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 government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%,
increasing transportation and logistics costs, increasing commodity prices, 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 -
Low bargaining power of suppliers
– Suppliers of Vet Chasm in the sector have low bargaining power. Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Vet Chasm to manage not only supply disruptions but also source products at highly competitive prices.
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.
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.
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.
Training and development
– Vet Chasm has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards 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
– 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.
High switching costs
– The high switching costs that Vet Chasm 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)
– 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.
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.
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.
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.
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 -
Slow to strategic competitive environment developments
– As Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards HBR case study mentions - Vet Chasm 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.
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.
Capital Spending Reduction
– Even during the low interest decade, Vet Chasm 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.
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 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.
Products dominated business model
– Even though Vet Chasm 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 - Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Vet Chasm 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. Vet Chasm 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.
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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards, in the dynamic environment Vet Chasm has struggled to respond to the nimble upstart competition. Vet Chasm has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards, 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.
Low market penetration in new markets
– Outside its home market of Vet Chasm, firm in the HBR case study Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 -
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.
Building a culture of innovation
– managers at Vet Chasm 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.
Leveraging digital technologies
– Vet Chasm 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.
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.
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.
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.
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.
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.
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. Vet Chasm can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Vet Chasm 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.
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 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.
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.
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.
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.
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 Vet Chasm.
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.
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. Vet Chasm 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.
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.
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.
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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Vet Chasm 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 Setting and Vetting Strategy: Bridging the Chasm Between CEOs and Boards .
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.
