Case Study Description of Knowledge Sharing at REMA 1000 (A)
A year after Norwegian grocery chain REMA 1000 adopted Workplace, Facebook's corporate social media network, CHRO Tore Hoylie is asked to evaluate its impact on company culture and communication. Almost 90% of the workforce is engaged with the platform, which they use to communicate with colleagues across the decentralized chain of independent outlets. However, there are some concerns that the site is overloaded with information and difficult to navigate. Hoylie must decide whether to try to improve the platform or look for an alternative. If REMA keeps Workplace, how can REMA improve the way employees interact with it?
Swot Analysis of "Knowledge Sharing at REMA 1000 (A)" written by Tatiana Sandino, Olivia Hull includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rema Hoylie facing as an external strategic factors. Some of the topics covered in Knowledge Sharing at REMA 1000 (A) case study are - Strategic Management Strategies, IT, Knowledge management, Networking, Social platforms, Workspaces and Organizational Development.
Some of the macro environment factors that can be used to understand the Knowledge Sharing at REMA 1000 (A) casestudy better are - – challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, geopolitical disruptions,
increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Knowledge Sharing at REMA 1000 (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Knowledge Sharing at REMA 1000 (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rema Hoylie, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rema Hoylie 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 Knowledge Sharing at REMA 1000 (A) can be done for the following purposes –
1. Strategic planning using facts provided in Knowledge Sharing at REMA 1000 (A) case study
2. Improving business portfolio management of Rema Hoylie
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Rema Hoylie
Strengths Knowledge Sharing at REMA 1000 (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Rema Hoylie in Knowledge Sharing at REMA 1000 (A) Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Rema Hoylie 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.
Innovation driven organization
– Rema Hoylie is one of the most innovative firm in sector. Manager in Knowledge Sharing at REMA 1000 (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Rema Hoylie in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Rema Hoylie 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 Knowledge Sharing at REMA 1000 (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Organizational Development industry
– Knowledge Sharing at REMA 1000 (A) firm has clearly differentiated products in the market place. This has enabled Rema Hoylie to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Rema Hoylie to invest into research and development (R&D) and innovation.
High brand equity
– Rema Hoylie has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Rema Hoylie to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Organizational Development field
– Rema Hoylie 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 Rema Hoylie in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Rema Hoylie 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 Rema Hoylie is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Knowledge Sharing at REMA 1000 (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Rema Hoylie is present in almost all the verticals within the industry. This has provided firm in Knowledge Sharing at REMA 1000 (A) 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.
Analytics focus
– Rema Hoylie 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 Tatiana Sandino, Olivia Hull 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.
Successful track record of launching new products
– Rema Hoylie has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Rema Hoylie 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.
Organizational Resilience of Rema Hoylie
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Rema Hoylie does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Knowledge Sharing at REMA 1000 (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Knowledge Sharing at REMA 1000 (A) are -
Capital Spending Reduction
– Even during the low interest decade, Rema Hoylie 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Rema Hoylie is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Knowledge Sharing at REMA 1000 (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential 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 Rema Hoylie supply chain. Even after few cautionary changes mentioned in the HBR case study - Knowledge Sharing at REMA 1000 (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Rema Hoylie vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Knowledge Sharing at REMA 1000 (A) 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 Knowledge Sharing at REMA 1000 (A) can leverage the sales team experience to cultivate customer relationships as Rema Hoylie is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Knowledge Sharing at REMA 1000 (A) 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 Rema Hoylie 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Rema Hoylie, firm in the HBR case study Knowledge Sharing at REMA 1000 (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Rema Hoylie is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Rema Hoylie needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Rema Hoylie to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Rema Hoylie 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.
Slow to strategic competitive environment developments
– As Knowledge Sharing at REMA 1000 (A) HBR case study mentions - Rema Hoylie 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.
Lack of clear differentiation of Rema Hoylie products
– To increase the profitability and margins on the products, Rema Hoylie needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Rema Hoylie 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 Knowledge Sharing at REMA 1000 (A) | 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 Knowledge Sharing at REMA 1000 (A) are -
Buying journey improvements
– Rema Hoylie can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Knowledge Sharing at REMA 1000 (A) 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, Rema Hoylie is facing challenges because of the dominance of functional experts in the organization. Knowledge Sharing at REMA 1000 (A) 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
– Rema Hoylie 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 Knowledge Sharing at REMA 1000 (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Rema Hoylie to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Rema Hoylie 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
– Rema Hoylie can develop new processes and procedures in Organizational Development 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.
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. Rema Hoylie can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Rema Hoylie has opened avenues for new revenue streams for the organization in the industry. This can help Rema Hoylie to build a more holistic ecosystem as suggested in the Knowledge Sharing at REMA 1000 (A) case study. Rema Hoylie can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Rema Hoylie 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.
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 Rema Hoylie 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.
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 Rema Hoylie in the consumer business. Now Rema Hoylie can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Rema Hoylie to increase its market reach. Rema Hoylie 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 Rema Hoylie 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 Rema Hoylie to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Rema Hoylie 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.
Threats Knowledge Sharing at REMA 1000 (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Knowledge Sharing at REMA 1000 (A) are -
Consumer confidence and its impact on Rema Hoylie demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing wage structure of Rema Hoylie
– 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 Rema Hoylie.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Rema Hoylie can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Rema Hoylie 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.
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.
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. Rema Hoylie 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.
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. Rema Hoylie needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Rema Hoylie with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Rema Hoylie 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. Rema Hoylie can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Rema Hoylie in the Organizational Development industry. The Organizational Development 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 Rema Hoylie business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Rema Hoylie 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 acceleration in Forth Industrial Revolution
– Rema Hoylie has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Rema Hoylie needs to keep up with the evolution of technology in the Organizational Development 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.
Weighted SWOT Analysis of Knowledge Sharing at REMA 1000 (A) 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 Knowledge Sharing at REMA 1000 (A) 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 Knowledge Sharing at REMA 1000 (A) 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 Knowledge Sharing at REMA 1000 (A) 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 Knowledge Sharing at REMA 1000 (A) 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 Rema Hoylie needs to make to build a sustainable competitive advantage.
