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 - – there is backlash against globalization, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , increasing commodity prices,
digital marketing is dominated by two big players Facebook and Google, increasing energy prices, 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 -
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.
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.
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.
Highly skilled collaborators
– Term Detailed 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 Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Term Detailed digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Term Detailed 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.
Successful track record of launching new products
– Term Detailed has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Term Detailed 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.
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.
Strong track record of project management
– Term Detailed is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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 -
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.
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.
No frontier risks strategy
– After analyzing the HBR case study Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors, 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.
Interest costs
– Compare to the competition, Term Detailed 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 Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors 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 Term Detailed has relatively successful track record of launching new products.
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.
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.
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.
Lack of clear differentiation of Term Detailed products
– To increase the profitability and margins on the products, Term Detailed needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Term Detailed supply chain. Even after few cautionary changes mentioned in the HBR case study - Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Term Detailed vulnerable to further global disruptions in South East Asia.
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.
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 -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Term Detailed in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution 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 Term Detailed can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Term Detailed is facing challenges because of the dominance of functional experts in the organization. Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Using analytics as competitive advantage
– Term Detailed 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 Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Term Detailed to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Term Detailed 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.
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.
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 Term Detailed 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Term Detailed 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.
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.
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 -
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 .
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.
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 Term Detailed.
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.
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.
Consumer confidence and its impact on Term Detailed 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.
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.
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.
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.
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.
High dependence on third party suppliers
– Term Detailed 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.
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.
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 Term Detailed business can come under increasing regulations regarding data privacy, data security, 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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