Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement
In some Third World factories, there is a literal wall of codes. Posted are dozens of codes of conduct as defined by dozens of customer, firm, and industry groups and a host of certifying organizations. The cost of this wall of codes is clear for managers: They must fill out streams of forms and host endless visits from compliance auditors. Less obviously, the wall of codes is costly for consumers and other stakeholders who care about the social performance of businesses. Not only must they pay the (passed on) costs of compliance, but with so many standards, they cannot always identify which standards and codes are valid measures of true social responsibility. Documents the proliferation of metrics and outlines some of the problems regarding reliability, validity, and comparability of existing codes. Examines two large sets of metrics: those used in the apparel industry and those created by socially responsible investment funds. Concludes with some practical suggestions to help reduce the burdens on managers and yield more reliable, valid, and comparable metrics.
Swot Analysis of "Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement" written by Aaron Chatterji, David Levine includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Codes Wall facing as an external strategic factors. Some of the topics covered in Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement case study are - Strategic Management Strategies, Cross-cultural management, Emerging markets, Ethics, Performance measurement, Social responsibility and Technology & Operations.
Some of the macro environment factors that can be used to understand the Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement casestudy better are - – technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies,
talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Codes Wall, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Codes Wall 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 Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement can be done for the following purposes –
1. Strategic planning using facts provided in Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement case study
2. Improving business portfolio management of Codes Wall
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 Codes Wall
Strengths Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Codes Wall in Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement Harvard Business Review case study are -
Organizational Resilience of Codes Wall
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Codes Wall does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Codes Wall is one of the most innovative firm in sector. Manager in Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Codes Wall 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 Aaron Chatterji, David Levine 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.
Ability to lead change in Technology & Operations field
– Codes Wall 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 Codes Wall in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Codes Wall digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Codes Wall 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.
Superior customer experience
– The customer experience strategy of Codes Wall in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Codes Wall has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Codes Wall to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Codes Wall is one of the leading recruiters in the industry. Managers in the Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Codes Wall in the sector have low bargaining power. Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Codes Wall to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Codes Wall has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement 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.
Operational resilience
– The operational resilience strategy in the Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement 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.
Strong track record of project management
– Codes Wall is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement are -
Aligning sales with marketing
– It come across in the case study Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement 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 Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement can leverage the sales team experience to cultivate customer relationships as Codes Wall is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement, in the dynamic environment Codes Wall has struggled to respond to the nimble upstart competition. Codes Wall has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement 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 Codes Wall has relatively successful track record of launching new products.
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 Codes Wall supply chain. Even after few cautionary changes mentioned in the HBR case study - Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Codes Wall vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement HBR case study mentions - Codes Wall 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.
Increasing silos among functional specialists
– The organizational structure of Codes Wall is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Codes Wall needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Codes Wall to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement, is just above the industry average. Codes Wall 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 decision making process
– As mentioned earlier in the report, Codes Wall 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. Codes Wall 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.
Need for greater diversity
– Codes Wall 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Aaron Chatterji, David Levine suggests that, Codes Wall 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 cash cycle compare to competitors
Codes Wall 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.
Opportunities Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement | 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 Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement are -
Building a culture of innovation
– managers at Codes Wall 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.
Buying journey improvements
– Codes Wall can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement 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.
Loyalty marketing
– Codes Wall 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Codes Wall can use these opportunities to build new business models that can help the communities that Codes Wall operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Learning at scale
– Online learning technologies has now opened space for Codes Wall 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.
Manufacturing automation
– Codes Wall 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 Codes Wall 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.
Using analytics as competitive advantage
– Codes Wall 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 Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Codes Wall to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Codes Wall has opened avenues for new revenue streams for the organization in the industry. This can help Codes Wall to build a more holistic ecosystem as suggested in the Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement case study. Codes Wall can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Codes Wall 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, Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Codes Wall 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. Codes Wall 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.
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. Codes Wall can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Codes Wall to increase its market reach. Codes Wall 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.
Threats Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement are -
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. Codes Wall needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Codes Wall 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.
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. Codes Wall can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Codes Wall in the Technology & Operations sector and impact the bottomline of the organization.
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 Codes Wall business can come under increasing regulations regarding data privacy, data security, etc.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Codes Wall with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Codes Wall 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.
Shortening product life cycle
– it is one of the major threat that Codes Wall is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Codes Wall.
Regulatory challenges
– Codes Wall 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
– Codes Wall has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Codes Wall 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.
High dependence on third party suppliers
– Codes Wall 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.
Weighted SWOT Analysis of Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement 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 Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement 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 Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement 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 Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement 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 Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement 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 Codes Wall needs to make to build a sustainable competitive advantage.
