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 - – wage bills are increasing, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, supply chains are disrupted by pandemic , there is increasing trade war between United States & China,
digital marketing is dominated by two big players Facebook and Google, technology disruption, 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 -
Superior customer experience
– The customer experience strategy of Configurations Examples in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
Strong track record of project management
– Configurations Examples is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Configurations Examples is one of the most innovative firm in sector. Manager in Organizing for Performance: Four Vignettes Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
Ability to lead change in Strategy & Execution field
– Configurations Examples 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 Configurations Examples in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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.
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.
Diverse revenue streams
– Configurations Examples is present in almost all the verticals within the industry. This has provided firm in Organizing for Performance: Four Vignettes 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.
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 -
No frontier risks strategy
– After analyzing the HBR case study Organizing for Performance: Four Vignettes, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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 Configurations Examples products
– To increase the profitability and margins on the products, Configurations Examples needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
Increasing silos among functional specialists
– The organizational structure of Configurations Examples is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Configurations Examples needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Configurations Examples to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Organizing for Performance: Four Vignettes HBR case study mentions - Configurations Examples takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Organizing for Performance: Four Vignettes 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 Configurations Examples has relatively successful track record of launching new products.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Organizing for Performance: Four Vignettes, it seems that the employees of Configurations Examples 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.
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.
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.
Slow decision making process
– As mentioned earlier in the report, Configurations Examples has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Configurations Examples even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
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 -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Configurations Examples is facing challenges because of the dominance of functional experts in the organization. Organizing for Performance: Four Vignettes 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Configurations Examples 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, Organizing for Performance: Four Vignettes, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Configurations Examples 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. Configurations Examples 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Configurations Examples 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 Configurations Examples to hire the very best people irrespective of their geographical location.
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.
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.
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.
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.
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.
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.
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 -
Environmental challenges
– Configurations Examples 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. Configurations Examples can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Configurations Examples 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 Organizing for Performance: Four Vignettes .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Configurations Examples in the Strategy & Execution industry. The Strategy & Execution 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.
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.
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.
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.
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.
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.
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 .
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.
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.