Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards
One of directors' key fiduciary duties is to set the firm's direction and then vet the strategy proposed by the CEO. Despite this, McKinsey reports that the majority of directors feel they do not understand their firm's strategy, and even if they do understand it, they do not feel they have the desired impact on their firm's strategy. This article argues that this shortfall stems from a failure to cross the chasm between CEOs and directors. We propose a framework to bridge this gap and assist board members to better understand and vet their firm's strategy.
Swot Analysis of "Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards" written by Norman T. Sheehan, Richard C. Powers includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Vet Chasm facing as an external strategic factors. Some of the topics covered in Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards case study are - Strategic Management Strategies, Meetings, Mergers & acquisitions and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards casestudy better are - – increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, geopolitical disruptions, increasing commodity prices, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy,
talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Vet Chasm, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Vet Chasm 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 Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards can be done for the following purposes –
1. Strategic planning using facts provided in Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards case study
2. Improving business portfolio management of Vet Chasm
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 Vet Chasm
Strengths Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Vet Chasm in Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards Harvard Business Review case study are -
Effective Research and Development (R&D)
– Vet Chasm 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 Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards - 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
– Vet Chasm is present in almost all the verticals within the industry. This has provided firm in Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards 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.
High brand equity
– Vet Chasm has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Vet Chasm to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Vet Chasm 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 Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Strategy & Execution field
– Vet Chasm 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 Vet Chasm in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Vet Chasm 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 Vet Chasm is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Vet Chasm has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Vet Chasm 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Vet Chasm digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Vet Chasm 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.
Innovation driven organization
– Vet Chasm is one of the most innovative firm in sector. Manager in Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Vet Chasm 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 Norman T. Sheehan, Richard C. Powers 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.
Operational resilience
– The operational resilience strategy in the Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards 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.
Ability to recruit top talent
– Vet Chasm is one of the leading recruiters in the industry. Managers in the Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards are -
Increasing silos among functional specialists
– The organizational structure of Vet Chasm is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Vet Chasm needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Vet Chasm to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Vet Chasm 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.
Lack of clear differentiation of Vet Chasm products
– To increase the profitability and margins on the products, Vet Chasm 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 Vet Chasm supply chain. Even after few cautionary changes mentioned in the HBR case study - Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Vet Chasm vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Norman T. Sheehan, Richard C. Powers suggests that, Vet Chasm 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.
Interest costs
– Compare to the competition, Vet Chasm 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.
High cash cycle compare to competitors
Vet Chasm 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards, it seems that the employees of Vet Chasm 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards, is just above the industry average. Vet Chasm 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards 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 Vet Chasm 's lucrative customers.
Need for greater diversity
– Vet Chasm 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.
Opportunities Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards | 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 Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards are -
Learning at scale
– Online learning technologies has now opened space for Vet Chasm 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. Vet Chasm can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Vet Chasm 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, Vet Chasm 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Vet Chasm can use these opportunities to build new business models that can help the communities that Vet Chasm 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. Vet Chasm 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. Vet Chasm 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.
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 Vet Chasm 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.
Using analytics as competitive advantage
– Vet Chasm 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 Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Vet Chasm to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Vet Chasm 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.
Better consumer reach
– The expansion of the 5G network will help Vet Chasm to increase its market reach. Vet Chasm 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.
Creating value in data economy
– The success of analytics program of Vet Chasm has opened avenues for new revenue streams for the organization in the industry. This can help Vet Chasm to build a more holistic ecosystem as suggested in the Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards case study. Vet Chasm can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Vet Chasm can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Vet Chasm can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards are -
Consumer confidence and its impact on Vet Chasm 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.
High dependence on third party suppliers
– Vet Chasm 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.
Regulatory challenges
– Vet Chasm 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 Strategy & Execution industry regulations.
Shortening product life cycle
– it is one of the major threat that Vet Chasm is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Vet Chasm 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.
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 Vet Chasm business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Vet Chasm with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Technology acceleration in Forth Industrial Revolution
– Vet Chasm has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Vet Chasm 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 Vet Chasm in the Strategy & Execution sector and impact the bottomline of the organization.
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. Vet Chasm needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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. Vet Chasm can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards, Vet Chasm 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 .
Weighted SWOT Analysis of Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards 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 Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards 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 Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards 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 Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards 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 Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards 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 Vet Chasm needs to make to build a sustainable competitive advantage.