PricewaterhouseCoopers: Building a Global Network SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of PricewaterhouseCoopers: Building a Global Network
Price Waterhouse and Coopers & Lybrand merged in July 1998, creating one of the world's largest full-service professional organizations. This case provides a study of how two major organizations are putting together a global knowledge base that would facilitate communication and coordination within the PricewaterhouseCoopers (PwC) practice. Eventually, this knowledge base would be made available to PwC clients. Discusses the changes, issues, and challenges at PwC in building its Intranet, called KnowledgeCurve, a knowledge management system that incorporates all the assets (knowledge, people, skills) of the company to be utilized by the firm. In order for the organization to be successful, it is crucial for PwC to encourage the users to fully utilize the available resources and to contribute information to the KnowledgeCurve. At the time this case was written, PwC is in its initial stages of setting up its Global Knowledge Curve, which would ultimately serve the entire practice. The limitations in using the Global Knowledge Curve led to the creation of Knowledge Curve at each office level, which incorporates the knowledge base and information important to the local level.
Authors :: Ali F. Farhoomand, Marissa McCauley, Peter Lovelock, Minako Fukagata
Swot Analysis of "PricewaterhouseCoopers: Building a Global Network" written by Ali F. Farhoomand, Marissa McCauley, Peter Lovelock, Minako Fukagata includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pwc Knowledge facing as an external strategic factors. Some of the topics covered in PricewaterhouseCoopers: Building a Global Network case study are - Strategic Management Strategies, IT, Knowledge management and Technology & Operations.
Some of the macro environment factors that can be used to understand the PricewaterhouseCoopers: Building a Global Network casestudy better are - – cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , wage bills are increasing, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, geopolitical disruptions,
technology disruption, there is backlash against globalization, etc
Introduction to SWOT Analysis of PricewaterhouseCoopers: Building a Global Network
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in PricewaterhouseCoopers: Building a Global Network case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pwc Knowledge, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pwc Knowledge 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 PricewaterhouseCoopers: Building a Global Network can be done for the following purposes –
1. Strategic planning using facts provided in PricewaterhouseCoopers: Building a Global Network case study
2. Improving business portfolio management of Pwc Knowledge
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 Pwc Knowledge
Strengths PricewaterhouseCoopers: Building a Global Network | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pwc Knowledge in PricewaterhouseCoopers: Building a Global Network Harvard Business Review case study are -
Learning organization
- Pwc Knowledge 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 Pwc Knowledge is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in PricewaterhouseCoopers: Building a Global Network Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Pwc Knowledge has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pwc Knowledge to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Pwc Knowledge is one of the most innovative firm in sector. Manager in PricewaterhouseCoopers: Building a Global Network Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Pwc Knowledge 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 PricewaterhouseCoopers: Building a Global 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.
Training and development
– Pwc Knowledge has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in PricewaterhouseCoopers: Building a Global Network 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.
Strong track record of project management
– Pwc Knowledge is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Technology & Operations field
– Pwc Knowledge 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 Pwc Knowledge in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Pwc Knowledge has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pwc Knowledge 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.
Sustainable margins compare to other players in Technology & Operations industry
– PricewaterhouseCoopers: Building a Global Network firm has clearly differentiated products in the market place. This has enabled Pwc Knowledge to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Pwc Knowledge to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Pwc Knowledge is present in almost all the verticals within the industry. This has provided firm in PricewaterhouseCoopers: Building a Global 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Pwc Knowledge digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pwc Knowledge 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.
Operational resilience
– The operational resilience strategy in the PricewaterhouseCoopers: Building a Global 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.
Weaknesses PricewaterhouseCoopers: Building a Global Network | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of PricewaterhouseCoopers: Building a Global Network are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study PricewaterhouseCoopers: Building a Global Network, in the dynamic environment Pwc Knowledge has struggled to respond to the nimble upstart competition. Pwc Knowledge has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study PricewaterhouseCoopers: Building a Global 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 PricewaterhouseCoopers: Building a Global Network can leverage the sales team experience to cultivate customer relationships as Pwc Knowledge is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study PricewaterhouseCoopers: Building a Global Network, 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.
Lack of clear differentiation of Pwc Knowledge products
– To increase the profitability and margins on the products, Pwc Knowledge needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Pwc Knowledge 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Pwc Knowledge 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.
Products dominated business model
– Even though Pwc Knowledge 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 - PricewaterhouseCoopers: Building a Global Network should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study PricewaterhouseCoopers: Building a Global Network, is just above the industry average. Pwc Knowledge 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the PricewaterhouseCoopers: Building a Global Network 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 Pwc Knowledge has relatively successful track record of launching new products.
Need for greater diversity
– Pwc Knowledge 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 operating costs
– Compare to the competitors, firm in the HBR case study PricewaterhouseCoopers: Building a Global 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 Pwc Knowledge 's lucrative customers.
Opportunities PricewaterhouseCoopers: Building a Global 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 PricewaterhouseCoopers: Building a Global Network are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pwc Knowledge can use these opportunities to build new business models that can help the communities that Pwc Knowledge operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Better consumer reach
– The expansion of the 5G network will help Pwc Knowledge to increase its market reach. Pwc Knowledge 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.
Developing new processes and practices
– Pwc Knowledge 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Pwc Knowledge 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 Pwc Knowledge to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Pwc Knowledge 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Pwc Knowledge is facing challenges because of the dominance of functional experts in the organization. PricewaterhouseCoopers: Building a Global 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.
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. Pwc Knowledge can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Pwc Knowledge can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Pwc Knowledge 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.
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. Pwc Knowledge can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Pwc Knowledge 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.
Loyalty marketing
– Pwc Knowledge 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pwc Knowledge 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 PricewaterhouseCoopers: Building a Global Network External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study PricewaterhouseCoopers: Building a Global Network are -
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. Pwc Knowledge can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pwc Knowledge 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 PricewaterhouseCoopers: Building a Global Network .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study PricewaterhouseCoopers: Building a Global Network, Pwc Knowledge 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 .
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 Pwc Knowledge business can come under increasing regulations regarding data privacy, data security, 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 Pwc Knowledge.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Pwc Knowledge in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Shortening product life cycle
– it is one of the major threat that Pwc Knowledge is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Pwc Knowledge 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.
Stagnating economy with rate increase
– Pwc Knowledge 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pwc Knowledge with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Pwc Knowledge 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.
Technology acceleration in Forth Industrial Revolution
– Pwc Knowledge has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Pwc Knowledge 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 PricewaterhouseCoopers: Building a Global 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 PricewaterhouseCoopers: Building a Global 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 PricewaterhouseCoopers: Building a Global 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 PricewaterhouseCoopers: Building a Global 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 PricewaterhouseCoopers: Building a Global 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 Pwc Knowledge needs to make to build a sustainable competitive advantage.
