Stanford Management Company in 2017: Venture Capital and Other Asset Allocation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Stanford Management Company in 2017: Venture Capital and Other Asset Allocation
Greg Milani, Senior Managing Director of the Stanford Management Company, considers how much of Stanford's $27 billion endowment to allocate to early stage capital, taking into account the various pro's and con's of that allocation.
Swot Analysis of "Stanford Management Company in 2017: Venture Capital and Other Asset Allocation" written by John Glynn includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Stanford Milani facing as an external strategic factors. Some of the topics covered in Stanford Management Company in 2017: Venture Capital and Other Asset Allocation case study are - Strategic Management Strategies, Venture capital and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Stanford Management Company in 2017: Venture Capital and Other Asset Allocation casestudy better are - – increasing household debt because of falling income levels, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization,
competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Stanford Management Company in 2017: Venture Capital and Other Asset Allocation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Stanford Management Company in 2017: Venture Capital and Other Asset Allocation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Stanford Milani, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Stanford Milani 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 Stanford Management Company in 2017: Venture Capital and Other Asset Allocation can be done for the following purposes –
1. Strategic planning using facts provided in Stanford Management Company in 2017: Venture Capital and Other Asset Allocation case study
2. Improving business portfolio management of Stanford Milani
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Stanford Milani
Strengths Stanford Management Company in 2017: Venture Capital and Other Asset Allocation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Stanford Milani in Stanford Management Company in 2017: Venture Capital and Other Asset Allocation Harvard Business Review case study are -
Ability to recruit top talent
– Stanford Milani is one of the leading recruiters in the industry. Managers in the Stanford Management Company in 2017: Venture Capital and Other Asset Allocation are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Stanford Milani 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 Stanford Milani is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Stanford Management Company in 2017: Venture Capital and Other Asset Allocation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Stanford Milani is present in almost all the verticals within the industry. This has provided firm in Stanford Management Company in 2017: Venture Capital and Other Asset Allocation 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.
Analytics focus
– Stanford Milani 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 John Glynn 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.
Highly skilled collaborators
– Stanford Milani 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 Stanford Management Company in 2017: Venture Capital and Other Asset Allocation HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Stanford Milani has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Stanford Management Company in 2017: Venture Capital and Other Asset Allocation 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.
Organizational Resilience of Stanford Milani
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Stanford Milani does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Stanford Milani 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 Stanford Management Company in 2017: Venture Capital and Other Asset Allocation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Stanford Milani 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.
High switching costs
– The high switching costs that Stanford Milani 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.
High brand equity
– Stanford Milani has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Stanford Milani to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Stanford Milani in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Stanford Management Company in 2017: Venture Capital and Other Asset Allocation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Stanford Management Company in 2017: Venture Capital and Other Asset Allocation are -
High cash cycle compare to competitors
Stanford Milani 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.
Slow to strategic competitive environment developments
– As Stanford Management Company in 2017: Venture Capital and Other Asset Allocation HBR case study mentions - Stanford Milani 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.
No frontier risks strategy
– After analyzing the HBR case study Stanford Management Company in 2017: Venture Capital and Other Asset Allocation, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.
Skills based hiring
– The stress on hiring functional specialists at Stanford Milani 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 decision making process
– As mentioned earlier in the report, Stanford Milani 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. Stanford Milani 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.
Lack of clear differentiation of Stanford Milani products
– To increase the profitability and margins on the products, Stanford Milani needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Stanford Management Company in 2017: Venture Capital and Other Asset Allocation, is just above the industry average. Stanford Milani 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.
Capital Spending Reduction
– Even during the low interest decade, Stanford Milani has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High 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 Stanford Milani supply chain. Even after few cautionary changes mentioned in the HBR case study - Stanford Management Company in 2017: Venture Capital and Other Asset Allocation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Stanford Milani vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Stanford Management Company in 2017: Venture Capital and Other Asset Allocation 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 Stanford Management Company in 2017: Venture Capital and Other Asset Allocation can leverage the sales team experience to cultivate customer relationships as Stanford Milani is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Stanford Management Company in 2017: Venture Capital and Other Asset Allocation, it seems that the employees of Stanford Milani 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.
Opportunities Stanford Management Company in 2017: Venture Capital and Other Asset Allocation | 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 Stanford Management Company in 2017: Venture Capital and Other Asset Allocation are -
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 Stanford Milani in the consumer business. Now Stanford Milani can target international markets with far fewer capital restrictions requirements than the existing system.
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 Stanford Milani 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Stanford Milani 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 Stanford Milani to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Stanford Milani is facing challenges because of the dominance of functional experts in the organization. Stanford Management Company in 2017: Venture Capital and Other Asset Allocation 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.
Using analytics as competitive advantage
– Stanford Milani 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 Stanford Management Company in 2017: Venture Capital and Other Asset Allocation - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Stanford Milani to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Stanford Milani to increase its market reach. Stanford Milani 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.
Developing new processes and practices
– Stanford Milani can develop new processes and procedures in Finance & Accounting 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Stanford Milani can use these opportunities to build new business models that can help the communities that Stanford Milani operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Stanford Milani 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, Stanford Management Company in 2017: Venture Capital and Other Asset Allocation, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Stanford Milani can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Stanford Management Company in 2017: Venture Capital and Other Asset Allocation 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.
Creating value in data economy
– The success of analytics program of Stanford Milani has opened avenues for new revenue streams for the organization in the industry. This can help Stanford Milani to build a more holistic ecosystem as suggested in the Stanford Management Company in 2017: Venture Capital and Other Asset Allocation case study. Stanford Milani can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Stanford Milani 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 Finance & Accounting segment.
Manufacturing automation
– Stanford Milani can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Threats Stanford Management Company in 2017: Venture Capital and Other Asset Allocation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Stanford Management Company in 2017: Venture Capital and Other Asset Allocation are -
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Stanford Milani 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 Stanford Management Company in 2017: Venture Capital and Other Asset Allocation, Stanford Milani may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
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 Stanford Milani.
Shortening product life cycle
– it is one of the major threat that Stanford Milani is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Stanford Milani 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.
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 Stanford Milani in the Finance & Accounting 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Stanford Milani with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Stanford Milani business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Stanford Milani 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 Finance & Accounting industry regulations.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Stanford Milani 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 Stanford Management Company in 2017: Venture Capital and Other Asset Allocation .
Increasing wage structure of Stanford Milani
– 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 Stanford Milani.
Weighted SWOT Analysis of Stanford Management Company in 2017: Venture Capital and Other Asset Allocation 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 Stanford Management Company in 2017: Venture Capital and Other Asset Allocation 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 Stanford Management Company in 2017: Venture Capital and Other Asset Allocation 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 Stanford Management Company in 2017: Venture Capital and Other Asset Allocation 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 Stanford Management Company in 2017: Venture Capital and Other Asset Allocation 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 Stanford Milani needs to make to build a sustainable competitive advantage.