Diversity and Inclusion at the Los Angeles Cleantech Incubator SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Communication
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Diversity and Inclusion at the Los Angeles Cleantech Incubator
In 2016, the Los Angeles Cleantech Incubator undertook formal efforts to improve diversity and inclusion (D&I) efforts with the hire of Estelle Reyes. Reyes built an internal team and external advisors to define and prioritize these efforts in the first year of her tenure. These groups faced numerous challenges as they attempted to increase the diversity of their staff and incubated companies, shift organizational culture to emphasize D&I at all levels, and move beyond diversity to also focus on inclusion.
Swot Analysis of "Diversity and Inclusion at the Los Angeles Cleantech Incubator" written by Jill Kickul, Allison Gister, Jacqueline Orr includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Diversity Reyes facing as an external strategic factors. Some of the topics covered in Diversity and Inclusion at the Los Angeles Cleantech Incubator case study are - Strategic Management Strategies, Diversity, Gender, Race, Sustainability, Venture capital and Communication.
Some of the macro environment factors that can be used to understand the Diversity and Inclusion at the Los Angeles Cleantech Incubator casestudy better are - – there is increasing trade war between United States & China, supply chains are disrupted by pandemic , technology disruption, wage bills are increasing, cloud computing is disrupting traditional business models, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy,
geopolitical disruptions, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Diversity and Inclusion at the Los Angeles Cleantech Incubator
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Diversity and Inclusion at the Los Angeles Cleantech Incubator case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Diversity Reyes, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Diversity Reyes 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 Diversity and Inclusion at the Los Angeles Cleantech Incubator can be done for the following purposes –
1. Strategic planning using facts provided in Diversity and Inclusion at the Los Angeles Cleantech Incubator case study
2. Improving business portfolio management of Diversity Reyes
3. Assessing feasibility of the new initiative in Communication field.
4. Making a Communication topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Diversity Reyes
Strengths Diversity and Inclusion at the Los Angeles Cleantech Incubator | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Diversity Reyes in Diversity and Inclusion at the Los Angeles Cleantech Incubator Harvard Business Review case study are -
Strong track record of project management
– Diversity Reyes is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Diversity and Inclusion at the Los Angeles Cleantech Incubator 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 switching costs
– The high switching costs that Diversity Reyes 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.
Low bargaining power of suppliers
– Suppliers of Diversity Reyes in the sector have low bargaining power. Diversity and Inclusion at the Los Angeles Cleantech Incubator has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Diversity Reyes to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Diversity Reyes has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Diversity Reyes 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.
Superior customer experience
– The customer experience strategy of Diversity Reyes in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Diversity Reyes is one of the most innovative firm in sector. Manager in Diversity and Inclusion at the Los Angeles Cleantech Incubator Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Diversity Reyes is one of the leading recruiters in the industry. Managers in the Diversity and Inclusion at the Los Angeles Cleantech Incubator are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Communication industry
– Diversity and Inclusion at the Los Angeles Cleantech Incubator firm has clearly differentiated products in the market place. This has enabled Diversity Reyes to fetch slight price premium compare to the competitors in the Communication industry. The sustainable margins have also helped Diversity Reyes to invest into research and development (R&D) and innovation.
Organizational Resilience of Diversity Reyes
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Diversity Reyes does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Diversity Reyes 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.
Highly skilled collaborators
– Diversity Reyes 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 Diversity and Inclusion at the Los Angeles Cleantech Incubator HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Diversity and Inclusion at the Los Angeles Cleantech Incubator | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Diversity and Inclusion at the Los Angeles Cleantech Incubator are -
Interest costs
– Compare to the competition, Diversity Reyes 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Diversity and Inclusion at the Los Angeles Cleantech Incubator 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 Diversity Reyes has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Diversity and Inclusion at the Los Angeles Cleantech Incubator, it seems that company is thinking about the frontier risks that can impact Communication 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Diversity and Inclusion at the Los Angeles Cleantech Incubator, is just above the industry average. Diversity Reyes 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 cash cycle compare to competitors
Diversity Reyes 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 decision making process
– As mentioned earlier in the report, Diversity Reyes 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. Diversity Reyes 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.
Capital Spending Reduction
– Even during the low interest decade, Diversity Reyes 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.
Products dominated business model
– Even though Diversity Reyes 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 - Diversity and Inclusion at the Los Angeles Cleantech Incubator should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Diversity and Inclusion at the Los Angeles Cleantech Incubator 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 Diversity Reyes 's lucrative customers.
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 Diversity Reyes supply chain. Even after few cautionary changes mentioned in the HBR case study - Diversity and Inclusion at the Los Angeles Cleantech Incubator, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Diversity Reyes vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Diversity Reyes is dominated by functional specialists. It is not different from other players in the Communication segment. Diversity Reyes needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Diversity Reyes to focus more on services rather than just following the product oriented approach.
Opportunities Diversity and Inclusion at the Los Angeles Cleantech Incubator | 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 Diversity and Inclusion at the Los Angeles Cleantech Incubator are -
Developing new processes and practices
– Diversity Reyes can develop new processes and procedures in Communication 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.
Loyalty marketing
– Diversity Reyes 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Communication industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Diversity Reyes 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. Diversity Reyes 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.
Manufacturing automation
– Diversity Reyes can use the latest technology developments to improve its manufacturing and designing process in Communication 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Diversity Reyes 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, Diversity and Inclusion at the Los Angeles Cleantech Incubator, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Diversity Reyes 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 Communication segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Diversity Reyes can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Diversity Reyes can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Diversity Reyes 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.
Buying journey improvements
– Diversity Reyes can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Diversity and Inclusion at the Los Angeles Cleantech Incubator 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Diversity Reyes can use these opportunities to build new business models that can help the communities that Diversity Reyes operates in. Secondly it can use opportunities from government spending in Communication sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Diversity Reyes 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 Diversity Reyes to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Diversity Reyes to increase its market reach. Diversity Reyes 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.
Threats Diversity and Inclusion at the Los Angeles Cleantech Incubator External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Diversity and Inclusion at the Los Angeles Cleantech Incubator are -
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. Diversity Reyes needs to understand the core reasons impacting the Communication industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Diversity Reyes 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.
Regulatory challenges
– Diversity Reyes 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 Communication industry regulations.
Easy access to finance
– Easy access to finance in Communication field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Diversity Reyes can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Diversity Reyes 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. Diversity Reyes can take advantage of this fund but it will also bring new competitors in the Communication industry.
Increasing wage structure of Diversity Reyes
– 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 Diversity Reyes.
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 Diversity Reyes.
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.
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 Diversity Reyes in the Communication sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Diversity Reyes with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Diversity Reyes 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.
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 Diversity Reyes business can come under increasing regulations regarding data privacy, data security, etc.
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.
Weighted SWOT Analysis of Diversity and Inclusion at the Los Angeles Cleantech Incubator 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 Diversity and Inclusion at the Los Angeles Cleantech Incubator 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 Diversity and Inclusion at the Los Angeles Cleantech Incubator 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 Diversity and Inclusion at the Los Angeles Cleantech Incubator 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 Diversity and Inclusion at the Los Angeles Cleantech Incubator 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 Diversity Reyes needs to make to build a sustainable competitive advantage.