Organizing for Performance: Four Vignettes SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Organizing for Performance: Four Vignettes
This case provides four examples of organizations with very different business strategies: Walmart, Starbucks, Harvard Business School, and Google. To support their varying strategies, each of these organizations requires a specific configuration to provide the most value to their primary customer. Configurations examined include the Low Price, Local Value Creation, Global Standard of Excellence, Dedicated Service Relationship and the Expert Knowledge designs. Students are asked to analyze the configurations used in each of these examples and then to apply the analysis to a company with which they are familiar.
Swot Analysis of "Organizing for Performance: Four Vignettes" written by Robert L. Simons includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Configurations Examples facing as an external strategic factors. Some of the topics covered in Organizing for Performance: Four Vignettes case study are - Strategic Management Strategies, Growth strategy, Organizational structure, Performance measurement and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Organizing for Performance: Four Vignettes casestudy better are - – technology disruption, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, increasing energy prices,
central banks are concerned over increasing inflation, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Organizing for Performance: Four Vignettes
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Organizing for Performance: Four Vignettes case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Configurations Examples, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Configurations Examples 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 Organizing for Performance: Four Vignettes can be done for the following purposes –
1. Strategic planning using facts provided in Organizing for Performance: Four Vignettes case study
2. Improving business portfolio management of Configurations Examples
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Configurations Examples
Strengths Organizing for Performance: Four Vignettes | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Configurations Examples in Organizing for Performance: Four Vignettes Harvard Business Review case study are -
Training and development
– Configurations Examples has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Organizing for Performance: Four Vignettes Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Operational resilience
– The operational resilience strategy in the Organizing for Performance: Four Vignettes 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.
High switching costs
– The high switching costs that Configurations Examples 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.
Effective Research and Development (R&D)
– Configurations Examples 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 Organizing for Performance: Four Vignettes - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Configurations Examples digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Configurations Examples 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.
Cross disciplinary teams
– Horizontal connected teams at the Configurations Examples 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
– Configurations Examples 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 Robert L. Simons 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 Strategy & Execution industry
– Organizing for Performance: Four Vignettes firm has clearly differentiated products in the market place. This has enabled Configurations Examples to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Configurations Examples to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Configurations Examples 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 Organizing for Performance: Four Vignettes HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Configurations Examples in the sector have low bargaining power. Organizing for Performance: Four Vignettes has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Configurations Examples to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Configurations Examples has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Configurations Examples 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.
Learning organization
- Configurations Examples 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 Configurations Examples is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Organizing for Performance: Four Vignettes Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Organizing for Performance: Four Vignettes | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Organizing for Performance: Four Vignettes are -
Workers concerns about automation
– As automation is fast increasing in the segment, Configurations Examples 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.
Capital Spending Reduction
– Even during the low interest decade, Configurations Examples 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert L. Simons suggests that, Configurations Examples 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.
Skills based hiring
– The stress on hiring functional specialists at Configurations Examples has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Interest costs
– Compare to the competition, Configurations Examples 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.
Products dominated business model
– Even though Configurations Examples 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 - Organizing for Performance: Four Vignettes should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Configurations Examples, firm in the HBR case study Organizing for Performance: Four Vignettes needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Configurations Examples 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.
Aligning sales with marketing
– It come across in the case study Organizing for Performance: Four Vignettes 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 Organizing for Performance: Four Vignettes can leverage the sales team experience to cultivate customer relationships as Configurations Examples is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Organizing for Performance: Four Vignettes 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 Configurations Examples 's lucrative customers.
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 Configurations Examples supply chain. Even after few cautionary changes mentioned in the HBR case study - Organizing for Performance: Four Vignettes, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Configurations Examples vulnerable to further global disruptions in South East Asia.
Opportunities Organizing for Performance: Four Vignettes | 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 Organizing for Performance: Four Vignettes are -
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. Configurations Examples can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Configurations Examples in the consumer business. Now Configurations Examples can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Configurations Examples 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 Strategy & Execution segment.
Loyalty marketing
– Configurations Examples 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.
Manufacturing automation
– Configurations Examples can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Creating value in data economy
– The success of analytics program of Configurations Examples has opened avenues for new revenue streams for the organization in the industry. This can help Configurations Examples to build a more holistic ecosystem as suggested in the Organizing for Performance: Four Vignettes case study. Configurations Examples can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Configurations Examples can develop new processes and procedures in Strategy & Execution 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.
Buying journey improvements
– Configurations Examples can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Organizing for Performance: Four Vignettes 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.
Better consumer reach
– The expansion of the 5G network will help Configurations Examples to increase its market reach. Configurations Examples 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Configurations Examples can use these opportunities to build new business models that can help the communities that Configurations Examples operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Configurations Examples can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Configurations Examples 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Configurations Examples 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 Organizing for Performance: Four Vignettes External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Organizing for Performance: Four Vignettes are -
High dependence on third party suppliers
– Configurations Examples 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.
Consumer confidence and its impact on Configurations Examples 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.
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. Configurations Examples 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.
Shortening product life cycle
– it is one of the major threat that Configurations Examples is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Configurations Examples.
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 Configurations Examples business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Configurations Examples
– 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 Configurations Examples.
Technology acceleration in Forth Industrial Revolution
– Configurations Examples has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Configurations Examples needs to keep up with the evolution of technology in the Strategy & Execution 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.
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 Configurations Examples in the Strategy & Execution sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Configurations Examples 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.
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. Configurations Examples needs to understand the core reasons impacting the Strategy & Execution 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 Organizing for Performance: Four Vignettes, Configurations Examples may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Configurations Examples can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Organizing for Performance: Four Vignettes 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 Organizing for Performance: Four Vignettes 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 Organizing for Performance: Four Vignettes 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 Organizing for Performance: Four Vignettes 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 Organizing for Performance: Four Vignettes 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 Configurations Examples needs to make to build a sustainable competitive advantage.