Ask the Right Questions and Build Rapport During Due Diligence SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Ask the Right Questions and Build Rapport During Due Diligence
This technical note is written to give students competing in the VCIC a guideline on how to approach due diligence sessions with entrepreneurs.The technical note focuses on hands-on experience from professional venture capitalists concerning important questions to be answered and deal breakers one should be aware of.
Swot Analysis of "Ask the Right Questions and Build Rapport During Due Diligence" written by Elena Krylova, Heinrich Liechtenstein includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Diligence Entrepreneurs.the facing as an external strategic factors. Some of the topics covered in Ask the Right Questions and Build Rapport During Due Diligence case study are - Strategic Management Strategies, Venture capital and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Ask the Right Questions and Build Rapport During Due Diligence casestudy better are - – there is backlash against globalization, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies,
wage bills are increasing, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Ask the Right Questions and Build Rapport During Due Diligence
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ask the Right Questions and Build Rapport During Due Diligence case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Diligence Entrepreneurs.the, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Diligence Entrepreneurs.the 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 Ask the Right Questions and Build Rapport During Due Diligence can be done for the following purposes –
1. Strategic planning using facts provided in Ask the Right Questions and Build Rapport During Due Diligence case study
2. Improving business portfolio management of Diligence Entrepreneurs.the
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Diligence Entrepreneurs.the
Strengths Ask the Right Questions and Build Rapport During Due Diligence | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Diligence Entrepreneurs.the in Ask the Right Questions and Build Rapport During Due Diligence Harvard Business Review case study are -
Ability to lead change in Finance & Accounting field
– Diligence Entrepreneurs.the 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 Diligence Entrepreneurs.the in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Ask the Right Questions and Build Rapport During Due Diligence 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.
Ability to recruit top talent
– Diligence Entrepreneurs.the is one of the leading recruiters in the industry. Managers in the Ask the Right Questions and Build Rapport During Due Diligence are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Diligence Entrepreneurs.the 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.
Learning organization
- Diligence Entrepreneurs.the 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 Diligence Entrepreneurs.the is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Ask the Right Questions and Build Rapport During Due Diligence Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Diligence Entrepreneurs.the is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Diligence Entrepreneurs.the is present in almost all the verticals within the industry. This has provided firm in Ask the Right Questions and Build Rapport During Due Diligence 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.
High brand equity
– Diligence Entrepreneurs.the has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Diligence Entrepreneurs.the to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Diligence Entrepreneurs.the 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 Elena Krylova, Heinrich Liechtenstein 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.
Organizational Resilience of Diligence Entrepreneurs.the
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Diligence Entrepreneurs.the does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Diligence Entrepreneurs.the digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Diligence Entrepreneurs.the 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.
Superior customer experience
– The customer experience strategy of Diligence Entrepreneurs.the in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Ask the Right Questions and Build Rapport During Due Diligence | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ask the Right Questions and Build Rapport During Due Diligence are -
Slow to strategic competitive environment developments
– As Ask the Right Questions and Build Rapport During Due Diligence HBR case study mentions - Diligence Entrepreneurs.the 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Ask the Right Questions and Build Rapport During Due Diligence, in the dynamic environment Diligence Entrepreneurs.the has struggled to respond to the nimble upstart competition. Diligence Entrepreneurs.the has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Elena Krylova, Heinrich Liechtenstein suggests that, Diligence Entrepreneurs.the 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.
High cash cycle compare to competitors
Diligence Entrepreneurs.the 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.
Lack of clear differentiation of Diligence Entrepreneurs.the products
– To increase the profitability and margins on the products, Diligence Entrepreneurs.the needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Ask the Right Questions and Build Rapport During Due Diligence 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 Diligence Entrepreneurs.the 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Ask the Right Questions and Build Rapport During Due Diligence 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 Ask the Right Questions and Build Rapport During Due Diligence can leverage the sales team experience to cultivate customer relationships as Diligence Entrepreneurs.the is planning to shift buying processes online.
Interest costs
– Compare to the competition, Diligence Entrepreneurs.the 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, Diligence Entrepreneurs.the 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. Diligence Entrepreneurs.the 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Diligence Entrepreneurs.the is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ask the Right Questions and Build Rapport During Due Diligence can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Ask the Right Questions and Build Rapport During Due Diligence, is just above the industry average. Diligence Entrepreneurs.the 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.
Opportunities Ask the Right Questions and Build Rapport During Due Diligence | 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 Ask the Right Questions and Build Rapport During Due Diligence are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Diligence Entrepreneurs.the can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Diligence Entrepreneurs.the 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 Ask the Right Questions and Build Rapport During Due Diligence - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Diligence Entrepreneurs.the to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Diligence Entrepreneurs.the to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
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 Diligence Entrepreneurs.the 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Diligence Entrepreneurs.the 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. Diligence Entrepreneurs.the 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.
Building a culture of innovation
– managers at Diligence Entrepreneurs.the can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Finance & Accounting segment.
Creating value in data economy
– The success of analytics program of Diligence Entrepreneurs.the has opened avenues for new revenue streams for the organization in the industry. This can help Diligence Entrepreneurs.the to build a more holistic ecosystem as suggested in the Ask the Right Questions and Build Rapport During Due Diligence case study. Diligence Entrepreneurs.the can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Diligence Entrepreneurs.the to increase its market reach. Diligence Entrepreneurs.the 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Diligence Entrepreneurs.the 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 Diligence Entrepreneurs.the to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Diligence Entrepreneurs.the 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, Ask the Right Questions and Build Rapport During Due Diligence, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Diligence Entrepreneurs.the in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Diligence Entrepreneurs.the can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Diligence Entrepreneurs.the can use these opportunities to build new business models that can help the communities that Diligence Entrepreneurs.the operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Threats Ask the Right Questions and Build Rapport During Due Diligence External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ask the Right Questions and Build Rapport During Due Diligence are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Diligence Entrepreneurs.the 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 Ask the Right Questions and Build Rapport During Due Diligence .
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 Diligence Entrepreneurs.the business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Diligence Entrepreneurs.the is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Diligence Entrepreneurs.the 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Diligence Entrepreneurs.the with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Diligence Entrepreneurs.the needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Finance & Accounting industry regulations.
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 Diligence Entrepreneurs.the.
Technology acceleration in Forth Industrial Revolution
– Diligence Entrepreneurs.the has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Diligence Entrepreneurs.the needs to keep up with the evolution of technology in the Finance & Accounting sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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. Diligence Entrepreneurs.the 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.
Stagnating economy with rate increase
– Diligence Entrepreneurs.the 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.
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.
Increasing wage structure of Diligence Entrepreneurs.the
– 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 Diligence Entrepreneurs.the.
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 Ask the Right Questions and Build Rapport During Due Diligence 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 Ask the Right Questions and Build Rapport During Due Diligence 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 Ask the Right Questions and Build Rapport During Due Diligence 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 Ask the Right Questions and Build Rapport During Due Diligence 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 Ask the Right Questions and Build Rapport During Due Diligence 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 Diligence Entrepreneurs.the needs to make to build a sustainable competitive advantage.