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 - – wage bills are increasing, central banks are concerned over increasing inflation, there is backlash against globalization, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, talent flight as more people leaving formal jobs,
cloud computing is disrupting traditional business models, geopolitical disruptions, 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 -
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.
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.
Learning organization
- Codes Wall 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 Codes Wall is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Codes Wall 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 Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
Cross disciplinary teams
– Horizontal connected teams at the Codes Wall 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.
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.
Effective Research and Development (R&D)
– Codes Wall 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 Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Codes Wall 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 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.
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.
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.
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 -
Workers concerns about automation
– As automation is fast increasing in the segment, Codes Wall 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.
Lack of clear differentiation of Codes Wall products
– To increase the profitability and margins on the products, Codes Wall needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Codes Wall 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 - Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Codes Wall 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.
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.
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.
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.
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.
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.
No frontier risks strategy
– After analyzing the HBR case study Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement, 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.
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.
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 -
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.
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.
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.
Leveraging digital technologies
– Codes Wall can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Codes Wall 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.
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.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Codes Wall 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 Codes Wall to hire the very best people irrespective of their geographical location.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Codes Wall is facing challenges because of the dominance of functional experts in the organization. Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement 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.
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.
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 -
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.
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.
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 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement, Codes Wall 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 .
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.
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.
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. Codes Wall 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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Codes Wall 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 Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement .
Increasing wage structure of Codes Wall
– 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 Codes Wall.
Environmental challenges
– Codes Wall 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. Codes Wall can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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.