Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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Case Study Description of Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint
Clover Network's founders didn't see the curveball coming at the end of 2012. The two-year-old start-up had just nine employees. It had dumped its first business idea, pivoted from its second, and was working hard on a new product: a tablet-based cash register with built-in credit card processing. Large credit card payment processing companies had started noticing Clover and one had just agreed to pre-order $2 million of Clover hardware. It was Clover's first such deal. But around Thanksgiving, Clover learned that First Data-the card processing industry's 800-pound gorilla-also was interested in Clover's technology. If it could bring First Data on as a customer, Clover would have a pipeline to a huge number of retailers. In early December, one of Clover's founders received a 2?-page letter from First Data. He had expected a proposal to buy and distribute Clover equipment, maybe with a small equity investment. Instead, First Data said it wanted to acquire "no less than 75 percent" of Clover, and close the deal by December 31. Was it time to sell Clover? The case highlights how a start-up decides to respond to an unexpected buyout offer and how it proposes to structure the deal.
Authors :: Julie Makinen, Mike Speiser, Mark Leslie
Swot Analysis of "Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint" written by Julie Makinen, Mike Speiser, Mark Leslie includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Clover Clover's facing as an external strategic factors. Some of the topics covered in Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint case study are - Strategic Management Strategies, Mergers & acquisitions, Motivating people, Negotiations, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint casestudy better are - – technology disruption, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, increasing transportation and logistics costs,
increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Clover Clover's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Clover Clover's 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 Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint can be done for the following purposes –
1. Strategic planning using facts provided in Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint case study
2. Improving business portfolio management of Clover Clover's
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 Clover Clover's
Strengths Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Clover Clover's in Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Clover Clover's 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 Clover Clover's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Clover Clover's in the sector have low bargaining power. Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Clover Clover's to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Clover Clover's 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.
Analytics focus
– Clover Clover's 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 Julie Makinen, Mike Speiser, Mark Leslie 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Clover Clover's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Clover Clover's 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.
Highly skilled collaborators
– Clover Clover's 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 Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Clover Clover's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Clover Clover's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Clover Clover's 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 Clover Clover's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Clover Clover's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint 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.
Diverse revenue streams
– Clover Clover's is present in almost all the verticals within the industry. This has provided firm in Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint 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.
Superior customer experience
– The customer experience strategy of Clover Clover's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Clover Clover's 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 Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint are -
No frontier risks strategy
– After analyzing the HBR case study Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint, 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint, in the dynamic environment Clover Clover's has struggled to respond to the nimble upstart competition. Clover Clover's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint HBR case study mentions - Clover Clover's 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.
Interest costs
– Compare to the competition, Clover Clover's 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.
Slow decision making process
– As mentioned earlier in the report, Clover Clover's 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. Clover Clover's 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint, is just above the industry average. Clover Clover's needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High 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 Clover Clover's supply chain. Even after few cautionary changes mentioned in the HBR case study - Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Clover Clover's vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Clover Clover's is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Clover Clover's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Clover Clover's to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Clover Clover's 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.
Products dominated business model
– Even though Clover Clover's 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 - Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint 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, Julie Makinen, Mike Speiser, Mark Leslie suggests that, Clover Clover's 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.
Opportunities Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint | 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 Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint are -
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. Clover Clover's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Clover Clover's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint 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 Clover Clover's has opened avenues for new revenue streams for the organization in the industry. This can help Clover Clover's to build a more holistic ecosystem as suggested in the Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint case study. Clover Clover's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Clover Clover's 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, Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Clover Clover's to increase its market reach. Clover Clover's 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.
Leveraging digital technologies
– Clover Clover's 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.
Developing new processes and practices
– Clover Clover's 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Clover Clover's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Clover Clover's 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.
Using analytics as competitive advantage
– Clover Clover's 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 Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Clover Clover's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Clover Clover's 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 Clover Clover's to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Clover Clover's 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.
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. Clover Clover's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint are -
Shortening product life cycle
– it is one of the major threat that Clover Clover's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Clover Clover's 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.
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 Clover Clover's business can come under increasing regulations regarding data privacy, data security, etc.
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. Clover Clover's needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
Consumer confidence and its impact on Clover Clover's 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.
Increasing wage structure of Clover Clover's
– 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 Clover Clover's.
Stagnating economy with rate increase
– Clover Clover's 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Clover Clover's 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 Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint .
Regulatory challenges
– Clover Clover's 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.
Environmental challenges
– Clover Clover's 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. Clover Clover's can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Clover Clover's.
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.
Weighted SWOT Analysis of Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint 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 Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint 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 Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint 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 Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint 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 Clover (B): What Was Dean Nelson Thinking? KKR's Viewpoint 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 Clover Clover's needs to make to build a sustainable competitive advantage.