The Heartbreak of DRGs SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Heartbreak of DRGs
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Swot Analysis of "The Heartbreak of DRGs" written by David W. Young includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Drgs Heartbreak facing as an external strategic factors. Some of the topics covered in The Heartbreak of DRGs case study are - Strategic Management Strategies, and Finance & Accounting.
Some of the macro environment factors that can be used to understand the The Heartbreak of DRGs casestudy better are - – increasing commodity prices, increasing energy prices, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, increasing transportation and logistics costs,
there is backlash against globalization, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of The Heartbreak of DRGs
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Heartbreak of DRGs case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Drgs Heartbreak, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Drgs Heartbreak 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 Heartbreak of DRGs can be done for the following purposes –
1. Strategic planning using facts provided in The Heartbreak of DRGs case study
2. Improving business portfolio management of Drgs Heartbreak
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Drgs Heartbreak
Strengths The Heartbreak of DRGs | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Drgs Heartbreak in The Heartbreak of DRGs Harvard Business Review case study are -
Effective Research and Development (R&D)
– Drgs Heartbreak 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 The Heartbreak of DRGs - 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 brand equity
– Drgs Heartbreak has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Drgs Heartbreak to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Finance & Accounting industry
– The Heartbreak of DRGs firm has clearly differentiated products in the market place. This has enabled Drgs Heartbreak to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Drgs Heartbreak to invest into research and development (R&D) and innovation.
Strong track record of project management
– Drgs Heartbreak is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the The Heartbreak of DRGs 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.
Diverse revenue streams
– Drgs Heartbreak is present in almost all the verticals within the industry. This has provided firm in The Heartbreak of DRGs 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.
Training and development
– Drgs Heartbreak has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Heartbreak of DRGs 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.
Ability to recruit top talent
– Drgs Heartbreak is one of the leading recruiters in the industry. Managers in the The Heartbreak of DRGs are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Drgs Heartbreak is one of the most innovative firm in sector. Manager in The Heartbreak of DRGs Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Drgs Heartbreak digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Drgs Heartbreak 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.
Low bargaining power of suppliers
– Suppliers of Drgs Heartbreak in the sector have low bargaining power. The Heartbreak of DRGs has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Drgs Heartbreak to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Drgs Heartbreak 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 Drgs Heartbreak is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Heartbreak of DRGs Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses The Heartbreak of DRGs | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Heartbreak of DRGs are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Heartbreak of DRGs, in the dynamic environment Drgs Heartbreak has struggled to respond to the nimble upstart competition. Drgs Heartbreak has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Drgs Heartbreak products
– To increase the profitability and margins on the products, Drgs Heartbreak 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 Drgs Heartbreak supply chain. Even after few cautionary changes mentioned in the HBR case study - The Heartbreak of DRGs, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Drgs Heartbreak vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study The Heartbreak of DRGs 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 Drgs Heartbreak 's lucrative customers.
High cash cycle compare to competitors
Drgs Heartbreak 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.
Increasing silos among functional specialists
– The organizational structure of Drgs Heartbreak is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Drgs Heartbreak needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Drgs Heartbreak to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The Heartbreak of DRGs 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 Drgs Heartbreak has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Heartbreak of DRGs, is just above the industry average. Drgs Heartbreak 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Heartbreak of DRGs, it seems that the employees of Drgs Heartbreak 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.
Low market penetration in new markets
– Outside its home market of Drgs Heartbreak, firm in the HBR case study The Heartbreak of DRGs needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study The Heartbreak of DRGs 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 The Heartbreak of DRGs can leverage the sales team experience to cultivate customer relationships as Drgs Heartbreak is planning to shift buying processes online.
Opportunities The Heartbreak of DRGs | 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 Heartbreak of DRGs are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Drgs Heartbreak 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.
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 Drgs Heartbreak in the consumer business. Now Drgs Heartbreak can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Drgs Heartbreak 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 Heartbreak of DRGs - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Drgs Heartbreak to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Drgs Heartbreak can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Drgs Heartbreak 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, The Heartbreak of DRGs, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Drgs Heartbreak can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Heartbreak of DRGs 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.
Creating value in data economy
– The success of analytics program of Drgs Heartbreak has opened avenues for new revenue streams for the organization in the industry. This can help Drgs Heartbreak to build a more holistic ecosystem as suggested in the The Heartbreak of DRGs case study. Drgs Heartbreak can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Drgs Heartbreak 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Drgs Heartbreak can use these opportunities to build new business models that can help the communities that Drgs Heartbreak operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
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. Drgs Heartbreak can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Drgs Heartbreak is facing challenges because of the dominance of functional experts in the organization. The Heartbreak of DRGs 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
– Drgs Heartbreak 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.
Learning at scale
– Online learning technologies has now opened space for Drgs Heartbreak 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.
Threats The Heartbreak of DRGs External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Heartbreak of DRGs 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. Drgs Heartbreak needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Drgs Heartbreak is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Drgs Heartbreak 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.
Consumer confidence and its impact on Drgs Heartbreak 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.
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 Drgs Heartbreak.
Technology acceleration in Forth Industrial Revolution
– Drgs Heartbreak has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Drgs Heartbreak needs to keep up with the evolution of technology in the Finance & Accounting 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.
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 Drgs Heartbreak business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Drgs Heartbreak can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Drgs Heartbreak 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 Finance & Accounting industry regulations.
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.
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.
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 Drgs Heartbreak in the Finance & Accounting sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Drgs Heartbreak 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 The Heartbreak of DRGs 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 Heartbreak of DRGs 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 Heartbreak of DRGs 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 Heartbreak of DRGs 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 Heartbreak of DRGs 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 Drgs Heartbreak needs to make to build a sustainable competitive advantage.