Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances
Non-equity alliances have become important vehicles to collaborate with external partners, particularly in the biopharmaceutical industry. To guide these collaborations effectively, partners are using contracts to custom-build jointly staffed managerial units with clearly demarcated decision-making responsibilities. In this article, the authors discuss their research on the conditions that most often favor setting up a steering committee. They suggest that joint administrative control through these committees provides distinct benefits for companies that might otherwise run up against high levels of uncertainty and put proprietary knowledge at risk.
Authors :: Jeffrey J. Reuer, Shivaram V. Devarakonda
Swot Analysis of "Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances" written by Jeffrey J. Reuer, Shivaram V. Devarakonda includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Steering Alliances facing as an external strategic factors. Some of the topics covered in Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances case study are - Strategic Management Strategies, Entrepreneurship, Joint ventures and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances casestudy better are - – wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, technology disruption, increasing transportation and logistics costs, increasing commodity prices, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China,
central banks are concerned over increasing inflation, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Steering Alliances, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Steering Alliances 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 Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances can be done for the following purposes –
1. Strategic planning using facts provided in Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances case study
2. Improving business portfolio management of Steering Alliances
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 Steering Alliances
Strengths Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Steering Alliances in Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances 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.
High brand equity
– Steering Alliances has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Steering Alliances to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Steering Alliances in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Steering Alliances digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Steering Alliances 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.
Ability to lead change in Strategy & Execution field
– Steering Alliances 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 Steering Alliances in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Steering Alliances has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances 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.
Effective Research and Development (R&D)
– Steering Alliances 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 Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Steering Alliances
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Steering Alliances does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Steering Alliances in the sector have low bargaining power. Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Steering Alliances to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Steering Alliances has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Steering Alliances 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.
Highly skilled collaborators
– Steering Alliances 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 Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Steering Alliances is present in almost all the verticals within the industry. This has provided firm in Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances 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 Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances 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 Steering Alliances has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Steering Alliances is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances 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 Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances 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 Steering Alliances 's lucrative customers.
Products dominated business model
– Even though Steering Alliances 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 - Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Steering Alliances is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Steering Alliances needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Steering Alliances to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances, is just above the industry average. Steering Alliances 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.
Skills based hiring
– The stress on hiring functional specialists at Steering Alliances 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 Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances HBR case study mentions - Steering Alliances 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 Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances, 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances, it seems that the employees of Steering Alliances 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.
High cash cycle compare to competitors
Steering Alliances 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.
Opportunities Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances | 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 Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances are -
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. Steering Alliances 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. Steering Alliances 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.
Creating value in data economy
– The success of analytics program of Steering Alliances has opened avenues for new revenue streams for the organization in the industry. This can help Steering Alliances to build a more holistic ecosystem as suggested in the Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances case study. Steering Alliances can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Steering Alliances 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Steering Alliances 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, Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances, 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
– Steering Alliances can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Steering Alliances 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 Steering Alliances to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Steering Alliances is facing challenges because of the dominance of functional experts in the organization. Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Steering Alliances 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.
Loyalty marketing
– Steering Alliances has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Developing new processes and practices
– Steering Alliances 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Steering Alliances can use these opportunities to build new business models that can help the communities that Steering Alliances operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Building a culture of innovation
– managers at Steering Alliances 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.
Manufacturing automation
– Steering Alliances 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.
Threats Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances are -
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.
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 Steering Alliances business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Steering Alliances is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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 Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances, Steering Alliances may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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 Steering Alliances in the Strategy & Execution sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Steering Alliances 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.
Environmental challenges
– Steering Alliances needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Steering Alliances can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Consumer confidence and its impact on Steering Alliances 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.
Stagnating economy with rate increase
– Steering Alliances 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.
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. Steering Alliances 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.
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. Steering Alliances 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. Steering Alliances can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances 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 Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances 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 Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances 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 Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances 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 Does My Partnership Need a Joint Steering Committee?: Governance in Non-Equity Alliances 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 Steering Alliances needs to make to build a sustainable competitive advantage.
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