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, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation,
increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, 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 -
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.
Ability to recruit top talent
– Configurations Examples is one of the leading recruiters in the industry. Managers in the Organizing for Performance: Four Vignettes are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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.
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.
Organizational Resilience of Configurations Examples
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Configurations Examples does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
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.
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.
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.
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 -
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.
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.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Configurations Examples is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Organizing for Performance: Four Vignettes can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
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.
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.
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.
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.
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.
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 -
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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Configurations Examples in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Configurations Examples to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Configurations Examples can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
Using analytics as competitive advantage
– Configurations Examples 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 Organizing for Performance: Four Vignettes - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Configurations Examples to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Configurations Examples can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 -
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.
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.
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 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.
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.
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.
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.
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.
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 .
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Configurations Examples with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.