The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement
Supplement to case B5902. In April 2017, Mr. Kristian Groth, a successful entrepreneur and founder of the Leith Society, was considering his next move. The Leith Society is a professional development and networking organization based in Copenhagen, Denmark. The firm differentiated itself from numerous competitors through its intensely personal approach, in which members (primarly businesspeople but also participants from the creative professions) sought out their true inner selves through interaction with groups of like-minded individuals facilitated by trained psychologists. No online presence was in place, and in fact was rejected by the founder. Less than four years old, annual revenues had grown to nearly 30 million DKK (about 4 million USD) from the 650+ active members, and margins approximated 40%. The firm had successfully transferred its value proposition to nearby Norway and the Netherlands (in Oslo and Amsterdam respectively), but Mr. Groth had his sights on larger markets. He had recently recruited a seasoned manager as CEO and tasked him with development of a detailed operating system which, he believed, would allow for rapid scaling of the organization into new markets. The two had undertaken a visit to the USA in that Spring of 2017 to explore options there; during the trip a meeting at the Haas School of Business at UC Berkeley with students in an MBA global strategy course raised the possibility of also entering China.
Swot Analysis of "The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement" written by Paul Tiffany includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Leith Groth facing as an external strategic factors. Some of the topics covered in The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement case study are - Strategic Management Strategies, Entrepreneurial management, Growth strategy, International business, Managing people, Networking, Supply chain and Organizational Development.
Some of the macro environment factors that can be used to understand the The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement casestudy better are - – there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , there is backlash against globalization, increasing commodity prices, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation,
customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, etc
Introduction to SWOT Analysis of The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Leith Groth, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Leith Groth 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 The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement can be done for the following purposes –
1. Strategic planning using facts provided in The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement case study
2. Improving business portfolio management of Leith Groth
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Leith Groth
Strengths The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Leith Groth in The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement Harvard Business Review case study are -
High switching costs
– The high switching costs that Leith Groth 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.
Strong track record of project management
– Leith Groth is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Leith Groth 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 Leith Groth is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Leith Groth digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Leith Groth 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.
Successful track record of launching new products
– Leith Groth has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Leith Groth 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.
Diverse revenue streams
– Leith Groth is present in almost all the verticals within the industry. This has provided firm in The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement 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.
Analytics focus
– Leith Groth 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 Paul Tiffany 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.
Sustainable margins compare to other players in Organizational Development industry
– The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement firm has clearly differentiated products in the market place. This has enabled Leith Groth to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Leith Groth to invest into research and development (R&D) and innovation.
Organizational Resilience of Leith Groth
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Leith Groth does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Leith Groth 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 The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Leith Groth 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.
Training and development
– Leith Groth has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement 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.
Weaknesses The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement, is just above the industry average. Leith Groth 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.
Products dominated business model
– Even though Leith Groth 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 - The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Leith Groth 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Leith Groth is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Leith Groth products
– To increase the profitability and margins on the products, Leith Groth needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Leith Groth supply chain. Even after few cautionary changes mentioned in the HBR case study - The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Leith Groth vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement, it seems that the employees of Leith Groth don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High operating costs
– Compare to the competitors, firm in the HBR case study The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement 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 Leith Groth 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Leith Groth is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Leith Groth needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Leith Groth to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement, in the dynamic environment Leith Groth has struggled to respond to the nimble upstart competition. Leith Groth has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Leith Groth 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.
Opportunities The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement | 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 The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Leith Groth 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.
Developing new processes and practices
– Leith Groth can develop new processes and procedures in Organizational Development 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Leith Groth 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. Leith Groth 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.
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. Leith Groth can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Leith Groth has opened avenues for new revenue streams for the organization in the industry. This can help Leith Groth to build a more holistic ecosystem as suggested in the The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement case study. Leith Groth can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Leith Groth in the consumer business. Now Leith Groth can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Leith Groth can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Leith Groth can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Leith Groth is facing challenges because of the dominance of functional experts in the organization. The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement 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.
Leveraging digital technologies
– Leith Groth 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Leith Groth 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 Leith Groth to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Leith Groth 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 The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Leith Groth 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 Leith Groth to increase its market reach. Leith Groth 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 The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement are -
Consumer confidence and its impact on Leith Groth demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement, Leith Groth may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
High dependence on third party suppliers
– Leith Groth 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, Leith Groth 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 The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement .
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.
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 Leith Groth business can come under increasing regulations regarding data privacy, data security, etc.
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. Leith Groth needs to understand the core reasons impacting the Organizational Development 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 Leith Groth in the Organizational Development industry. The Organizational Development 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.
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 Leith Groth.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Leith Groth 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
– Leith Groth 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.
Regulatory challenges
– Leith Groth 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 Organizational Development industry regulations.
Environmental challenges
– Leith Groth 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. Leith Groth can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Weighted SWOT Analysis of The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement 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 The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement 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 The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement 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 The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement 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 The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement 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 Leith Groth needs to make to build a sustainable competitive advantage.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of The Leith Society: Managing International Growth for a Professional Development and Networking Firm, Supplement