Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications

Since the industrial revolution, we have been living in a linear economy. Our consumer and "single use" lifestyles have made the planet a "take, make, dispose" world. This refers to a unidirectional model of production: natural resources provide our factory inputs, which are then used to create mass-produced goods to be purchased and, typically, disposed after a single use. This linear economy model of mass production and mass consumption is testing the physical limits of the globe. It is, therefore, unsustainable and a shift toward a circular economy is becoming inevitable.

Authors :: Mark Esposito, Terence Tse, Khaled Soufani

Topics :: Strategy & Execution

Tags :: Economy, Sustainability, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications" written by Mark Esposito, Terence Tse, Khaled Soufani includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mass Economy facing as an external strategic factors. Some of the topics covered in Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications case study are - Strategic Management Strategies, Economy, Sustainability and Strategy & Execution.

Some of the macro environment factors that can be used to understand the Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications casestudy better are - – increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, increasing transportation and logistics costs, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc

---

---

---

---

Introduction to SWOT Analysis of Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mass Economy, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mass Economy 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 Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications can be done for the following purposes –
1. Strategic planning using facts provided in Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications case study
2. Improving business portfolio management of Mass Economy
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 Mass Economy

---

Strengths Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Mass Economy in Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications Harvard Business Review case study are -

Highly skilled collaborators

– Mass Economy 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 Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Digital Transformation in Strategy & Execution segment

- digital transformation varies from industry to industry. For Mass Economy digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mass Economy 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

– Mass Economy has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mass Economy 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.

Low bargaining power of suppliers

– Suppliers of Mass Economy in the sector have low bargaining power. Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mass Economy to manage not only supply disruptions but also source products at highly competitive prices.

Learning organization

- Mass Economy 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 Mass Economy is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Analytics focus

– Mass Economy 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 Mark Esposito, Terence Tse, Khaled Soufani 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.

High switching costs

– The high switching costs that Mass Economy 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.

Training and development

– Mass Economy has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Strong track record of project management

– Mass Economy 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

– Mass Economy is present in almost all the verticals within the industry. This has provided firm in Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications 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.

Sustainable margins compare to other players in Strategy & Execution industry

– Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications firm has clearly differentiated products in the market place. This has enabled Mass Economy to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Mass Economy to invest into research and development (R&D) and innovation.

Organizational Resilience of Mass Economy

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mass Economy does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

---

---

Weaknesses Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications are -

Increasing silos among functional specialists

– The organizational structure of Mass Economy is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Mass Economy needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mass Economy to focus more on services rather than just following the product oriented approach.

Interest costs

– Compare to the competition, Mass Economy 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.

Need for greater diversity

– Mass Economy 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 cash cycle compare to competitors

Mass Economy 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.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications 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 Mass Economy has relatively successful track record of launching new products.

Low market penetration in new markets

– Outside its home market of Mass Economy, firm in the HBR case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mass Economy is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Capital Spending Reduction

– Even during the low interest decade, Mass Economy 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.

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 Mass Economy supply chain. Even after few cautionary changes mentioned in the HBR case study - Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mass Economy vulnerable to further global disruptions in South East Asia.

High operating costs

– Compare to the competitors, firm in the HBR case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications 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 Mass Economy 's lucrative customers.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications, in the dynamic environment Mass Economy has struggled to respond to the nimble upstart competition. Mass Economy has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

---

Opportunities Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications | 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 Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications are -

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Mass Economy 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. Mass Economy 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.

Leveraging digital technologies

– Mass Economy 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mass Economy can use these opportunities to build new business models that can help the communities that Mass Economy operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mass Economy 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 Mass Economy 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, Mass Economy 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, Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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 Mass Economy 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.

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. Mass Economy 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

– Mass Economy can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications 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.

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. Mass Economy can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Building a culture of innovation

– managers at Mass Economy 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.

Better consumer reach

– The expansion of the 5G network will help Mass Economy to increase its market reach. Mass Economy 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.

Learning at scale

– Online learning technologies has now opened space for Mass Economy 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Mass Economy 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.

---

Threats Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications are -

Technology acceleration in Forth Industrial Revolution

– Mass Economy has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Mass Economy 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.

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 Mass Economy business can come under increasing regulations regarding data privacy, data security, etc.

Stagnating economy with rate increase

– Mass Economy 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.

Environmental challenges

– Mass Economy 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. Mass Economy 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 Mass Economy in the Strategy & Execution sector and impact the bottomline of the organization.

Increasing wage structure of Mass Economy

– 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 Mass Economy.

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.

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. Mass Economy needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Mass Economy 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 Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications .

Consumer confidence and its impact on Mass Economy 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications, Mass Economy 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 .

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. Mass Economy 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.

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 Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications 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 Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications 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 Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications 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 Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications 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 Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications 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 Mass Economy needs to make to build a sustainable competitive advantage.

--- ---