Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors
Most CEOs have detailed long-term plans, which are often closely held secrets out of concern that competitive advantage may be undermined by detailed disclosure. Yet disclosing a long-term plan provides an opportunity to identify financially material sustainability issues and demonstrate how the company manages business-critical issues -information that's valuable to investors.
Swot Analysis of "Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors" written by Tim Youmans, Brian Tomlinson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Term Detailed facing as an external strategic factors. Some of the topics covered in Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors casestudy better are - – central banks are concerned over increasing inflation, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , technology disruption, there is backlash against globalization, geopolitical disruptions, increasing commodity prices,
challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Term Detailed, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Term Detailed 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 Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors can be done for the following purposes –
1. Strategic planning using facts provided in Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors case study
2. Improving business portfolio management of Term Detailed
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 Term Detailed
Strengths Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Term Detailed in Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Term Detailed 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 Term Detailed in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Term Detailed
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Term Detailed does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Term Detailed in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Term Detailed 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 Term Detailed is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Term Detailed 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.
Effective Research and Development (R&D)
– Term Detailed 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 Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Term Detailed is present in almost all the verticals within the industry. This has provided firm in Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors 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.
Low bargaining power of suppliers
– Suppliers of Term Detailed in the sector have low bargaining power. Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Term Detailed to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Term Detailed is one of the most innovative firm in sector. Manager in Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Term Detailed 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.
High brand equity
– Term Detailed has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Term Detailed to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Strategy & Execution industry
– Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors firm has clearly differentiated products in the market place. This has enabled Term Detailed to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Term Detailed to invest into research and development (R&D) and innovation.
Weaknesses Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors are -
Aligning sales with marketing
– It come across in the case study Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors 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 Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors can leverage the sales team experience to cultivate customer relationships as Term Detailed is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Term Detailed 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, Term Detailed 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. Term Detailed 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, Term Detailed 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.
Need for greater diversity
– Term Detailed 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors 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 Term Detailed 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors, in the dynamic environment Term Detailed has struggled to respond to the nimble upstart competition. Term Detailed has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Term Detailed is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors 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 Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors, is just above the industry average. Term Detailed 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors, it seems that the employees of Term Detailed 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.
Slow to strategic competitive environment developments
– As Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors HBR case study mentions - Term Detailed 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.
Opportunities Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors | 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 Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Term Detailed can use these opportunities to build new business models that can help the communities that Term Detailed operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Better consumer reach
– The expansion of the 5G network will help Term Detailed to increase its market reach. Term Detailed 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.
Buying journey improvements
– Term Detailed can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors 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.
Manufacturing automation
– Term Detailed can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Creating value in data economy
– The success of analytics program of Term Detailed has opened avenues for new revenue streams for the organization in the industry. This can help Term Detailed to build a more holistic ecosystem as suggested in the Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors case study. Term Detailed can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Term Detailed 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. Term Detailed can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Term Detailed in the consumer business. Now Term Detailed can target international markets with far fewer capital restrictions requirements than the existing system.
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. Term Detailed can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Term Detailed 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Term Detailed 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, Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Term Detailed 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.
Leveraging digital technologies
– Term Detailed 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.
Threats Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors are -
Technology acceleration in Forth Industrial Revolution
– Term Detailed has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Term Detailed needs to keep up with the evolution of technology in the Strategy & Execution 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors, Term Detailed 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Term Detailed 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 Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors .
Environmental challenges
– Term Detailed 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. Term Detailed can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Term Detailed in the Strategy & Execution sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Term Detailed 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.
Regulatory challenges
– Term Detailed 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Term Detailed in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Term Detailed can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Term Detailed 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. Term Detailed 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.
Shortening product life cycle
– it is one of the major threat that Term Detailed is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors 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 Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors 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 Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors 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 Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors 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 Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors 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 Term Detailed needs to make to build a sustainable competitive advantage.
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