services, Module One: Introduction to the Challenges Facing PSFs has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Psfs Module to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Professional Services, Module One: Introduction to the Challenges Facing PSFs 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.
Ability to lead change in Technology & Operations field
– Psfs Module 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 Psfs Module in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Technology & Operations industry
– Professional Services, Module One: Introduction to the Challenges Facing PSFs firm has clearly differentiated products in the market place. This has enabled Psfs Module to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Psfs Module to invest into research and development (R&D) and innovation.
High brand equity
– Psfs Module has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Psfs Module to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Psfs Module is one of the leading recruiters in the industry. Managers in the Professional Services, Module One: Introduction to the Challenges Facing PSFs are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Psfs Module is present in almost all the verticals within the industry. This has provided firm in Professional Services, Module One: Introduction to the Challenges Facing PSFs 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.
Weaknesses Professional Services, Module One: Introduction to the Challenges Facing PSFs | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Professional Services, Module One: Introduction to the Challenges Facing PSFs are -
High operating costs
– Compare to the competitors, firm in the HBR case study Professional Services, Module One: Introduction to the Challenges Facing PSFs 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 Psfs Module 's lucrative customers.
Need for greater diversity
– Psfs Module 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Professional Services, Module One: Introduction to the Challenges Facing PSFs, it seems that the employees of Psfs Module don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
No frontier risks strategy
– After analyzing the HBR case study Professional Services, Module One: Introduction to the Challenges Facing PSFs, 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.
Slow to strategic competitive environment developments
– As Professional Services, Module One: Introduction to the Challenges Facing PSFs HBR case study mentions - Psfs Module 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, Psfs Module 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.
High cash cycle compare to competitors
Psfs Module 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Professional Services, Module One: Introduction to the Challenges Facing PSFs, in the dynamic environment Psfs Module has struggled to respond to the nimble upstart competition. Psfs Module has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Professional Services, Module One: Introduction to the Challenges Facing PSFs, is just above the industry average. Psfs Module 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.
Increasing silos among functional specialists
– The organizational structure of Psfs Module is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Psfs Module needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Psfs Module to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Psfs Module 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 One: Introduction to the Challenges Facing PSFs should strive to include more intangible value offerings along with its core products and services.
Opportunities Professional Services, Module One: Introduction to the Challenges Facing PSFs | 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 One: Introduction to the Challenges Facing PSFs are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Psfs Module is facing challenges because of the dominance of functional experts in the organization. Professional Services, Module One: Introduction to the Challenges Facing PSFs 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.
Using analytics as competitive advantage
– Psfs Module 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 One: Introduction to the Challenges Facing PSFs - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Psfs Module to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Psfs Module to increase its market reach. Psfs Module 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Psfs Module can use these opportunities to build new business models that can help the communities that Psfs Module operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Creating value in data economy
– The success of analytics program of Psfs Module has opened avenues for new revenue streams for the organization in the industry. This can help Psfs Module to build a more holistic ecosystem as suggested in the Professional Services, Module One: Introduction to the Challenges Facing PSFs case study. Psfs Module can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Psfs Module can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Psfs Module 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Psfs Module 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 One: Introduction to the Challenges Facing PSFs, 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 Psfs Module 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Psfs Module 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.
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. Psfs Module can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Psfs Module 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 Psfs Module to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Psfs Module can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Professional Services, Module One: Introduction to the Challenges Facing PSFs 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 Professional Services, Module One: Introduction to the Challenges Facing PSFs 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 One: Introduction to the Challenges Facing PSFs are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Psfs Module 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 One: Introduction to the Challenges Facing PSFs .
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. Psfs Module can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Psfs Module 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. Psfs Module can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Stagnating economy with rate increase
– Psfs Module 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 Professional Services, Module One: Introduction to the Challenges Facing PSFs, Psfs Module 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 .
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 Psfs Module in the Technology & Operations sector and impact the bottomline of the organization.
Increasing wage structure of Psfs Module
– 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 Psfs Module.
High dependence on third party suppliers
– Psfs Module 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.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Psfs Module 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.
Regulatory challenges
– Psfs Module 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.
Technology acceleration in Forth Industrial Revolution
– Psfs Module has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Psfs Module 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.
Weighted SWOT Analysis of Professional Services, Module One: Introduction to the Challenges Facing PSFs 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 One: Introduction to the Challenges Facing PSFs 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 One: Introduction to the Challenges Facing PSFs 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 One: Introduction to the Challenges Facing PSFs 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 One: Introduction to the Challenges Facing PSFs 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 Psfs Module needs to make to build a sustainable competitive advantage.
