Creating Great Choices: A Leader's Guide to Integrative Thinking SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Creating Great Choices: A Leader's Guide to Integrative Thinking
The authors begin by asking the reader, How often do you make choices? Really make them? Or how often do you just accept one of the choices that is handed to you? They describe how LEGO's CEO went about creating a new choice for his company-one that did not previously exist as an option. They describe how this display of 'Integrative Thinking' brings together three thinking skills to create new choices: metacognition, empathy and creativity. These components, they argue, can overcome the limitations of current decision-making processes and produce better outcomes.
Swot Analysis of "Creating Great Choices: A Leader's Guide to Integrative Thinking" written by Jennifer Riel, Roger Martin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Choices Thinking facing as an external strategic factors. Some of the topics covered in Creating Great Choices: A Leader's Guide to Integrative Thinking case study are - Strategic Management Strategies, Innovation, Psychology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Creating Great Choices: A Leader's Guide to Integrative Thinking casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, wage bills are increasing, geopolitical disruptions,
central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Creating Great Choices: A Leader's Guide to Integrative Thinking
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Creating Great Choices: A Leader's Guide to Integrative Thinking case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Choices Thinking, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Choices Thinking 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 Creating Great Choices: A Leader's Guide to Integrative Thinking can be done for the following purposes –
1. Strategic planning using facts provided in Creating Great Choices: A Leader's Guide to Integrative Thinking case study
2. Improving business portfolio management of Choices Thinking
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 Choices Thinking
Strengths Creating Great Choices: A Leader's Guide to Integrative Thinking | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Choices Thinking in Creating Great Choices: A Leader's Guide to Integrative Thinking Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Choices Thinking digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Choices Thinking 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
– Choices Thinking 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 Choices Thinking in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Choices Thinking has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Choices Thinking to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Choices Thinking is present in almost all the verticals within the industry. This has provided firm in Creating Great Choices: A Leader's Guide to Integrative Thinking 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.
Learning organization
- Choices Thinking 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 Choices Thinking is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Creating Great Choices: A Leader's Guide to Integrative Thinking Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Choices Thinking is one of the leading recruiters in the industry. Managers in the Creating Great Choices: A Leader's Guide to Integrative Thinking are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Creating Great Choices: A Leader's Guide to Integrative Thinking 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.
Innovation driven organization
– Choices Thinking is one of the most innovative firm in sector. Manager in Creating Great Choices: A Leader's Guide to Integrative Thinking Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Choices Thinking 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 Creating Great Choices: A Leader's Guide to Integrative Thinking - 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 Choices Thinking
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Choices Thinking does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Strategy & Execution industry
– Creating Great Choices: A Leader's Guide to Integrative Thinking firm has clearly differentiated products in the market place. This has enabled Choices Thinking to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Choices Thinking to invest into research and development (R&D) and innovation.
Strong track record of project management
– Choices Thinking is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Creating Great Choices: A Leader's Guide to Integrative Thinking | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Creating Great Choices: A Leader's Guide to Integrative Thinking are -
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 Choices Thinking supply chain. Even after few cautionary changes mentioned in the HBR case study - Creating Great Choices: A Leader's Guide to Integrative Thinking, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Choices Thinking vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Choices Thinking is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Choices Thinking needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Choices Thinking to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Creating Great Choices: A Leader's Guide to Integrative Thinking HBR case study mentions - Choices Thinking takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Products dominated business model
– Even though Choices Thinking 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 - Creating Great Choices: A Leader's Guide to Integrative Thinking should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Jennifer Riel, Roger Martin suggests that, Choices Thinking 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.
Need for greater diversity
– Choices Thinking 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.
Aligning sales with marketing
– It come across in the case study Creating Great Choices: A Leader's Guide to Integrative Thinking 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 Creating Great Choices: A Leader's Guide to Integrative Thinking can leverage the sales team experience to cultivate customer relationships as Choices Thinking is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Creating Great Choices: A Leader's Guide to Integrative Thinking, it seems that the employees of Choices Thinking 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, Choices Thinking 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.
Skills based hiring
– The stress on hiring functional specialists at Choices Thinking 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, Choices Thinking 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. Choices Thinking 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.
Opportunities Creating Great Choices: A Leader's Guide to Integrative Thinking | 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 Creating Great Choices: A Leader's Guide to Integrative Thinking are -
Better consumer reach
– The expansion of the 5G network will help Choices Thinking to increase its market reach. Choices Thinking 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.
Using analytics as competitive advantage
– Choices Thinking 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 Creating Great Choices: A Leader's Guide to Integrative Thinking - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Choices Thinking to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Choices Thinking 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. Choices Thinking 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 Choices Thinking 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.
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. Choices Thinking can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Choices Thinking has opened avenues for new revenue streams for the organization in the industry. This can help Choices Thinking to build a more holistic ecosystem as suggested in the Creating Great Choices: A Leader's Guide to Integrative Thinking case study. Choices Thinking can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Choices Thinking is facing challenges because of the dominance of functional experts in the organization. Creating Great Choices: A Leader's Guide to Integrative Thinking 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.
Buying journey improvements
– Choices Thinking can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Creating Great Choices: A Leader's Guide to Integrative Thinking 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.
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 Choices Thinking in the consumer business. Now Choices Thinking can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Choices Thinking can use these opportunities to build new business models that can help the communities that Choices Thinking operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Choices Thinking 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.
Building a culture of innovation
– managers at Choices Thinking 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.
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. Choices Thinking can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Creating Great Choices: A Leader's Guide to Integrative Thinking External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Creating Great Choices: A Leader's Guide to Integrative Thinking are -
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 Choices Thinking.
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.
Shortening product life cycle
– it is one of the major threat that Choices Thinking is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Choices Thinking 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.
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 Choices Thinking 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 Creating Great Choices: A Leader's Guide to Integrative Thinking, Choices Thinking 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 .
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. Choices Thinking 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Choices Thinking 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 Creating Great Choices: A Leader's Guide to Integrative Thinking .
Environmental challenges
– Choices Thinking 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. Choices Thinking can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Choices Thinking needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Choices Thinking 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.
Consumer confidence and its impact on Choices Thinking 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
– Choices Thinking 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.
Weighted SWOT Analysis of Creating Great Choices: A Leader's Guide to Integrative Thinking 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 Creating Great Choices: A Leader's Guide to Integrative Thinking 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 Creating Great Choices: A Leader's Guide to Integrative Thinking 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 Creating Great Choices: A Leader's Guide to Integrative Thinking 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 Creating Great Choices: A Leader's Guide to Integrative Thinking 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 Choices Thinking needs to make to build a sustainable competitive advantage.